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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
- To be entitled to holiday pay, it is necessary that the employee: (1) worked; (2) was on leave with pay; or (3) was on authorized absence on the day prior to the regular holiday.
Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday. Every employer shall pay his employees their regular daily wage for any worked regular holidays.
The law says:
SECTION 4. Compensation for holiday work. — Any employee who is permitted or suffered to work on any regular holiday, not exceeding eight (8) hours, shall be paid at least two hundred percent (200%) of his regular daily wage. If the holiday work falls on the scheduled rest day of the employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday rate of 200% based on his regular wage rate. (Section 4, Rule IV, Book III, Omnibus Rules to Implement the Labor Code of the Philippines)
The foregoing rule on compensability is applicable to all covered employees, provided that the employee: (1) worked; (2) was on leave with pay; or (3) was on authorized absence on the day prior to the regular holiday.
Under the 2022 Handbook on Workers’ Statutory Monetary Benefits provides that employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they do not work on such holiday.
Where the day immediately preceding the holiday is a non-workday in the establishment or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to the holiday pay if he/she has worked immediately preceding the non-work day or rest day.
As such, the 2022 Handbook on Workers’ Statutory Monetary Benefits provides that:
“1. All covered employees shall be entitled to holiday pay when they are on leave of absence with pay on the workday immediately preceding the regular holiday. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they do not work on such regular holiday.
2. Employers shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee’s compensation or social security payment, whichever is higher, if the employees are not reporting for work while on such leave benefits.
3. Where the day immediately preceding the holiday is a non-work day in the establishment or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to the holiday pay if he/she worked on the day immediately preceding the nonwork day or rest day.” (Holiday Pay, 2022 Handbook on Workers’ Statutory Monetary Benefits)
Related article: What is the rule on double holiday pay?
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