How to compute your pay if you work on a holiday

Photo from Pexels | George Dolgikh

 

This article was originally published on August 31, 2017 and has been updated to reflect recent legal developments.

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

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AT A GLANCE:

Holiday pay refers to an additional pay provided to a covered employee during regular holidays. On the other hand, premium pay refers to an additional pay of 30% of the day’s wage of a covered employee for work done on a non-working day, rest day, or a special non-working day.

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Though coming from varying perspectives, employers and employees look forward to–if not concerned about–holidays and non-working days. For many employees, holidays give extra time-off for the workers, who may use it for rest, leisure, self-enhancement activities, or simply work it out like an ordinary working day. As for employers, concerns abound as to how they will compensate their employees during these days. Since it is the law that defines rules on holiday compensation, employers have more reason to keep themselves being on-the-know as to how to deal with the payroll come payday.

 

Holiday Pay and Premium Pay

 

Holiday pay refers to an additional pay provided to a covered employee during regular holidays. If no work is done on a holiday, the employee receives his holiday pay – i.e., 100% holiday pay. If there is work done, he receives his holiday pay plus his day’s wage – i.e., 100% holiday pay + 100% daily salary. If there is work done on a double holiday, he receives two (2) holiday pays due to the double holiday, plus his day’s wage – i.e., 200% holiday pay + 100% daily salary. [See: Art. 94, Labor Code]. These are the thirteen (13) regular holidays:

 

1. New Year’s Day, January 1
2. Maundy Thursday, Movable Date
3. Good Friday, Movable Date
4. Araw ng Kagitingan, Monday nearest April 9
5. Labor Day, Monday nearest May 1
6. Independence Day, Monday nearest June 12
7. National Heroes’ Day, Last Monday of August
8. Eid’l Fitr, Movable Date
9. Eid’l Adha, Movable Date
10. Bonifacio Day, Monday nearest November 30
11. Christmas Day, December 25
12. Rizal Day, Monday nearest December 30
13. General Election, Movable Date

 

Premium pay, on the other hand, refers to an additional pay of 30% of the day’s wage of a covered employee for work done on a non-working day, rest day, or a special non-working day. [See: Art. 93]. R.A No. 9849 enumerates the special non-working days, which are:

 

1. Ninoy Aquino Day, Monday nearest August 21
2. All Saints Day, November 1
3. Last Day of the Year, December 31

 

Rules on Salary Payment for Regular Holidays

 

The following are the rules to be observed in paying holiday pay to employees, pursuant to Labor Advisory No. 03, Series of 2025:

 

• If there is no work on a regular holiday, a covered employee is entitled to a holiday pay of 100% daily salary [100% holiday pay + day’s wage = day’s wage with holiday pay].
• If there is work performed on a regular holiday, a covered employee is entitled to a holiday pay of 100% daily salary plus his wage for that day [100% holiday pay + day’s wage = day’s wage with holiday pay].
• If there is no work performed on a double regular holiday, a covered employee is entitled to a holiday pay of 200% daily salary [200% holiday pay (for holiday 1 and holiday 2) = day’s wage with holiday pay]

 

Rules on Salary Payment for Special Non-Working Days

 

As to special non-working days, the following are the rules to be observed in paying premium pay to employees:

 

• If there is work performed on a rest day or special non-working day, a covered employee is entitled to a premium pay of 30% of his basic wage or a total of 130% [day’s wage x 130% = day’s wage with premium pay].
• If there is work performed on a rest day which is also a special non-working day (or vice-versa), a covered employee is entitled to a premium pay of 30% of his basic wage or a total of 150% [day’s wage x 150% = day’s wage with premium pay].
• If there is work performed on a regular holiday which is also a rest day or a special non-working day, a covered employee is entitled to a premium pay of 30% of the regular holiday rate of 200% based on his/her daily basic wage or a total of 260% [day’s wage x 260% = day’s wage with premium pay].

 

The Department of Labor and Employment, time and again, had been reminding employers to pay their employees the required holiday and premium pay. More than the legal aspect, however, there is no doubt that providing holiday and premium pay brings joy to employees, who, aside from being able to take an extra day off, also take a little extra cash in their pockets while taking such day-off.

 

Related Articles:

• Is the computation of 13th month pay contingent on one’s employment status?
• Is my 13th Month pay subject to income tax?

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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