Holiday Pay Rules: Christmas, New Year, non-working holidays
For employed workers, holidays are typically looked forward to because these are rest days which give an opportunity to unwind while, at the same time, provide income without the employee having to work at all.
Workers need to remember that during regular holidays (like Christmas Day and New Year) and non-working holidays (like December 24, Christmas Eve and December 31, Last Day of the Year), proper compensation is a right under the Philippine Labor Code.
So make sure you receive the salary you are entitled to even during these holidays. Read below for a simple guide to help you check if you are receiving the correct compensation from your employer.
First, here’s a list of the dates of regular holidays and special non-working days in the Philippines:
- List of Regular Holidays and Special Non-Working Days — 2013
- List of Approved Official Philippine Holidays — 2014
Pay Rules for Regular Holidays
For Regular Holidays, like Christmas Day (Dec. 25), Rizal Day (Dec. 30) and New Year (Jan. 1), the following pay rules apply:
- 100% of salary that day if the employee DID NOT work. This means workers still have to be paid their salary for that day even if they did not go to the office or did not do any work. COLA or Cost of Living Allowance is included in the computation of holiday pay.
- 200% of salary or double that day’s salary if the employee OFFICIALLY REPORTED for work and did not do overtime (more than 8 hours).
- Additional 30% of the employee’s hourly rate is paid if he or she worked OVERTIME. Formula for salary computation: Hourly Rate x 200% x 130% x Number of Hours Worked.
- Additional 30% of the employee’s daily rate of 200% if he or she worked on a regular holiday that also falls on his or her designated REST DAY without doing overtime. Computation formula: (Daily Rate x 200%) + [30% x (Daily Rate x 200%)].
- If the employee worked OVERTIME (more than 8 hours) during a regular holiday that also falls on his or her rest day, an additional 30% of the hourly rate that day is paid to the worker. Computation formula: Hourly Rate x 200% x 130% x 130% x Number of Hours Worked. (Not a typo error. Computation really includes two 130%s.)
Pay Rules for Special Non-working Days
Some holidays are designated as “special non-working days” and not called “regular holidays”. This December 2013, the Special Non-working holidays are December 24 (Christmas Eve) and December 31 (Last Day of the Year).
The pay rules for special non-working days are the following:
- “No work, no pay” policy applies, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.
- 130% of salary that day if the employee worked WITHOUT overtime.
- Additional 30% of the employee’s hourly rate is paid if the employee worked OVERTIME. Computation formula: Hourly Rate x 130% x 130% x Number of Hours Worked). (Two 130% in the formula is NOT a typo error.)
- 150% of the employee’s salary that day if the employee worked on a special non-working day that also falls on his or her designated REST DAY without doing overtime.
- If the employee worked OVERTIME during a special non-working holiday that also falls on his or her rest day, an additional 30% of the hourly rate that day is paid to the worker. Computation formula: Hourly Rate x 150% x 130% x Number of Hours Worked.
Make sure you know your rights. If there are issues with your compensation, coordinate with your employer or, if you deem it necessary, elevate your concerns to the Department of Labor and Employment (DOLE) by calling the DOLE Hotline at Telephone Number 527-8000 or the DOLE Regional Office nearest you (for DOLE-NCR, Tel. No. is 400-60-11) or the Bureau of Working Condition at 527-3000 loc 307/303.
Source: Department of Labor and Employment (DOLE)
Want to know what the holidays are for next year? Click here: Dates of Official Holidays in the Philippines in 2014