Holiday Pay When a Regular or Special Holiday Falls on an Employee’s Rest Day in the Philippines

1. Statutory Framework

Labor Code – Article 94 guarantees “holiday pay” equivalent to the employee’s regular daily wage even without work on a regular holiday; Article 91 defines the statutory rest-day entitlement.
Omnibus Rules Implementing the Labor Code – Rule IV, §§ 4-5 spell out the pay multipliers when an employee works on a holiday, and the extra 30 % premium when the holiday work happens on the worker’s scheduled rest day. ([PDF] 1i-\ ~s)~~~~ --------· -x - LawPhil)
Latest DOLE issuances – The most recent guidance is Labor Advisory No. 04-25 (25 March 2025), which reiterates exactly the same multipliers for Labor Day and other 2025 regular holidays. (DOLE issues pay rules for Labor Day - Inquirer.net, DoLE issues holiday pay rules - Daily Tribune)

Supreme Court jurisprudence (e.g., Torres v. Rural Bank of San Juan, G.R. No. 229396, 30 June 2021) consistently upholds the 30 % rest-day premium on top of the 200 % holiday rate. ([PDF] 1i-\ ~s)~~~~ --------· -x - LawPhil)

2. Key Concepts

Term	Meaning	Main Sources
Regular holiday	12 nationwide dates fixed by law or proclamation (e.g., 1 May, 25 Dec).	Art. 94; Proclamations on annual holidays
Special (non-working) day	Discretionary days such as Ninoy Aquino Day; “no-work-no-pay” default.	Exec. issuances; Art. 94 (by reference)
Rest day	At least 24 consecutive hours after six normal work-days; usually Sunday but may be any day by agreement.	Art. 91; Rule III, Book III
Covered employees	All except government personnel, managerial staff, field personnel paid on “output only” basis, and family members dependent on the employer.	Art. 82; 2023 DOLE Handbook (2023 Handbook on Workers Statutory Monetary Benefits by DOLE ...)

3. Pay Rules When a Regular Holiday Coincides with a Rest Day

No work performed
- Entitlement: 100 % of the daily wage (holiday pay), provided the employee was present or on paid leave on the work-day immediately preceding the holiday. (Holiday Pay on Employee Rest Days - Respicio & Co. Law Firm)
Work performed (≤ 8 hours)
- Pay = 260 % of the daily wage
  Formula: Daily Wage × 200 % + 30 % of that 200 % rate
  DOLE’s 2025 advisory, HR circulars, and multiple practitioner guides confirm this multiplier. (Labor Day 2025: DOLE releases holiday pay guidelines, Holiday Wages in the Philippines: Rules and Guidelines for ...)
Overtime (> 8 hours)
- Additional 30 % of the hourly rate on top of the 260 % for every hour in excess. ([PDF] 1i-\ ~s)~~~~ --------· -x - LawPhil)

Example

Daily wage: ₱700
Worked 10 hrs on a Labor-Day rest day

First 8 hrs:  ₱700 × 2.6  = ₱1 820  
OT hourly rate: (₱700/8) × 2.6 × 1.3 = ₱295.75  
OT pay (2 hrs): ₱295.75 × 2 = ₱591.50  
Total pay: ₱1 820 + ₱591.50 = ₱2 411.50

4. When a Special (Non-Working) Day Falls on a Rest Day

Situation	Pay Rule	Legal / DOLE basis
No work	No-work-no-pay (unless company policy/CBA provides otherwise)	2023 DOLE Handbook, Art. 94 (b)
Work ≤ 8 hrs	150 % of daily wage	Labor Advisory 04-25; DOLE 2025 holiday pay rules ([DOLE issues pay rules for 2025 PH holidays
Overtime	Add 30 % of hourly rate on top of 150 %	Same advisory; Omnibus Rules § 6

5. “Double Holidays” on a Rest Day

Two overlapping regular holidays (e.g., Araw ng Kagitingan & Maundy Thursday on the same date)
- 300 % if no work; 390 % (300 % + 30 %) if worked on rest day.
One regular + one special day
- Apply the higher regular-holiday formula (260 % if worked; 100 % if not) plus any special-day premium only if specifically provided by DOLE advisory.

6. Eligibility & Disqualification

Must be present or on authorized paid leave on the work-day immediately before the holiday (the so-called “qualification rule”).
Being on a rest-day the day before the holiday does not disqualify the employee.
Habitual absences, unexcused leave, or “no-work-no-pay” employment status (e.g., purely piece-rate field personnel) make the worker ineligible. (2023 Handbook on Workers Statutory Monetary Benefits by DOLE ..., Computation of Premium Pay - Labor Law PH)

7. Interaction with Other Wage Elements

Component	Interaction
Cost-of-living allowance (COLA)	For daily-paid workers, COLA is included when computing the percentage multipliers unless a wage order specifically excludes it.
Night-shift differential	Add 10 % of the basic hourly rate for hours worked between 10 p.m. and 6 a.m., on top of the holiday and rest-day premiums.
Service charges (hospitality sector)	The 85-15 distribution is computed on top of holiday pay.

8. Enforcement & Penalties

Failure to comply exposes employers to:

Money claims (3-year prescriptive period) recoverable through DOLE Regional Offices or NLRC arbitration.
Wage underpayment fines: ₱25 000–₱100 000 and/or imprisonment of 2–4 years under Art. 303.
Potential serious misconduct findings in labor standards inspections.

9. Best-Practice Checklist for Employers

Calendar rest-days and holidays early; re-confirm every year when Malacañang issues the annual holiday proclamation.
Issue a payroll memorandum showing the exact multiplier (e.g., 2.6 ×) whenever a holiday overlaps with a rest day.
Automate timekeeping so holiday hours, rest-day flags, and overtime are captured separately.
Communicate to employees the attendance requirement on the day before a holiday to avoid disputes.
Review CBAs – anything more favorable than the Labor Code prevails.

10. Frequently-Asked Questions

Question	Short Answer
Do monthly-paid employees still receive separate holiday pay?	Their fixed monthly salary already factors in pay for all regular holidays that fall on workdays; but 260 % (or 150 %) still applies when they work on a holiday that is also their rest day.
What if an employee swaps rest days?	The 30 % premium attaches to the day actually designated as the rest day for that week, whether Sunday or any other day.
Is “offsetting” allowed?	Yes, but only if mutually agreed and the employee still receives at least the monetary equivalent of the statutory premium.

11. Take-aways

An employee’s right to holiday pay does not disappear just because the holiday falls on his or her weekly rest day.

Working on that day attracts one of the highest pay multipliers in Philippine labor law (260 %); non-working employees are still paid their full daily wage if the holiday is regular.
All the percentages are floor rates—CBAs, company practice or more generous employer policies may improve them but may never go lower.

Disclaimer: This article summarizes prevailing Philippine statutes, DOLE issuances effective 30 April 2025, and Supreme Court doctrine. It is informational only and not a substitute for formal legal advice.