The 3rd quarter of 2022 is fast approaching. We know that another year has almost gone as the “ber” months begin in the Philippines. This refers to the last four months of the year – SeptemBER, OctoBER, NovemBER, and DecemBER – which signifies the beginning of the holiday season in the entire country.
The Philippines is known to celebrate the holiday season for the longest duration in the world. Paskong Pinoy or Filipino Christmas starts as early as 1st of September (even though there’s still more than 100 days before Christmas!) and lasts until the 2nd of January in celebration of the new year. But hey, the Filipinos love celebrations and with at most petite 7 official holidays celebrated in the 3rd quarter of the year alone, we think the “ber” months are pretty accurate.
Now that we’re on the topic of holidays, corporate employees in the Philippines are looking forward to more than just their 13th-month pay and company Christmas parties. The holiday season also means long weekends and paid holidays that they can spend with family.
If you do, however, find yourself working on an official holiday in the Philippines, the country’s labor laws ensure that you are well-compensated for your work.
What is Holiday Pay?
Holiday pay refers to a legally mandated benefit required to be paid by employers to employees on legally observed holidays. The amount of Holiday Pay an employee receives, however, depends on whether the employee performed work or not.
Hours of work performed on observed holidays in the Philippines also follows Overtime Pay rules as stated in the Labor Code of the Philippines. As such, working professionals who are eligible to receive Holiday Pay also follow the same guidelines.
Different Types of Holiday Pay in the Philippines
There are currently thirteen (13) official Regular Holidays and at least six (6) Special Holidays in the Philippines. In this section, we talk about how much each employee should be receiving depending on other circumstances that may fall on these holidays.
REGULAR HOLIDAYS
Here are sample holiday pay computations for the following:
- New Year’s Day – January 1
- Araw ng Kagitingan – April 9
- Maundy Thursday – Official date varies per year
- Good Friday – Official date varies per year
- Labor Day – May 1
- Independence Day – June 12
- National Heroes Day – Last Monday of August
- Bonifacio Day – November 30
- Christmas Day – December 25
- Rizal Day – December 30
Employees who did not work:
Employees who do not report for work on Regular Holidays are entitled to receive their full salary for that day. There should be no deductions for work not performed on this holiday.
Employees who worked a full 8-hour shift:
If an employee renders work during a Regular Holiday, the computation will be as follows:
(Employee’s Hourly Rate x 200%) x number of overtime hours worked
Employees who worked more than 8 hours:
If the employee renders work beyond 8 hours during a Regular Holiday, the computation will then be as follows:
(Employee’s Hourly Rate x 200% x 130%) x number of hours worked in excess of 8hrs
Employees who worked 8 hours on a Regular Holiday that is also their rest day:
If an employee renders work during a Regular Holiday that also happens to be his/her designated rest day, the computation will be as follows:
(Employee’s Hourly Rate x 200% x 130% x 130%) x number of overtime hours worked
Special Non-Working Holidays
Here are sample holiday pay computations for the following:
- Chinese New Year – Official date varies per year
- EDSA People Power Revolution – February 25
- Black Saturday – Varies per year
- Ninoy Aquino Day – August 21
- All Saints’ Day – November 1
- Feast of the Immaculate Conception of Mary – December 8
Employees who did not work:
For employees who do not report for work on Special Non-Working Holidays, the “no work, no pay” rule applies unless your employer has a collective bargaining agreement or CBA that requires compensation.
Employees who worked a full 8-hour shift:
If an employee renders work on a Special Non-Working Holiday, the computation will be as follows:
(Employee’s Hourly Rate x 130% ) x number of overtime hours worked
Employees who worked more than 8 hours:
If the employee renders work beyond 8 hours on a Special Non-Working Holiday, the computation will then be as follows:
(Employee’s Hourly Rate x 130% x 130%) x number of hours worked in excess of 8hrs
Employees who worked 8 hours on a Special Non-Working Holiday that is also their rest day:
If an employee renders work during a Special Holiday that also happens to be his/her designated rest day, the computation will be as follows:
(Employee’s Hourly Rate x 150%) x number of overtime hours worked
If the employee renders work beyond 8 hours during a Special Holiday that also happens to be his/her designated rest day, the computation will then be as follows:
(Employee’s Hourly Rate x 150% x 130%) x number of hours worked in excess of 8hrs
Want more informational content?
Check out this comprehensive guide on Overtime Pay Computation in the Philippines!
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