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Hourly Rate Calculator in the Philippines

Harvest provides a seamless solution for freelancers and teams to track time and manage invoices, addressing the specific needs of hourly workers in the Philippines.

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What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
$
Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

Understanding the Basics: What is an Hourly Rate in the Philippines?

An hourly rate in the Philippines is a crucial figure that helps determine fair compensation for employees and freelancers. It is typically calculated by dividing the daily wage by the standard eight-hour workday, ensuring workers are paid accurately for their time. For monthly-paid employees, the formula becomes more intricate: (Monthly Rate x 12) / total working days in a year / 8. This calculation reflects regional wage variations set by the Department of Labor and Employment (DOLE) and the National Wages and Productivity Commission (NWPC).

In the National Capital Region (NCR), for instance, the daily minimum wage for the non-agriculture sector is PHP 645.00, translating to an hourly rate of PHP 80.63. Understanding these figures is essential for both employers and employees to ensure compliance and fair pay. The role of DOLE in setting these standards is pivotal, as it ensures wages reflect economic conditions and cost of living variations across different regions.

Navigating Minimum Wage: Regional Differences and Updates

In the Philippines, minimum wage rates vary significantly across different regions, a reflection of diverse economic conditions and living costs. These wages are determined by the Regional Tripartite Wages and Productivity Boards under the guidance of the DOLE. For example, as of July 17, 2024, the daily minimum wage in the NCR for non-agricultural sectors is set at PHP 645.00, while in the agricultural sector, it's slightly lower at PHP 608.00.

Other regions exhibit different rates. In Region X (Northern Mindanao), the daily wage ranges from PHP 485.00 to PHP 500.00, translating to hourly rates between PHP 60.63 and PHP 62.50. These variations highlight the importance of consulting the latest regional wage orders to ensure compliance with local standards. Moreover, these wages are periodically reviewed to account for inflation and changing economic landscapes, ensuring a fair living standard for all workers.

Beyond Regular Hours: Overtime, Night Shift, and Holiday Pay

Understanding compensation beyond regular working hours is essential for both employers and employees in the Philippines. Overtime pay, for instance, is mandatory for work exceeding the standard eight-hour day, with a minimum of 25% added to the regular hourly rate during regular workdays. This increases to 30% on rest days or special non-working holidays. For instance, if an employee in the NCR earns PHP 80.63 per hour, their overtime pay could be PHP 100.79 on a regular day.

Night shift differential is another crucial component, offering an additional 10% for work between 10:00 PM and 6:00 AM. This premium can increase up to 20% depending on company policies. Additionally, holiday pay is structured to ensure employees are compensated fairly whether they work or not during regular or special non-working holidays. For worked regular holidays, employees earn 200% of their daily rate, ensuring equitable compensation for their time.

Calculate Hourly Rates with Harvest

See how Harvest calculates hourly rates in the Philippines, including tax deductions and contributions, for accurate payroll management.

Harvest dashboard showing hourly rate calculator for the Philippines.

Hourly Rate Calculator in the Philippines FAQs

  • To convert a monthly salary to an hourly rate in the Philippines, divide the monthly rate by the total working days in a year, then by 8 hours. For example, using a 261-day work year: (Monthly Salary x 12) / 261 / 8.

  • In the Philippines, mandatory payroll deductions include contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). These are essential for social benefits and are calculated based on your salary bracket.

  • Overtime pay in the Philippines is calculated by adding 25% to your regular hourly rate for work beyond 8 hours on regular days. On rest days or special non-working holidays, this increases to 30%, ensuring you're fairly compensated for extra hours worked.

  • The night shift differential in the Philippines is an additional 10% of your regular wage for work done between 10 PM and 6 AM. Some companies may offer up to a 20% premium, depending on their policies.

  • On regular holidays, if you work, you receive 200% of your daily rate for eight hours. If you don't work, you still receive 100%. On special non-working days, working earns you 130% of your daily rate, while not working usually means no pay unless otherwise stated by company policy.

  • Freelancers in the Philippines aren't automatically subject to the same deductions as employees, but they must still contribute to SSS, PhilHealth, and Pag-IBIG independently. They should also manage their own tax payments according to their earnings.

  • Harvest allows you to efficiently track both billable and non-billable hours with one-click timers and manual entry options. This helps you manage projects and invoices, ensuring accurate earnings tracking and client billing.

  • Yes, Harvest includes expense tracking features that allow you to capture receipts and manage project budgets effectively, ensuring all costs are accounted for in your billing process.