What are full-time hours? (Plus how to compute for overtime work)

Understanding full-time hours and labor regulations can help employees receive fair treatment. It can also help employers comply with the law and promote job security. In the Philippines, full-time status usually means working eight-hour days, five days a week, totaling 40 hours per week.

This guide can give you a basic idea of working hours, days off, and overtime laws. Here's what we'll cover:

• Definition of full-time hours
• Employee rights and protections regarding working hours
• Employer responsibilities regarding working hours
• Do I get overtime pay when I exceed my full-time hours?
• Rest days and breaks entitlements in the Philippines
• Conclusion
• FAQs

Definition of full-time hours

Full-time work hours refer to an employee's standard working hours. Many full-time and salaried employees work a total of 40 hours per week. This consists of eight-hour shifts five days a week from 8 a.m. to 5 p.m. The usual schedule is Monday to Friday and includes a one-hour lunch break.

Some industries have different schedules and rules to follow. Regardless of the industry, companies must still follow the government's labor laws. For example, a full-time employee working in the business process outsourcing sector may follow a shifting schedule. Some workers may start their workday during the afternoon or evening shift.

In health care and transportation, work-hour rules are crucial to promote employee health and service continuity. It's vital to know how to define full-time employment in your industry. This knowledge clarifies your rights and responsibilities as a full-time employee or employer.

Employee rights and protections regarding working hours

Part-time and full-time employees have rights and protections concerning working hours. These include:

Maximum working hours

Full-time employees have the right to work a maximum of eight hours a day. Consider any work beyond these maximum hours as overtime. These don't include breaks of at least 60 minutes. 

Overtime pay

Full-time employees who work beyond the standard hours earn overtime pay. This is usually at a rate of 125% of their regular hourly pay. This increases to 130% if they work on their rest day or holidays.

Rest days and breaks

Employers must give employees rest periods. These include periods of at least 24 consecutive hours after six consecutive days of work. Additionally, employees should receive a 60-minute meal break each work day. Breaks within five and 20 minutes are part of their working hours.

Enforcement and recourse

The Department of Labor and Employment (DOLE) enforces these rights. Employees can file complaints with the department if they believe there's a violation of their rights. The DOLE investigates complaints and may enforce penalties on employers who violate labor laws. Employees also have the right to seek legal recourse through labor courts or tribunals if their employers consistently violate their rights.

Employer responsibilities regarding working hours

Here's a short list of employer responsibilities: 

• Work scheduling: Employers are responsible for establishing work schedules that adhere to the legal eight-hour working days for full-time employees. They should also ensure that employees have proper rest periods and meal breaks as the law mandates.
• Overtime management: Employers must accurately track and compensate employees for overtime work beyond the regular hours. This includes paying overtime rates and providing options for off-in-lieu arrangements where applicable.
• Rest days management: Employers should provide full-time employees with proper rest days. They should also compensate employees accordingly if they work on their scheduled rest day.
• Compliance with regulations: Employers must comply with labor laws regarding working hours, breaks, and additional compensation. They should stay updated on any changes in the labor laws and make necessary adjustments to their work policies and practices to ensure compliance.
• Monitoring and record-keeping: Employers need to maintain accurate records of employees' work hours, breaks, and overtime to meet federal government regulations. Regularly reviewing and auditing these records can help identify any discrepancies or areas for improvement.
• Employee communication: Employers should communicate work schedules, rest periods, and overtime policies to employees to ensure they understand their rights and entitlements. Clear communication helps prevent misunderstandings and minimizes disputes related to working hours.

By proactively managing their employees' full-time schedules, ensuring compliance with labor regulations, and fostering a culture of transparency and communication, employers can create a positive work environment that upholds the rights and well-being of their workforce.

Do I get overtime pay when I exceed my full-time hours?

According to labor laws, full-time workers can receive overtime pay when they work more hours than their normal schedule. This applies to part-time and full-time employment. Understanding the rules and regulations regarding overtime work can ensure employees and employers uphold fair labor practices and comply with the law.

Read on for a breakdown of proper compensation for overtime work.

How to calculate overtime pay

Your overtime pay depends on your hourly rate and when you worked. It's an additional payment of at least 25% of your hourly rate on an ordinary working day. This figure increases to 30% when you work extra on your rest day, a regular holiday, or a special non-working day. Here are more details:

Overtime hours on ordinary working days

Overtime work is typically 125% of your regular hourly rate as a full-time employee. Here are the steps to compute your overtime and total pay when you work beyond eight hours:

1. Calculate your hourly rate: Divide your daily rate by eight (your hours).
2. Get your overtime hourly rate: Multiply your hourly rate by 125% or 1.25.
3. Compute your overtime wage: Multiply your overtime hourly rate by the number of hours you worked above eight hours.
4. Know your total compensation for the day: Add your overtime earnings to your daily rate.

Here's how to determine your regular overtime pay:

Hourly rate × 125% × number of overtime hours worked

If your daily rate is ₱2,000, your hourly rate is ₱250. If you worked overtime for three hours, you get ₱937.50 as your overtime earnings. Your compensation for the day adds up to ₱2,937.50.

