Holiday Pay Entitlement for Non-Regular Employees in the Philippines
A comprehensive guide for HR professionals, contractors, project managers, and workers
1. Legal Foundations
| Source | Key Provision |
|---|---|
| Article 94, Labor Code (re-numbered Art. 93 under R.A. 10151) | Guarantees a day’s pay for every regular holiday, even if unworked, to all covered employees. |
| Omnibus Rules Implementing the Labor Code, Book III, Rule IV | Operationalizes Article 94; defines coverage, computation, and exemptions. |
| Department of Labor and Employment (DOLE) Handbook on Workers’ Statutory Monetary Benefits (latest edition) | Consolidates updated formulas, sample computations, and DOLE Advisories on holiday pay. |
| Wage Orders of the Regional Tripartite Wages and Productivity Boards (RTWPBs) | Set the daily-wage rates that become the base for computing holiday pay within each region. |
| Department Order (D.O.) 174-17 | Regulates legitimate job contracting and clarifies the principal’s solidary liability to ensure that agency-deployed workers receive statutory holiday pay. |
| Bureau of Working Conditions (BWC) Advisories & Labor Advisories | Issue clarifications for special circumstances (e.g., pandemic lockdowns, successive holidays, or compressed workweeks). |
2. Who Is a “Non-Regular” Employee?
Under Philippine jurisprudence (Art. 295, Labor Code; Brent School v. Zamora, G.R. L-48494), employment may be regular or non-regular. The latter is an umbrella for:
- Probationary employees
- Project-based employees
- Fixed-term (“contractual”) employees
- Seasonal employees
- Casual employees (engaged to do work not usually necessary or desirable to the employer’s business)
- Part-time employees
- Employees of legitimate contractors/sub-contractors
- “Gig-economy” or freelance workers who nonetheless meet the definition of an employee (degree of control test)
Holiday pay rules apply to all eight categories if they fall within the general coverage in Section 4 below.
3. Classification of Holidays
| Type of Holiday | Examples (2025)* | Statutory Pay Rules |
|---|---|---|
| Regular Holidays | New Year’s Day (01 Jan), Araw ng Kagitingan (09 Apr), Maundy Thursday, Good Friday, Labor Day (01 May), Independence Day (12 Jun), National Heroes Day (25 Aug), Bonifacio Day (30 Nov), Christmas Day (25 Dec), Rizal Day (30 Dec) | 100 % of daily wage even if unworked; 200 % if worked; +30 % of hourly rate for overtime; +30 % of basic rate if the day also falls on the employee’s rest day (thus 260 % if worked). |
| Special Non-Working Days | Chinese New Year, Ninoy Aquino Day, All Saints’ Day, Black Saturday, All Souls’ Day, Christmas Eve, Last day of the year, declared Eid holidays, “special proclamations” of Malacañang | No work-no pay principle unless company policy, CBA, or practice provides otherwise. If worked: 130 % of daily wage; +30 % of hourly rate for overtime; +30 % if it also falls on the rest day (169 %). |
| Special Working Days | Typically “economic” holidays converted by proclamation (e.g., Nov 2, Dec 24 in some years) | Treated as ordinary working days; paid at 100 % of the daily wage whether worked or unworked, with overtime premia applying in the usual way. |
* Actual holiday dates are set yearly by Proclamation of the President pursuant to R.A. 9492.
4. Coverage and Exclusions
Covered:
Any employee, whether monthly-paid or daily-paid, who has rendered at least one (1) day of service in the current employment and is not among the statutory exemptions.
Statutory Exemptions (Rule IV, §1-b):
- Government employees (covered by their own civil-service rules).
- Employees of retail & service establishments regularly employing less than 10 workers.
- Managerial employees and officers.
- Field personnel, family drivers, and household helpers.
- Workers paid on pure commission, task, boundary, or pakyao basis (unless they qualify as employees under control test and paid per day/piece).
- Barangay health & nutrition workers receiving honoraria.
Important: Even if exempt, the employer may voluntarily grant holiday pay; once granted on a regular basis it ripens into company practice and may not be unilaterally withdrawn.
5. Basic Formulas
Let DW = Applicable Daily Wage Rate (regional, sectoral, or company-specific; exclude overtime, allowances, and other premiums).
