Holiday Pay Entitlement for Project-Based Employees (Philippines)

Practical legal guide. Philippine context. General information only—not legal advice.

1) Who are “project-based employees”?

Under the Labor Code (Art. 295, formerly 280) and jurisprudence, a project employee is hired for a specific project or undertaking whose scope and duration were made known at engagement. When the project is completed, the employment ends; if repeatedly re-hired for tasks vital and usual to the business, the worker may be deemed regular despite the label.

Key consequences for holiday pay:

You are entitled to holiday pay if the project (and your employment) is subsisting on the holiday date and you are not excluded by the rules (see §3).
If the project ended before the holiday, there is no entitlement for that date.
Misclassification (labelled “project” but actually regular) does not defeat holiday pay—entitlement follows the true status.

2) What is “holiday pay”?

Two kinds of nationwide holidays matter:

Regular holidays (e.g., New Year’s Day, Independence Day, etc.).
- Unworked: 100% of the daily basic wage.
- Worked (first 8 hours): 200% of the daily rate.
- Overtime on a regular holiday: add 30% of the hourly rate on that day.
- If the regular holiday falls on the employee’s scheduled rest day and is worked: commonly 200% + 30% of 200% (i.e., 260%) for the first 8 hours.
Special non-working days (e.g., Ninoy Aquino Day, All Saints’ Day, EDSA, some regional days).
- “No work, no pay” as default unless company policy/CBA/regular practice says otherwise.
- Worked (first 8 hours): 130% of the daily rate (and 150% if it simultaneously falls on a scheduled rest day, commonly applied).
- Overtime on a special day: add 30% of the hourly rate on that day.

These multipliers apply to project-based employees in the same way they do to other rank-and-file employees unless an exclusion applies (see next section). Contracting arrangements cannot waive statutory minimums.

3) Coverage and Exclusions

The Labor Code’s holiday pay rules generally cover all employees, except:

Government employees/GOCCs with original charters;
Househelpers (kasambahay—covered separately by the Kasambahay Law rules);
Retail/service establishments regularly employing fewer than 10 workers (for regular holiday pay, this is a classic exclusion; verify headcount carefully);
Field personnel and other employees whose performance is unsupervised, including those engaged on task or contract or purely commission basis—provided their work hours cannot be determined with reasonable certainty.

How this hits project-based workers:

Construction project workers normally work at a fixed site, timed and supervised. They are not field personnel, so covered.
Workers paid by results (piece-rate/task basis) may still be covered if they work within the employer’s premises or under effective supervision with determinable hours.
If a project worker is truly field personnel (time/place can’t be tracked and performance is unsupervised), holiday pay may not apply.

4) Daily-paid vs Monthly-paid project workers

Monthly-paid (salaried) project employees typically receive pay for all days of the month, including unworked regular holidays, without deduction, unless the payroll scheme explicitly segregates daily equivalents.
Daily-paid project employees are paid only on days worked and on unworked regular holidays (100%) if eligible. For special days, no work = no pay, unless a more generous policy exists.

Many disputes arise from payroll classification. The substance of the arrangement (how you’re really paid) governs, not merely the label.

5) Practical eligibility rules (regular holidays)

Employment must subsist on the holiday date (project not yet completed/terminated).
Absences around the holiday:
- Classic rules often condition unworked regular holiday pay on being present or on paid leave on the workday immediately preceding the holiday (and sometimes the following day).
- Company policies or CBAs can be more generous (e.g., waiving the presence rule).
Suspension of work by the employer (e.g., no work scheduled on that date) does not defeat statutory regular holiday pay for eligible daily-paid workers so long as employment is continuing.

6) Computation basics (project setting)

A) Unworked regular holiday (daily-paid)

Daily basic wage × 100% = holiday pay.
- If the worker has cost-of-living allowance (COLA): follow current inclusion/exclusion rules under the applicable wage order.
- No allowances that are expressly excludable (e.g., overtime, premium, night differential) should be folded in.

B) Worked on a regular holiday

First 8 hours: Daily rate × 200%
OT hours: Hourly rate on holiday × 130%
If also a rest day: Daily rate × 260% (first 8 hours), then holiday-rest day OT rules for excess.

C) Special non-working day (worked)

First 8 hours: Daily rate × 130% (or 150% if also a rest day).
OT: Hourly rate on special day × 130%.

D) Piece-rate project workers

Determine the “equivalent daily wage” by the average daily earnings (e.g., the average of the last 3–12 payable days, depending on policy/CBA/jurisprudential practice). Apply holiday multipliers to that equivalent.

