1) The basic rule: regular holidays are paid even if unworked

In the private sector, regular holidays are “paid holidays.” As a rule, an employee who does not work on a regular holiday is still entitled to 100% of their regular daily wage for that day—even if they are “absent” in the sense that they did not report for work, because reporting for work is not required for the holiday to be paid.

This is the key distinction from ordinary workdays, where “no work, no pay” generally applies. For regular holidays, the law flips the default: pay is due even without work, unless a recognized exception/disqualification applies.

2) Legal basis and concept (Philippine context)

Holiday pay for regular holidays is mandated under Article 94 of the Labor Code (holiday pay) and its implementing rules and labor issuances used by DOLE as operational guidance.

“Holiday pay” (for regular holidays) is the employee’s regular daily wage paid for the holiday even if no work is performed, subject to conditions and coverage rules below.

3) What counts as a “regular holiday” (vs. special days)

This topic is strictly about regular holidays (e.g., New Year’s Day, Araw ng Kagitingan, Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day, Rizal Day, and Eid’l Fitr/Eid’l Adha as declared, among others).

Do not confuse these with:

Special (non-working) days (often “no work, no pay” unless there’s a company policy/CBA granting pay), and
Special working days (treated like ordinary workdays).

The “paid even if unworked” rule is a defining feature of regular holidays.

4) Coverage: who is entitled to regular holiday pay?

A. Generally covered

Holiday pay applies to rank-and-file employees in the private sector, regardless of:

employment status (regular, probationary, project, seasonal, fixed-term) so long as an employer-employee relationship exists, and
pay method (monthly, daily, hourly, piece-rate), subject to the rules below.

B. Statutory exemption for certain small establishments

The Labor Code provides an express exemption for employees of retail and service establishments regularly employing less than ten (10) workers, who are generally not covered by the statutory holiday pay requirement (unless the employer voluntarily grants it, or a CBA/company policy provides it).

C. Other common exclusions in practice (context-dependent)

Certain categories may be treated differently under labor rules and jurisprudence depending on the facts—especially where pay already includes holidays or where work is not subject to usual control/supervision. Examples often raised in disputes include:

Government employees (governed by civil service rules, not Labor Code holiday pay),
Some managerial employees (depending on classification and applicable rules),
Certain field personnel or similarly situated workers (depending on how “hours of work” and supervision are determined), and
Workers whose compensation structure already legally includes holiday pay (e.g., many monthly-paid arrangements).

Because classification disputes are fact-intensive, the safest way to apply the rule is to start with the general entitlement, then test for a specific exemption or exclusion supported by law/rules and the actual working arrangement.

5) The core question: if an employee is “absent” on a regular holiday, do they still get paid?

A. If “absent” simply means “did not report on the holiday”

Yes, they are still entitled to holiday pay (100% of daily wage), because the holiday is paid even if unworked, provided they are not disqualified under the “day immediately preceding” rule (explained next) and they are covered by the law.

B. The most important disqualifier: absence without pay on the workday immediately preceding the holiday

A widely applied rule in DOLE guidance is:

If the employee is on leave of absence without pay on the workday immediately preceding the regular holiday, the employee is not entitled to holiday pay for that holiday.

This is where many disputes arise. The entitlement is not defeated by being “absent on the holiday” per se; it’s defeated when the employee was not in paid status on the workday immediately before the holiday.

Practical effect:

Worked (or was on paid leave) on the last workday before the holiday → holiday pay is due.
Was absent/leave without pay on the last workday before the holiday → holiday pay may be withheld.

C. What counts as “paid status” on the day before?

Typically treated as “paid status” (so holiday pay remains due):

Worked that day
Approved leave with pay (e.g., service incentive leave used with pay, vacation leave with pay, etc.)
Approved arrangements where the day is still compensated under company policy/CBA

Typically treated as not in paid status (risk of disqualification):

Unpaid leave, LWOP
Unexcused absence where no pay is given for that day
Suspension without pay (depending on company policy and how the period is treated)

6) Consecutive regular holidays (the “two-holiday rule” scenarios)

When there are two consecutive regular holidays (classic examples include Maundy Thursday and Good Friday, when both are declared regular holidays), special application rules are commonly used:

A. If the employee is unpaid-absent on the workday immediately preceding the first holiday

If the employee is on unpaid leave/absence on the day before the first holiday, the employee may be not entitled to holiday pay for both holidays.

B. If the employee works on the first holiday

If the employee works on the first holiday, then the first holiday becomes the “day immediately preceding” the second holiday in a paid sense (because it is a paid day), so the employee is generally entitled to holiday pay for the second holiday even if they do not work on the second holiday.

