Dear Attorney,

Good day. May I confirm if an employer is still required to pay an employee if a regular holiday falls on their rest day? Thank you for your guidance.

Sincerely,
A Concerned Employee

Insights

Under Philippine labor laws, particularly as outlined in the Labor Code of the Philippines (Presidential Decree No. 442), an employee is entitled to holiday pay even if the regular holiday coincides with their scheduled rest day. This entitlement ensures that employees receive compensation for non-working days classified as regular holidays, regardless of whether they were scheduled to work.

Legal Basis for Holiday Pay

Article 94 of the Labor Code provides that every worker shall be paid their regular daily wage for any regular holiday, whether or not they work on that day. If the holiday coincides with a rest day, and the employee does not work, they are still entitled to 100% of their regular wage for the day.

Holiday Pay Calculation

Holiday on a Rest Day (No Work): Employees are entitled to 100% of their daily wage even if they do not report to work on a regular holiday that falls on their rest day.
Holiday on a Rest Day (Work Performed): If an employee is required to work on a regular holiday that coincides with their rest day, they are entitled to at least 200% of their regular wage for the first eight hours of work. Any overtime work should be compensated with an additional 30% on top of the holiday pay rate.

Exceptions to Holiday Pay

The entitlement to holiday pay does not apply to the following categories of workers:

Government employees
Managerial employees
Field personnel, whose work hours are not monitored by their employer
Domestic helpers
Workers paid purely by commission or output

Conclusion

Employees in the private sector are entitled to holiday pay even when the holiday falls on their rest day, provided they are not covered by the exceptions. If required to work on such a day, they are entitled to a higher rate of pay, ensuring fair compensation for working during both a holiday and their scheduled day off. This provision promotes the protection of employee rights, ensuring that rest days and holidays are respected and fairly compensated when work is required.

Employers should be aware of these legal obligations to avoid labor disputes and ensure compliance with the Labor Code. Employees are encouraged to seek legal advice or raise concerns with their HR departments to clarify their rights regarding holiday pay.