Handbook on Workers' Statutory Monetary Benefits (2024)

Holiday Pay: Definition

Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.

Holiday Pay: Coverage

This benefit applies to all employees except: 1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws; 2. Those of retail and service establishments regularly employing less than ten workers; 3. Kasambahay and persons in the personal service of another; 4. Managerial employees, if they meet all of the following conditions: 4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 4.2 They customarily and regularly direct the work of two or more employees therein; and 4.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight. 5. Officers or members of a managerial staff, if they perform the following duties and responsibilities: 5.1 Primarily perform work directly related to management policies of their employer; 5.2 Customarily and regularly exercise discretion and independent judgment; 5.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and 5.4 Do not devote more than 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 paragraphs 5.1, 5.2, and 5.3 above. 6. 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.

Holiday Pay: Regular Holidays

Unless otherwise modified by law, order, or proclamation, the following regular holidays shall be observed in the country: New Year’s Day - January 1 Maundy Thursday - Movable date Good Friday - Movable date Eidul Fitr - Movable Date Eidul Adha - Movable Date Araw ng Kagitingan - April 9 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 In addition to the above regular holidays, Article 94(c) of the Labor Code also treats “the day designated by law for holding a general election” as a “holiday”. However, Presidential Proclamations have declared general elections as special (non-working) holiday such as the 2019 and 2022 National and Local Election and the 2023 Barangay and Sangguniang Kabataan Elections. Moreover, for movable regular holidays, the President issues a Proclamation specifying the date to be observed as such. Further, the President of the Philippines issues a Proclamation annually declaring specific dates as regular holidays to be observed nationwide.

Holiday Pay: Holiday Pay Rates

Every employee covered by the Holiday Pay Rule is entitled to the minimum wage rate. 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 twice (200%) the daily wage of the employee. The above mentioned is without prejudice to any voluntary practice or Section 26, Chapter 7, Book I of Executive Order No. 292, otherwise known as the “Administrative Code of 1987,” as amended. See Proclamation No. 719, Series of 2019, No. 1357, Series of 2022, and No. 359, Series of 2023. provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for days declared as special days even if unworked. The minimum statutory holiday pay rates are as follows: 1. If the employee does not work, the employer shall pay 100% of the employee's wage for that day. (basic wage x 100%) 2. For work done during the regular holiday, the employer shall pay a total of 200% of the employee's wage for that day for the first eight hours. (basic wage x 200%) 3. If the employee does not work on a double regular holiday, the employer shall pay 200% of the employee’s wage for that day. (basic wage x 200%) 4. For work done during a double regular holiday, the employer shall pay a total of 200% of the employee's wage for that day for the first eight hours. (basic wage x 300%)

Holiday Pay: Absences

1. All covered employees shall be entitled to holiday pay when they are on leave of absence with pay on the workday immediately preceding the regular holiday. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they do not work on such regular holiday. 2. Employers shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee’s compensation or social security payment, whichever is higher, if the employees are not reporting for work while on such leave benefits. 3. Where the day immediately preceding the holiday is a non-work day in the establishment or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to the holiday pay if he/she worked on the day immediately preceding the nonwork day or rest day.

Holiday Pay: Successive Regular Holidays

Where there are two successive regular holidays, like Maundy Thursday and Good Friday, an employee may not be paid for both holidays if he/she absents himself/herself from work on the day immediately preceding the first holiday, unless he/she works on the first holiday, in which case he/she is entitled to his/her holiday pay on the second holiday.

Holiday Pay: Temporary or Periodic Shutdown/Cessation of Work

In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within the period shall be compensated in accordance with the Rules Implementing the Labor Code, as amended.

Holiday Pay: Holiday Pay of Certain Employees

1. Where the covered employee is paid on piece-rate basis, his / her holiday pay shall not be less than his/her average daily earnings for the last seven actual work days preceding the regular holiday; provided, however, that in no case shall the holiday pay be less than the applicable statutory minimum wage rate. 2. Seasonal workers may not be paid the required holiday pay during off- season when they are not at work. 3. Workers who do not have regular working days, such as stevedores, shall be entitled to this benefit.