Computation of Pay For Holidays

COMPUTATION OF PAY FOR HOLIDAYS: REGULAR, SPECIAL
NON-WORKING, SPECIAL WORKING
MEMORANDUM CIRCULAR NO. 01

(8 March 2004)
Pursuant to the provisions of the Labor Code, as amended in relation to the observance
of declared holidays and in response to the queries received every time a Presidential
Proclamation or a law is enacted by Congress which declares certain days either as a
regular holiday, a special day or a special working holiday, the following guidelines shall
be observed by all employers in the private sector:
1. For regular holidays as provided for under EO 203 (incorporated in EO 292) as

amended by RA 9177:
New Year’s Day – January 1

Maundy Thursday – Movable Date
Good Friday – Movable Date
Araw ng Kagitingan – April 9
Labor Day – May 1
Independence Day – June 12
National Heroes Day- Last Sunday of August
Bonifacio Day – November 30
Eidul Fitr – Movable Date
Christmas Day – December 25
Rizal Day – December 30
the following rules shall apply:
1. If it is an employee’s regular workday
* If unworked – 100%
* If worked
 1st 8 hours – 200%

 excess of 8 hours – plus 30% of hourly rate on said day
2. If it is an employee’s rest day
* If unworked – 100%
* If worked
 1st 8 hours – plus 30% of 200%

 excess of 8 hours – plus 30% of hourly rate on said day
2. For declared special days such as Special Non-Working Day, Special Public Holiday,
Special National Holiday, in addition to the two (2) nationwide special days (November
1, All Saints Day and December 31, Last Day of the Year) listed under EO 203, as
amended, the following rules shall apply:
1. If unworked
* No pay, unless there is a favorable company policy, practice or collective bargaining

agreement (CBA) granting payment of wages on special days even if unworked.
2. If worked
* 1st 8 hours – plus 30% of the daily rate of 100%

* excess of 8 hours – plus 30% of hourly rate on said day
3. Falling on the employee’s rest day and if worked

* 1st 8 hours – plus 50% of the daily rate of 100%
* excess of 8 hours – plus 30% of hourly rate on said day
3. For those declared as special working holidays, the following rules shall apply:
For work performed, an employee is entitled only to his basic rate. No premium pay is
required since work performed on said days is considered work on ordinary working
days.
Please be guided accordingly.
———————–
Note: If you still don’t know it yet, one of the more helpful government websites is that of
the DOLE. It boasts of useful features such as the Frequently Asked Questions (FAQs),
and, to my delight, a fully functional email-query system.
To test the email-query system, I sent a query regarding holiday pay for regular holidays
falling on the employee’s rest day (in this case, 29 April 2006, Araw ng Kagitingan). In
an hour or so, I received a reply. Here’s my e-mail:
Gentlemen:
I write in connection with DOLE Memorandum Circular No. 01, which provides a
summary of an employee’s entitlement to holiday pay for regular, special working and
special non-working holidays.
As stated in said Circular, if a regular holiday falls on an employee’s rest day and it is
UNWORKED, the employee receives 100% of his/her daily salary. This, however, has
caused confusion because some MONTHLY-paid employees believe that they are
entitled to an additional payment of one day. This is exacerbated by the news item
which appeared on 7 April 2006 on your website (“DOLE issues Araw ng Kagitingan
pay rules”), which states that “[i]f the day falls on an employee’s rest day and is
unworked, he or she is paid on that day. xxx” Kindly clarify that there should be a
distinction between monthly-paid and daily-paid employees, as the former is deemed
paid for the entire month, even on regular holidays.
Your usual prompt action on this matter is highly appreciated.
Here’s the reply:
Dear Mr. Pamaos:
Good afternoon.
Anent your query, MONTHLY PAID EMPLOYEE refers to one who is paid his wage or
salary for every day of the month, including rest days, Sundays, regular or special days,
although he does not regularly work on these days.
DAILY PAID EMPLOYEE refers to one who is paid his wage or salary only on the days
he actually worked, except in cases of regular holidays wherein he is paid his wage or
salary even if he does not work during those days, provided that he is present or on
leave of absence with pay on the working day immediately preceding the regular
holiday.
As distinguished from monthly-paid employees who are assured of being paid for every
day of the month, the provision of the Labor Code on holiday pay is principally intended
to benefit a daily-paid employee who is normally bound by the principle of “no work no
pay”. Before the advent of the Labor Code, they are not paid for unworked regular
holidays.
--------------------------------------------------------------------------------------------------------------------
-
PROCLAMATION NO. 117

DECLARING 26 DECEMBER 2016 (MONDAY) AND 2 JANUARY 2017 (MONDAY),
AS SPECIAL (NON-WORKING) DAYS THROUGHOUT THE COUNTRY
WHEREAS, 25 December 2016 (Christmas Day) and 1 January 2017 (New Year’s Day)
both fall on a Sunday and are regular holidays throughout the country;
WHEREAS, the declaration of 26 December 2016 and 2 January 2417, both falling on a
Monday, as special (non-working) days will give the people full opportunity to celebrate
the holidays with their families and loved ones;
WHEREAS, a longer weekend promotes domestic tourism and enables employers to
plan their work schedules effectively and efficiently, resulting in improved productivity.
NOW, THEREFORE, I, MENARDO I. GUEVARRA, Acting Executive Secretary, by
authority of the President, RODRIGO ROA DUTERTE, do hereby declare 26 Decbmber
2016 and 2 January 2017, both falling on a Monday, as special (non-working) days
throughout the country.
The Department of Labor and Employment is hereby directed to issue the appropriate
circular to implement this Proclamation for the private sector.
lN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the
Republic of the Philippines to be affixed.
Done in the city of Manila, this 13th day of December, in the year of our Lord, Two
Thousand and Sixteen

Computation of Pay For Holidays

Uploaded by

Copyright:

Available Formats

Computation of Pay For Holidays

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Computation of Pay For Holidays

Uploaded by

Copyright:

Available Formats

COMPUTATION OF PAY FOR HOLIDAYS: REGULAR, SPECIAL

NON-WORKING, SPECIAL WORKING

MEMORANDUM CIRCULAR NO. 01

1. For regular holidays as provided for under EO 203 (incorporated in EO 292) as

New Year’s Day – January 1

the following rules shall apply:

1. If it is an employee’s regular workday

 1st 8 hours – 200%

2. If it is an employee’s rest day

 1st 8 hours – plus 30% of 200%

* No pay, unless there is a favorable company policy, practice or collective bargaining

* 1st 8 hours – plus 30% of the daily rate of 100%

3. Falling on the employee’s rest day and if worked

Please be guided accordingly.

Your usual prompt action on this matter is highly appreciated.

Here’s the reply:

Dear Mr. Pamaos:

PROCLAMATION NO. 117

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.