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December 20, 2022

Holiday Pay Rule in the Philippines.

Holiday Pay Rule in the Philippines.

Holiday Pay Rule in the Philippines.

Holiday Pay is a legislated benefits mandated by the Government and being enforce by the Department of labor and Employment . Holiday pay is an additional pay given to the covered employee during the Holidays. 

All employees who perform work on regular workdays are entitled to receive holiday pay as mandated by the government except the following:

  • Employees for retail and service companies with less than ten (10) regular employees
  • Managerial employees
  • Managerial staff members and officers
  • Government employees
  • Domestic helpers

The Department of Labor and Employment (DOLE) enforces two different kinds of holiday pay rules in the Philippines: First  for regular holidays and Second  for special non-working days.

Holiday Pay Rules on Regular Holiday.

Regular holidays are holidays with fixed dates set by law, which have a significant cultural or national importance to the country and usually celebrated or observed nationwide.

There are ten (10) regular holidays  in a year.

  1. New Year’s Day – January 1
  2. Araw ng Kagitingan – April 6
  3. Maundy Thursday – Varies per year
  4. Good Friday – Varies per year
  5. Labor Day – May 1
  6. Independence Day – June 12
  7. National Heroes Day – Last Monday of August
  8. Bonifacio Day – November 30
  9. Christmas Day – December 25
  10. Rizal Day – December 30

Regular Holiday Pay Computation

  • If the employee did not work,  He /she shall be paid 100 percent of his/her salary for that day
  • For the work done during the holiday,  He /she shall be paid 200 percent of his/her salary for that day for the 1st eight hours
  • For the overtime rendered (in excess of eight Hours) during the holiday, He /she shall be paid additional 30% of his hourly rate on the said day.
  • If the Holiday falls on the rest day of the employee and then employee worked , he/she shall be paid an additional 30% of his/her basic wage of 200%
  • For overtime work on a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on the said day

Holiday Pay Rules on Special Holiday.

There are six (6) Special holidays  in a year

  1. EDSA People Power Revolution – February 25
  2. Black Saturday – Varies per year
  3. Ninoy Aquino Day – August 21
  4. All Saints’ Day – November 1
  5. Feast of the Immaculate Conception of Mary – December 8
  6. Last day of the Year – December 31

Special Holiday Pay Computation

  • the “no work, no pay” principle shall apply to the employee did not work on a special holiday.
  • If the employee work during the special day, he/she shall be paid an additional 30 percent of his/her basic wage on the first eight hours of work
  • For work done in excess of eight hours (overtime work), he/she shall be paid an additional  30% of his/her basic wage of 130%
  • If the Holiday falls on the rest day of the employee and then employee worked , he/she shall be paid an additional 50%  percent of his/her basic wage on the first eight hours of work
  • For overtime work on a special holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on the said day

Rule of Absences for Holidays

In case, an employee is absent but paid the workday immediately preceding a regular holiday, then they shall be entitled to holiday pay. There must be a leave application for the day’s absence and the same was approved by the employer.

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Filed Under: Business, Informations Tagged With: Computation of Holiday, Holiday Computation, Holiday Pay, Holiday Rule Pay, Philippines Holiday, Regular Holiday, Regular Holiday Pay Computation, Rules on Holiday Pay, Special Holiday, Special Holiday Pay Computation

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