Pay Rules When a Holiday Falls on a Rest Day (Philippines)
This article explains how Philippine labor standards treat pay when a holiday coincides with an employee’s scheduled rest day. It synthesizes the Labor Code, implementing rules, and long-standing DOLE formulas used in wage advisories and wage order FAQs. It is general information, not legal advice.
Key terms, at a glance
- Regular holiday – “No work, with pay” (subject to eligibility). Examples historically include New Year’s Day, Araw ng Kagitingan, Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day, Rizal Day, and others designated as regular holidays by law or Proclamation.
- Special (non-working) day – “No work, no pay,” unless a favorable company policy, practice, CBA, or contract grants pay. Examples historically include Chinese New Year, EDSA anniversary, Ninoy Aquino Day, All Saints’ Day, additional special days, etc.
- Special working public holiday / Special working day – Treated like a normal working day (no premium by virtue of being “special working” alone).
- Rest day – The 24-hour period after six consecutive days of work, usually scheduled weekly.
- Overtime (OT) – Work beyond 8 hours in a day.
- Covered employees – Rank-and-file employees not otherwise exempt (see exemptions below).
Core pay rules when a holiday falls on a rest day
A) Regular holiday falling on a rest day
| Situation | Pay rule (first 8 hours) | OT rule (beyond 8 hours) |
|---|---|---|
| Not worked | 100% of basic daily wage (holiday pay), if eligible | n/a |
| Worked | 200% of basic wage (regular holiday rate) + 30% of that rate because it is a rest day → 260% | Additional 30% of the hourly rate on that day → 260% × 1.30 = 338% per OT hour |
Eligibility for the “no-work, with pay” on regular holidays: the employee is present or on paid leave on the workday immediately preceding (and, in practice, also the immediately following workday if so required by company policy) the regular holiday. Some small establishments (see exemptions) are not required to pay the unworked holiday.
B) Special non-working day falling on a rest day
| Situation | Pay rule (first 8 hours) | OT rule |
|---|---|---|
| Not worked | No work, no pay (unless a favorable policy/CBA/practice grants pay) | n/a |
| Worked | 130% of basic wage (special day rate) if it’s a workday; because it is a rest day, the common DOLE formula adds 50%, yielding 150% | Additional 30% of the hourly rate on that day → 150% × 1.30 = 195% per OT hour |
Note: Many DOLE advisories present special-day-on-rest-day as 150% for the first 8 hours; the “+50%” phrasing is a shorthand that arrives at the same 150% result (not 180%).
C) Special working public holiday (or “special working day”) falling on a rest day
- Treated like an ordinary working day for premium purposes.
- If the employee works on the rest day, apply the rest-day premium only: basic wage + 30% → 130% for the first 8 hours; OT is 130% × 1.30 = 169% per OT hour.
- If not worked, no pay (it’s both a rest day and a working-day-treated holiday).
D) “Double holiday” (two regular holidays on the same date) falling on a rest day
- If not worked and the employee is eligible, holiday pay is 200% (i.e., two regular holidays at 100% each) is commonly summarized as 200% for unworked double regular holiday.
- If worked, the baseline for a double regular holiday is 300% for the first 8 hours; because it is a rest day, add 30% of 300%, resulting in 390%; OT is 390% × 1.30 = 507% per OT hour.
“Double holiday” situations are rare (e.g., when a movable regular holiday coincides with a fixed regular holiday). Always confirm the day’s legal classification in the year’s proclamations.
Computation examples
Assume a basic daily wage of ₱610 and 8 hours/day.
Regular holiday on rest day, worked 8 hours Pay = 260% × ₱610 = ₱1,586.00
Regular holiday on rest day, worked 10 hours
- First 8 hours = 260% × 610 = ₱1,586.00
- OT hours = 2 × (338% × ₱610 ÷ 8)
- Hourly base = ₱610 ÷ 8 = ₱76.25
- OT hourly on this day = 338% × 76.25 = ₱257.? (76.25 × 3.38 = ₱257.?); two hours ≈ ₱515.
- Total ≈ ₱2,101. (Round per company payroll practice; show full decimal steps in payroll worksheets.)
Special non-working day on rest day, worked 8 hours Pay = 150% × ₱610 = ₱915.00
Special working day on rest day, worked 8 hours Pay = 130% × ₱610 = ₱793.00
Regular holiday on rest day, not worked (eligible) Pay = ₱610.00
Who is covered vs. exempt
Covered (entitled to the above premiums/holiday pay subject to eligibility):
- Rank-and-file employees not otherwise excluded by the Labor Code or rules, regardless of status (probationary, casual, project, seasonal) so long as there is an employer-employee relationship and they are paid by the day or month (some nuances for piece-rate/commission—see below).
