Dear Attorney:

I am writing to request your legal guidance on a matter concerning holiday pay in the Philippines. Specifically, we had an employee who worked for only three (3) hours on a regular holiday, whereas the usual workday is eight (8) hours. The question is: How much should we pay the staff for working just three hours instead of eight hours on a regular holiday?

I would greatly appreciate your meticulous review of the relevant Labor Code provisions, Department of Labor and Employment (DOLE) issuances, and any applicable jurisprudence that could clarify the correct pay computation. Thank you in advance for your assistance.

Respectfully,

The Undersigned

LEGAL ARTICLE: A COMPREHENSIVE DISCUSSION ON HOLIDAY PAY FOR PARTIAL WORK HOURS UNDER PHILIPPINE LAW

Introduction to Holiday Pay Under Philippine Law
The Labor Code of the Philippines, as amended, along with subsequent policy issuances from the Department of Labor and Employment (DOLE), governs the payment of wages for holidays. Two categories of holidays exist in the country: regular holidays and special (non-working) days. Under Executive Order No. 292, proclamations published yearly, and various pieces of legislation (e.g., Republic Act Nos. 9849, 10966, 9177, etc.), dates are declared as official holidays. The general rule is that work performed on a regular holiday entitles an employee to holiday pay at a higher rate than normal days, ensuring fair compensation for labor rendered during officially recognized days of rest or commemoration.
Regular Holidays Versus Special (Non-Working) Days
It is crucial to distinguish between regular holidays and special (non-working) days:
- Regular Holidays: These typically include New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan, Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day, and Rizal Day, among others. Employees are generally entitled to 100% of their daily wage even if no work is rendered on these days (subject to certain conditions), and 200% of their daily wage if they do work.
- Special (Non-Working) Days: Examples are Ninoy Aquino Day, All Saints’ Day, and certain days declared by presidential proclamation. The pay rules differ from regular holidays; employees typically receive an additional 30% on top of their daily rate for the first eight hours if they report for work on these days.
Given that the concern revolves around a “regular holiday,” the focus here is on the rules for regular holidays and their corresponding pay entitlements.
Legal Basis for Regular Holiday Pay
Article 94 of the Labor Code, as renumbered under Republic Act No. 10757, sets forth the foundation of regular holiday pay, providing that every worker shall be paid his or her regular daily wage during regular holidays, except those employees who may be excluded by specific rules and regulations or classification of employees (e.g., managerial staff might not be covered by the holiday pay rules under certain exemptions). However, in general, rank-and-file employees are entitled to their daily wage on a regular holiday if they meet certain eligibility criteria, such as being present or on leave with pay the day immediately preceding the holiday.
Rate of Pay for Work Rendered on a Regular Holiday
The commonly cited rule from DOLE states that an employee who works on a regular holiday is entitled to twice the daily wage for the first eight hours. Therefore, if an employee’s regular daily wage is PHP 1,000, working on the regular holiday means the employer should pay PHP 2,000 for the first eight hours of labor. Overtime work, if any, is compensated at an additional 30% on top of the 200% base rate for every hour in excess of eight.
Partial Work on a Regular Holiday
When an employee reports to work on a regular holiday but for fewer than eight hours, the general principle is that wages are computed proportionately based on actual hours worked, but at the holiday rate. In simpler terms, the employee should earn “double the basic wage rate” for every hour worked. This can be expressed as:

[ \text{Holiday Pay for Partial Hours} = \text{(Hourly Rate)} \times 2 \times \text{(Number of Hours Worked)} ]

The “Hourly Rate” is derived from the employee’s basic daily rate divided by eight. Hence, if the employee works three hours, the pay is the double rate multiplied by three hours.
Example Computation: Three Hours of Work on a Regular Holiday
Assume an employee’s normal daily rate (for an eight-hour workday) is PHP 800. The hourly rate would therefore be PHP 100 (PHP 800 ÷ 8). On a regular holiday, the hourly rate doubles to PHP 200. Working three hours on a regular holiday would thus amount to:

[ \text{3 hours} \times PHP 200 = PHP 600 ]