Simplified sample computation:

₱2,000 (daily rate) ÷ 8 (regular hours) = ₱250 (hourly rate)

₱250 x 1.25 = ₱312.5 (overtime hourly rate)

₱312.5 x 3 (number of overtime hours worked) = ₱937.50 (overtime pay)

Putting it all together:

₱2000 + ₱937.50 = ₱2937.50 (TOTAL PAY FOR THE DAY)

Overtime wages on a regular holiday

Regular holidays often hold national, religious, or cultural significance. They're fixed events that Filipinos typically celebrate or observe nationwide. Work suspensions are usual during these days. You still receive your daily wage even if you don't come to work on a regular holiday.

If you work on a regular holiday like Christmas or New Year's Day, your employer must provide you with holiday pay. This is 100% of your daily rate. It means you take home twice the amount you earn on an ordinary working day.

When you work overtime, you receive an additional 30% of your hourly rate for each extra hour. The steps to know your pay on a regular holiday are similar to what we gave above. Just double your usual rate to account for holiday pay.

Here's how to calculate your overtime earnings when you work on a regular holiday:

Hourly rate × 200% × 130% × number of overtime hours worked

Let's use the previous example. If you worked on Christmas, your hourly rate increases from ₱250 to ₱500 because of holiday pay. If you worked an extra hour, your overtime wage is ₱650. Your total compensation for the day is ₱4,650 because you have to multiply your daily rate by 200%. 

Simplified sample computation:

₱250 x 2 = ₱500 (regular holiday hourly rate)

₱500 x 8 (regular hours worked) = ₱4000 (regular holiday pay)

₱500 x 1.3 = ₱650 (regular holiday overtime hourly rate)

₱650 x 1 (number of overtime hours worked) = ₱650 (regular holiday overtime pay)

Putting it all together:

₱4000 + ₱650 = ₱4650 (TOTAL PAY FOR THE DAY)

Overtime earnings on a special non-working day

Special non-working days differ from regular holidays. These don't always commemorate special occasions. The president may declare a special non-working day for various reasons, such as an election.

When you don't work on a special non-working day, the principle of "no work, no pay" applies. But if you do, your employer has to pay you 130% of your daily rate. 

If you work overtime on a special non-working day, the rules for regular holidays apply. You get an additional 30% of your hourly rate for each hour you work.

Here's how to determine your overtime pay for a special non-working day:

Hourly rate × 130% x 130% × number of overtime hours worked

Let's again use the previous example. You worked on a special non-working day, such as the last day of the year (December 31). Your hourly rate for this day is ₱325 because you multiply ₱250 by 130%. Using the equation, if you worked three hours of overtime, you get an extra ₱1,267.50. This is on top of your standard daily rate, which becomes ₱2,600. Your total compensation for December 31 is ₱3,867.50.

Simplified sample computation:

₱250 x 1.3 = ₱325 (special non-working day hourly rate)

₱325 x 8 (regular hours worked) = ₱2600 (special non-working day pay)

₱325 x 1.3 = ₱422.5 (special non-working day overtime hourly rate)

₱422.5 x 3 (number of overtime hours worked) = ₱1267.50 (special non-working day overtime pay) 

Putting it all together:

₱2600 + ₱1267.50 = ₱3,867.50 (TOTAL PAY FOR THE DAY)

Exceptions and conditions

Certain employees or industries might have unique overtime agreements. For example, some companies don't observe the "no work, no pay" policy on special non-working days. Instead, they pay 100% of the daily rate even if you don't go to work. While organizations can do this, they can't fall below the legal rates. 

Some full-time employees don't receive overtime wages. These include government employees, field personnel, managerial employees, exempt employees, and managerial staff officers and members. Workers "paid by results" also don't receive overtime pay. These are individuals who perform task-based, non-time work like household help and piece-rate workers.

Rest days and breaks entitlements in the Philippines

Here are the required rest days and breaks for full-time workers and the compensation rules for working on rest days.

Rest days and break periods

According to Article 91 of the Labor Code, full-time employees should get 24 hours off after six consecutive work days. Employers must give at least 60 minutes for meals each day to comply with Article 85. The meal break for day shifts with longer hours typically falls around noon. This break isn't part of full-time employees' standard work hours. It explains why an eight-hour work day is 8 a.m. to 5 p.m. for many Filipinos. 

Compensation for work on rest days

Rest days are part of an employee's work schedule and full-time benefits. These are designated days when their employer doesn't require them to work. Many full-time employees have the weekend off. 

If you work on your rest day, you stand to receive the same compensation as when you work on a special non-working day. That's 30% of your daily rate as additional pay. If you worked overtime, you get another 30% of your hourly rest day rate. Use the formula above for special non-working days to calculate your overtime pay.

