In the Philippine labor landscape, the intersection of a regular holiday and an employee's scheduled rest day creates a unique "premium on premium" scenario. Governed by the Labor Code of the Philippines and the implementing rules issued by the Department of Labor and Employment (DOLE), specific mathematical formulas apply to ensure workers are justly compensated for the loss of their rest period or the added burden of working on a day of national significance.

1. The General Legal Framework

Under Book III, Title I, Chapter 3 of the Labor Code, a Regular Holiday is a day where employees are entitled to their daily basic wage even if they do not report for work. When this holiday coincides with a worker’s Scheduled Rest Day, the law provides for an additional premium if the employee is required to work.

The "Day Before" Rule

To be entitled to holiday pay (whether unworked or worked), the employee must:

Be present at work on the workday immediately preceding the holiday; OR
Be on a leave of absence with pay on the workday immediately preceding the holiday.

Note: If the day before the holiday is a non-working day or the employee’s rest day, they must be present on the day immediately preceding that non-working day.

2. Computation Scenarios

The computation differs significantly depending on whether the employee is resting or reporting for duty.

Scenario A: Regular Holiday Falling on a Rest Day (NOT WORKED)

Even if the holiday falls on the employee's rest day, they are entitled to 100% of their daily wage, provided they met the attendance requirements.

Formula: $$\text{Daily Basic Rate (DBR)} \times 100%$$

Scenario B: Regular Holiday Falling on a Rest Day (WORKED)

If an employer requires an employee to work on a regular holiday that also happens to be their scheduled rest day, the employee is entitled to a total of 260% of their daily basic rate.

This is broken down as follows:

200% for the Regular Holiday.
30% of the 200% (which equals 60%) as a premium for working on a rest day.

Formula: $$(\text{DBR} \times 200%) + [30% \times (\text{DBR} \times 200%)] = \text{DBR} \times 260%$$

Scenario C: Overtime on a Regular Holiday falling on a Rest Day

If the employee works beyond eight (8) hours on such a day, the overtime (OT) rate is an additional 30% of the hourly rate for that specific day.

Formula for Hourly Rate on this day: $$\text{Hourly Rate (HR)} = \frac{\text{DBR} \times 260%}{8}$$

Formula for OT Pay per hour: $$\text{HR} \times 130%$$

3. Comparative Summary Table

Category	Regular Day	Regular Holiday	Regular Holiday + Rest Day
Unworked	No pay (usually)	100%	100%
Worked (First 8 Hours)	100%	200%	260%
Overtime Rate (per hour)	Hourly Rate $\times$ 125%	Hourly Rate $\times$ 260% $\times$ 130%	Hourly Rate $\times$ 260% $\times$ 130%

4. Special Case: Double Holidays

Occasionally, two regular holidays fall on the same date (e.g., Araw ng Kagitingan and Maundy Thursday).

If Unworked: The employee is entitled to 200% (100% for each holiday) even if it is a rest day.
If Worked: The employee is entitled to 300% of their daily rate.
If Worked on a Rest Day: The employee receives an additional 30% of the 300% rate, totaling 390%.

5. Coverage and Exemptions

While these rules apply to most employees in the private sector, the following are generally exempted from holiday pay under Article 82 of the Labor Code:

Government employees (governed by Civil Service rules).
Retail and service establishments regularly employing less than ten (10) workers.
Managerial employees and officers/members of a managerial staff.
Field personnel and those whose performance is unsupervised.
Domestic helpers and persons in the personal service of another.

6. Night Shift Differential

If the work performed on a regular holiday falling on a rest day occurs between 10:00 PM and 6:00 AM, the employee is further entitled to a Night Shift Differential (NSD) of no less than 10% of their hourly rate for that day.

Formula for Night Shift: $$\text{Hourly Rate on Holiday/Rest Day} \times 110%$$