Wednesday, December 03, 2008

To Give or not To Give Holiday Pay During Philippine Holidays

I received this question today:

"During this holiday are we obligated to pay our employees?"

This Christmas season of 2009, the Government declared several special holidays in addition to the regular holidays on December 25, 30, and January 1. These are December 26, 29 and 31. It is possible that other "sandwiched" working days could be declared as well.

Here's a typical advisory from the Department of Labor and Employment on how to treat holidays in terms of pay:

"Employees covered by the holiday pay law shall be paid their regular daily wage during the holiday even if no work is rendered provided that they are present or on leave of absence with pay on the working day immediately preceding the regular holiday.

Employees who are required to work on a regular holiday shall be paid compensation equivalent to twice their regular rate or a total of 200%, that is 100% of their basic wage plus 100% holiday pay. (Let me add that employees who are made to work during special holidays should be paid 30% more on top of their regular rate according to the labor code and other advisories)


For work in excess of eight hours, the employees are entitled to overtime pay of at least 30% on top of their 200% salary rate or a total of 260% per overtime hour.

If employees are required to work on a regular holiday that falls on their scheduled weekly rest day, they shall be paid additional compensation or premium pay of 30% of their holiday rate of 200% or a total of 260% for an eight-hour work on that day.

If the employees work beyond eight hours on a regular holiday which happens to be their scheduled rest day, they are entitled to an overtime pay of at least 30% on top of the 260% salary rate or a total of 338% per overtime hour.

Exempted from the holiday pay law are managerial employees, field personnel, and employees in the retail and service establishment regularly employing less than 20 workers."


Going back to your question, if your employees do not fall under the exemptions set by the government, you are obligated to pay your employees accordingly during the holidays. Let me add some personal inputs to this. The government has a reason for exempting smaller companies that employ fewer employees. This is because they might not be able to afford it without the revenue due to slowdown or stop in productivity. If you are too saddled to afford the pay, then you have the law behind you if you opt not to pay. I like to say however that employers should strive to afford this especially in this month when the season's demand for money is higher and the number of holidays if not paid will have serious impact on their finances. Paying them would be the best goodwill you can give your employees. You know what I mean.

I don't want to sound self-righteous here but let me report that despite having less than 10 employees and being affected by the economic crunch, our employees are going to get complete compensation during the holidays. I believe that mindful leaders should foresee situations like this and take pains to adjust their business strategies to make some accommodations.

I hope this helps.

57 comments:

jeoy said...

this is a nice topic i appreciated how to compute , but ended up with a problem big one, what is a holiday, is that the holiday-holiday , or speical day, or working holiday, or special non working holiday , or regular holiday, so how do we compute like in valenzuela day is a holiday but classified a working holdiay so how do i compute that, like in san juan there is a san juan day a non working holiday, so that the residents may be able to partake in the celebrations, ah but the workers are not from san juan so do i follow the saying " so that the residents may celebrate" and if in case its manila day the worker lives in manila does that mean he can go on holiday so he can celebrate the holiday in manila , does he get paid for it.

Ed Ebreo said...

@yeoj,

There are two types of holidays based on span of implementation. National and local. For National, you have the regular and the special non-working holiday. You can already ignore the declared working holiday as the computation of salary is the same. In the local scene, a city's foundation day will be honored by companies situated in that area. For example, during Quezon City Day celebration, owners of businesses in that area will have to pay their employees the premium of 30% on top the daily rate. If an employee however is a resident of Quezon City but works in Makati, he will not be paid extra for working in Makati during Quezon City Day Celebration.

mizpah said...

Thanks for this post.

I have a question: is this applicable to all types of employees (i.e. regular employees as well as contractors)?

My company informed me during the renewal of my contract that they will apply a "no work no pay" policy for all employees. This means that no holiday pay will be given to employees. Is this legal? I'm a contractor on a monthly pay. This arrangement is not stipulated in my employment contract.

Please advice.

Kudos for a wonderful website. More power!

Ed Ebreo said...

@Mizpah; I'm not sure if you fall under this category, so you tell me...

One exemption on the Holiday pay law are;

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.

Does this exemption describe the nature of your engagement with the company you are working for?

mizpah said...