Pay on a regular holiday and rest day

Say you work on a regular holiday that's also your rest day. Aside from your holiday pay of 200%, you get an additional 30% because it's your designated rest day. Here's how to calculate your rest day regular holiday pay:

Daily rate × 200% × 130% 

If your daily rate is ₱2,000, your pay for an eight-hour shift on a regular holiday and rest day combo is ₱5,200. If you work overtime in this case, you receive another 30%. This applies to your hourly rate.

Here's how to determine your overtime pay:

Hourly rate × 200% × 130% × 130% × number of overtime hours worked

If we use the same example, your hourly rate is ₱250. If you worked two hours of overtime and used the formula above, you get ₱1,690. That's overtime pay. Your total compensation for the day is ₱6,890. 

Simplified sample computation:

₱250 x 2 x 1.3 = ₱650 (regular holiday + rest day hourly rate)

₱650 x 8 (regular hours worked) = ₱5200 (regular holiday + rest day pay)

₱650 x 1.3 = ₱845 (regular holiday + rest day overtime hourly rate)

₱845 x 2 (number of overtime hours worked) = ₱1690 (regular holiday + rest day overtime pay) 

Putting it all together:

₱5200 + ₱1690 = ₱6890 (TOTAL PAY FOR THE DAY)

Pay on a special non-working day and rest day

If you work on a special non-working day that falls on your rest day, your additional compensation is 50% of your daily rate. That's ₱3,000 if your rate is ₱2,000 per day. If you worked overtime, multiply your special hourly rate by 30% to know how much to add.

You can use this calculation:

Hourly rate × 150% × 130% × number of overtime hours worked

With a standard hourly rate of ₱250, your overtime pay per hour becomes ₱487.50. With two hours of extra work, your compensation for the day becomes ₱3,975. 

Simplified sample computation:

₱250 x 1.5 = ₱375 (special non-working holiday + rest day hourly rate)

₱375 x 8 (regular hours worked) = ₱3000 (special non-working holiday + rest day pay)

₱375 x 1.3 = ₱487.50 (special non-working holiday + rest day overtime hourly rate)

₱487.50 x 2 (number of overtime hours worked) = ₱975 (regular holiday + rest day overtime pay) 

Putting it all together:

₱3000 + ₱975 = ₱3,975 (TOTAL PAY FOR THE DAY)

Off-in-lieu guidelines

Employers may offer a full-time employee paid time off instead of extra pay for working on a rest day. They need to discuss the guidelines for off-in-lieu arrangements with full-time employees. Both parties should agree to them. 

Conclusion

Understanding and adhering to full-time hour regulations is essential for both employers and employees. These ensure a fair and productive work environment. Eight hours a day is the maximum legal full-time working hours in the Philippines. The weekly limit is 48 hours for private organizations and 40 hours for government offices.

By complying with labor regulations, employers can uphold the rights of their employees, promote work–life balance, and mitigate legal risks. For employees, knowing their rights regarding working hours safeguards their well-being and ensures they receive fair compensation for their time and effort. In cases of labor-related concerns or disputes, both parties can seek legal advice or assistance from DOLE or legal professionals specializing in labor law. Being well-informed and proactive in addressing labor issues can help maintain a harmonious and compliant work environment for everyone.

FAQs

Here are answers to common questions regarding this topic:

1. How many hours is a full-time job?
   ⁠Full-time jobs typically require working 40 hours per week. This is equal to eight working hours per day for five days. The specific number of hours per week can vary slightly depending on company policies.
   ⁠
2. Is 37.5 hours a full-time job?
   ⁠While some companies may consider fewer hours full-time, such as 37.5 hours, standard full-time jobs typically have a 40-hour workweek.
   ⁠
3. How are full-time hours calculated in the Philippines?
   ⁠There are two factors to consider when calculating full-time work hours. These are your daily schedule and the company's workweek. If you work eight hours a day over five days a week, the organization's schedule for full-time employees is 40 hours.
   ⁠
4. What are the maximum overtime hours in the Philippines?
   ⁠There are no regulations on how many hours you can work overtime in part-time employment or a full-time job. 
   ⁠
5. Do all countries have a 40-hour workweek?
   ⁠No, not all countries consider 40 hours a week as full-time. This figure can vary among countries based on their labor laws and regulations. Even in the Philippines, a working week can be 48 hours.
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6. How do you count overtime?
   ⁠Count how many hours you worked beyond the normal eight-hour schedule. If your company follows a CWW scheme, consider what constitutes full-time work hours. If it's 10 hours, anything beyond that is overtime work.
   ⁠
7. What is the difference between an off day and a rest day in the Philippines?
   ⁠Rest days are your scheduled days off from work. These are part of your work schedule. Off days may be in the form of holidays or paid time off, such as vacation time. You may need to request this time off work in advance.
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8. How do I calculate my overtime?
   ⁠Multiply your hourly rate by 125% for every hour of overtime on ordinary working days. For rest days and holidays, multiply by 130%. You need to determine your hourly rate first. This may change depending on when you work. If it's an ordinary day, you only need to divide your daily rate by eight (hours). If it's a regular holiday or special non-working day, you may need to consider additional compensation rates.