7) How much is holiday pay (and what if the employee works)?

A. If the employee does not work on the regular holiday

Daily-paid: 100% of daily wage
Monthly-paid: commonly, the monthly salary is structured to already include pay for regular holidays (and rest days), so there is typically no extra itemized pay—but the holiday is still considered paid within the monthly wage.

B. If the employee works on the regular holiday

General pay rules commonly applied:

Daily-paid: 200% of daily wage for the day (the holiday premium)
If the holiday also falls on the employee’s rest day and the employee works: commonly 260% of daily wage (i.e., 200% plus 30% of the 200%)
Overtime on a holiday worked: an additional overtime premium is applied to the hourly rate on that day
Night shift differential, if applicable, is computed on the proper base for the hours covered

C. The “monthly-paid” nuance when the employee works on a holiday

Many monthly-paid employees are treated as already having been paid the holiday within the monthly salary. When they work on the regular holiday, the practical result is that they should receive an additional premium so that the total compensation for that date aligns with the holiday-work rule (often effectively an additional 100% of the daily rate on top of the monthly salary for that day, subject to how the salary is structured and company payroll practice).

8) Common real-world fact patterns (quick answers)

Scenario 1: Employee did not work on the holiday; worked the day before

Holiday pay is due (100%), assuming covered employment.

Scenario 2: Employee did not work on the holiday; was on approved paid leave the day before

Holiday pay is due (100%).

Scenario 3: Employee did not work on the holiday; was on unpaid leave the day before

Holiday pay may be denied under the “day immediately preceding” rule.

Scenario 4: Employee is “AWOL” on the holiday itself, but worked the day before

For a regular holiday, the absence on the holiday itself does not automatically remove entitlement because the holiday is paid even if unworked. However, the employer may still impose disciplinary action if the employee was validly required to report and unjustifiably refused, and payroll treatment can become contentious depending on scheduling rules, company policy, and the nature of the requirement to work.

Scenario 5: Employee’s first day of employment is on a regular holiday

Holiday pay generally presupposes an existing employer-employee relationship. If the employment effectively starts on the holiday, entitlement depends on whether the person is already considered an employee for that date under the hiring terms and payroll practice.

9) Special situations and edge cases

A. Part-time employees

Part-time employees may still be entitled to holiday pay if covered and if the holiday falls on a day they are normally scheduled to work, or if the pay rules/policy treat them as covered for that holiday. Computation and eligibility can depend heavily on the work schedule arrangement and whether the “day immediately preceding” condition is satisfied.

B. Piece-rate / “pakyaw” workers

Holiday pay can still apply even if pay is by results, but computation may use the employee’s average daily earnings or an equivalent daily rate method consistent with labor rules and established payroll practice.

C. Compressed workweek or flexible schedules

Where the workweek is compressed (e.g., 4x11), questions arise if the holiday falls on a non-scheduled day. Treatment depends on the approved compressed workweek arrangement and how the daily rate is defined for that schedule.

D. Temporary closures, shutdowns, and “no work” situations

If an establishment is closed on a regular holiday, closure does not defeat holiday pay (it’s a paid day). If the employee is not in paid status due to unpaid leave or other disqualifying reason, holiday pay may be withheld under the standard rule.

10) Employer obligations: proper payment and lawful withholding

An employer may lawfully withhold holiday pay only if it can clearly show a valid basis, such as:

the employee is in an exempt establishment/category recognized by law, or
the employee is not covered due to a specific legal rule, or
the employee is disqualified (commonly, unpaid absence on the workday immediately preceding the holiday, including the consecutive-holiday application).

Employers should also be consistent: company practice and CBAs can create enforceable entitlements that go beyond the statutory minimum.

11) Employee remedies if holiday pay is not paid

Holiday pay disputes are typically treated as money claims. Common avenues include:

filing a complaint through DOLE mechanisms (depending on the nature of the dispute and workplace coverage), or
filing before the NLRC when the case falls under its jurisdiction.

Money claims in labor generally have a prescriptive period, and employees commonly rely on payroll records, timekeeping logs, leave approvals, company policies, and employment contracts to prove entitlement.

12) Bottom line

Yes—employees who do not report for work on a regular holiday are generally entitled to holiday pay in the private sector because regular holidays are paid even if unworked. The most common reason holiday pay is lawfully denied is unpaid absence (or leave without pay) on the workday immediately preceding the holiday, including the special handling of consecutive regular holidays, plus statutory exemptions (notably certain small retail/service establishments).