This amount of PHP 600 is strictly for the hours worked during the holiday. However, it is important to see if the employee is also entitled to pay for the rest of the day, depending on company policy or special stipulations (e.g., if the holiday is fully paid even if no work is rendered, which it usually is under the law, subject to conditions for entitlement).
Interplay Between “No Work, No Pay” Principle and Holiday Entitlement
The Philippines adopts the principle of “no work, no pay” for certain categories of holidays, but regular holidays are generally exceptions, provided the employee meets the eligibility rules. For a regular holiday, an employee who does not work is still entitled to 100% of his or her daily wage, so long as that employee is present or on paid leave on the day immediately preceding the holiday. Meanwhile, if the employee works, the wage is at least 200% of the usual daily wage. When the employee only partially works on a regular holiday, the practice recognized by DOLE is to pay based on the number of hours actually worked, multiplied by the holiday rate. In some company policies or Collective Bargaining Agreements (CBAs), employees might receive eight hours of pay for the holiday plus premium pay for the hours worked, but that is a matter governed by contract or policy.
Guidelines from Department of Labor and Employment (DOLE)
The DOLE issues pay rules for special holidays, regular holidays, and other commemorative days in the form of labor advisories. For a regular holiday, the standard rules typically read as follows:
1. If the employee did not work, he or she is entitled to 100% of the daily wage, provided certain conditions are met.
2. If the employee worked, he or she is entitled to 200% of the daily wage for the first eight hours.
3. If the employee worked overtime (more than eight hours), overtime pay is an additional 30% based on the 200% rate.
4. If the day falls on the employee’s rest day and he or she still works, an additional 30% is added to the 200% rate.
5. For partial hours, the pay is proportionate to hours worked at 200% of the normal rate.
Specific Statutory Provisions
- Article 94, Labor Code of the Philippines: Establishes the right to holiday pay.
- Implementing Rules and Regulations under Book III of the Labor Code: Provides details on the computation of holiday pay.
- DOLE Labor Advisories: Issued periodically for clarity on the pay rules for specific holidays as proclaimed by the President.
Holiday Pay Computation for Daily-Paid vs. Monthly-Paid Employees
A further nuance to consider is whether the employee is a daily-paid or monthly-paid worker. Monthly-paid employees sometimes have their holidays “built in” to the monthly salary. Still, if monthly-paid employees work on a regular holiday, they are typically entitled to the difference between their normal daily rate and the 200% holiday rate. Meanwhile, daily-paid employees are generally remunerated based on actual days (or hours) worked. In the latter case, for the partial three hours on a regular holiday, the logic remains: the employee is entitled to 200% for each hour worked, although the law also contemplates the principle of minimum holiday pay for employees who qualify.
Threshold Requirements for Holiday Pay Entitlement
The law requires that employees be present or be on paid leave on the day immediately preceding a regular holiday to qualify for holiday pay, unless company policy or an agreement states otherwise. If the employee is absent without leave (AWOL) prior to a holiday, the employer may have valid reasons to withhold holiday pay under the Labor Code’s implementing rules. Therefore, eligibility must first be confirmed before proceeding to compute the actual holiday wages.
Industry-Specific Exemptions or Exceptions
Certain industries may have special rules or recognized exceptions. For instance, retail or service industries that operate continuously may have flexible scheduling patterns. In such environments, the primary guidance is always the Labor Code and DOLE’s implementing regulations. For some establishments, compressed workweeks or flexible time arrangements can also affect how holiday pay is computed. However, these do not negate the statutory right to a holiday premium; they merely reorganize the schedule in compliance with the law.
Importance of Company Policy and Collective Bargaining Agreements (CBAs)
While the Labor Code sets the minimum standards, many employers establish more favorable terms through company policies or Collective Bargaining Agreements (CBAs). These can include granting full daily holiday wages even if employees work only part of the day or additional holiday pay benefits. Employers and employees can negotiate for higher rates or more beneficial provisions as long as they do not go below the standards set by law. Thus, an employer might, by policy, decide to pay a full 8-hour holiday pay plus additional compensation for partial hours worked, if that is stipulated by the company’s employee handbook or negotiated terms.
Sample Calculation for a Partial Work Scenario
Let us illustrate with another example. Suppose:

Employee’s basic daily rate: PHP 600.
Hourly rate: PHP 600 ÷ 8 = PHP 75.
Holiday rate: Double the hourly rate = PHP 75 × 2 = PHP 150.
Hours actually worked on the regular holiday: 3 hours.

The total holiday pay for those hours worked is 3 × PHP 150 = PHP 450. If the company policy also entitles the employee to the full holiday pay of PHP 600 for being present on the holiday (i.e., not purely “no work, no pay”), then the overall compensation might be structured differently, subject to management prerogative or any existing agreement. However, the statutory minimum for work done (3 hours) is PHP 450 in this scenario, presuming no other beneficial stipulations apply.

