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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
- Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.
- The provision on holiday pay is mandatory, regardless of whether an employee is paid on a monthly or daily basis.
- Premium pay is what is paid to employees during a special non-working holiday.
- On a special non-working holiday, covered employees who do not work on the said day do not receive compensation under the principle of “no work, no pay.”
Regular Holidays
Article 94 of the Labor Code guarantee a worker the enjoyment of twelve (12) paid regular holidays in a year. The provision on holiday pay is mandatory, regardless of whether an employee is paid on a monthly or daily basis.
Jurisprudence says:
Public respondent vehemently argues that the intent and spirit of the holiday pay law, as expressed by the Secretary of Labor in the case of Chartered Bank Employees Association v. The Chartered Bank (NLRC Case No. RB-1789-75, March 24, 1976), is to correct the disadvantages inherent in the daily compensation system of employment — holiday pay is primarily intended to benefit the daily paid workers whose employment and income are circumscribed by the principle of “no work, no pay.” (Insular Bank of Asia v. Inciong, G.R. No. L-52415, October 23, 1984)
Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.
The law says:
Article 94. Right to Holiday Pay. – (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishment regularly employing less than ten (10) workers;
(b) 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; and
(c) As used in this Article, “holiday” includes: New Year’s Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of July, the thirtieth of November, the twenty-fifth and thirtieth of December and the day designated by law for holding a general election.
As such, regular holidays are those paid with holiday pay. Covered employees who do not work on a regular holiday are paid 100% of their daily wage.
What are the regular holidays in the Philippines for the year 2023?
According to Presidential Proclamation No. 90, series of 2022, the officially declared holidays for 2023 are as follows:
- January 1 – New Year’s Day (Sunday)
- April 6 – Maundy Thursday
- April 7 – Good Friday
- April 10 – Araw ng Kagitingan (Monday nearest to April 9, which is a Sunday)
- May 1 – Labor Day (Monday)
- June 12 – Independence Day (Monday)
- August 28 – National Heroes Day (Monday)
- November 27 – Bonifacio Day (Monday nearest to November 30, which is a Thursday)
- December 25 – Christmas Day (Monday)
- December 30 – Rizal Day (Saturday)
Special proclamations declaring holidays in observance of Eid’l Fitr and Eid’l Adha shall be issued by the Office of the President after the National Commission on Muslim Filipinos recommends when these Islamic celebrations will be held.
Special Holidays
Article 93 of the Labor Code enunciates the premium pay which refers to additional compensation for work performed within eight (8) hours on non-work days, such as rest days and special days or regular holidays.
The law says:
Article 93. Compensation for Rest Day, Sunday, or Holiday Work. – (a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.
(b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays.
(c) Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage.
(d) Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Article, the employer shall pay such higher rate.
Premium pay is what is paid to employees during a special non-working holiday. On a special non-working holiday, covered employees who do not work on the said day do not receive compensation under the principle of “no work, no pay.”
What are the special non-working holidays in the Philippines for the year 2023?
According to Presidential Proclamation No. 90, series of 2022, the officially declared special non-working holidays for 2023 are as follows:
- EDSA People Power Revolution Anniversary – February 25, 2023 (Saturday)
- Black Saturday – April 8, 2023
- Ninoy Aquino Day – August 21, 2023 (Monday)
- All Saints’ Day – November 1, 2023 (Wednesday)
- Feast of the Immaculate Conception of Mary – December 8, 2023 (Friday)
- Last Day of the Year – December 31, 2023 (Sunday)
The additional special non-working days include:
- January 2, 2023 (Monday)
- November 2, 2023 (Thursday)
On a special working holiday, an employee is entitled only to his/her daily wage rate. No premium pay is required since work performed on the said day is considered work on an ordinary workday. (DOLE Memorandum Circular No. 1, March 8, 2004)
Related article: When is a bonus demandable?
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