Premium Pay Rules for Working on a Rest Day (Philippines)

As of my latest knowledge (through mid-2024). This is a practical, law-grounded explainer for private-sector employers and employees in the Philippines. It doesn’t replace legal advice.

Quick snapshot (TL;DR)

Weekly rest day: At least 24 consecutive hours after six consecutive workdays.
If you work on your scheduled rest day (not a holiday): Pay for the first 8 hours = 130% of the basic rate.
Overtime on a rest day: Each OT hour = 130% of the hourly rate on that day + 30% overtime premium → effectively 169% of basic hourly.
Night work (10:00 p.m.–6:00 a.m.) stacks an extra 10% night-shift differential (NSD), computed on the hourly rate for that day (i.e., on top of the rest-day/holiday rate).
If the rest day is also a special (non-working) day: first 8 hours = 150%.
If the rest day is also a regular holiday: first 8 hours = 260%.
Coverage: Applies to employees covered by the Labor Code’s hours-of-work rules (rank-and-file in private sector), not to managerial employees, field personnel (whose hours cannot be ascertained), domestic workers (covered by a separate law), etc.
Monthly-paid employees: Their monthly salary already covers rest days; the premium is the “extra” (e.g., +30% of the daily equivalent for the first 8 hours actually worked), not a full extra day’s basic pay plus 30%.

Legal bases & key concepts

Labor Code of the Philippines, Book III (Wages), notably the provisions on:
- Right to weekly rest day (employer schedules; must respect religious preferences when practicable).
- When an employer may require work on a rest day (e.g., emergencies, perishable goods, urgent repairs, abnormal pressure of work, continuous operations).
- Premium pay for work on rest days and special days, and overtime rules.
Implementing Rules and Regulations (IRR) of the Labor Code (Book III rules on premium pay, overtime, night shift differential).
Regional wage orders & DOLE advisories affect amounts of basic wage and some computation examples, but percentages shown below are national, Labor-Code-based rules.

Premium pay vs. holiday pay: Premium pay is an add-on for work on a rest day or special day. Holiday pay is a different benefit tied to regular holidays (with or without work). When both circumstances are present (e.g., a regular holiday that is also your rest day), you apply both rules using the combined multipliers below.

Who is covered (and who is not)

Covered: Private-sector, rank-and-file employees whose hours of work are determinable (including probationary and part-timers), whether paid daily or monthly. Piece-rate or commission-earning employees are covered if they’re not excluded by the “hours of work” exemptions and their hours are reasonably ascertainable (see “Workers paid by results/commission” below).

Common exclusions (no premium pay under the Labor Code):

Managerial employees and officers or members of a managerial staff.
Field personnel (work away from the principal place of business and hours cannot be determined with reasonable certainty).
Domestic workers (covered instead by the Kasambahay Law), and persons in the personal service of another.
Family members dependent on the employer for support who are employed in the employer’s business.
Certain workers paid by results when, by the nature of their work, hours can’t be reliably tracked (case- and fact-specific).

Note on small establishments: The holiday pay rules expressly exempt some small retail/service establishments; premium pay for rest day generally follows the hours-of-work coverage (i.e., no comparable blanket exemption is written into the premium-pay rule itself). Always check your exact setup and any applicable wage orders/CBA.

Determining the “rest day”

Minimum rest is 24 consecutive hours after six consecutive workdays. Employers set schedules but must consider religious preferences in good faith when practicable.
If a company provides two weekly rest days (e.g., Saturday & Sunday), both are “rest days.” Working on either triggers the rest-day premium.
Rescheduling: If the employer changes the rest day in advance for a given workweek, the actual designated rest day for that week is what counts. Premium pay applies when an employee works on the rest day actually designated for that week.

When can an employer require rest-day work?

Allowed in recognized circumstances, including:

Emergencies: serious accidents, fire, flood, typhoon, earthquake, epidemics, or similar calamities to prevent loss of life/property or protect public safety.
Urgent work: e.g., to prevent serious loss/damage to equipment, facilities, or perishable goods; abnormal pressure of work not reasonably addressable otherwise.
Continuous operations: industries requiring round-the-clock or seven-day operations (hospitals, utilities, hotels, etc.).
Weather/conditions-dependent work: where performance or quality is sensitive to environmental conditions.

Even when work is validly required, premium pay remains due.

Rates & computations

“Basic wage/rate” below refers to the daily or hourly basic (without allowances that are not part of basic pay), unless your CBA/company policy says otherwise.

1) Ordinary rest day (not a holiday)

First 8 hours: 130% of basic wage Daily-paid: Pay = 1.30 × daily rate. Monthly-paid: The day’s basic pay is already in the monthly salary → add 30% of the daily equivalent for the first 8 hours actually worked.
Overtime (>8 hours): +30% of the hourly rate on that day Practical effect: Each OT hour = 1.69 × basic hourly (because 1.30 × 1.30).
Night Shift Differential (10pm–6am): +10% of the hourly rate for that day (i.e., compute the 10% on top of the rest-day/holiday hourly, not on the ordinary day hourly).

2) Rest day and special (non-working) day

First 8 hours: 150% of basic wage (1.50 ×).
Overtime: Each OT hour = 1.95 × basic hourly (1.50 × 1.30).
NSD: Add 10% of the hourly rate for that day (so compute 10% on the 1.50× or 1.95× hourly, as applicable).

Special working days: When the government declares a special working day (no special-day premium), rest-day premium still applies if you work on your rest day (i.e., 130% for the first 8 hours, etc.).