Common exemptions & nuances:
- Retail/service establishments that regularly employ fewer than 10 workers are exempt from the regular-holiday “no-work, with-pay” requirement (they must still observe the correct premium if employees actually work on the holiday/rest day).
- Managerial employees, field personnel and those whose time is unsupervised, family members dependent on the employer, workers paid by results where hours cannot be determined with reasonable certainty, and other categories identified in the Implementing Rules may be excluded from some monetary benefits.
- Piece-rate and commission-based workers: if hours are determinable and they are not otherwise exempt, apply holiday/rest-day premiums on the equivalent hourly/daily rate, or follow the company’s established DOLE-compliant method (e.g., convert average daily earnings to a base then apply the correct multipliers).
Interaction with other premiums
- Night shift differential (NSD) (commonly 10% of the hourly rate for work between 10:00 p.m. and 6:00 a.m.) is computed on top of the applicable holiday/rest-day hourly rate.
- Service incentive leave pay, thirteenth-month pay, and de minimis benefits are separate and do not replace holiday premiums.
- Hazard pay (if applicable by law/policy) is likewise on top of the day’s computed pay.
Eligibility pitfalls and attendance rules
- “Immediately preceding workday” condition (regular holidays, unworked): If the employee is absent without pay on the workday immediately before the regular holiday, the employer may lawfully withhold the unworked regular holiday pay (unless a more generous policy applies).
- Successive regular holidays (e.g., Maundy Thursday and Good Friday): an employee present or on paid leave on the workday before the first holiday is generally entitled to holiday pay for both unworked days. If the employee is absent without pay before the first holiday, the employer may withhold pay for both, absent a more favorable policy.
- Flexible/rotating rest days: The “rest-day premium” attaches to whatever day is scheduled as the rest day in the workweek, not necessarily Saturday/Sunday.
Company policy, CBA, and wage orders
- Employers may adopt a more favorable scheme (e.g., pay special non-working days even if unworked, or grant higher rest-day premiums).
- Wage Orders (per region) adjust minimum wage rates, not the percent multipliers; apply the multipliers to the prevailing basic wage for the region/sector.
- If a CBA provides a higher premium or a different (but more favorable) basis, the CBA governs.
Payroll implementation checklist
Identify the day’s legal classification (regular holiday, special non-working, special working) and confirm if it’s also a scheduled rest day.
Check employee coverage/eligibility (rank-and-file vs. exempt; small retail/service exemption for unworked regular holidays).
Apply correct multiplier to the basic wage or hourly equivalent:
- Regular holiday + rest day, worked: 260% (first 8 hrs), 338% (OT).
- Special non-working + rest day, worked: 150% (first 8 hrs), 195% (OT).
- Special working + rest day, worked: 130% (first 8 hrs), 169% (OT).
- Unworked regular holiday (eligible): 100% daily wage.
- Unworked special non-working day: no pay, unless a favorable policy applies.
Layer other premiums (OT, NSD, hazard) on top of the day’s computed hourly rate.
Document the computation on the payslip or payroll worksheet for transparency.
Frequently asked edge cases
- Employee on paid leave when a regular holiday on a rest day occurs: If the day is unworked, the regular holiday pay (100%) typically applies instead of charging leave credits for that day (check company policy/CBA).
- Compressed workweek: The 8-hour reference still governs multipliers; hours agreed beyond 8 trigger OT rules unless the DOLE-approved scheme validly retools OT treatment—many employers still apply the standard OT premiums for simplicity and compliance.
- Work-from-home: Location does not change the day’s legal classification or premium; apply the same multipliers.
- “On-call” during rest-day holiday: If no actual work is performed, no premium is due (unless on-call time qualifies as hours worked under company policy/DOLE rules).
Quick formulas (memorize me)
- Regular holiday + Rest day (worked):
Daily pay = 2.60 × basic daily wageOT hourly = 3.38 × (basic daily ÷ 8) - Special non-working + Rest day (worked):
Daily pay = 1.50 × basic daily wageOT hourly = 1.95 × (basic daily ÷ 8) - Special working + Rest day (worked):
Daily pay = 1.30 × basic daily wageOT hourly = 1.69 × (basic daily ÷ 8) - Regular holiday (unworked, eligible):
Daily pay = 1.00 × basic daily wage - Special non-working (unworked):
No work, no pay(unless a better policy applies)
Final note
When planning payroll for any given year, verify each holiday’s classification in that year’s Proclamation(s), then apply the rest-day layering and the appropriate multiplier above. When in doubt, apply the more favorable treatment consistent with the Labor Code and your company’s CBA or written policy.