Many monthly-rated employees in the Philippines find themselves confused when regular holidays arrive. You receive a fixed salary every month, yet you may wonder whether you are still fully paid for days you do not work, whether your employer can deduct anything, or why your payslip does not show an extra “holiday pay” line item the way daily-rated colleagues sometimes see. These questions are common because the way holiday pay appears in payroll differs between pay structures, even though the legal right is the same. This article explains exactly how holiday pay works for monthly-rated employees on unworked regular holidays, the conditions you must meet, how your salary already accounts for these days in most cases, what changes if you work the holiday, and practical steps to protect your pay.

What Are Regular Holidays and Why Do They Matter?

Regular holidays are days declared by law or presidential proclamation on which covered employees are generally entitled to pay even if they do not report for work. These include New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan (April 9), Labor Day (May 1), Independence Day (June 12), National Heroes Day (last Monday of August), Bonifacio Day (November 30), Christmas Day (December 25), Rizal Day (December 30), and Eid’l Fitr and Eid’l Adha when proclaimed as regular holidays. The exact dates and any additional regular holidays are announced yearly through official proclamations.

In contrast, special non-working holidays (such as All Saints’ Day or additional days proclaimed as special) do not carry the same automatic pay entitlement if you do not work. If you stay home on a special non-working holiday, you normally receive no pay for that day unless your company policy or collective bargaining agreement (CBA) provides otherwise. The distinction is important because only regular holidays trigger the mandatory holiday pay benefit under the law.

Legal Foundation: Article 94 of the Labor Code

The right to holiday pay comes directly from Article 94 of the Labor Code of the Philippines. It states that every worker shall be paid his regular daily wage during regular holidays, with limited exceptions for very small retail and service establishments. The employer may require work on a holiday, but the employee must then receive compensation equivalent to twice the regular rate (at least 200% for the first eight hours).

The Supreme Court has consistently upheld this provision as mandatory. In Asian Transmission Corporation v. Court of Appeals (G.R. No. 144664, March 15, 2004), the Court emphasized that employees are entitled to the full benefit even on double holidays. In Nippon Paint Philippines, Inc. v. NIPPEA (G.R. No. 229396, June 30, 2021), the Court clarified that absence without pay on the workday immediately preceding a regular holiday can affect entitlement when the employee does not work on the holiday itself.

This right applies to monthly-rated employees in exactly the same way it applies to daily-rated employees. There is no legal distinction in the core entitlement.

How Holiday Pay Applies to Monthly-Rated Employees on Unworked Regular Holidays

As a monthly-rated employee, you receive a fixed amount every pay period regardless of the exact number of calendar days or working days in the month. Your salary is structured to cover compensation for regular workdays, rest days, and regular holidays within that period. When a regular holiday falls on a day you do not work and you meet the eligibility conditions, you are entitled to your regular daily wage for that day. In practical terms, this means your employer should pay your full monthly salary without deducting the equivalent of one day’s pay for the unworked holiday.

Unlike daily-rated employees—who usually see an explicit additional day’s wage added to their pay for the holiday—monthly-rated employees typically do not see a separate holiday pay credit on the payslip. The benefit is already integrated into the fixed monthly amount. This is why many employees feel uncertain: the money is there, but it does not appear as an extra line.

If you work on the regular holiday, the rules change. You still receive your full monthly salary, plus at least 200% of your daily rate for the first eight hours worked on that holiday. Any hours beyond eight are paid with an additional 30% premium on top of the 200%. If the holiday coincides with your scheduled rest day and you work, the premium can reach 260% for the first eight hours.

Your regular daily wage for these calculations is normally derived by dividing your basic monthly salary by the divisor your company uses (commonly 365 days, though some payroll systems use a different figure consistent with your contract or CBA). Ask your HR or payroll team for the exact formula they apply so you can verify computations for premiums or any potential deductions.

Eligibility Conditions You Must Meet

Not every unworked regular holiday automatically entitles you to the full benefit. To receive holiday pay when you do not work, you generally need to satisfy these conditions:

The day must be a proclaimed regular holiday.
You did not render work on that day.
You were present at work or on paid leave (such as vacation leave with pay, sick leave with pay, or maternity/paternity leave) on the workday immediately preceding the holiday. In many interpretations and company practices, being present or on paid leave on the immediately succeeding workday can also support entitlement.
You are a covered employee—not a managerial employee who meets all three statutory tests, not field personnel whose time and performance are unsupervised, and not employed in a retail or service establishment regularly employing fewer than ten workers (the small-establishment exemption).
You are not in an off-season period if you are a seasonal worker.

If you were absent without pay on the critical flanking day and did not work the holiday, your employer may deduct the equivalent of one day’s pay from your salary for that holiday. Paid leaves generally count in your favor for meeting the condition. Successive holidays have specific rules: an absence before the first holiday can affect both days unless you worked on the first one.

These conditions protect both workers and employers while ensuring the benefit reaches those who maintain regular employment attendance around the holiday period.

Common Pitfalls and Real-Life Scenarios

Many monthly-rated employees lose out or face disputes because of simple misunderstandings. One frequent issue occurs when an employee takes unpaid leave the day before a holiday—HR may correctly deduct the holiday pay equivalent, yet the employee feels surprised because the rest of the month’s salary looked normal. Another common scenario involves holidays falling on rest days: you remain entitled to the 100% benefit if unworked and conditions are met, and some companies voluntarily pay more.

Double holidays (two regular holidays on the same calendar day) entitle eligible employees to 200% even if unworked. Probationary, project-based, and casual employees enjoy the same holiday pay rights as regular employees once they are covered by Article 94. Remote or work-from-home employees are likewise covered as long as an employer-employee relationship exists.