Hi Ed,

Thanks for the very prompt response. I don't think I fall under that exemption. I am like a regular employee, with all it's responsibilities, etc. except for the pay package and benefits (no leave pay). Other than that, we do all that regular employees do. I report to our office everyday like normal employees do.

Am I still exempted from the holiday pay law? Just so you know, I used to have the holiday pay. But now, the company decided to take that away. I'm not sure if they can actually do that.

I really appreciate the attention. More power!

Ed Ebreo said...

@Mizpah,

Here's the thing, I believe that renewing your contract like that makes your job necessary and desirable by the employer, meaning they should regularize your employment. But as I always say in this blog, I'm not a lawyer so maybe you should ask one. You should also ask a lawyer if the law on nondemunition of compensation applies to contractual employees like yourself.

Gina said...

Try this post http://panyero.wordpress.com/2009/12/21/paskopera-holiday-pay/
this might help

Anonymous said...

Please enlighten me.

My spouse has to attend a out-of-town company outing sponsored by the company on the coming holy days. transportation, accommodation, per diem are shouldered by the employer. excluding the breakfast on the day going back to manila.

I do not agree with the said company outing because it is being held during the holy days which is prohibiting them to practice religious customs plus it should be spent with the family. To make it even worse, they will not give an OT pay even though it will be held on holy days/holidays.

I understand that company outings held on a regular saturday and sunday are not to be paid an OT pay.

The company apparently wants to give a company outing without sacrificing regular working days.

Am i wrong? Is it legal for the company to schedule out-of-town company outings on holyweek without OT pay? Free transporation, accommodation, perdiem is enough grounds to justice why they are not giving OT pay?

please help.

johnd said...

**MONTHLY-PAID EMPLOYEES AND SPECIAL NON-WORKING HOLIDAYS**
I have 3 office employees. In their contract, it is specified that their working days are from Monday to Saturday and that their Monthly Basic Salary is P15,000. Because of this stipulation in their contract, THEY automatically identified themselves as Monthly-Paid employees. I have read the Labor Code and looked at other labor-related websites. The typical definition of Monthly-Paid Employees is: those paid every day of the month INCLUDING unworked rest days, special days and regular holidays. This definition honestly does not provide a lot of helpful information.

Because my staff considered themselves as monthly-paid employees, they used 365 as the divisor in getting the rate to be used for OT, absences, leave credits, holiday pay and premium pay computation.

I never really bothered to review their payroll computation because in a way I trusted that they knew what they were doing. I just ordered them to follow the basic requirements of the labor code. One time, I decided to check their computation for the period of June 16 - 30. As we all know, June 30 was declared a Special Non-Working Holiday.

I am well aware that employees who worked on this day are given an additional 30% PREMIUM (assuming it is not their rest day). One of my employees did not go to work on this special non-working day. She did not deduct P493.15 ((P15000 x 12 months)/365 days) from her pay for this payroll period claiming that as a monthly-paid employee, all her UNWORKED holidays (regular AND special) are PAID.

I did not agree with her on this stating that under the Labor Code "The no-work, no-pay principle applies during special days." In addition, the Labor Code does not mention that monthly-paid employees are EXEMPT from this "no-work, no-pay" principle. The mere fact that the Labor Code does not specify the kind of pay that an employee should receive on an UNWORKED special day is already an indication that there is no pay to be received by an employee who does not go to work on a special day (as opposed to the pay an employee gets on an UNWORKED REGULAR holiday which is specifically called HOLIDAY PAY). This is just my own analysis.

Unfortunately, my employee does not want to agree with me by always pointing out the Labor Code's definition of monthly-paid employees.

So who is correct in this case? (I hope it's me.) If ever I prevail in this case, is the 365 factor still the correct divisor to use? My employees argue that if ever I am right, then their divisor should also be corrected. Using 365 as the divisor assumed that even the UNWORKED special days are paid. In my opinion, I would like to stick with the 365 divisor as this would also prevent us from always adjusting the divisor for new legal and special holidays that are proclaimed yearly. Is sticking with 365 as the factor legal? And kindly expound on what really is a monthly-paid employee. Avoid giving definitions already found in the labor code and other HR books because these definitions are not helpful at all. They are rather confusing. Kindly enlighten me. Thank you.