| Scenario | Formula |
|---|---|
| Unworked regular holiday | Holiday Pay = DW |
| Worked regular holiday | Pay = DW × 200 % |
| Worked regular holiday falling on rest day | Pay = DW × 260 % |
| Overtime on a worked regular holiday | Additional Pay = DW × 200 % × 30 % × OT hours |
| Worked special non-working day | Pay = DW × 130 % |
| Worked special non-working day on rest day | Pay = DW × 169 % |
| Overtime on worked special non-working day | Additional Pay = DW × 130 % × 30 % × OT hours |
| Successive regular holidays (e.g., Maundy Thu & Good Fri) | Both days paid if present or on leave with pay on the workday immediately preceding the first holiday. Absence on the eve of the first holiday disqualifies the employee from holiday pay for both, unless the absence is covered by approved leave with pay. |
6. Monthly-Paid vs. Daily-Paid Non-Regular Employees
| Basis | Monthly-Paid | Daily-Paid |
|---|---|---|
| Composition | Paid for all days of the month including unworked rest days, special days, and regular holidays. | Paid only for days actually worked and regular holidays (if qualified). |
| Holiday Pay Treatment | In theory the holiday pay is already “embedded” in the monthly salary; no separate payout is required. | Holiday pay must be added to the payroll for the holiday. |
| Non-working specials | Still paid because of the “deemed paid” nature of monthly salary, unless the employer uses the “actual days worked” computation method (rare). | Generally no work-no pay unless voluntarily granted. |
7. Special Rules for Specific Non-Regular Groups
| Group | Key Points |
|---|---|
| Probationary employees | Fully entitled once they have reported for at least one day, unless they fall under the statutory exemptions. |
| Project employees | Entitled during the life of the project; if project is suspended on the holiday itself, holiday pay is due if the suspension is employer-initiated (e.g., force majeure is not counted). |
| Fixed-term/contractual | Covered during the effectivity of the contract. Note: Re-hiring with successive fixed terms may convert the employee into regular status, but holiday pay entitlement exists regardless. |
| Seasonal employees | Entitled only during the season; days outside the operating season do not create holiday pay liability. |
| Part-timers | Compute on a pro-rated basis. Example: If a part-timer works four (4) hours daily in a shop where full-time is eight (8), holiday pay = (DW ÷ 8) × 4. |
| Workers paid by results (piece-rate, task, boundary) | If they work within the employer’s premises and subject to control, holiday pay is based on the average daily earnings for the last seven (7) actual working days preceding the holiday. |
| Contractor’s employees | The agency is the direct employer, but the principal is solidarily liable if the agency fails to remit holiday pay. Proof of remittance (e.g., payslips, bank transfer report) is often required during DOLE inspections. |
| Gig/Freelance workers | Entitled only if the relationship is employer-employee. Independent contractors under a contract for a specific deliverable, paid in lump sum, are not covered. |
8. When Is an Absence “Excused” for Holiday Pay?
An employee loses holiday pay if he/she is absent without pay on:
- (a) The workday immediately preceding a regular holiday; and
- (b) Did not work on the holiday itself.
Exceptions (employee still paid):
- The absence is covered by approved leave with pay (e.g., vacation leave, emergency leave).
- The worker was on leave due to sickness or injury with approved SSS sickness notification.
- Preventive suspension later adjudged illegal.
- Work suspensions due to natural calamities or pandemic lockdowns where DOLE issues an advisory directing payment.
9. Interaction with Other Labor Standards
- 13th-Month Pay: Holiday pay forms part of “basic wage” and therefore figures into the computation of 1/12 of basic salary due in December (P.D. 851).
- Maternity / Paternity / Solo-Parent Leave: Holiday pay entitlement continues during periods of paid leave, but not during unpaid portions.
- Service Incentive Leave (SIL): Holiday pay is separate from SIL pay; one may not substitute for the other.
- Night Shift Differential (NSD): If work on a holiday occurs between 10 p.m. and 6 a.m., the 10 % NSD is imposed on top of the holiday premium.
- Compressed Workweek (CWW): If the holiday falls on a day that would otherwise have been a longer workday, the employee is entitled to one (1) full day’s wage only, not 1.25 or 1.5 days.
10. Enforcement, Prescriptive Period, and Remedies
| Item | Detail |
|---|---|
| Statute of Limitations | Claims must be filed within three (3) years from the time the cause of action accrued (Art. 306, Labor Code). |
| Venue | File a money-claims complaint (Regional Arbitration Branch, NLRC) or DOLE Single-Entry Approach (SEnA) request for assistance. |
| Burden of Proof | Employer must prove payment via payslips, payroll summaries, bank advice, BIR 2316, or DOLE-accredited accounting reports. |
| Penalties | Unpaid holiday pay constitutes wage underpayment, exposing the employer to: (a) restitution of deficiency; (b) legal interest (6 % per annum); and (c) administrative fines under DO 183-17. |
| Criminal Liability | Willful refusal constitutes a criminal offense under Art. 302, punishable by fine and/or imprisonment, but prosecution requires DOLE endorsement and is rare. |
11. Practical Compliance Checklist for Employers
- Identify which workers are daily-paid vs. monthly-paid.
- Verify if any statutory exemption applies; document the basis.
- Maintain clear time & attendance and payroll records (retention: 3 years).
- Observe the regional wage order in force on the holiday date.
- Compute holiday pay separately for piece-rate or part-time staff.
- For agency-hired workers, require proof of payout before approving the contractor’s billing.
- Post DOLE holiday pay schedule on bulletin boards or digital channels to promote transparency.
- Update policies annually in light of the presidential Proclamation of holidays, usually issued in Q3 of the preceding year.
12. Key Take-Aways
- Holiday pay is a statutory right, not a privilege, and generally extends to non-regular employees unless they belong to a narrow list of exemptions.
- The type of holiday (regular, special non-working, special working) dictates the premium rate.
- Daily-paid non-regular workers are most affected because their pay hinges on actual computation for each holiday.
- Proper record-keeping and contract clarity (particularly in project-based and agency setups) are the best defenses against holiday pay disputes.
- Failure to comply can result in solidary liability, interests, and administrative fines.
Disclaimer: This article is for informational purposes and does not constitute legal advice. For specific cases, consult the Labor Code, DOLE regulations, or a licensed Philippine labor-law practitioner.