Understanding the Different Holiday Pays in the Philippines
It is important as an employer to have full knowledge on the different holiday pays since this basically part of the compensation package of an employee.
Regular holiday
Its simplest definition is that the employees are on break during these days but are still entitled to get their compensation. In the event that an employee worked on these days, he/she is entitled to be paid 200 percent of his/her regular daily rate. Usual examples of a regular holiday are Christmas, New Year, Labor Day, etc.
SCENARIO
Holiday Pay Percentage
(based on the daily wage)
The employee did not work on the holiday
100%
The employee worked on the holiday
200%
SPECIAL NON-WORKING HOLIDAY
Unless there is a company policy stating that employees should receive holiday pay during these holidays, the company shall follow the "no work, no pay" principle. These holidays are to be declared by the President of the Philippines.
SCENARIO
Holiday Pay Percentage
(based on the daily wage)
The employee did not work on the holiday
100%
The employee worked on the holiday
130%
These are in accordance with the rule that the employee is present or is on leave on absence with pay on the workday immediately preceding the holiday. All employees are entitled to holiday pay except the following employees but may be entitled to the same or similar benefits if so provided under an employment contract:
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Those of retail and service establishments regularly employing less than 10 employees
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Managerial employees
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Officers or members of a managerial staff
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Field personnel and other employees whose time and performance are unsupervised by the employer, including those who are engaged on a 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
