What is Holiday Pay?
Holiday Pay refers to the payment of the regular daily wage for any unworked regular holiday.
What is the coverage?
Holiday pay applies to all employees.
What are the exceptions?
Holiday pay does not apply to the following:
- Government employees;
- Retail and service establishments regularly employing less than 10 workers;
- Kasambahay and persons in the personal service of another;
- Managerial employees with all the following conditions are met; a. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; b. They customarily and regularly direct the work of two or more employees therein; and, c. They have the authority to hire or fire other employees of lower rank, or their suggestions and recommendations as to the hiring, firing, and promotion, or any other change of status of other employees are given particular weight;
- Officers or members of a managerial staff, if they perform the following duties and responsibilities; a. Primarily perform work directly related to management policies of their employer; b. Customarily and regularly exercise discretion and independent judgment; c. Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof on which he or she is employed; execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or execute, under general supervision, special assignments and tasks; and, Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraph above.
- Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof;
Every employee is entitled to the minimum wage rate (daily basic wage and COLA). This means that the employee is entitled to at least 100% of his/her minimum wage rate even if he/she did not report for work, provided he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday.
Work performed on that day merits at least 200% the daily wage of the employee.
Where the holiday pay falls on the scheduled rest day of the employee, work performed on said day merits at least an additional 30% of the employee's regular holiday rate of 200% or a total of at leas 260%.
What are the regular holidays?
The 12 regular holidays in the Philippines are the following:
January 1 New Year's Day
Movable Date Maundy Thursday
Movable Date Good Friday
April 9 Araw ng Kagitingan
May 1 Labor Day
June 12 Independence Day
Last Monday of August National Heroes Day
Movable Date Eidl Fitr
Movable Date Eidl Adha
November 30 Bonifacio Day
December 25 Christmas Day
December 30 Rizal Day
When Araw ng Kagitingan falls on the same day as Maundy Thursday or Good Friday, a covered employee is entitled to at least 200% of his/her daily wage even if said day is unworked. Where the employee is required to work on that day, he/she is entitled to an additional 100% of the daily wage.
