Here’s a practical, everything-you-need explainer on Non-Payment of Rest Day and Overtime Pay in the Philippines—for employees, HR/payroll, and counsel. No browsing used.

Non-Payment of Rest Day & Overtime Pay (Philippines): The Complete Guide

1) Core rules at a glance

Overtime (OT): Work beyond 8 hours a day must be paid an OT premium on top of the hourly rate.
Rest day work: Work rendered on a scheduled rest day earns a rest-day premium even for the first 8 hours.
Night shift differential (NSD): 10% extra for hours worked 10:00 p.m.–6:00 a.m. (stackable on top of OT/rest-day/holiday premiums).
“No OT policy” ≠ no pay: A policy banning OT does not erase the legal duty to pay for actual work the employer suffered or permitted.
Who’s covered: Rank-and-file and most non-managerial employees not exempt from hours-of-work rules (see §7).

2) Premium pay matrix (practical multipliers)

Let “HR” = regular hourly rate (daily basic ÷ 8). Multipliers below apply to hours actually worked.

A) Ordinary working day

First 8 hours: 100% (regular pay)
OT hours: HR × 1.25 per hour (i.e., +25%)

B) Rest day or Special Non-Working Day (SNWD)

First 8 hours: HR × 1.30 (i.e., +30%)
OT hours on rest day/SNWD: (HR × 1.30) × 1.30 = HR × 1.69 (i.e., +69% over HR)

C) SNWD falling on Rest Day

First 8 hours: HR × 1.50 (+50%)
OT hours: (HR × 1.50) × 1.30 = HR × 1.95

D) Regular Holiday (worked)

First 8 hours: HR × 2.00 (200%)
If the holiday falls on a rest day and worked: HR × 2.60 (200% + 30%)
OT on regular holiday: (holiday rate) × 1.30
- Example: ordinary holiday OT = HR × 2.60; if also rest day + OT: HR × 3.38 (i.e., 2.60 × 1.30)

E) Night work (any day)

Add NSD 10% to the appropriate hourly rate above for hours between 10:00 p.m.–6:00 a.m. (NSD stacks last).

Tip: Compute base → rest/holiday premium → OT premium (if >8h) → NSD (if 10 p.m.–6 a.m.), in that order.

3) Rest days: scheduling & employee rights

Employees are entitled to at least one rest day for every six consecutive workdays.
The employer sets the rest day but must respect religious grounds and consider employee preference when consistent with business requirements.
If you are required (or effectively compelled) to work on your rest day, premium pay applies even if the employer calls it “make-up work.”

Undertime & offsetting: Undertime on one day cannot offset OT on another. Work on a rest day still earns rest-day premium even if it “makes up” for a prior absence.

4) Authorization, consent & proof

OT generally requires employer authorization; but if the company knew or should have known the work was being done (e.g., production quotas, after-hours tasks, access logs), the work is compensable.
Employers must keep time records. If none or if inaccurate, credible employee testimony, co-worker corroboration, emails, system logs, CCTV, and swipe/biometric data can be used. Doubts are resolved in favor of labor.

5) Computation examples

Example 1: 2 hours OT on an ordinary day (no NSD)

HR = ₱100/hour → OT pay = 2 × (₱100 × 1.25) = ₱250; day’s first 8 hours = ₱800; Total = ₱1,050.

Example 2: 9 hours on a Rest Day, with 2 hours falling at night (10 p.m.–12 a.m.)

First 8 hours: 8 × (HR × 1.30)
9th hour (also night): (HR × 1.30 × 1.30) + NSD (10% of HR × 1.30 × 1.30)
Add NSD also to any other hours between 10 p.m.–6 a.m.

Example 3: 10 hours on a Regular Holiday that is also a Rest Day; last 1 hour at night

First 8 hours: 8 × (HR × 2.60)
Hours 9–10: 2 × (HR × 2.60 × 1.30 = HR × 3.38)
Add NSD 10% to the 10th hour’s holiday-OT-rest hourly rate.

(Adjust HR to your actual daily basic pay ÷ 8; include only basic and fixed wage components in HR unless a CBA/policy integrates allowances.)

6) Common violations & how to spot them

Paying plain hourly rate for OT (missing the +25% or the higher bases on rest/holiday).
Treating rest-day work as regular time.
Averaging hours across the week (“you did 6 hours Monday, 10 Tuesday, so no OT”)—not allowed unless under an approved flexible/compressed scheme that explicitly changes the daily threshold with DOLE-compliant safeguards.
Not stacking NSD on premium hours.
Clock-out culture (required to clock out but continue working).
“Offsetting” rest-day work against undertime—not allowed for purposes of avoiding premiums.
Misclassifying employees as exempt (see §7) to avoid OT/rest-day pay.

7) Who is exempt from OT/rest-day premium rules?

Managerial employees (those who primarily manage, set policy, and have authority over personnel actions).
Officers/members of the managerial staff (with real discretion on matters of significance and not routinary clerical work).
Field personnel whose work hours cannot be determined with reasonable certainty (true outside-work with little supervision; mere “on the road” is not enough if you’re closely scheduled/monitored).
Kasambahay (domestic workers) have a separate law and standards.
Certain paid-by-results workers may be outside the hours-of-work rules only if their hours truly can’t be tracked; many piece-rate/commission employees are still covered if supervised and time-bound.

