On regular holidays, the covered employees are entitled to holiday pay equivalent to a regular daily wage even if no work is done.[1] If the employer required work on a regular holiday, the employee is entitled compensation equivalent to twice the regular rate.[2] There is no holiday pay in retail and service establishments regularly employing less than 10 employees.[3]

Table 1[4]
No Work Performed on Holiday (+100%)

Sector/Industry Rate* Holiday Pay
Non-agricultural P466.00 P466.00 x 100% = P466.00
Retail/Service (>10 employees) P429.00 P429.00 x 100% = P429.00

*Rate: Minimum Wage (subject to change)

Table 2[5]
Worked Performed on Holiday (+200%)

Sector/Industry Rate* Holiday Pay
Non-agricultural P466.00 P466.00 x 200% = P932.00
Retail/Service (>10 employees) P429.00 P429.00 x 200% = P858.00

*Rate: Minimum Wage (subject to change)

Table 3[6]
No Work Performed on Double Holiday (+200%)

Sector/Industry Rate* Holiday Pay
Non-agricultural P466.00 P466.00 x 200% = P932.00
Retail/Service (>10 employees) P429.00 P429 x 200% = P858.00

*Rate: Minimum Wage (subject to change)

Table 4[7]
Worked Performed on Double Holiday (+300%)

Sector/Industry Rate* Holiday Pay
Non-agricultural P466.00 P466.00 x 300% = P1398.00
Retail/Service (>10 employees) P429.00 P429.00 x 300% = P1287.00

*Rate: Minimum Wage (subject to change)

For the purpose of computing additional compensation for holiday pay, overtime pay, premium pay, the regular wage is the cash wage only, exclusive of any deduction on account of facilities provided by the employer.[8]

The regular holidays are: New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan (April 9), Labor Day (May 1), Independence Day (June 12), National Heroes’ Day (last Monday of August), Eidl Fitr, Eidl Adha, Bonifacio day (November 30), Christmas day (December 25), Rizal day (December 30).[9]

If a covered employee is on leave of absence with pay, he is entitled to holiday pay.[10] However, if the employee is on leave of absence without pay on the day immediately preceding a regular holiday, he may not be paid the holiday pay if he has not worked on such regular holiday.[11] If the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the employee, he is considered to be on leave with pay and is entitled to holiday pay provided he worked on the day immediately preceding the non-working day or rest day.[12]

In case of two successive regular holidays (ex. Maundy Thursday and Good Friday), the covered employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday, unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.[13]

In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within the period is compensated.[14] However, the regular holiday during the cessation of operation due to business reverses as authorized by the DOLE Secretary may not be compensated by the employer.[15]

In addition to the foregoing, there are special rules for certain employees as to when they are entitled to holiday pay:[16]

  • Except Christmas vacation, private schools do not need to pay the regular holiday pay falling on semestral vacation of private school teachers, including faculty members of colleges and universities.[17]
  • For covered employees paid by results or output, their holiday pay is not to be less than their average daily earnings for the last seven actual working days preceding the regular holiday; further, a holiday pay cannot be less than the applicable statutory minimum wage rate.[18]
  • Seasonal workers may not be paid the required holiday pay during off-season where they are not at work.[19]
  • Workers who have no regular working days are entitled to the benefits as provided earlier.[20]

Like any of the statutory monetary benefits, holiday pay is mandatory.

*Comment or feedback: info@jdpconsulting.ph

References

[1] LABOR CODE. Article 94(a).

[2] Ibid. Article 94(b).

[3] Id at 155.

[4] The table is a modification of the one presented in the Handbook on Workers’ Statutory Monetary Benefits, 2012 edition, Bureau of Working Condition, Department of Labor and Employment (DOLE), Intramuros, Manila.

[5] Ibid.

[6] Ibid.

[7] Ibid.

[8] IMPLEMENTING RULES of BOOK III OF THE LABOR CODE. Section 11, Rule I.

[9] LABOR CODE, Article 94as amended by R.A. 9177 and R.A. 9849

[10] IMPLEMENTING RULES of BOOK III OF THE LABOR CODE. Section 11, Rule I. Section 6(a), Rule IV.

[11] Ibid. Section 6(c), Rule IV.

[12] Id at 163.

[13] IMPLEMENTING RULES OF BOOK III OF THE LABOR CODE. Section 10, Rule IV.

[14] Ibid. Section 7(a), Rule IV.

[15] Ibid. Section 7(b), Rule IV.

[16] Ibid. Section 8, Rule IV.

[17] Ibid.

[18] Ibid.

[19] Ibid.

[20] Ibid.