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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
- Under the rule on holiday pay, an 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.
- When Araw ng Kagitingan falls on the same day as Maundy Thursday or Good Friday, a covered employee is entitled to at least two hundred percent (200%) of his/her daily wage even if said day is unworked.
- Where the employee is required to work on that day, he/she is entitled to an additional 100% of the daily wage.
Based on the rule on compensability of holiday pay, we already know that an 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. Likewise, work performed on that day shall entitle the employee at least twice (200%) his/her daily wage.
What if two regular holidays fall on the same day?
This happened in the year 1993, where Araw ng Kagitingan (Day of Valor) coincided with Good Friday on April 9. This happened again on April 9, 2004.
Another occurrence of double holiday took place on April 9, 1998, when both Araw ng Kagitingan (Day of Valor) and Maundy Thursday fell on the same day.
The 2022 Handbook on Workers’ Statutory Monetary Benefits provides for the rule in case two regular holidays fall on the same day.
The law says:
“When Araw ng Kagitingan falls on the same day as Maundy Thursday or Good Friday, a covered employee is entitled to at least two hundred percent (200%) of his/her daily wage even if said day is unworked. Where the employee is required to work on that day, he/she is entitled to an additional 100% of the daily wage.” (Holiday Pay, 2022 Handbook on Workers Statutory Monetary Benefits)
In other words, in case two regular holidays fall on the same day, the employee is entitled to the following:
- 200% or twice his/her daily wage, if unworked;
- 300% or three times his daily wage, if worked. This is based on 200% or twice his/her daily wage for the two regular holidays PLUS premium of 100% for work on that day. (DOLE Explanatory Bulletin on Workers’ Entitlement to Holiday Pay on April 9, 1993, Araw ng Kagitingan and Good Friday. March 11, 1993)
The 200% represents the two guaranteed paid regular holidays. If worked, another 100% shall be added to his/her 200% basic pay for working not more than eight (8) hours, in compliance with labor laws.
If the same day happens to be the employee’s scheduled rest day, and he is permitted or suffered to work, he is entitled to an additional 30% of his wage for that day, that is, 300% of his daily rate, or a total of 390%.
In the case of Asian Transmission Corporation v. Court of Appeals (G.R. No. 144644, March 15, 2004), the Supreme Court ruled that an employee is entitled to their pay for the regular holidays, as mandated by the Labor Code.
Jurisprudence says:
“As reflected above, Art. 94 of the Labor Code, as amended, affords a worker the enjoyment of ten paid regular holidays. The provision is mandatory, regardless of whether an employee is paid on a monthly or daily basis. Unlike a bonus, which is a management prerogative, holiday pay is a statutory benefit demandable under the law. Since a worker is entitled to the enjoyment of ten paid regular holidays, the fact that two holidays fall on the same date should not operate to reduce to nine the ten holiday pay benefits a worker is entitled to receive.
It is elementary, under the rules of statutory construction, that when the language of the law is clear and unequivocal, the law must be taken to mean exactly what it says. In the case at bar, there is nothing in the law which provides or indicates that the entitlement to ten days of holiday pay shall be reduced to nine when two holidays fall on the same day.” (Asian Transmission Corporation v. Court of Appeals, G.R. No. 144644, March 15, 2004),
Note that at the time of the Decision for the above-mentioned case, there were ten (10) regular holidays. However, as of the writing of this legal article, there are now twelve (12) regular holidays in one year. For a complete list of regular holidays, you may read “What are regular and special holidays?”
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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