Double Pay Eligibility for Labor Day (1 May)
Under Philippine Labor Law

1. Why Labor Day Matters in Payroll

Labor Day (1 May) is one of the 13 regular holidays enumerated each year in the President’s annual holiday proclamation issued under Article 94 of the Labor Code and Republic Act 9492 (which fixed movable and non-movable holidays). As a regular—not special—holiday, it triggers the most generous pay rules in the Labor Code: double pay for actual work, and full‐pay even when no work is done.

2. Statutory Sources

Instrument	Key Provision
Art. 94, Labor Code	Entitles covered employees to 100 % of the daily wage even when not required to work on a regular holiday, and 200 % when required to work.
Implementing Rules (Book III, Rule IV)	Lays out coverage, exemptions, and computation details.
DOLE Labor Advisories (issued annually)	Restate the exact multipliers (e.g., 100 %, 200 %, +30 % overtime, 260 % if holiday falls on rest day, etc.).
CBAs / company policies	May provide benefits better than statutory rates, but never lower.

3. Who Is Covered—and Who Is Not

Covered employees

All rank-and-file workers whether paid by the hour, day, piece, or output, except those specifically excluded by the Code.

Statutory exclusions (Art. 82 & 94)

Government employees (Civil Service rules apply instead).
Managerial employees (with all four “managerial tests” met).
Officers or members of managerial staff earning at least the threshold and exercising independent judgment.
Field personnel and other employees whose actual hours cannot be determined with reasonable certainty.
Domestic helpers and family drivers.
Workers paid purely on commission in retail or service establishments regularly employing fewer than ten workers.

Note: Many employers still voluntarily apply holiday pay to some excluded categories to avoid employee turnover or for CBA parity.

4. Eligibility Conditions

Holiday-pay rule (no work):
The worker must be present or on any paid leave on the workday immediately preceding the holiday.
– Absence without pay on 30 April ordinarily disqualifies the employee from the 100 % Labor-Day pay (unless a CBA or company rule says otherwise).
– Being on approved vacation, sick, or emergency leave with pay counts as “present.”
Double-pay rule (work performed):
– The presence-on-April-30 rule is irrelevant once the employee actually works on 1 May; the 200 % rate applies regardless.
– Work may be voluntary or by legitimate scheduling; refusal without justifiable reason can still lead to disciplinary action (management prerogative).
Probationary, project, seasonal, part-time, WFH, and compressed-workweek employees are treated like any other rank-and-file unless they fall under the enumerated exclusions.

5. Computation Matrix

Scenario (per 8 hrs)	Multiplier	How to express in payroll
Did NOT work	100 %	Daily Wage × 100 %
Worked	200 %	Daily Wage × 200 %
Worked > 8 hrs	+30 % of 200 % hourly rate	(Hourly Rate × 200 %) + 30 %
Holiday falls on scheduled rest day & worked	260 %	Daily Wage × 260 %
Holiday + rest day overtime	+30 % of 260 % hourly rate	(Hourly Rate × 260 %) + 30 %

Formula shorthand
• No work: 1.00 × DW
• Work: 2.00 × DW
• Work + OT: (2.00 × HR) × 1.30
• Rest-day work: 2.60 × DW
• Rest-day OT: (2.60 × HR) × 1.30

Where DW = daily wage, HR = hourly rate (DW ÷ 8).

6. Illustrative Example

Assume a daily wage of ₱650 (minimum in NCR as of 2024) and 11 hours actually worked on Labor Day, which was also the employee’s rest day.

First 8 hrs: ₱650 × 260 % = ₱1 690
OT hours (3 hrs):
Hourly rate on holiday+rest day → (₱650 ÷ 8) × 260 % = ₱211.25
Overtime premium (+30 %) → ₱211.25 × 130 % = ₱274.63
3 hrs × ₱274.63 = ₱823.89

Total pay for 1 May: ₱1 690 + ₱823.89 = ₱2 513.89

7. Frequently Overlooked Scenarios

Situation	Rule of Thumb
“No work-no pay” daily-paid staff absent on 30 Apr	Employer may deduct the 100 % if no CBA/company rule says otherwise.
Piece-rate workers present but no production due to power outage	Holiday pay still due if outage was management’s responsibility.
Floating-status employees (e.g., security guards between assignments)	Entitled if still technically employed and meet presence rule.
“Exempt” managerial staff required to work	No statutory entitlement, but many companies give equivalent leave credits or premium pay to maintain morale.
Employees whose wages already embed holidays (monthly-paid)	No additional 100 % for “no work” days because monthly-paid workers receive salaries for 365 days; still entitled to the additional 100 % (i.e., double pay) if they work.

8. Employer Obligations

Timely payment—on the regular payday nearest to 1 May.
Transparent payslip—separate line item for “Labor Day Premium” or similar.
Record-keeping—payroll, DTR, approved OT sheets retained 3 years (Art. 109).
No deduction or offsetting—holiday pay cannot be used to offset cash shortages or penalties.
Consultation before scheduling work on a holiday—particularly if employee handbook or CBA mandates notice.

Failure to comply may invite:

DOLE compliance orders under visitorial power (Art. 128).
Single--entry approach (SEnA) requests and eventual NLRC monetary award with 10 % attorney’s fees and legal interest (6 % p.a. until fully paid).
Criminal liability for repeated or willful refusal (Art. 303).

9. Best-Practice Checklist for HR & Payroll

Post official DOLE advisory on computation tips at least two weeks before May 1.
Verify attendance records for April 30 to confirm eligibility of daily-paid staff.
Pre-encode holiday multipliers in payroll system to avoid manual errors.
Issue work schedules in writing, obtain employee consent where required.
Remind supervisors: no forced offsetting of holiday pay with undertime.
Audit compliance especially for branch offices and contractors.

10. Quick FAQs

Question	Short Answer
Does double pay include COLA?	Yes. Holiday pay is computed on basic wage + applicable COLA.
Can an employer defer payment until the next payroll cycle?	No. It must be included in the payroll covering the period that includes 1 May.
Is a 30-minute meal break during OT paid the same premium?	Meal period is not compensable unless company policy or CBA states otherwise.
What if Labor Day falls on maternity leave?	Employee already receives full pay from SSS; holiday pay does not apply (no double recovery).
Can we substitute another day for Labor Day?	Substitution (Art. 94-C) requires a CBA or written agreement and DOLE approval.

11. Key Takeaways

Labor Day is a “regular holiday”—employees enjoy the most favorable wage treatment.
Double pay (200 %) applies to actual work; single pay (100 %) applies even when the employee stays home, subject to the presence rule.
Add-ons: +30 % for overtime, +30 % when the holiday falls on the rest day.
Coverage, exemptions, and computation rules flow directly from the Labor Code and its implementing rules; CBAs or company manuals can only improve on them.
Document everything—accurate attendance and payroll records are the employer’s best defense during a DOLE inspection.

This article is for educational purposes and does not constitute legal advice. For situations involving substantial monetary exposure or disputed applicability, consult a Philippine labor-law specialist or the Department of Labor and Employment (DOLE).