Partial Work vs. Full Work Entitlements
It is important to remember that “full” holiday pay under the Labor Code is typically pegged at 200% of the daily wage for a full 8-hour shift. But when the employee does not complete the full shift, the law contemplates a pro rata approach, unless a more advantageous company policy supersedes. For instance, a strict reading of DOLE pay rules states that employees shall be paid the appropriate holiday premium only for the hours actually worked. This ensures that employees receive compensation commensurate to their labor on a holiday but does not necessarily guarantee payment for hours not rendered unless mandated by law or a more generous employer policy.
Overtime Rates and Subsequent Hours
If the employee goes beyond the standard eight hours on a regular holiday, the overtime rate would be at least 30% on top of the 200% rate. In partial work scenarios, if the employee neither exceeds eight hours nor crosses rest-day boundaries, no additional overtime premium applies. The concept of partial holiday work is simply the proportionate formula for the hours actually worked within the holiday premium context.
Paid Leaves and Holiday Overlaps
Complications may arise if the day in question is both a holiday and an employee’s approved leave day. Generally, if the day is a regular holiday, the employee who is on paid leave immediately preceding that holiday still enjoys the holiday pay entitlement. If the employee decides to report for work for a few hours on the holiday while also on leave, the payroll system may reflect partial holiday pay plus the standard daily wage or leave credits, depending on the company’s internal processes. However, each company’s leave policy can shape the outcomes, provided the minimum standards under the Labor Code are not diminished.
Best Practices in Implementation
Employers are advised to have clear guidelines for employees who work partial shifts on holidays. Written policy clarifications help prevent confusion or potential disputes. These guidelines typically outline how to compute partial holiday work, how to record attendance or time logs on a holiday, and how to address tardiness or undertime on days preceding or following the holiday, all of which can affect entitlement.
Documentation and Record-Keeping
The Labor Code mandates that employers keep accurate employment records. This includes daily time records, pay slips, and proof of compliance with minimum wage and holiday pay laws. In case of a dispute, thorough documentation can protect the employer from claims of non-compliance and assure employees that their rights have been respected.
Administrative and Judicial Remedies
If employees believe they were underpaid or denied the correct holiday compensation, they can file a complaint with the DOLE’s Regional Office. Depending on the complexity of the case or the amount in question, the complaint could escalate to the National Labor Relations Commission (NLRC). Employers, thus, must ensure compliance and rectify any pay discrepancies immediately to avoid administrative or legal complications.
Jurisprudential Insights
Philippine jurisprudence has affirmed the necessity of clear, consistent application of holiday pay rules. The Supreme Court has repeatedly underscored the principle that employees should not be shortchanged on statutory entitlements, and any ambiguity in pay computations should typically be resolved in favor of the workers. Nevertheless, if the law specifically provides for proportionate payment (as in partial hours worked), courts also uphold the principle of paying only for hours actually rendered unless an existing policy or agreement stipulates otherwise.
Intersection with Other Benefits
In addition to holiday pay, employees may simultaneously enjoy certain benefits such as meal allowances, transportation allowances, or hazard pay depending on their line of work and agreements. Some employees who work in industries with heightened risks (e.g., night-shift workers or those working in hazardous conditions) might receive additional pay differentials, which can combine with their holiday pay. Again, the Labor Code sets the minimum, and any arrangement above the minimum is permissible if both parties consent.
Corporate Culture and Employee Relations
Employers may, as a matter of fostering goodwill and reducing turnover, provide more favorable holiday pay incentives than what the law requires. Paying the entire 8-hour holiday rate for employees who put in fewer hours can be a policy that encourages staff morale. However, from a purely legal standpoint, the strict minimum is to pay at least 200% of the hourly rate for every hour of work rendered on a regular holiday (plus the daily wage if the employee qualifies under the holiday pay entitlement rules when no work is done). The difference depends on each employer’s capacity and willingness to invest in employee welfare.
Practical Recommendations

Adopt a clear policy: Outline in the employee handbook how partial hours worked on a holiday will be compensated.
Communicate guidelines to staff: Ensure all employees know their rights and obligations under the law to avoid disputes.
Maintain proper timekeeping records: Precise logging of hours is vital to compute partial work entitlements.
Consult regularly with legal counsel: Labor laws and DOLE circulars can change; legal advice helps ensure ongoing compliance.

Conclusion
Under Philippine law, a regular holiday’s pay structure generally provides employees with 200% of their normal daily wage if they work the full 8-hour shift. In cases where an employee works only a fraction of that shift—like three (3) hours—the rate is still doubled per hour worked, thereby entitling the employee to 200% of the hourly pay for those three hours. Additionally, if the employee meets the conditions for holiday pay entitlement, he or she may still be entitled to the daily wage portion even without performing a full shift, subject to the “no work, no pay” exception and any more favorable company policy. Employers are guided by the Labor Code, DOLE advisories, and possible CBAs or policy manuals that specify more generous pay structures. Properly navigating these rules not only meets statutory requirements but also fosters a fair workplace and prevents legal disputes.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Specific cases or scenarios may vary, and consultation with a qualified attorney is recommended to address particular concerns.