When in doubt, coverage is construed in favor of labor. Titles don’t control; actual work does.

8) Flexible work, compressed weeks & special setups

Compressed Workweek (CWW): If properly adopted (with employee consent and DOLE-compliant guidelines), more than 8 hours/day may be allowed without OT, provided weekly hours and health/safety limits are observed. Rest-day, holiday, and NSD rules still apply.
Flexible work arrangements (reduced workdays, rotation): Must be documented, temporary, and consulted. They do not allow non-payment of premiums for hours actually worked beyond the thresholds.

9) How to claim underpayment/non-payment

A) Fast track: SEnA (conciliation-mediation at DOLE)

File a Request for Assistance (RFA) at the DOLE Regional/Field Office where you work/reside.
Bring: payslips, DTR/biometrics, work schedules, emails, witness list, your computation.
Many cases settle here (pay differentials, corrected payroll).

B) If unresolved: Labor Standards Inspection or NLRC case

Inspection/Complaint at DOLE (for underpayment across a site/department) or file a money claims complaint before the NLRC Labor Arbiter.
Burden of proof: Employer must show compliant time/pay records; lack of records weighs against them.

C) Prescription (deadline):

3 years from when the premium pay should have been paid (rolling for each payday).

Reliefs you can recover:

Unpaid premiums (OT/rest-day/holiday/NSD) + legal interest; sometimes damages/attorney’s fees. Repeated violations can trigger administrative fines and, for minimum-wage aspects, double indemnity rules (distinct but often implicated).

10) Payroll & HR compliance checklist (print-friendly)

For HR/Payroll

☐ Clear policy stating OT authorization, rest-day scheduling, NSD, and premium stacking.
☐ Timekeeping: reliable DTR/biometric system; preserve logs 3+ years.
☐ Pay rules implemented exactly:
- Ordinary OT +25%
- Rest day/SNWD +30% (first 8h)
- SNWD on rest day +50% (first 8h)
- Regular holiday 200% (worked); +30% if also rest day
- OT on any of the above ×1.30 on the day’s hourly rate
- NSD +10% stacked
☐ No offsetting of undertime vs OT; no forced “off the clock.”
☐ If CWW/flex: written consent, DOLE guidelines followed, no reduction of legal benefits.
☐ Supervisors trained that permitted work = payable.

For Employees

☐ Keep photos/scans of payslips; request HRIS/DTR extracts regularly.
☐ Save emails/chats assigning after-hours or rest-day work.
☐ Log actual work hours (calendar, screenshots, access logs).
☐ If unpaid, compute differentials and go to SEnA promptly.

11) Sample quick computations (plug your numbers)

Inputs: Daily basic = ₱800 → HR = ₱100.

3 hrs OT on ordinary day: 3 × (₱100 × 1.25) = ₱375 OT premium + ₱800 basic = ₱1,175.
8 hrs on rest day: 8 × (₱100 × 1.30) = ₱1,040.
2 hrs OT on rest day: 2 × (₱100 × 1.69) = ₱338.
Worked regular holiday (8h): 8 × (₱100 × 2.00) = ₱1,600.
Holiday on rest day, 9h:
- First 8h: 8 × (₱100 × 2.60) = ₱2,080
- 9th hr OT: (₱100 × 3.38) = ₱338
- Total = ₱2,418 (add NSD 10% if within 10 p.m.–6 a.m.)

12) Defenses & counters (what you’ll hear—and how to respond)

Employer says…	Counter-point
“OT wasn’t approved.”	If work was required/permitted and performed, it’s payable. Lack of approval may be a disciplinary issue—but not a basis to deny pay.
“You’re managerial/field staff.”	Titles don’t control; show actual duties and time control to establish coverage.
“We offset your undertime.”	Not allowed; OT/rest-day premiums are statutory.
“We’re on compressed workweek.”	CWW must be validly implemented (consent, notice, safeguards). Premiums for rest days/holidays/NSD still apply.
“No records = no claim.”	Record-keeping is the employer’s duty. If absent/inaccurate, your credible evidence can carry the day.

13) Quitclaims & waivers

Waivers that purport to waive statutory premiums are looked at with suspicion. They’re valid only if knowing, voluntary, and reasonable; broad “I waive all” language won’t defeat clear labor standards claims.

14) Special notes

Work-from-home/remote: Hours of work rules still apply if schedules, outputs, or tracking show hours beyond 8/day or work on rest days.
On-call/standby: If you are required to remain on premises or so restricted that you can’t effectively use the time for yourself, it may count as hours worked (fact-specific).
Travel time: Ordinary home-to-work commute is not payable; work-required travel during normal hours generally is.

15) Bottom line

If you worked beyond 8 hours, or on your rest day, or on a holiday, you’re legally entitled to the correct premium pay. Employers must track time and pay the proper multipliers, and they can’t offset undertime or hide work “off the clock.” When underpayment happens, act within 3 years: compute your differentials, try SEnA at DOLE, and escalate if needed.

If you’d like, tell me (a) your daily rate, (b) dates/hours you worked OT/rest days/holidays, and (c) what you were actually paid—I’ll lay out a clean differential computation you can attach to a DOLE RFA or settlement email.