Overtime on Legal Holidays in the Philippines: Is OT Paid at Double Rate?

Working on a legal (regular) holiday triggers some of the highest pay multipliers under Philippine labor standards. This article lays out the rules, formulas, edge cases, and sample computations so you can confidently apply (or audit) payroll for holiday work—and, specifically, overtime (OT) on a regular holiday.

1) Core concepts and quick answers

Holiday pay (no work done): An eligible employee who does not work on a regular holiday is paid 100% of the daily wage (the “day is paid”).
Work on a regular holiday (first 8 hours): 200% of the basic daily wage (“double pay”).
Overtime on a regular holiday (beyond 8 hours): +30% of the hourly rate on that day. Because the day’s hourly rate is already doubled, each OT hour is effectively at 260% of the basic hourly rate.
If the regular holiday falls on the employee’s scheduled rest day: the first 8 hours are 260% (200% × 1.30 rest-day premium). Each OT hour is +30% of the hourly rate on that day, i.e., 338% of the basic hourly rate.
Bottom line to the headline question: OT on a legal holiday is not just “double”; it’s double plus 30% for the OT hours (and even higher if it also falls on a rest day or is a “double holiday”).

2) Who is covered (entitlement)

Holiday pay and the premium rules generally cover rank-and-file employees, whether paid by the day, hour, or on a piece-rate basis, subject to established exemptions under the Labor Code and its implementing rules. Common exclusions include government employees and certain categories (e.g., bona fide managerial employees, field personnel whose actual hours cannot be determined with reasonable certainty, and others listed by regulation). Many employers voluntarily extend holiday benefits beyond the statutory minimum through policy or CBA.

Eligibility condition (for “no work” holiday pay): Employees must be present or on paid leave on the workday immediately preceding the regular holiday (unless a more favorable company/CBA rule applies). Monthly-paid employees are typically deemed to have this benefit integrated.

3) Pay matrices and formulas

Let:

DR = employee’s basic daily rate (for 8 hours)
HR = basic hourly rate = DR ÷ 8
H = number of OT hours worked beyond 8 in a day
NSD (Night Shift Differential) = additional 10% of the applicable hourly rate for work performed between 10:00 p.m. and 6:00 a.m. (computed on the rate applicable to that hour, e.g., the doubled holiday hourly rate)

A) Regular holiday (not a rest day)

No work: Pay = 100% × DR
Work up to 8 hours: Pay = 200% × DR
OT hours (beyond 8): Additional pay = (HR × 2) × 30% × H = HR × 0.6 × H
- Effective OT hourly rate = 260% × HR

B) Regular holiday falling on rest day

Work up to 8 hours: Pay = 200% × DR × 1.30 = 260% × DR
OT hours: Additional pay = (HR × 2 × 1.30) × 30% × H
- Effective OT hourly rate = 338% × HR

C) “Double holiday” (two regular holidays coincide on the same date)

Work up to 8 hours: Pay = 300% × DR
OT hours: Additional pay = (HR × 3) × 30% × H
- Effective OT hourly rate = 390% × HR
If the double holiday also falls on a rest day, the base day rate may attract a rest day premium before computing OT (+30% of the hourly rate on that day).

Tip: Always apply the +30% to the hourly rate on the day (i.e., after the day’s holiday/rest-day multipliers), not to the plain hourly rate.

4) Night work on holidays (NSD layering)

Night Shift Differential applies on top of the day’s rate (holiday/rest day and OT, if applicable) for hours actually worked during 10:00 p.m.–6:00 a.m. The correct base for 10% is the hourly rate in effect for that specific hour (e.g., 200% HR for regular holiday hours, 260% HR if the day is a holiday + rest day, and the corresponding OT hourly rate if the specific hour is already OT).

5) Worked examples

Assume:

DR = ₱800
HR = ₱800 ÷ 8 = ₱100
Employee works 10 hours on a regular holiday (not a rest day).
Of those, 1 hour (10–11 p.m.) is at night.

Step 1 — First 8 hours (holiday): Pay = 200% × DR = 2.00 × 800 = ₱1,600

Step 2 — OT hours (2 hours beyond 8): OT hourly rate = 260% × HR = 2.60 × 100 = ₱260 OT pay = 2 × ₱260 = ₱520

Step 3 — NSD for the hour at night (10–11 p.m.): Determine the correct base for that hour:

If that hour is one of the OT hours, use OT hourly rate (₂.₆₀×HR). NSD = 10% × ₱260 = ₱26

Total for the day: ₱1,600 (holiday) + ₱520 (OT) + ₱26 (NSD) = ₱2,146

6) Frequent edge cases & clarifications

Absent before the holiday: If the employee is absent without pay on the workday immediately preceding the regular holiday, the employee generally loses the “no work, paid” entitlement for that holiday; however, if the employee actually works on the holiday, the 200% (and relevant OT multipliers) still apply for the hours worked.
Late or undertime on the day before: Does not forfeit holiday pay, if the employee is otherwise present (unless a stricter—but lawful—policy applies and is more favorable in practice).
Probationary or part-time employees: If they are rank-and-file and otherwise eligible, they receive the same multipliers, pro-rated by hours actually worked (and by their DR/HR).
Monthly-paid employees: Monthly rates for “365-day” or “313-day” pay schemes typically already spread statutory holidays across the year; still, when monthly-paid employees work on a holiday, apply the holiday work and OT premiums on top of the embedded pay, per the company’s payroll basis and DOLE formulas.
Commission/”paid by results” workers: Entitlement and computation depend on how the wage is structured and tracked. When a basic wage component and hours are determinable, apply the same multipliers to the wage component corresponding to time worked.
“No offsetting” rule: You can’t legally swap away statutory holiday premiums by later giving time off in lieu, unless the arrangement meets or exceeds the statutory monetary equivalent and is mutually agreed, clearly documented, and compliant.
CBAs and company policies: May enhance (never diminish) the statutory minimums—e.g., paying 210% instead of 200% for the day, or a higher OT premium.

7) Compliance checklist for employers

Identify the day type: regular holiday vs special day; rest day or not; double holiday possibility.
Confirm eligibility for “no work, paid” (presence/paid leave on the preceding workday).
Compute base day rate (100%, 200%, 260%, or 300% as the case may be).
Apply OT premium correctly: +30% of the hourly rate on that day for hours beyond 8.
Layer NSD (10%) on the actual hourly rate in effect for the night hour (holiday/rest day/OT).
Document time precisely (time in/out; what hours were at night; what hours were OT).
Reflect in payslip the day classification and each premium line for transparency.

8) Quick reference table (regular holidays)

Scenario	First 8 hours	Each OT hour (beyond 8)
Regular holiday (worked)	200% × DR	260% × HR
Regular holiday on rest day (worked)	260% × DR	338% × HR
Double holiday (worked)	300% × DR	390% × HR

NSD: Add +10% of the hourly rate in effect for the night hour (e.g., 200% HR, 260% HR, 338% HR, 390% HR), as applicable.

9) Takeaways

Is OT on a legal holiday “double pay”? No—it’s more than double. Each OT hour on a regular holiday is paid at 260% of the basic hourly rate (and 338% if it’s also a rest day).
Correct computation follows a layered approach: determine the day’s base multiplier first (holiday/rest day/double holiday), then add +30% for OT hours and +10% for any night hours, using the hourly rate on that day as the base.

This framework will keep your payroll compliant and your computations consistent when overtime happens on legal holidays.