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.

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
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
o 1st 8 hours – plus 30% of 200%
o 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.

Anyway, 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.


4 thoughts on “Computation of pay for holidays: Regular, special non-working, special working”

  1. I have a query since in our company our daily wage and monthly employees has no difference at all when it comes to payment of regular, special and special working holidays we have the same computation. I therefore like to clarify whats the actual and proper way in the computation for regular days and special holidays not worked by daily and monthly employees, based on the prescribed labor laws of the Philippines

    Hot debate. What do you think? Thumb up Thumb down +1

  2. I have a query for the treatment for holidays and special days and special holidays: What is the coverage of this holidays pay for monthly employees againts daily wage employees?

    Monthly Employees Daily Wage Employees
    IF Worked
    Unworked

    Clarify whats the actual and proper way in the computation for regular days and special holidays not worked by daily and monthly employees, based on the prescribed labor laws of the Philippines

    Hot debate. What do you think? Thumb up Thumb down +4

  3. Hi,

    My situation is I’m a call center employee working at night and I would like to know If I’m

    eligible for a holiday pay if it falls the day after my shift starts?

    e.g.
    I start work at 11pm (Sunday/April5) until 8am the following day (Monday/April6). Am I

    entitled for the April6 Holdiday pay?

    According to the company I’m working for I’m not entitled for the holiday pay since my “shift”

    started Sunday even though almost almost all of my working hours fall on a holiday.

    Regards,
    Hi,

    My situation is I’m a call center employee working at night and I would like to know If I’m

    eligible for a holiday pay if it falls the day after my shift starts?

    e.g.
    I start work at 11pm (Sunday/April5) until 8am the following day (Monday/April6). Am I

    entitled for the April6 Holdiday pay?

    According to the company I’m working for I’m not entitled for the holiday pay since my “shift”

    started Sunday even though almost almost all of my working hours fall on a holiday.

    Regards,
    Vinz825

    Thumb up Thumb down -4

  4. Nice article on these agreements. I am working on a project to find out about these unfair credit agreements and this has helped

    Thumb up Thumb down +2

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