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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
- Every employer shall pay his employees their regular daily wage for any worked regular holidays.
- The rule on holiday pay shall apply to all employees, except (1) government employees, (2) those employed in retail or service establishments with less than 10 employees, (3) kasambahays and other persons in the personal service of another; (4) managerial employees, (5) officers or members of the managerial staff, (6) field personnel and other employees whose time and performance are unsupervised by the employer.
Every employer shall pay his employees their regular daily wage for any worked regular holidays. (Section 3, Omnibus Rules Implementing the Labor Code)
The Omnibus Rules Implementing the Labor Code provides that the rule on holiday pay shall apply to all employees, except the following:
The law says:
“SECTION 1. Coverage. — This rule shall apply to all employees except:
(a) Those of the government and any of the political subdivision, including government-owned and controlled corporation;
(b) Those of retail and service establishments regularly employing less than ten (10) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of the Code;
(e) Field personnel and other employees whose time and performance are 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.” (Section 1, Omnibus Rules Implementing the Labor Code)
The 2022 Handbook on Worker’s Statutory Monetary Benefits further defines the coverage for the benefit of holiday pay, to wit:
“B. Coverage
This benefit applies to all employees except:
- Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws;
- Those of retail and service establishments regularly employing less than ten (10) workers;
- Kasambahay and persons in the personal service of another;
- Managerial employees, if they meet all of the following conditions:
4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;
4.2 They customarily and regularly direct the work of two or more employees therein; and
4.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight.
- Officers or members of a managerial staff, if they perform the following duties and responsibilities:
5.1 Primarily perform work directly related to management policies of their employer;
5.2 Customarily and regularly exercise discretion and independent judgment;
5.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or
(b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or
(c) execute, under general supervision, special assignments and tasks; and
5.4 Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 5.1, 5.2, and 5.3 above.
- Field personnel and other employees whose time and performance are 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.” (Holiday Pay, 2022 Handbook on Workers’ Statutory Benefits)
Jurisprudence says:
As held in the case of Nippon Paint Philippines, Inc. v. Nippon Paint Philippines Employees Association (G.R. No. 229296, June 30, 2021):
“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.”
Related article: What are the equivalent forms of the 13th-month pay? (P.D. No. 851)
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