Computation of Pay for Holidays: Regular, Special Non-Working, Special Working

One of the more confusing matters, for employees and HR people alike, is the computation of holiday pay, complicated by the fact that there are different “kinds” of holidays. This is cleared by Memorandum Circular No. 1 of the Department of Labor and Employment (DOLE), the full text of which is reproduced and discussed below (added: see computation for double holidays).

MEMORANDUM CIRCULAR NO. 01
(8 March 2004)

Pursuant to the provisions 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 day or a special working holiday, the following guidelines shall be observed by all employers in the private sector:

1. For regular holidays as provided for under EO 203 (incorporated in EO 292) as amended by RA 9177:

New Year’s Day – January 1
Maundy Thursday – Movable Date
Good Friday – Movable Date
Araw ng Kagitingan – April 9
Labor Day – May 1
Independence Day – June 12
National Heroes Day- Last Sunday of August
Bonifacio Day – November 30
Eidul Fitr – Movable Date
Christmas Day – December 25
Rizal Day – December 30

the following rules shall apply:

1. If it is an employee’s regular workday

* If unworked – 100%
* If worked

  • 1st 8 hours – 200%
  • 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

2. For declared special days such as Special Non-Working Day, Special Public Holiday, Special National Holiday, in addition to the two (2) nationwide special days (November 1, All Saints Day and December 31, Last Day of the Year) listed under EO 203, as amended, the following rules shall apply:

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

3. For those declared as special working holidays, the following rules shall apply:

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.

Please be guided accordingly.

———————–

Note: If you still don’t know it yet, one of the more helpful government websites is that of the DOLE. It boasts of useful features such as the Frequently Asked Questions (FAQs), and, to my delight, a fully functional email-query system.

To test the email-query system, I sent a query regarding holiday pay for regular holidays falling on the employee’s rest day (in this case, 29 April 2006, Araw ng Kagitingan). In an hour or so, I received a reply. Here’s my e-mail:

Gentlemen:

I write in connection with DOLE Memorandum Circular No. 01, which provides a summary of an employee’s entitlement to holiday pay for regular, special working and special non-working holidays.

As stated in said Circular, if a regular holiday falls on an employee’s rest day and it is UNWORKED, the employee receives 100% of his/her daily salary. This, however, has caused confusion because some MONTHLY-paid employees believe that they are entitled to an additional payment of one day. This is exacerbated by the news item which appeared on 7 April 2006 on your website (“DOLE issues Araw ng Kagitingan pay rules”), which states that “[i]f the day falls on an employee’s rest day and is unworked, he or she is paid on that day. xxx” Kindly clarify that there should be a distinction between monthly-paid and daily-paid employees, as the former is deemed paid for the entire month, even on regular holidays.

Your usual prompt action on this matter is highly appreciated.

Here’s the reply:

Dear Mr. Pamaos:

Good afternoon.

Anent your query, MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular or special days, although he does not regularly work on these days.

DAILY PAID EMPLOYEE refers to one who is paid his wage or salary only on the days he actually worked, except in cases of regular holidays wherein he is paid his wage or salary even if he does not work during those days, provided that he is present or on leave of absence with pay on the working day immediately preceding the regular holiday.

As distinguished from monthly-paid employees who are assured of being paid for every day of the month, the provision of the Labor Code on holiday pay is principally intended to benefit a daily-paid employee who is normally bound by the principle of “no work no pay”. Before the advent of the Labor Code, they are not paid for unworked regular holidays.

We hope that this answers your query.

Please be informed that our opinion on the matter is strictly advisory and may not be invoked in any court of law or before any administrative body.

Thank you for writing.

Legal Service, DOLE

By the way, please note that the opinion contained in the reply is merely “advisory” and, for one reason or another, you may not necessarily agree that it’s correct. Nevertheless, credit must be given where it is due. Congratulations to the DOLE’s electronic portal team.

[Added: Please note that Congress enacted R.A. 9492, rationalizing the celebration of national holidays. See also Double Holiday (9 April 2020), Regular Holiday (10 April 2020, and Special Nonworking Day (11 April 2020: Computation of Holiday Pay.]

Atty.Fred

129 thoughts on “Computation of Pay for Holidays: Regular, Special Non-Working, Special Working

  1. mark

    hi po.

    I work 5/days a week with 14000 monthly basic salary according to my contract. Payroll comes every 14 days. The company uses the factor 23.75 in computing my daily rate. It follows that I’m paid on one Saturday per cut off and not paid on the other Saturday and all Sundays. Am i considered a monthly paid or a daily paid employee?

    Reply
  2. jbr

    I would like to know if weekends and holidays dont count as part of suspension schedule for one of our employee, if she will be suspended for 7 days. thank you!

    Reply
  3. Norie

    Hi, Do you have sample figures for an employee working on a regular holiday which falls on his rest day?
    Numerical figures will really be helpful.

    Thank you.

    Reply
  4. Miriam

    Hi! I would like to know how to treat Special Non-Working Holidays, considering many recent declarations by the government. For employees whose salaries are based on a 22-day per month computation, with M-F workdays and with Sat-Sun days off, how much should they get paid if they are asked to work on Special Non-Working Holidays? And if they don’t report for work, are they still paid for those days? I heard from some parties that since they are not monthly paid employees, then no work-no pay applies. Please clarify.

    Reply
  5. Jerry

    Good day!

    May I just confirm if Probationary Contract Employee won’t be paid if he/she is on leave before special or regular holiday?

    Thank you

    Reply
  6. edcel

    hello. Just want to ask regarding the terms of payment for the legal holiday. If the employee have a duty before holiday while after holiday he/she doesn’t have duty. Is he/she will be paid for legal holiday?
    Thank you and God bless.

    Reply
  7. Rona

    hello po. Regular employee poh ako, monthly po ang salary ko, mababawasan po ba ang sahod ko dahil hindi ako pumasok during special holiday? Kasali po ba ako sa no work no pay rule?

    Thank you

    Reply
  8. Mark

    I am a monthly paid employee, whose salary computation is Monthly Rate / 365 days (in order to determine the daily rate). Last Nov 13-15,2 017, Pres. Duterte, declared these days a special non-working day. My company advised me that no salary will be paid to me during these days. Is this a correct procedure? I find it unfair, if this is the case, then I should’ve worked during these days. Please advise. Thanks

    Reply
  9. Mjclp

    Hi! I just want to ask, if the employee reported to work on a special non working holiday but was absent on the following day after the holiday, does he still entitled to the addl 30% ? Thank you so much

    Reply

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