Ed Ebreo said...

@Johnd; your timing is impeccable because I just had a brief argument with a DOLE representative about your concern just a couple of days ago. Here's what I think based on my limited understanding of your situation:

There are two kinds of monthly paid employees, those who are paid for all the days of the year including rest days and holidays, hence the 365 days factor, the other type are those who are paid only for the days worked and the holidays (no-work-no-pay)who use the factors 263 for those who work five days a week and those who use 314 for 6 days a week. The fact that you are using 365 days as your factor, it means that you are not applying the no work, no pay policy because the 365 days factor means you pay them everyday of the year whether worked or not.

Another thing, your employees are entitled to their regular pay even if they do not work on special holidays. This is true whether you are implementing a no-work-no-pay policy or not. The only reason why this will not apply is if your employees are contractual or casual employees. If they are probationary or regular employees, I believe they are entitled to the pay even if they did not work on a holiday.

I hope I'm able to explain it clearly enough. If not, let's put it this way, your staff are right my friend :)

johnd said...

Hahaha! Thanks Ed for replying. At this point, I am not yet willing to surrender.

Okay, lets just say I'm wrong. I am just wondering why the Labor Code never identified the kind of pay an employee should "receive" when he does not go to work on a Special Non-Working Day. All other types of pay that an employee is entitled to receive are CLEARLY identified (and given a definition) in the Labor Code. Some examples:

HOLIDAY pay - pay received by an employee on an UNWORKED LEGAL holiday
Premium pay - ADDITIONAL pay an employee receives for WORKING on a non-work day such as special holidays
Overtime pay - we know this
Night Differential Pay
13th month pay
etc.

Now if any of you can give me the name of this pay an employee should "receive" when he does not go to work on a SPECIAL NON-WORKING holiday, then I will swallow my pride and face my employees to tell them I was wrong. For me, the mere fact that the Labor Code does not specify the kind of pay that an employee should "receive" on an UNWORKED special day is already an indication that there is no pay to be received by an employee who does not go to work on a special day (as opposed to the pay an employee gets on an UNWORKED REGULAR holiday which is specifically called HOLIDAY PAY).

I have read the sections on Holiday Pay (Article 94) and Premium Pay (where Special Holidays fall under). The Code specifies that these benefits apply to ALL employees EXCEPT...Now if you do not belong to any of the EXCEPT, that means that you are entitled to receive this benefit. There was no mention of monthly-paid, daily-paid, probationary, regular employees, etc. Definitely my employees are entitled to these benefits. Moving on to the Special Day section, the Labor Code clearly indicated that the "No-work, No-pay" principle applies to Special Holidays. Period. No other mention as to who are exempted from this principle under this section. So if you are not included in the EXCEPT list, then the "No-work, No-pay" principle applies to you when it comes to Special Days.


It's quite obvious that I don't give up without a fight. Hehehe. If somebody can break my analysis, then I will surrender. Just take up my issues one by one. I don't like calling up DOLE to inquire. Unfortunately, people who answer the phone don't seem to know what they are talking about. That is why I rely on what is WRITTEN.

Ed Ebreo said...

Thank you for not giving up easily and you'll see why :)

Tricky, isn't it? :) I'm no expert myself so I can't really claim to be right. What I'm sharing with you is my understanding of this complexity. If you read some of the wage orders issued by the government like this one here: http://www.nwpc.dole.gov.ph/pages/download/ncr/reg%20ncr%20-%20wo%2015.pdf and go to page 13, you'll see this statement:

"For those who do not work but are considered paid on rest
days, special days and regular holidays:
EMR = (ADR x 365 days) / 12 months
Where 365 days:
299 - Ordinary working days
11 - Regular holidays
52 -Sundays/rest days
3 -Special days
365 -Total no. of days/year"

You'll see here that special holidays are factored in the pay. It also mentions that these are employees who are PAID on special days AKA Special Holidays even if not worked. As a matter of fact all of the factors being presented in the wage order indicate that special holidays are paid even if not worked. If you remove the 2 days in the list, it's not really 365 days isn't it?

