Working Hours and Overtime in The Philippines

What Are the Standard Working Hours in the Philippines?

In the Philippines, the standard working hours for employees are set at a maximum of eight hours per day, exclusive of a one-hour meal break. This typically results in a 48-hour workweek, with standard working days running from Monday through Saturday. Employees are entitled to a minimum meal interval of 60 minutes, which must be observed by those who work more than eight hours in a day.

Maximum Working Hours in the Philippines

The Labor Code of the Philippines stipulates that the normal hours of work for an employee shall not exceed eight hours a day. However, work may be performed beyond this limit, provided that the employee is compensated for the overtime work with an additional pay of at least 25% of their regular wage. Exceptions to this rule include cases of national emergencies, urgent work to prevent loss or damage to perishable goods, or when urgent repairs are needed on machinery to avoid serious loss.

Industry-Specific Exceptions

Certain industries in the Philippines have unique working hour regulations. For instance, healthcare personnel in cities or municipalities with a population of at least one million, or in hospitals and clinics with a bed capacity of at least 100, may have different working hours due to the nature of their work. These exceptions are designed to ensure that essential services remain uninterrupted while still protecting the rights and well-being of employees.

Managerial and Exempt Employees

Under Philippine labor laws, managerial employees are those whose primary duty is to manage the establishment or a department, who customarily and regularly direct the work of two or more employees, and who have the authority to hire or fire other employees. These employees are generally exempt from standard working hour regulations and are not entitled to overtime pay. Similarly, officers or members of a managerial staff who perform work directly related to management policies and who exercise discretion and independent judgment are also exempt.

Statutory Full-Time Working Hours in the Philippines

Full-time employment in the Philippines is legally defined as working eight hours per day, six days a week, totaling 48 hours per week. This standard applies across various industries and roles, ensuring a uniform understanding of full-time work. However, certain sectors may implement different working hours based on operational needs, provided they comply with labor laws and regulations.

Overtime Regulations in the Philippines

Overtime work in the Philippines refers to any work performed beyond the standard eight hours per day. The Labor Code mandates that employees be compensated for overtime work with additional pay, the rate of which varies depending on when the overtime is performed.

What Counts As Overtime in the Philippines?

Any work performed beyond the standard eight-hour workday is considered overtime. This includes work done during regular working days, as well as work performed on rest days, special non-working days, and regular holidays.

Maximum Overtime in the Philippines

While the law does not specify a strict maximum number of overtime hours, it emphasizes that overtime should not be excessive and must be consensual between the employer and employee. Employers requiring overtime work must ensure that it is within reasonable limits and that employees are adequately compensated. Failure to comply with overtime regulations can result in penalties, including fines and potential imprisonment, as determined by the Department of Labor and Employment.

Overtime Payout Rates in the Philippines

The standard overtime pay rate is an additional 25% of the employee's regular hourly wage for work performed beyond eight hours on regular working days. For overtime work on rest days, special non-working days, or regular holidays, the overtime pay rate increases to an additional 30% of the regular hourly wage. These rates ensure that employees are fairly compensated for extended working hours.

Overtime pay is not applicable to employees in supervisory or managerial positions.

Rest Periods and Breaks in the Philippines

Employees are entitled to a meal break of not less than 60 minutes, which is not included in the computation of working hours. Short rest periods during working hours are counted as hours worked. Employers are responsible for ensuring that these rest periods are provided and that employees are not required to work during their meal breaks. Specific industries may have additional regulations regarding rest periods to address unique working conditions.

Night Shifts and Weekend Regulations

Work performed between 10:00 PM and 6:00 AM is considered night shift work. Employees engaged in night shift work are entitled to a night shift differential pay of not less than 10% of their regular wage for each hour worked during this period. For work performed on rest days and special non-working days, employees are entitled to an additional compensation of at least 30% of their regular wage. These provisions ensure that employees are compensated for work performed during less desirable hours.

How Playroll Simplifies Employer Responsibilities and Compliance

Expanding your workforce across international borders is an exciting step, but it can be challenging to keep up with ever-changing local labor laws and regulations in different countries. That’s the advantage of using an Employer of Record like Playroll:

• ‍Scale your global team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading the HR admin to Playroll, so you can freely explore new markets and focus on growth.
• Stay compliant: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for working hours, overtime regulations, and more.
• ‍Pay your team accurately: Ensure your international employees and global contractors are paid on time, every time, and set up centralized global payroll processes.