Short answer. Your regular wage plus at least twenty-five percent of it. Article 87 permits work beyond eight hours a day provided the employee is paid additional compensation equivalent to his regular wage plus at least 25% thereof. In practice that is 125% of the hourly rate, and 25% is a minimum.

What the law says

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 twenty-five percent (25%) thereof.

Labor Code, Article 87 — Overtime Work. Read the full provision →

How the article expresses the rate

The wording is: 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 twenty-five percent (25%) thereof. Read it as a formula for the overtime hour rather than as a top-up on the ordinary day. The hour is compensated at the regular wage with a further quarter of that wage added — a hundred and twenty-five percent of the hourly rate. Employers who pay only the twenty-five percent, treating the base hour as already covered by the daily rate, have misread the sentence.

The permission and the condition are one clause

Notice how the sentence is built. Work beyond eight hours may be performed, but the permission is expressed as conditional on payment. The Code does not treat overtime as ordinary work that happens to attract a premium; it treats the premium as the price of going beyond the eight-hour day. That framing is why arrangements purporting to fold overtime into a flat monthly figure, or to buy it out in advance, tend to run into trouble — the condition is attached to the hours actually worked.

The threshold is daily

Overtime is measured against eight hours a day. It is not a weekly or fortnightly average, and a light Tuesday does not absorb a long Wednesday. Article 88 makes the same point from the other direction, providing that undertime on any particular day shall not be offset by overtime on any other day. So each day is assessed on its own hours. Where a schedule varies, the calculation has to be done day by day, and a payroll system that nets the week is producing the wrong figure.

Where the disputes actually arise

Two things account for most of them. The first is what went into the regular wage used as the base, since a base computed too narrowly understates every overtime hour built on it. The second is whether the hours were recorded at all — work tolerated but not logged is the commonest gap. Keep your own record of daily start and finish times alongside the payslips, and check the base rate the payslip is using. Those two documents together let a lawyer test the computation quickly.

Related provisions

Note. Statute text quoted on this page is reproduced from the official enactment and is linked to the full provision. The explanation around it is general legal information from Vivas & Nobles Law Office, not legal advice. Whether it applies to your situation depends on facts only a lawyer reviewing them can assess.