What makes it really crazy is that the labor code does say that no-work-no-pay applies to special holidays except when there's CBA or special arrangement between the organization and the company. This is exactly the reason why some employers grind their teeth during special holidays. That's because they have to pay their employees despite the absence of productivity for that day.

Now that I am about as confused as you are (hehehe)let me add to the confusion. If you look at special holiday announcements, they also say No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked.

Thanks to your inquiry, I realized just now that this issue is more confusing than I thought! My default action was to always pay. I don't think it's going to change for me but I know now, it is more a decision than an obligation.
There you go :) Bahala ka na! :))

Ed Ebreo said...

@Johnd,

I just found this in the net that might explain the difference in treating monthly paid workers from daily paid ones. Here's the URL: http://jlp-law.com/blog/computation-pay-holidays-regular-special-non-working-special-working/

Find this advisory from DOLE: "MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular or special days, although he does not regularly work on these days.

DAILY PAID EMPLOYEE refers to one who is paid his wage or salary only on the days he actually worked, except in cases of regular holidays wherein he is paid his wage or salary even if he does not work during those days, provided that he is present or on leave of absence with pay on the working day immediately preceding the regular holiday.

As distinguished from monthly-paid employees who are assured of being paid for every day of the month, the provision of the Labor Code on holiday pay is principally intended to benefit a daily-paid employee who is normally bound by the principle of “no work no pay”. Before the advent of the Labor Code, they are not paid for unworked regular holidays."

I hope this helps

johnd said...

Just tell me this, Ed: What do you call the pay you give to your employee on an UNWORKED SPECIAL holiday? Don't say HOLIDAY pay because Holiday pay refers to LEGAL holidays. I will surrender if you are able to find the name of this particular pay in the Labor Code. :p

The mere fact that the Labor Code does not specify the kind of pay that an employee should receive on an UNWORKED special day is already an indication that there is no pay to be received by an employee who does not go to work on a special day (as opposed to the pay an employee gets on an UNWORKED REGULAR holiday which is specifically called HOLIDAY PAY). It is also my impression that the use of 365 as a divisor is just a GUIDE in computing an employee's daily rate. It is not a RULE that if somebody uses 365 as a divisor, the employee is AUTOMATICALLY entitled to his daily pay on an UNWORKED SPECIAL day. I'm going to quote Brenda Villafuerta (Director of BWC (just don't know if she is still the current director): "...It must be noted that the law merely requires that the employee be paid for days worked and for regular holidays..."

So Ed, why do you think our Labor Code did not identify or give a name for the pay to be received for an UNWORKED SPECIAL holiday?

Think. Confused? Hehehe.

Ed Ebreo said...

@Johnd, no, I don't know why the Labor Code did not specify a name for the pay to be received for unworked special holidays. I also don't know why the wage orders state "For those who do not work but are considered PAID on rest days, SPECIAL DAYS and regular holidays" to refer to the 365 days divisor for MONTHLY PAID workers and not have anything for monthly paid workers who are NOT PAID during special days. To me, it does not make sense to say "PAID and yet NOT BE PAID." I believe that it's because the no-work-no-pay policy applies more to daily paid workers who are not paid on rest days and special days and do not use any of the divisors presented by the government because they are only paid for the days they worked and regular holidays but I have not found any document yet to prove that as a fact. That's just how it makes sense to me. Am I right or wrong? I don't know. Maybe this is something that D.O.L.E. or someone else can answer for us.

Bottom line, I can't say with authority nor certainty that you are wrong or right. I hope you find a more definitive answer to your question. :)

johnd said...

"...the provision of the Labor Code on holiday pay is principally intended to benefit a daily-paid employee who is normally bound by the principle of “no work no pay”..."

