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A Complete Guide on the Holiday Pay Computation for Employees in the Philippines
Holiday Pay computation-min

A Complete Guide on the Holiday Pay Computation for Employees in the Philippines

As an employee, it is vital to be knowledgeable about the labor laws for holiday pay in the Philippines to ensure that you are receiving proper pay for rendered work during holidays. To help you check your salary, this article will show you how to compute your holiday pay for upcoming holidays this year. 

Who is Entitled to Holiday Pay?

In general, all employees who perform work on regular workdays are entitled to receive holiday pay as mandated by the government. However, there are several employees who are exempted from receiving holiday pay benefits, such as:

  • Employees for retail and service companies with less than ten (10) regular employees
  • Managerial employees
  • Managerial staff members and officers
  • Government employees
  • Domestic helpers
  • Employees engaged on task, contract, or purely commission basis

Employees covered under the holiday pay rule should receive at least 100% of their salary, regardless if they reported to work or not. 

Regular Holiday Computation

Here is how you can compute your holiday pay on Regular Holidays:

  • Employees who did not work. You should receive 100% of your salary for that day regardless. 
  • Employees who worked. (Basic Wage + Cost of Living Allowance [COLA]) x 200%
  • Employees who worked overtime. (Hourly Rate x 200% x 130% x Number of Hours Worked)
  • Employees who worked a full shift on their rest day. [(Basic Wage + COLA) x 200%] + [30% (Basic Pay x 200%)]
  • Employees who worked overtime on their rest day. (Hourly Rate x 200% x 130% x 130% x Number of Hours Worked)

Special Non-Working Day Computation

Here is how you can compute your holiday pay on Special Non-Working Holidays:

  • Employees who did not work. The “no work, no pay” rule applies unless your employer has a collective bargaining agreement (CBA) that requires compensation on such a holiday.
  • Employees who worked. (Basic Wage x 130%) + COLA
  • Employees who worked overtime. (Hourly Rate x 130% x 130% x Number of Hours Worked)
  • Employees who worked a full shift on their rest day. (Daily Rate x 150%) + COLA
  • Employees who worked overtime on their rest day. (Hourly Rate x 150% x 130% x Number of Hours Worked)

Special Working Holidays

Here is how you can compute your holiday pay on Special Working Holidays:

  • Employees who did not work. The “no work, no pay” rule also applies. 
  • Employees who worked. (Basic Wage x 130%) + COLA
  • Employees who worked overtime. (Hourly Rate x 130% x 130% x Number of Hours Worked)
  • Employees who worked a full shift on their rest day. [(Basic Wage x 150%) + COLA]
  • Employees who worked overtime on their rest day. (Hourly Rate x 150% x 130% x Number of Hours Worked)

On February 26, 2021, President Rodrigo Duterte reclassified 3 holidays into a new category, the Special Working Holiday category. Such holidays are All Souls’ Day (November 2), Christmas Eve (December 24), and New Year’s Eve (December 31).

Compute Your Holiday Pay with Ease

With these computations in mind, you can confidently compute and check your salary to determine if your employer has paid you enough for rendered work. If you find these computations exhaustive, you can reach out to certified payroll specialists to guide you through your salary computation.

Get the Best Computation for Your Salary Today

With a large pool of Certified Payroll Professionals, our team can assist you with your salary computations and compensation packages for your employment needs.

Comments (8)

WHAT IF PO KUNG TRAINEE THEN PUMASOK SIYA NG HOLIDAY MERON PO BA SIYA BAYAD ?

Hi Rose,

If a trainee only receives an allowance like an intern, they are not entitled to receive a holiday pay.

how about on call former employee? i just worked whitin this month of dec 2021 i never got paid on holidays as they had said i am only on call for the reason..

Hi John

As an on-call employee, it is usually a no work, no pay arrangement. But if you worked on days that would fall on a holiday, then you should be paid on a special non-working or regular holiday computation. You may check your contract with your employer to clarify whether you are entitled to extra pay when rendering work on regular and special holidays.

Hello can a company refuse to pay holiday pay if it is indicated in the contract na “package na yung saraly included na ang holiday pay”? Legal ba yun and wala magiging problem sa dole?

Hi Lyka,

As long as an employee reports to work on a holiday, it should be compensated based on the holiday pay computation provided by Philippine labor laws.

Regards,
Maro

Hi.just want to clarify .. does yung mga borrowed employee entitled to holiday pay ? They don’t have a formal contract between the company..

According to the general rule, any kind of employee excluding managerial positions are entitled to a holiday pay. However, a borrowed employee, via secondment, must inform their employer (the lending company) that they will be working during the holiday. The main principle is, the employer-employee relationship is with the lending company and the borrowed employees, thus discretion on what to pay for is not up to the borrowing company. If the lending company agrees to let the employee work on a holiday and gives an eligibility for a holiday pay then, they are qualified to acquire the holiday premium.

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