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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Pursuant to Proclamation No. 90, series of 2022, Bonifacio Day, which is observed as a regular holiday on November 30 of each year, shall be declared as a non-working holiday on November 27, 2023, the Monday nearest November 30.
Labor Advisory No. 24, series of 2023 provides for the rules regarding payment of wages for the regular holiday on November 27, 2023.
Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday. (Holiday Pay, 2023 Handbook on Workers’ Statutory Monetary Benefits)
Article 94 of the Labor Code provides that:
“Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten (10) workers.
The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate.”
The 2023 Handbook on Workers’ Statutory Monetary Benefits issued by the Department of Labor and Employment Bureau of Working Conditions states that:
“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 provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for days declared as special days even if unworked.”
Under Labor Advisory No. 24, series of 2023, the following rules shall be observed for the payment of wages for the regular holiday on November 27, 2023:
- If the employee does not work, the employer shall pay 100% of the employee’s wage for that day, provided that the employee reports to work or is on leave of absence with pay on the day immediately preceding the regular holiday.
Where the day immediately preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the employee, he or she shall be entitled to holiday pay if the employee reports to work or is on leave of absence with pay on the day immediately preceding the non-working day or rest day.
Illustration:
(Basic wage x 100%)
- 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.
Illustration:
(Basic wage x 200%)
- For work done in excess of eight hours, the employer shall pay the employee an additional 30% of the basic wage of 200%.
Illustration:
(Hourly rate of the basic wage x 200% x 130% x number of hours worked)
- For work done during a regular holiday that also falls on the employee’s rest day, the employer shall pay the employee an additional 30% of the basic wage of 200%.
Illustration:
(Basic wage x 200% x 130%)
- For work done in excess of eight hours during a regular holiday that also falls on the employee’s rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day.
Illustration:
(Hourly rate of the basic wage x 200% x 130% x number of hours worked)
The case of Nippon Paint, Inc. v. Nippon Paint Philippines Employees Association (G.R. No. 229396, June 30, 2021) expounds on the concept of holiday pay in the following manner:
“Holiday pay is a legislated benefit enacted as part of the constitutional imperative that the State shall afford protection to labor. It is not just meant to prevent diminution of the monthly income of the workers on account of work interruptions, but is also intended to enable the worker to participate in national celebrations held during days with great historical and cultural significance. While the worker is forced to take a rest, he/she still earns what he/she should earn, that is, his/her holiday pay.”
Read also: Who are NOT entitled to holiday pay?
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