A Guide on Calculating Holiday Pay

"In the Philippines alone, there are different kinds of holidays which are regular, special non-working and special working holidays."

In the Philippines alone, there are different kinds of holidays which are regular, special non-working and special working holidays. For the part of the employees as well as the Human Resources Personnel, it’s usually confusing on how to calculate holiday pay. The Department of Labor and Employment (DOLE) clears this matter with its Memorandum Circular No. 01 of March 8, 2004.

The memorandum states that in the pursuant of the Labor Code, as amended in relation to the observance of declared holidays and in response to the queries received every time a Presidential Proclamation or a law is enacted by Congress which declares certain days either as a regular holiday, a special working holiday, the following guidelines shall be observed by all employers in the private sector in calculating holiday pay:

1. As amended by RA 9177 and as provided for under EO 203 which in also incorporated in EO 292, Regular Holidays include the following:
   
   New Year’s Day – January 1
   Maunday Thursday – Date may vary
   Good Friday – Date may vary
   Araw ng Kagitingan – April 9
   Labor Day – May 1
   Independence Day – June 12
   National Heroes Day – Last Sunday of August
   Bonifacio Day – November 30
   Eid Ul-Fitr – Date may vary
   Christmas Day – December 25
   Rizal Day – December 30
   
   The following rules apply:
   
   1. When it’s an employee’s regular workday:
      
      1. If worked
         1. For the first 8 hours – 200%
         2. In excess of the 8 hours worked – plus 30% of hourly rate on that said day
      2. If unworked – 100%
      
      
   2. When it’s the employee’s rest day:
      
      1. If worked
         1. For the first 8 hours – plus 30% of 200%
         2. In excess of the 8 hours worked – plus 30% of hourly rate on that said day
   
   
2. As amended and listed under EO 203 on declared Special Days like Special Non-working Day, Special Public Holiday, Special National Holiday with an addition of 2 nationwide special days:
   
   All Saint’s Day – November 1
   Last Day of the Year – December 31
   
   The following rules apply:
   
   1. If worked
      
      1. For the first 8 hours – plus 30% of the daily rate of 100%
      2. In excess of the 8 hours worked – plus 30% of hourly rate on that said day
      
      
   2. If unworked
      
      1. There shall be no pay given unless the company has a favorable policy, practice or a collective bargaining agreement or CBA that grants compensation of salary even if employee fails to work on the special day.
      
      
   3. When special day is being worked and falls on the employee’s rest day
      1. For the first 8 hours – plus 50% of the daily rate of 100%
      2. In excess of the 8 hours worked – plus 30% of hourly rate on that said day
   
   
3. For days declared as Special Working Holidays The following rules apply:
   
   An employee is entitled to only his or her basic rate on work performed. Work performed on that said day is still considered work on an ordinary working day, so no premium pay is required.

Additional Notes:

During Holidays, there could be a distinction between unworked days for Monthly and Daily paid employees. Monthly paid employees are already assured of their salary every month that already includes the rest days, regular or special days although he does not work on these days. The Daily paid however, is paid only on days that they actually work (termed as “no work no pay”). But on holiday pays, they are the most benefited since even if they do not work on a regular and special days, they still get paid. Provided only if he or she is present or on leave of absence with pay on the working day immediately preceding the regular holiday. For more information on how to calculate holiday pay, visit the DOLE website www.dole.gov.ph

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