The computation of holiday pay seems to be a trivial matter, insignificant to those who are not yet working, though it becomes substantially important for those who need the extra salary for work done on holidays. This is made a bit complicated by the different kinds of holidays — regular holidays, special days and special working holidays. Throw in the modes of salary/wage payment, monthly or daily paid, and we have a mini-confusion.
The Department of Labor and Employment (DOLE) has issued the guidelines (Circular 01, series of 2004) for computing holiday pay/premium:
For regular holidays
1. If it is an employee’s regular workday
* If unworked – 100%
* If worked
o 1st 8 hours – 200%
o excess of 8 hours – plus 30% of hourly rate on said day
2. If it is an employee’s rest day
* If unworked – 100%
* If worked (1st 8 hours – plus 30% of 200%; excess of 8 hours – plus 30% of hourly rate on said day)
Special days such as Special Non-Working Day, Special Public Holiday, Special National Holiday:
1. If unworked
* No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked.
2. If worked (1st 8 hours – plus 30% of the daily rate of 100%; excess of 8 hours – plus 30% of hourly rate on said day)
3. Falling on the employee’s rest day and if worked (1st 8 hours – plus 50% of the daily rate of 100%; excess of 8 hours – plus 30% of hourly rate on said day)
Special working holidays:
For work performed, an employee is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days.
Related posts:
- DOLE Memorandum Circular 01: Computation of Holiday Pay
- DOLE Labor Advisory: May 10, 2010, Monday, a Special Public (Non-Working) Holiday
- November 27-28, 2009 (Eid’l Adha) not National Holidays
- DOLE Labor Advisory: May 3, 2010 (Monday), a Regular Holiday
- May 2010 Holidays: Labor Day (May 3) and Election Day (May 10)
- Holiday Economics in the Philippines
- February 25 (EDSA People Power Anniversary) is a non-working holiday
June 18th, 2010 at 8:55 am
[...] For a discussion on how to compute holiday pay for special non-working holidays, please read this previous post: Computation of Holiday Pay. [...]
June 21st, 2010 at 12:51 pm
sounds great. it’s good to hear it. =D
June 21st, 2010 at 12:54 pm
sounds great. It’s nice to hear this special holiday. =D
August 4th, 2010 at 4:07 pm
[...] on computing the holiday pay, pursuant to its Memorandum Circular 1 (see also previous post on How to Compute Holiday Pay). A supplementary release of the DOLE spells out the other related [...]
August 31st, 2010 at 3:37 pm
Major major concern lang po, re: computation on special holiday pay.
Our company is paying us on a month basis. And the company also pays us for unwork special holiday. My question is, if i report to work on special holiday, how is my pay for that day be computed?
Please enlighten me.
Thanks and more power!
November 18th, 2010 at 4:10 pm
[...] computation for any special non-working holiday like November 1, 2010, according to the present Labor Law of the Philippines. A ‘no work, no pay’ policy is being applied, unless the employer has previously announced a [...]
August 19th, 2011 at 12:12 am
Hi! I have a small retail/service business employing 6 employees. According to the Labor Code the Holiday Pay rule does not apply to businesses like mine and so as I understand, if my employee does not work on a holiday he/she doesnt get paid. What I’m not sure of is how much extra pay do I give an employee is he/she works on a holiday. Someone from DOLE once told me that I should give 30% of the daily rate as extra pay if the worker works on a holiday. Fine. But I wasnt able to clarify if that rule applies to all kinds of holiday. Does it refer even to special holidays or just regular and national holidays. Maybe you can help me here. Your input will be highly appreciated.
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