So Special Holidays are intended to benefit monthly-paid employees (MPE)? The Labor Code seems to be biased. They give more benefits to monthly-paid employees than to daily-paid employees (DPE)who in reality need more income than the monthly-paid employees. MPEs don't go to work on a special holiday and they get paid; while DPEs don't go to work on a special holiday and they don't receive anything. Hmmm...

johnd said...

hi ed. this link is helpful: http://www.laborlaw.usc-law.org/2010/02/22/premium-pay/#comment-1216

read the comments section and the reply of the blog owner.

i also emailed DOLE regarding the same concern. here was their reply:

We have different divisors for monthly paid employees, 365, 392.50, 313 and 261. The employer is responsible which divisor will be used in computing the salary and benefits of its employees.
Regardless of the divisor that was used, the principle of no work no pay is applicable except if there is a company policy, practice or Collecting Bargaining Agreement (CBA) that allowed the payment of salary even if the employee did not report for work.
For further information, please visit the bureau of working conditions or the public assistance and complaint unit, intramuros, manila.

i can forward the email to you. what is your email?

Anonymous said...

@ed & johnd - what the heck?! i got headache just by reading your "batuhan"...

this is very interesting and very much confusing. i think D.O.L.E. peeps should re-consider what has been written and hope they will make it easier to understand by the public.

anyway, hats off to both of you for a very nice exchange of thoughts. ;)

Anonymous said...

Hi i need your opinion and advise. I was terminated and my pay was lastvpay was held due to that reason. What bothers me is that i have not received my holiday pay for the month of april. It already reflected on our payslip. They have some excuse about it, that it was thr bank's fault. They gave the holiday pay a week after. Well, everyone else got it except me. How can they forget an employee. And it was the week that i ahd my hearing with the HR. I was patient enough to filed for discrepancy. I still did not receive it. Now that they already terminated my employment. What should i do? I felt that they should have prioritize that by now. Much thanks and more power.

glaiza'shaven said...

hI ED,
May i ask what like this August 29 and 30 of this year. One employee's rest day falls on august 30. is she goin to received a regular holiday pay? please advise me. thanks. :)

Anonymous said...

Hi Ed,

Just a simple question. Is it under the company's discretion to have work on a special non-working holiday or is it just like a regular holiday?

Anonymous said...

Hi Ed,

Pls. advise if daily paid employee should be paid during regular holiday.

Anonymous said...

Hi! I would like to ask if a daily basis employee was absent the day before the holiday, is he still entitle for a holiday pay?

Edwin Ebreo said...

Yes and no. Yes the company may schedule work on special nonworking holidays. No, it's not like regular holiday because the pay is different. It's +30% of daily rate while employees are paid twice on regular holidays.

Edwin Ebreo said...

Yes

Edwin Ebreo said...

If the person was absent without pay, he/she is not entitled to holiday pay.

Anonymous said...

sir,

ano po difference ng regular holiday (new year, holy week etc etc etc) sa national holiday (Eid-al-Fitr)? help

thanks,

josh123s

Edwin Ebreo said...

They're practically the same, Josh, I mean in terms of how much you will be paid if you work on these holidays.

Anonymous said...

hello sir edwin,

thank you for your reply, actually my follow up question would be similar to that. scenario is this, employees status - regular. and every regular holidays (new year, holy week, christmas among others), employees need not required to report for work but would received a holiday pay, as per required by labor law. but during our muslim brother holiday (Eid-al-Fitr), a declared national holiday, no holiday pay would be received if employee/s would NOT report for work. in my opinion it was considered as a special holiday only. sir, is this correct? you had mentioned that regular holidays and national holidays are practically the same so does it mean that the compensation would be the same? help, thanks and more power

respecfully yours,

josh123s

p.s.

kindly check R.A. #9849,
declaring eidul adha a national holiday too, would it apply also?

thanks

Anonymous said...

Hi! We are a small retail company with 5 employees on a daily wage salary. Are we obliged to give salary even we are closed on holiday? Ive read in your blog that small companies are exempted with these? Thanks

Anonymous said...

sir ed,

with regards to the rule that employees are entitled for holiday pay if they are present or on leave with pay on the immediate preceeding day the holiday; given that we have had work every saturday on a regular weekly-basis, but company suddenly announced that we have no work this coming saturday aug25 and told us therefore they are not obliged to pay the august27 regular holiday. Is it legal or not?

Anonymous said...

hi!

May bayad po ba ang daily paid ang holiday?

Merlyn Sumalo said...

