Employees in the Philippines are entitled to different forms of compensation beyond their basic salary. These include night differential pay, holiday pay, and overtime pay. Understanding how these are computed helps you check if your salary and benefits are accurate.
Night Differential Pay Computation
Night differential pay is given for work between 10:00 PM and 6:00 AM. The law requires at least 10% of the hourly rate as an additional benefit.
Formula:
Night Differential = (Hourly Rate × 10%) × Night Hours
Example:
- Daily rate = ₱500
- Hourly rate = ₱62.50
- Worked 4 night hours = ₱25 extra
Holiday Pay Computation in the Philippines
Holiday pay ensures employees are fairly compensated during holidays.
- Regular Holiday Pay = Daily rate × 200% (if worked)
- Special Holiday Pay = Daily rate × 130% (if worked)
Example:
- ₱500 daily rate × 200% = ₱1,000 (regular holiday)
- ₱500 daily rate × 130% = ₱650 (special holiday)
Overtime Pay Computation
Overtime pay applies when employees work beyond 8 hours a day. The rate is 125% of the hourly rate.
Formula:
Overtime Pay = Hourly Rate × 125% × Overtime Hours
Example:
- Daily rate = ₱500
- Hourly rate = ₱62.50
- 2 hours overtime = ₱156.25
Salary Computation Summary
| Type of Pay | Rate | Example (₱500/day) |
|---|---|---|
| Night Differential Pay | +10% | ₱25 for 4 hrs |
| Regular Holiday Pay | 200% | ₱1,000 |
| Special Holiday Pay | 130% | ₱650 |
| Overtime Pay | 125% | ₱156.25 for 2 hrs |
Why These Computations Matter
Knowing how to compute night differential pay, holiday pay, and overtime pay helps protect your rights as a worker. For official guidelines, visit the Department of Labor and Employment (DOLE).
You can also try our Suweldo Calculator for quick salary calculations.