Extra compensation for overtime work
Dear PAO,
I am employed in a retail clothing store located in a mall. To my knowledge, the regular working hours are only eight hours. However, there are times when our manager requires us to work for 10 hours. Should the overtime of two hours be compensated?
Alyssa
Dear Alyssa,
Please be informed of Articles 83 and 87 of Book Three, Title 1, Chapter 1 of the Labor Code, which state that:
“Article. 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight (8) hours a day. xxx
“Article 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twentyfive percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.”
Based on the above-stated provisions, the normal hours of work in the Philippines are set at eight hours. If an employee works longer than that, he or she must be paid overtime pay. This includes an additional compensation of 25 percent of his or her regular work wage. In your case, since there are times that you work more than eight hours, the extra hours must be compensated.
Further, in the case of Zonio v. 1st Quantum Leap Security Agency Inc. (GR 224944, May 5, 2021), the Supreme Court, through Associate Justice Mario Lopez, held that “Entitlement to overtime pay must first be established by proof that said overtime work was actually performed, before an employee may avail of said benefit. The same is true for premium pay for holidays and rest days because these benefits are not incurred in the normal course of business.”
Hence, the rendition of overtime work and the submission of sufficient proof that said work was actually performed are conditions to be satisfied before one could be entitled to overtime pay.
We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.