Short answer
Yes. In the Philippines, probationary employees are generally entitled to holiday pay on regular holidays, just like regular (permanent) employees—subject to the usual statutory rules (e.g., nature of the holiday, presence requirement, and limited exemptions for certain establishments).
Why status doesn’t matter
“Probationary,” “regular,” “project,” or “seasonal” describe tenure/security of employment, not a different class of labor standards. Holiday pay is a basic labor-standards benefit that applies to employees unless they fall within specific statutory exemptions. So a probationary employee, once hired and on the payroll, is covered the same way as any other rank-and-file employee.
What counts as a “holiday”
- Regular holidays (e.g., New Year’s Day, Independence Day, Bonifacio Day): Default rule is paid even if unworked (100% of the basic daily wage), subject to the presence rule below.
- Special days (special non-working and special working days announced by law or proclamation): Default rule is “no work, no pay.” If worked, there’s a premium.
(Tip: Companies often list the year’s holidays in a policy memo. Follow the statutory formula unless your CBA/company policy grants something better.)
Presence (or “qualification”) rule for regular holidays
For unworked regular holidays, an employee must be present or on leave with pay on the workday immediately preceding the holiday to get the 100% holiday pay.
- If absent without pay the day before, the employee does not get the unworked-holiday pay.
- If the employee actually works on the regular holiday, the employee gets the proper worked-holiday rate (see computation table), even if they were absent the day before—though they still won’t get the separate 100% unworked portion.
This presence rule applies to probationary employees the same way as to regular employees.
Limited exemptions (when holiday pay may not apply)
Holiday pay does not cover:
- Government employees (covered by separate rules).
- Retail and service establishments regularly employing fewer than ten (10) workers.
- Managerial staff are not generally excluded from holiday pay (unlike some OT/rest-day rules). But if they work in an establishment that is statutorily exempt (e.g., small retail/service with <10 data-preserve-html-node="true" workers), the exemption applies to everyone there.
(If you’re unsure whether your employer is a “retail/service establishment with <10,” data-preserve-html-node="true" ask HR for the establishment registration/PEZA/DTI/SEC filings and payroll headcount.)
Computation cheat sheet
A. Regular holiday
| Situation | Pay rule |
|---|---|
| Unworked | 100% of basic daily wage (if present or on paid leave on the day immediately before the holiday) |
| Worked — first 8 hours | 200% of basic daily wage |
| Worked — OT beyond 8 hours | 200% + 30% of hourly rate on that day (i.e., 2.6× hourly for OT hours) |
| Worked and it falls on the employee’s rest day | 200% × 1.30 = 260% for first 8 hours; OT on this day is 260% + 30% of hourly rate on that day |
| Double regular holiday (two regular holidays coincide) | Unworked: 200%; Worked: 300% for first 8 hours; if also a rest day: 390% |
B. Special non-working day
| Situation | Pay rule |
|---|---|
| Unworked | No pay, unless company policy/CBA/practice provides otherwise |
| Worked — first 8 hours | 130% of basic daily wage |
| Worked — OT beyond 8 hours | 130% + 30% of hourly rate on that day (i.e., 1.69× hourly for OT hours) |
| Worked and it falls on the employee’s rest day | 150% for first 8 hours; OT on this day is 150% + 30% of hourly rate on that day |
Daily-paid vs. monthly-paid
- Monthly-paid employees are generally presumed paid for all days of the month including unworked regular holidays (unless the payroll system explicitly excludes them).
- Daily-paid employees receive holiday pay only when it “accrues” under the rules above.
Piece-rate/commission/result-based workers If they’re “employees” (not independent contractors), they are covered; compute holiday pay based on their applicable daily/average earnings per DOLE standards or the CBA/company formula.
Practical examples (probationary employee)
Probationary, daily-paid; present on Dec 23; Dec 24 is a workday; Dec 25 (regular holiday) unworked → Entitled to 100% of basic daily wage for Dec 25.
Probationary, daily-paid; absent without pay on the workday before the regular holiday; Dec 25 unworked → No unworked-holiday pay (failed presence rule).
Probationary works 8 hours on a regular holiday → 200% of basic daily wage for that day (regardless of the prior-day absence), plus applicable allowances where the policy counts them as part of “basic.”
Probationary works 6 hours on a special non-working day → 130% of their hourly rate × 6 hours.
Probationary monthly-paid; company payroll includes regular holidays in monthly rate → Already paid for unworked regular holidays through the monthly salary; if they work on a regular holiday, pay the premium (additional 100%) on top.
Frequent issues (and how to handle them)
“You’re still on probation; holiday pay starts when you’re regular.” ❌ Incorrect. Status doesn’t suspend statutory benefits.
“We’re a small shop, so no holiday pay.” ✅ Only possibly correct if the business is retail or service and regularly employs <10 data-preserve-html-node="true" workers. Manufacturing/BPO/wholesale/etc. cannot use this exemption.
“You were absent on the day before; that cancels your worked-holiday premium.” ❌ Incorrect. Prior-day absence affects only the unworked holiday entitlement, not the premium for hours actually worked.
“Allowances don’t count.” ⚖️ It depends. “Basic wage” excludes certain allowances by law/DOLE rules, but some CBAs/company policies treat particular allowances as part of the computation. Check your pay policy/CBA.
“Apprentices/learners/casuals aren’t covered.” ❌ If they are employees, they are covered by holiday pay rules unless a statutory exemption applies.
Documentation & payroll hygiene
- Keep daily time records, approved leave forms, and copies of memos declaring special days.
- HR/payroll should tag holidays accurately in the timekeeping system and reflect whether the employee met the presence requirement for unworked regular holidays.
- Where the company grants benefits better than the law, document them in a policy/CBA to avoid disputes.
Key takeaways
- Probationary employees are entitled to holiday pay; probationary status does not diminish statutory holiday benefits.
- Apply the correct holiday type (regular vs. special), presence rule (for unworked regular holidays), and premium rates (for work done).
- Check for limited exemptions (small retail/service with <10 data-preserve-html-node="true" workers) and company/CBA terms that may be more generous.
This article provides general information on Philippine labor standards and isn’t a substitute for tailored legal advice on a specific case or CBA.