Holiday Pay Rules for Probationary Employees in the Philippines

Holiday Pay for Probationary Employees in the Philippines

(A comprehensive legal guide as of 25 April 2025)


1. Why this matters

Holiday pay is one of the “core” labor standards in the Philippines. Because Article 94 of the Labor Code says “every worker” is covered, a probationary employee enjoys the same holiday-pay protection that a regular employee does from day one of service. citeturn5search6turn6search2


2. Primary legal sources

Instrument Key points for probationary employees
Labor Code, Art. 94 (renumbered Art. 93) Grants one day’s wage for any regular holiday “whether or not the employee works,” with no distinction as to employment status. citeturn5search6
Omnibus Rules, Book III, Rule IV Defines coverage, exemptions, computation formulas, and the “presence rule” (Section 6). citeturn7search0turn9search7
DOLE Handbook on Statutory Monetary Benefits, 2023-2024 ed. Reiterates that probationary, project, seasonal, and casual workers are covered unless expressly exempted. citeturn7search2
DOLE Labor Advisories (issued each time a holiday approaches) Fix the pay multipliers for that specific date; the figures are constant year-to-year.
Selected jurisprudence Stanford Micronics v. OP (G.R. 146628, 22 Jun 2005) – holiday pay is mandatory even during probation citeturn8search1
JRC v. NLRC (G.R. 65482, 1 Dec 1987) – purpose of holiday pay is to keep income “undiminished.” citeturn8search3

3. Who is and isn’t covered

Covered

  • All rank-and-file employees—regular, probationary, project, fixed-term, seasonal, part-time, or piece-rate—unless they fall under a statutory exemption. citeturn7search4turn7search2

Statutory exemptions (Rule IV, Sec. 1)

  • Government employees
  • Househelpers & personal service workers
  • Managerial employees & managerial staff who pass the four-fold test
  • Retail or service establishments that regularly employ fewer than 10 workers
  • Family members of the employer dependent for support
  • Field personnel & other workers paid on “purely commission” or task basis, unsupervised in the field
    citeturn5search0turn5search1

Probationary status does not appear on the exemption list; therefore it never disqualifies an employee.


4. Conditions for entitlement (“presence rule”)

Under Section 6, Rule IV:

  1. Present or on paid leave on the work-day immediately before the regular holiday ➜ full holiday pay.
  2. Absent without pay on that day ➜ no pay for the holiday unless he actually works on the holiday (in which case premium rules apply).
  3. If the day before the holiday is the employee’s scheduled rest day or a non-working day for the firm, he is still entitled provided he worked on the last preceding work-day.
  4. Successive regular holidays: presence on the work-day before the first holiday entitles the worker to all intervening holidays.
    citeturn9search0turn9search7

5. Types of holidays and pay multipliers

Scenario (first 8 hrs) Regular Holiday Regular Holiday on Rest Day Special Non-Working Day Special Day on Rest Day “Double” Regular Holiday¹
Unworked 100 % 100 % 0 % (“no work, no pay”) 0 % 200 %
Worked 200 % 260 % 130 % 150 % 300 %
OT (>8 hrs) +30 % of hourly 200 % +30 % of hourly 260 % +30 % of hourly 130 % +30 % of hourly 150 % +30 % of hourly 300 %

¹Example: Araw ng Kagitingan falling on Good Friday.
Multipliers are confirmed yearly through DOLE Labor Advisories (e.g., LA 6-2024).


6. How pay is computed for different wage schemes

  • Daily-paid probationary employee:
    Unworked regular holiday ➜ Daily Rate × 100 %
    Worked ➜ Daily Rate × prescribed multiplier (see table).
  • Monthly-paid probationary employee:
    Salary is computed on the 365-day factor; regular holidays are already paid. Work on the holiday triggers the additional premium (e.g., +100 % for work on a regular holiday). citeturn7search0
  • Piece-rate / “pakyaw” ➜ Average daily earnings for the last seven actual work-days, but not less than the minimum wage. citeturn7search2
  • Commission-based field personnel are exempt unless company policy says otherwise.

7. Common employer mistakes (and how the law addresses them)

  1. “No holiday pay until regularization” clauses – void; Art. 94 is a compulsory labor standard (ExxonMobil v. Evangelista, G.R. 199888, 28 Sept 2015). citeturn8search1
  2. Ignoring the presence rule – leads to valid denial; HR must document attendance and leave status.
  3. Assuming all small firms are exempt – only retail or service firms with < 10 workers qualify. A 9-person manufacturing shop must still pay. citeturn5search2
  4. Misclassifying probationary employees as contractual to avoid benefits – liable for double indemnity and, in some cases, illegal dismissal. citeturn8search7

8. Enforcement and remedies

  • Single-Entry Approach (SEnA): 30-day conciliation before a DOLE regional office.
  • Labor Standards Inspection: DOLE may motu propio audit payroll.
  • Money claim before NLRC: Four-year prescriptive period; may be joined with illegal-dismissal suit if probationary employee is later terminated.
  • Criminal liability for willful refusal to pay (Art. 303-305, Labor Code) is rare but possible.

9. Practical tips for probationary employees

  • Check your payslip: A regular holiday you did not work should still appear as a paid day.
  • Mind attendance: An unexcused absence the work-day before a holiday will cost you one full day’s wage.
  • Keep records: Timecards, chat/email approvals for leave, and screenshots of DOLE advisories strengthen a future claim.
  • Act promptly: Claims more than four years old are time-barred.

10. Key takeaways

  1. Probationary employees are automatically entitled to holiday pay from day one; company policy cannot defer it.
  2. The presence rule is the sole lawful condition (aside from listed statutory exemptions).
  3. Pay multipliers vary by holiday type but remain the same whether the worker is regular or probationary.
  4. Violations expose employers to double indemnity, legal interest, and—if coupled with dismissal—back wages and reinstatement.

This article is provided for general guidance only and is not a substitute for individualized legal advice. Always consult the latest DOLE advisories or a qualified Philippine labor lawyer for specific situations.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.