Philippine Holiday Pay Rules: Complete Guide

Philippine holiday pay rules can be confusing, especially when holidays fall on rest days or when employees work overtime on holidays. Understanding these rules ensures both employers and employees know their rights and obligations.

This guide covers everything you need to know about holiday pay: the difference between regular and special holidays, premium rates for working on holidays, and how rest day combinations affect pay.

Two Types of Holidays

The Philippines recognizes two types of holidays with different pay rules:

Regular Holidays

Regular holidays (also called "legal holidays") are considered paid days off. Even if an employee doesn't work, they're entitled to 100% of their daily pay. These include:

• New Year's Day (January 1)
• Maundy Thursday
• Good Friday
• Araw ng Kagitingan (April 9)
• Labor Day (May 1)
• Independence Day (June 12)
• National Heroes Day (Last Monday of August)
• Bonifacio Day (November 30)
• Christmas Day (December 25)
• Rizal Day (December 30)
• Eid'l Fitr (movable)
• Eid'l Adha (movable)

Special Non-Working Days

Special non-working days (also called "special holidays") are not considered paid days off. If an employee doesn't work on a special holiday, they receive no pay for that day (unless company policy states otherwise). These include:

• Ninoy Aquino Day (August 21)
• All Saints' Day (November 1)
• All Souls' Day (November 2)
• Feast of the Immaculate Conception (December 8)
• Christmas Eve (December 24)
• Last Day of the Year (December 31)
• Chinese New Year (movable)
• Black Saturday (movable)

Holiday Pay Rates

The pay rate depends on: (1) type of holiday, (2) whether the employee worked, and (3) whether it's also a rest day. Here's the complete breakdown:

How Pay Rates Are Calculated

Regular Holiday - Worked

When an employee works on a regular holiday, they receive 200% of their daily rate. This is computed as:

Regular Holiday + Rest Day - Worked

When a regular holiday falls on an employee's rest day and they work, the rate is 260%:

Special Holiday - Worked

When an employee works on a special non-working day, they receive 130% of their daily rate:

Unworked Holiday Pay Rules

Regular Holidays

Even if an employee doesn't work on a regular holiday, they're entitled to their full daily pay—provided they were present or on leave with pay on the day immediately preceding the holiday.

This means if you're absent without pay on the day before a regular holiday, you may lose the holiday pay.

Special Non-Working Days

There is no legal requirement to pay employees who don't work on special non-working days. However, many companies provide this as a benefit in their employment contracts or company policies.

Double Holidays

When two holidays fall on the same day (e.g., Araw ng Kagitingan and Maundy Thursday), the pay rules stack:

• Two regular holidays: 300% + 100% first 8 hours premium if worked
• Regular + special holiday: 200% + 30% additional if worked

The exact computation varies, so employers should consult DOLE guidelines for specific scenarios.

Night Shift Differential on Holidays

Employees who work between 10PM and 6AM are entitled to night shift differential (NSD) on top of holiday pay. NSD is an additional 10% of the hourly rate.

For example, working the night shift on a regular holiday:

Key Takeaways

• Regular holidays: Paid even if not worked (100%), 200% if worked
• Special holidays: No pay if not worked (unless company policy), 130% if worked
• Rest day combination: Regular holiday becomes 260%, special holiday becomes 150%
• Overtime: Additional 30% on top of holiday rate
• Attendance rule: Must be present or on paid leave the day before to get regular holiday pay
• Double holidays: Rates stack when two holidays coincide

Understanding holiday pay rules helps both employers manage payroll costs and employees verify they're receiving correct compensation. When in doubt, consult DOLE guidelines or your company's HR department.