Hi Ed,

I have one question which bother me every time I start my payroll when there is an Holiday.

My Question: The employee is absent AFTER the holiday, is she/he entitled the holiday. As per DOLE, "If you filed a leave with pay on this day, you are still entitled to the 100% premium provided that you were present on the day before the holiday. Otherwise, a holiday pay will not be added to your pay."

I need some clarifications.

Thank you so much!!

Anonymous said...

Hi Sir Ed,

According to Labor Code "Employees covered by the holiday pay law shall be paid their regular daily wage during the holiday even if no work is rendered provided that they are present or on leave of absence with pay on the working day immediately preceding the regular holiday.
Last december 22 our company declared force leaved to our marketing section, those who came at work was advised to go home and all of them doesn't have any VL that time so most of them wasn't paid for dec 24 and dec 25. Is it legal or not? thanks.

Anonymous said...

Hi Sir Ed,

Would also like to know if theres such thing as FORCED LEAVE wherein all employees were forced to used their vacation leave due to some reasons like theres no delivery, theres no raw materials for production or even theres no power due to long power interruption by meralco. And if you dont have any remaining VL it will be leave without pay. Is this legal or not?

Edwin Ebreo said...

Yes, it is legal supposing your company reports these instances to DOLE for documentation.

Anonymous said...

Sir,

How about po yung December 22, 2012 was declared as Forced Leave in our company then di po binayaran yung Dec24-25 ng mga employee coz they dont have left VL for Dec 22. Is it legal pa din po ba? Many thanks.

Anonymous said...

Hi Ed, an employee with a Managerial position took his leave of absence (approved) on Dec 22, 2012 and the accounting does not paid him the 24 & 25 holidays, given that he is still on probationary with monthly salary package. Is this right or just. Thank you and more power... God bless!

Anonymous said...

Hi,

One of my employee, a project based status or casual, and is a daily rate employee claiming that as per labor code, they are entitled to holiday pay even they didnt work on that holiday.
Quote unquote, the holiday pay stipulates that an employee is entitled to at least 100% of his basic wage even if he did not report to work, provided he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday . From my understanding holiday with pay is only applicable to monthly earnings employee not to daily rate. And so as a monthly rate, even they did not work or present on holiday still treated with pay. Is the same sense, the logic is that whose company will going to pay a daily rate employee with holiday pay ghat didnt report to work? The company then might declare closure if the employer will practice holiday pay to daily rate even they did not work.

Edwin Ebreo said...

If it is a regular holiday, everyone is entitled including casual and project based daily paid employees. If it's a special holiday, they're not.

Anonymous said...

Hi Sir Ed,

What if the employment contract ended December 23, then renewed on January 3rd the ff year. Are the employees still entitled for the Holiday pay for Dec.25 and Jan.1?
In addition, is the Ed'l Ftr and Ed'l Adha treated Legal Holiday with pay?

T said...

Many employers practice the habit of deducting holiday pay from salaried employees if they are on leave without pay on the workday preceding the special/regular holiday. But isn't the usage of the 261/313 divisor presupposes that an employee is considered paid for all holidays whether they satisfy the worked the previous day rule or not? Also, what constitutes presence on the workday prior to the holiday? Is 1 hour rendered work enough? Or should the employee complete 8 full hours of work or paid leave to be deemed present?

Anonymous said...

Hi Sir Ed,

Just today,we were given a memo stating that we will not be paid on Monday,election day. We understand that it is a special non working holiday, however, we are all monthly paid employees, hence, we believe that salaries should not be deducted. However, our HR Manager is insisting that because of Cicular no.01, we should not be paid. This is the first time that any of us ever encountered. I read through the thread above and I agree that DOLE didn't specify rules on Monthly Paid and Daily Paid but basing it on 365 divisor,we should be paid,right?

Thank you very much and hoping for a speedy response.

Anonymous said...

Hi Sir Ed,

Just today,we were given a memo stating that we will not be paid on Monday,election day. We understand that it is a special non working holiday, however, we are all monthly paid employees, hence, we believe that salaries should not be deducted. However, our HR Manager is insisting that because of Cicular no.01, we should not be paid. This is the first time that any of us ever encountered. I read through the thread above and I agree that DOLE didn't specify rules on Monthly Paid and Daily Paid but basing it on 365 divisor,we should be paid,right?

