Saturday Pay Rules for Daily-Paid Workers in the Philippines
A Practitioner’s Guide (updated to June 2025)
1. Why Saturday Matters
Although the standard Philippine workweek is “six (6) consecutive working days” (Labor Code, Art. 91), many establishments either (a) operate Monday–Saturday, or (b) treat Saturday as the regular weekly rest day. Because daily-paid employees are covered by the strict “no-work-no-pay” principle, how an employer classifies Saturday has a direct and measurable impact on wages, premiums, attendance incentives, and statutory benefits.
2. Core Legal Sources
| Instrument | Key Sections Relevant to Saturday Pay |
|---|---|
| Labor Code (PD 442, as amended) | Arts. 91–96 (Hours & Rest), Arts. 99–103 (Wages, Premiums, Holiday Pay) |
| DOLE Handbook on Workers’ Statutory Monetary Benefits (latest rev. 2023) | Ch. IV (Premium Pay); Ch. II (Holiday Pay) |
| Labor Advisory No. 12-2021 | Clarifies premium pay when a special day falls on a rest day |
| Department Order (DO) 137-14 | Wage computation for daily-rated workers; links to Wage Orders |
| Regional Wage Orders & Implementing Rules | Fix the current statutory minimums (e.g., NCR WO-RB-NCR-25 set at ₱610/day as of July 2024) |
| Department Circular No. 1-2019 | 13th-month pay computation for daily-paid workers |
(Sector-specific issuances—e.g., DO 13 series 1998 for construction; DO 174 series 2017 for contracting/sub-contracting—supplement the general rules.)
3. Daily-Paid vs Monthly-Paid: The Wage Logic
| Item | Daily-Paid | Monthly-Paid |
|---|---|---|
| Earning formula | Paid only for days actually worked plus un-worked regular holidays that meet the eligibility test | Paid a guaranteed amount for all days of the month, whether worked or not, except absences without pay |
| Typical divisor | 261 days / year (ordinary) or 313 days if counted in advance to include all rest days & holidays |
26 days per month (for work weeks with 1 rest day) |
| Effect if Saturday is not worked | Employee receives no wage unless Saturday is a regular holiday qualified for holiday pay | Employee still receives full monthly salary |
4. Is Saturday a Regular Working Day or a Rest Day?
If Saturday is a Regular Working Day (six-day schedule)
- The daily rate (minimum or above) applies.
- Work beyond 8 hours triggers overtime +25 %.
- If Saturday is also a special day or regular holiday, see Sections 5–6.
If Saturday is the Employer-Scheduled Rest Day
- Unworked: No-work-no-pay.
- Worked (first 8 hrs): +30 % of basic daily wage ⇒ 130 %.
- Overtime on rest day: 130 % × 125 % = 169 % effective rate.
Employee-Selected Rest Day (religious ground)
- If mutually agreed, treat as “employer-scheduled” for pay purposes.
- Employer may not discriminate or reduce hours to defeat right to rest day.
5. When Saturday Coincides with a Regular Holiday
| Scenario | Pay Rule for Daily-Paid Worker |
|---|---|
| Unworked but present (or on paid leave) the day before | 100 % of basic wage (holiday pay) |
| Worked (≤ 8 hrs) | 200 % of basic wage |
| Worked, plus it is also Rest Day | 260 % (200 % × 130 %) |
| Worked Overtime | Add +30 % of hourly rate on top of applicable multiplier |
Eligibility test: The worker must be present or on paid leave on the workday immediately preceding the holiday (Labor Code, Art. 94).