7) Project timing scenarios you should watch

Holiday falls after “project completion” date but before formal clearance/payroll cut-off:
- If the employer has effectively ended employment (project completed; no more work orders), holiday pay for that date is not due. If completion is pretextual (work continues under another label), entitlement may persist.
Standby/“off-detail” between phases of the same project:
- If the employee remains on the rolls (not terminated) and is merely on temporary lay-off or standby within the project’s life, unworked regular holiday pay generally continues.
Rainy-day suspensions (construction):
- If the suspension is employer-announced and the project continues, unworked regular holiday pay still applies for eligible daily-paid workers; special day rules remain “no work, no pay” unless a kinder policy exists.
Regional holidays:
- If a special non-working local holiday is proclaimed in the project’s location, the local special day rules apply to those actually working in that locality on that day.

8) Interaction with project employment status and regularization

If a “project-based” worker is in truth regular (e.g., repeatedly rehired for indispensable tasks, or project durations are illusory), then all statutory holiday rules for regular employees apply.
Documentation matters: clear project scope/duration at hiring; clear project completion notice upon ending; consistent payroll classification.

9) Night work, premium pay, and overlaps

Holiday pay is separate from:

Night shift differential (≥10% of regular wage for 10:00 p.m.–6:00 a.m.),
Overtime premiums,
Rest day premiums.

When a project worker works at night on a holiday and exceeds 8 hours, compute each component on top of the holiday base (stacking is allowed where the law provides distinct bases; avoid double counting).

10) Contracting/subcontracting and agency-deployed project workers

If you are engaged by a legitimate contractor and deployed to a principal, the contractor is your employer for wage and benefit purposes (including holiday pay).
In cases of labor-only contracting (prohibited), the principal may be deemed the employer and become solidarily liable for unpaid holiday pay and other benefits.
Project completion declared by the contractor must match the principal’s project reality; otherwise, liability risks escalate.

11) Proof and payroll practice

For employees

Keep daily time records (DTRs), gate passes, site logs, pay slips, and text/app work orders.
Screenshot or save holiday announcements and duty rosters.

For employers

Maintain accurate timekeeping (even for piece-rate workers), rosters, and holiday computation sheets.
Issue pay slips showing basic pay, holiday pay, and premiums distinctly.
Apply the correct regional wage order (site-based, not HQ-based).

12) Disputes, forum, and deadlines

Money claims for unpaid holiday pay go to the Labor Arbiter (NLRC); small/simple claims may be handled by DOLE Regional Office through SENA (conciliation) first.
Prescription: 3 years from accrual (each unpaid holiday is a separate accrual).
Burden of proof: The employer must show payment/compliance once non-payment is credibly alleged—they keep the payroll records.

13) Worked examples

Daily-paid, worked on a regular holiday (not a rest day)
- Daily rate = ₱700
- Pay for 8 hours = ₱700 × 200% = ₱1,400
- Plus OT 2 hours = hourly (₱700/8 = ₱87.50) × 200% × 130% × 2 = ₱87.50 × 2.6 × 2 = ₱455
Daily-paid, unworked regular holiday
- Daily rate = ₱700 ⇒ ₱700 holiday pay (if eligible)
Special non-working day worked, also a scheduled rest day
- Daily rate = ₱700
- Pay for 8 hours = ₱700 × 150% = ₱1,050

14) Compliance checklist (employers)

Identify which holidays (regular vs special) affect the project site.
Confirm coverage/exclusions (field personnel? retail/service <10?). data-preserve-html-node="true"
Set clear DTR and duty rosters; keep payroll proofs for at least 3 years.
Apply correct multipliers and regional wage order.
For piece-rate: maintain a method for equivalent daily wage.
For agency deployment: align contracts and solidary liability exposure.
Train payroll/field supervisors on holiday vs special day distinctions.

15) Key takeaways

Project-based is a tenure label, not a holiday-pay carve-out. If the project is ongoing and the worker is covered (not excluded), holiday pay rules apply.
Regular holidays: 100% unworked, 200% worked (basic rules), with adjustments for rest days and OT.
Special days: no work, no pay by default; 130% (or 150% if rest day) when worked.
Coverage hinges on supervision/time-certainty, headcount for certain establishments, and true employment status.
Documentation and correct computation prevent most disputes; three-year clock applies to claims.

If you describe your project type (e.g., construction/IT/event build), pay scheme (daily, piece-rate, monthly), and holiday scenario, I can draft a tailored computation sheet and a one-page policy you can adopt for your site.