Thank you very much and hoping for a speedy response.

Edwin Ebreo said...

I recommend that you look for this website http://jlp-law.com/blog/computation-pay-holidays-regular-special-non-working-special-working/ and particularly this entry:

"Anent your query, MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular or special days, although he does not regularly work on these days.

DAILY PAID EMPLOYEE refers to one who is paid his wage or salary only on the days he actually worked, except in cases of regular holidays wherein he is paid his wage or salary even if he does not work during those days, provided that he is present or on leave of absence with pay on the working day immediately preceding the regular holiday.

As distinguished from monthly-paid employees who are assured of being paid for every day of the month, the provision of the Labor Code on holiday pay is principally intended to benefit a daily-paid employee who is normally bound by the principle of “no work no pay”. Before the advent of the Labor Code, they are not paid for unworked regular holidays.

We hope that this answers your query.

Please be informed that our opinion on the matter is strictly advisory and may not be invoked in any court of law or before any administrative body."

Please note that even DOLE says that their comment is not legally binding. I suggest that you call or email them yourself and share your circumstances so they can appraise your situation better.

Chyssa May Yares said...

Hi Sir Ed,

I have a question about my pay in the company that I am working for. I am currently a non-regular worker/probationary since I am still on my second month of work. Do I benefit from the 200% pay during regular holidays? And can I be forced to work on a regular holiday also? Please advise. Thank you.

Edwin Ebreo said...

Chyssa May, the answers are yes and yes

Anonymous said...

Hi, just wanted to have a clarification. I'm working now in a global company wherein we support different countries. We do follow the holidays of the country that we supports. Like in my case, I'm following the Singapore holidays. My question was, am I still entitle for double pay when I go to work during Philippine holidays?

Anonymous said...

Good day Sir Ed,
This is a good site especially to HR Practitioner like me... I was able to get good input and can be use in decision making. On the otherhand, i would like to ask as to where i could direct an employee inquiry on legal holiday payment - she's on sickleave, is she entitle to received holiday premium? what legal reference could i present? bec her sickleave also falls on a legal holiday... thanks in advance and more power!!!

Anonymous said...

sir if a person is absent a on aug 8 and he didnt work on aug 9 which is a legal holiday is he entitled to receive holiday pay?

Anonymous said...

Hi Matanong ko lng po kung ang casual employee ba ay holiday with pay or wala? kasi ndi po nabayaran ung holiday pay ko e. sabi ng tropa ko.. mali daw un e.. dapat babayaran ka parin nun aun slamat comment pls

Anonymous said...

Hi Ed,

Maybe you could help me on this one: We employ "models" for special events and conventions, if the activity falls on a holiday, are they entitled to holiday pay? Or are they part of the exemption?

Looking forward to your insight on this. Thanks!

Edwin Ebreo said...

If they are contracted talents who are not really considered regularly employed, they should not be entitled to any holiday pay. If they are regular employees, they should be entitled.

Anonymous said...

Thanks Ed.

More power!

Anonymous said...

This is a nice topic. I have a question. My employer is a Korean and he doesn't pay us double pay during National Holiday in the Philippines. We are also obligated to work during National holiday. What can we do about this? Thanks...

Edwin Ebreo said...

Complain to DOLE. That's unfair labor practice.

Anonymous said...

Hi Sir!
Please enlighten me.
We are hired as a “CONSULTANT” to a certain company with agreed monthly fixed pay contract (but we are reporting at work 5days a week like a normal employee), is the Labor Code for Holidays applicable to us? Particularly the statement: “All covered employees are entitled to holiday pay when they are on leave of absence with pay.”
My understanding is that this Labor Code statement is just applicable to all the “EMPLOYEES” only. As a “CONSULTANT” with agreed monthly fixed pay contract they should pay us regardless of the holidays. So whether we are on leave or at work a day before the holiday will not be an issue. The HR officer insists that the holiday Labor Code applicable to their employees is also applicable to the consultants.
Am I wrong? Please Help.
Thank You.

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