6. When Saturday is a Special (Non-Working) Day
| Scenario | Pay Computation |
|---|---|
| Unworked | No pay (principle of “no-work-no-pay”) |
| Worked (≤ 8 hrs) | 130 % of basic wage |
| Worked & Saturday is Rest Day | 150 % (130 % × 115 %, per LA 12-2021) |
| Overtime | Add +30 % of hourly rate based on applicable multiplier |
7. Illustrative Payroll Examples (NCR minimum = ₱610/day)
| Situation | Formula | Amount |
|---|---|---|
| Saturday is regular day, 8 hrs | ₱610 × 100 % | ₱610 |
| Saturday rest day, employee works 8 hrs | ₱610 × 130 % | ₱793 |
| Saturday regular holiday, works 10 hrs | (₱610 × 200 %) + (OT 2 hrs × (₱610/8) × 30 %) | ₱1,220 + ₱45.75 = ₱1,265.75 |
| Saturday special day + rest day, 9 hrs | (₱610 × 150 %) + (OT 1 hr × (₱610/8) × 30 %) | ₱915 + ₱22.88 = ₱937.88 |
8. Interaction with Other Statutory Benefits
| Benefit | Saturday Impact for Daily-Paid |
|---|---|
| Night-Shift Differential | 10 % premium (Art. 92) applies even on rest-day OT between 10 p.m.–6 a.m. |
| Service Incentive Leave (SIL) | Daily-paid workers who render ≥ 1 year and are not field/retail-<10 data-preserve-html-node="true" employees are entitled to 5 paid SIL days; Saturday absences are counted in determining 12-month eligibility. |
| 13th-Month Pay | Compute using actual basic wages earned (including Saturday premiums but excluding OT and special day premiums). Daily-paid ≈ (Total basic pay Jan–Dec) / 12. |
| Pag-IBIG, SSS, PhilHealth | Contributions are based on actual monthly earnings; variable if the worker skips unpaid Saturdays. |
9. Industry-Specific Notes
| Sector | Typical Saturday Arrangement | Governing Issuance |
|---|---|---|
| Construction | Six-day week presumed; Saturday overtime common | DO 13-98; DOLE-BWC Advisories |
| Retail/Service (<10 data-preserve-html-node="true" workers) | Exempt from SIL & some premium rules but not from minimum wage | Labor Code Art. 93(d) |
| Security & Janitorial | 12-hr shifts; premium stacking (night diff + OT + rest day) | DO 150-2016 |
| BPO / IT-BPM | 5-day schedule is standard; Saturday often rest day → 130 % if worked | Labor Advisory No. 4-2018 |
10. Compliance Checklist for Employers
- Define workweek in writing (CBA, employment contract, or company policy).
- Timekeeping accuracy: biometrics + manual log to capture Saturday OT.
- Payroll templates that auto-apply premium multipliers per DOLE table.
- Display Wage Orders & latest DOLE advisories on the bulletin board.
- Maintain payslips showing separate entries for Saturday premiums (mandatory under RA 10395).
- Annual orientation—inform daily-rated workers about rest-day rights.
- Audit at least once a year; underpayment is subject to double indemnity (RA 8188) + possible criminal liability.
11. Enforcement & Remedies
- DOLE Regional Office: Single-Entry Approach (SEnA) for quick mediation.
- NLRC: Money claims within 3 years (Art. 306).
- Class/representative suits possible where there is commonality of claims.
- Criminal prosecution for willful wage underpayment (Art. 305).
12. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Our site runs Monday–Friday only. Do we still need to pay Saturday even if workers stay home? | No. Saturday is unpaid unless it falls on a paid regular holiday and the worker meets the holiday-pay eligibility test. |
| We want to change rest day from Sunday to Saturday. Can we? | Yes, with employee consultation (Art. 91) and proper notice; rest-day premium rules will shift accordingly. |
| If a regular holiday falls on Saturday and we’re on a 5-day week (Mon–Fri), are daily-paid workers entitled to the holiday pay? | Yes, provided they were present (or on paid leave) on Friday. |
| Do Saturday absences affect SIL or 13th-month pay? | Absence without pay on Saturday reduces total basic earnings and thus lowers 13th-month; it also counts toward the 60-day actual-work threshold for SIL eligibility. |
13. Key Take-Aways
- Whether Saturday is worked, unworked, or designated as rest day decisively changes the cost structure for daily-paid labor.
- Premium multipliers—130 %, 150 %, 200 %, 260 %—stack in predictable ways; correct payroll coding prevents under- or over-payment.
- Documentation (contracts, policies, time logs) is your strongest defense in any DOLE or NLRC proceeding.
- Regular refresher training for HR and payroll staff ensures alignment with the ever-shifting regional wage orders and DOLE advisories.
Prepared by: [Your Name / Firm] Labor & Employment Practice · Updated June 28 2025