Foreign nationals working for Philippine-registered companies under valid work visas receive the same protections. If you are employed by a foreign company but physically working in the Philippines, local labor standards generally apply to the employment relationship.

Some employers mistakenly treat all holidays the same or apply a strict “no work, no pay” policy even on regular holidays. Others use an incorrect daily rate divisor that undercuts premium pay when you do work the holiday. Keeping your own simple attendance notes and requesting the company’s written holiday pay policy helps avoid these problems.

Practical Steps to Protect Your Holiday Pay

Review your employment contract, offer letter, or employee handbook for the stated daily rate divisor and any specific holiday provisions.
Check the official list of holidays for the year through Department of Labor and Employment (DOLE) announcements or the official gazette.
Examine every payslip around holiday periods. Confirm there are no unexplained deductions and that any work performed on a holiday shows the correct premium.
If you believe a deduction was improper, compute the amount using your known daily rate and raise it in writing with HR or payroll, attaching your attendance record.
If the issue remains unresolved after internal discussion, you can file a request for assistance under the Single Entry Approach (SEnA) at the nearest DOLE Regional Office. Most wage disputes are settled at this mediation stage. Money claims prescribe after three years, so act promptly.
For complex or repeated issues, you may escalate to the National Labor Relations Commission (NLRC), but the great majority of holiday pay concerns are resolved earlier through documentation and clear communication.

No filing fees are required for DOLE assistance, and you do not need a lawyer to start the process, although many workers bring representation for larger claims.

Frequently Asked Questions

Do monthly-rated employees get paid for regular holidays even if they do not work?
Yes. Under Article 94 of the Labor Code, you are entitled to your regular daily wage for unworked regular holidays provided you meet the eligibility conditions, primarily that you were not absent without pay immediately before the holiday. In practice, this means your full monthly salary is paid without deduction for that day.

Is holiday pay already included in my monthly salary?
For most monthly-rated employees, yes. Your fixed salary is computed to cover regular holidays. You do not usually receive a separate additional amount on the payslip for unworked holidays, unlike many daily-rated employees. The benefit is delivered through the absence of any deduction.

What happens if I was absent without pay the day before a regular holiday?
You may lose entitlement to holiday pay for that unworked holiday. Your employer can deduct the equivalent of one day’s pay from your salary. Always check whether the absence was coded as paid leave, which would preserve your right.

How much do I actually receive for an unworked regular holiday as a monthly employee?
You receive the equivalent of one day’s regular wage, delivered by keeping your full monthly salary intact. If your basic monthly salary is ₱30,000 and the company uses a 365-day divisor, that day is worth roughly ₱82. If conditions are not met, that amount may be deducted.

Can my employer deduct from my salary for not working on Christmas or New Year’s Day?
Only if you fail the eligibility conditions (for example, unpaid absence immediately before the holiday). Otherwise, deduction is not allowed. Christmas and New Year’s Day are regular holidays, so the 100% entitlement applies when you qualify.

Do I get extra pay on top of my salary for holidays I do not work?
Generally no separate extra payment appears because the amount is already built into your monthly rate. You simply continue to receive your normal full salary. Extra payment (premium) applies only when you actually work on the regular holiday.

What is the difference in holiday pay between daily-rated and monthly-rated employees?
Both have the same legal right to 100% of the daily wage for unworked regular holidays when eligible. Daily-rated employees usually see the amount added explicitly to their pay. Monthly-rated employees receive it through their fixed salary remaining undiminished. The computation of daily rate for premium pay when working the holiday follows similar principles but is applied on top of the monthly salary.

Are special non-working holidays paid if I do not work?
No. Special non-working holidays carry no automatic pay entitlement if unworked. You receive pay only if you work (normally at least 130% of the daily rate) or if your company policy voluntarily grants pay.

If a regular holiday falls on my scheduled rest day, do I still get holiday pay?
Yes, if you do not work and you meet the other eligibility conditions. You are still entitled to the 100% benefit. If you do work on a holiday that coincides with your rest day, the premium pay rate increases further.

What should I do if my employer does not credit holiday pay or makes wrongful deductions?
Document everything (payslips, attendance records, communications). Raise the matter in writing with HR first. If unresolved, file a SEnA request at DOLE. Most cases settle quickly once proper records are presented. Keep copies of all documents and note deadlines—wage claims must generally be filed within three years.

Key Takeaways

Monthly-rated employees enjoy the same holiday pay rights under Article 94 of the Labor Code as daily-rated employees: 100% of the regular daily wage for unworked regular holidays when eligibility conditions are met.
In practice, your fixed monthly salary already incorporates payment for regular holidays, so you normally receive your full pay without any deduction for those days.
The main condition is that you must not have been absent without pay on the workday immediately preceding the holiday (or meet the succeeding-day rule in applicable interpretations). Paid leaves count in your favor.
If you work on a regular holiday, you receive your full monthly salary plus at least 200% of your daily rate for the first eight hours, with higher rates if it falls on a rest day or involves overtime.
Special non-working holidays do not carry automatic pay if unworked—only regular holidays do.
Double holidays entitle eligible employees to 200% even if unworked.
Verify your company’s daily rate divisor, review payslips carefully, and keep personal records of attendance around holidays.
If deductions appear incorrect, address them promptly in writing with HR and, if needed, through DOLE’s free SEnA mediation process.

Understanding these rules helps you confirm that your pay is correct and gives you the confidence to ask the right questions when something looks off. Philippine labor law strongly protects this benefit, and ordinary employees who know their rights are better positioned to receive what the law guarantees.