**Holiday Pay Eligibility for Employees Absent Before a Holiday
(Philippine Labor‑Law Primer, updated July 2025)**
1. Statutory Framework
| Source | Key Provision | Relevance |
|---|---|---|
| Article 94, Labor Code | “Every worker shall be paid his regular daily wage for any regular holiday…” | Creates the basic right to holiday pay. |
| Book III, Rule IV, §§1‑6, IRR | Implements Art. 94; §3 sets the “presence‑or‑paid‑leave” rule for eligibility. | Defines the effect of absence on entitlement. |
| DOLE Handbook on Statutory Monetary Benefits (latest rev. 2024) | Restates rules and illustrations; used by labor inspectors. | Practical guide for employers. |
| DOLE Labor Advisories (e.g., LA No. 23‑2022, LA 12‑2023) | Announce pay rules for each year’s holidays. | Reinforces computation examples. |
| Jurisprudence (e.g., Filipino Pipe, G.R. 115180 [1995]; San Miguel, G.R. 70384 [1989]) | Clarify doubtful cases and award back wages. | Binding interpretations. |
Terminology Regular Holiday = 14 fixed‐date or movable dates (e.g., 1 Jan, Maundy Thu, Good Fri, 12 Jun, 25 Dec, etc.) where holiday pay is mandatory. Special (Non‑Working) Day = “no‑work‑no‑pay” unless company/CBA grants otherwise. Special Working Holiday = treated as an ordinary working day.
2. The “Presence‑or‑Paid‑Leave” Eligibility Rule
- Baseline – An employee must be present at work or on leave with pay on the work‑day immediately preceding a regular holiday to enjoy holiday pay for the unworked holiday.
- Absence Without Pay (AWOL) on that day forfeits the benefit—even if the employee has perfect attendance for months beforehand.
- Authorized Leaves (sick leave, vacation leave, maternity/paternity leave, SIL, WFH under flexible work, and even temporary lay‑off with allowance) count as “paid”—entitlement is intact.
- Suspension of Work by the Employer (e.g., power outage) does not prejudice entitlement; the employee is deemed present.
- Exempt Establishments – Retail or service enterprises regularly employing < 10 workers may legally withhold regular‑holiday pay (Labor Code, Art. 94 b).
3. Special Rules for Consecutive Regular Holidays
| Scenario | Entitlement |
|---|---|
| Employee present on the work‑day before Day 1 | Paid for Day 1 and Day 2. |
| Absent on the work‑day before Day 1 and did not work on Day 1 | No pay for Day 1 and Day 2. |
| Absent before Day 1 but worked on Day 1 | Paid premium (200 % or 260 % if falling on rest day) for hours worked on Day 1 and gets basic pay for Day 2. |
(Book III, Rule IV, §5; reinforced by DOLE Handbook illustrations.)
4. Effect of Working on the Holiday When Ineligible
If the employee is AWOL the day before but actually works on the holiday, the rule of forfeiture does not apply to hours worked. He or she earns the regular‑holiday premium (200 % of basic daily wage, or 260 % if also rest day). What is lost is only the “holiday pay” component for hours not worked that day.
5. Who Are (and Are Not) Covered
| Covered | Not Covered / Special Treatment |
|---|---|
| Rank‑and‑file, probationary, project, seasonal, fixed‑term, apprentices, kasambahay (RA 10361) | Field personnel, managerial employees, and outside sales whose performance is tied to output rather than hours (Art. 82) – no holiday‑pay entitlement unless granted by CBA or company policy. |
| Piece‑rate workers inside employer premises (the “equivalent‑wage” doctrine) | Seafarers – governed by POEA contract; usually granted basic wage plus fixed overtime for regular holidays, independent of presence rule because of continuous service aboard. |
| Employees on flexi‑work or compressed‑workweek arrangements | Government employees – covered by Civil Service rules, not Labor Code (holiday pay subsumed in monthly salary). |
6. Illustrative Computations (₱610 NCR daily minimum, 2025)**
| Circumstance | Multiplier | Pay |
|---|---|---|
| Regular holiday not worked, employee eligible | 100 % | ₱610 |
| … worked 8 hrs | 200 % | ₱1 220 |
| … worked + OT 2 hrs | 200 % + OT (260 %) | ₱1 220 + ₱317.20 |
| Holiday falls on scheduled rest day, worked 8 hrs | 260 % | ₱1 586 |
(Assumes wage metrics under Wage Order NCR‑34.)
7. Jurisprudence Highlights
- Filipino Pipe & Foundry Corp. v. NLRC – Holiday pay improperly withheld because company mis‑applied “absence” rule to employees placed on forced leave with pay.
- San Miguel Corp. v. NLRC – Company policy granting holiday pay despite absence became practice; cannot be unilaterally withdrawn.
- Nationwide Security v. NLRC – Security guards deemed present because their detail was cancelled by client without fault; agency liable for holiday pay.
Key takeaway: Courts strictly construe exemptions and liberally interpret doubts in favor of labor.
8. Interaction with Company Policy & Collective Bargaining
- Employers may grant better terms (e.g., ignore the absence rule, pay 300 % for work on holidays).
- Once a benefit ripens into company practice (given for ≥3 consecutive years), it cannot be reduced unilaterally (Art. 100, non‑diminution).
- CBAs often waive the “presence” qualifier altogether in exchange for concessions on scheduling.
9. Enforcement & Penalties
Failure to pay holiday benefits:
- Money claim via DOLE Regional Office (Art. 129) or NLRC (Art. 224) within 3 years (Art. 306, prescriptive period).
- Double indemnity possible under RA 8188 (wage underpayment).
- May constitute serious offense leading to suspension/closure after due process.
10. Practical Checklist for HR/Payroll
- Track attendance the work‑day before each regular holiday.
- Flag AWOL cases and verify if leave credits or offsets exist.
- Where operations run 24/7, define the “immediately preceding work‑day” per shift schedule to avoid disputes.
- Communicate the rule in employee handbooks; ambiguity is construed against the employer.
- For consecutive holidays, prepare two separate pay lines: “Holiday Pay” (basic) and “Holiday Premium” (work rendered).
- Audit compliance annually—holiday pay findings are the most common deficiency in DOLE inspections.
11. Conclusion
In Philippine labor law, eligibility for holiday pay hinges almost entirely on the employee’s attendance status on the work‑day immediately preceding a regular holiday—but the rule is nuanced by exceptions, jurisprudence, and voluntary company practices. Understanding these layers is essential to avoid costly disputes and to uphold workers’ statutory rights.
This article is for academic guidance. For specific situations, consult legal counsel or the Department of Labor and Employment.