3) Rest day and regular holiday

First 8 hours: 260% of basic wage (2.00 × holiday rate × +30% rest-day premium on the holiday rate).
Overtime: Each OT hour = 3.38 × basic hourly (2.60 × 1.30).
NSD: Add 10% computed on the 2.60× or 3.38× hourly, as applicable.

Workers paid by results / commission

Piece-rate / output-based: If covered by hours-of-work rules and time is trackable, premium pay applies. Compute by converting to an equivalent hourly or daily rate (e.g., total earnings ÷ hours) and then applying the same percentages (130%, 150%, 260%, etc.) to the hours worked on the rest day.
Pure commission / boundary system / per-trip: Entitlement depends on whether the worker is covered (i.e., employment relationship exists, and hours are ascertainable). If covered, derive an hourly rate from actual earnings and apply the same percentages. If field personnel (hours not determinable), they’re generally excluded.

Edge cases & clarifications

Two rest days: Work on either attracts rest-day premium.
Split/overlapping shifts: The rest day is a 24-hour block. Only hours actually worked within that block are paid at rest-day rates.
On-call: If required to remain on premises or so restricted off-premises that you can’t use the time freely, that counts as hours worked.
Offsetting with time-off: Granting another day off does not erase the premium due for work performed on the designated rest day (unless the rest day was properly re-scheduled in advance so the worked day was no longer the employee’s rest day for that week).
No diminution: If practice/CBA grants higher rates (e.g., 150% for ordinary rest day), that more favorable benefit must be respected.
Record-keeping: Employers must keep accurate daily time records; premiums should appear clearly on payslips.

Worked examples (for intuition)

Assume basic daily rate = ₱600 (8 hours) → basic hourly = ₱75.

Ordinary rest day, 10 hours (2 hours OT), no night work
- First 8 hours: 600 × 1.30 = ₱780
- OT: 2 hours × (75 × 1.69) = 2 × ₱126.75 = ₱253.50
- Total = ₱1,033.50
Rest day + special (non-working) day, 10 hours
- First 8 hours: 600 × 1.50 = ₱900
- OT: 2 × (75 × 1.95) = 2 × ₱146.25 = ₱292.50
- Total = ₱1,192.50
Rest day + regular holiday, 10 hours
- First 8 hours: 600 × 2.60 = ₱1,560
- OT: 2 × (75 × 3.38) = 2 × ₱253.50 = ₱507.00
- Total = ₱2,067.00
Ordinary rest day, 9 hours with 4 night hours (10 pm–2 am)
- First 8 hours: 600 × 1.30 = ₱780
- OT (1 hour): 75 × 1.69 = ₱126.75
- NSD (night hours fall within the first 8):
  - Night hourly during first 8 = 75 × 1.30 = ₱97.50
  - NSD per night hour = 10% × 97.50 = ₱9.75
  - If 4 night hours were within the first 8: 4 × ₱9.75 = ₱39.00
  - If any night hour is the OT hour, use 1.69 × 75 = ₱126.75 as the base for the 10% that hour (₱12.675).
- Total (assuming all 4 night hours occurred within the first 8): ₱780 + ₱126.75 + ₱39.00 = ₱945.75
- (Adjust if any night hour coincided with the OT hour by adding ₱12.675 instead of ₱9.75 for that hour.)

Monthly-paid variant: For Example 1, a monthly-paid worker’s monthly salary already covers the basic pay for the rest day. Typical practice is to pay only the premium “extra”:

First 8 hours: +30% of daily equivalent (₱600 × 0.30 = ₱180)

2 OT hours: +30% of the hourly rate on that day (use ₱75 as hourly base unless policy states otherwise) → 2 × (₱75 × 0.30) = ₱45

Total add-on = ₱225 (Company/CBA rules may specify a different, more generous treatment.)

Compliance checklist for employers

□ Put rest-day schedules in writing and communicate changes before the workweek starts.
□ Track actual hours worked (including night hours and OT) with reliable time records.
□ Apply correct multipliers and stacking (rest day + special/regular holidays + NSD + OT).
□ Reflect premiums clearly on payslips.
□ Respect religious rest-day preferences when practicable.
□ Don’t substitute time-off after the fact to avoid paying legally due premiums.
□ Honor more favorable CBA/company practices (no diminution of benefits).

Frequently asked questions

1) If my shift starts the night before my rest day and spills into the rest day, which hours are at rest-day rates? Only the hours within the designated 24-hour rest-day block.

2) If management swaps my rest day mid-week, do I still get premium pay for the original day? If the swap was properly made in advance (so the “actual” rest day moved), premium applies only to work performed on the actual rest day. If you worked on your designated rest day without a prior swap, premium is due.

3) I’m piece-rate. How do we compute? Derive an equivalent hourly from your earnings and hours that day, then apply the same percentages (130%, 150%, 260%, etc.) and OT/NSD add-ons.

4) Our CBA says 150% for an ordinary rest day. Is that allowed? Yes. The law sets minimums. More favorable agreements prevail.

5) Are allowances included in the base for computing the percentages? By default, basic wage is the base (exclusive of non-integrated allowances), unless your CBA/company rules or wage orders integrate certain items into the regular wage.

Final notes & caution

The percentages above come from the Labor Code and its IRR and have been stable for years. However, regional wage orders, DOLE advisories, and government holiday calendars change from time to time and can affect amounts (not the multipliers).
CBAs/company policies often grant higher rates; those supersede the legal minimums.
For edge cases (e.g., boundary system drivers, purely commission-based roles, flexible work arrangements), entitlement often turns on whether hours are ascertainable and the reality of the work relationship.

If you want, tell me your pay setup (daily or monthly), daily rate, actual schedule, and whether the day is an ordinary day/special day/regular holiday. I can compute the exact figures for your scenario.