Holiday Pay Entitlement of Probationary Employees in the Philippines
A comprehensive guide for HR managers, lawyers, and employees
1. Key Take-aways
| Question | Short answer |
|---|---|
| Are probationary employees entitled to regular-holiday pay? | Yes. Article 94 of the Labor Code makes no distinction based on employment status. |
| Are they entitled to special non-working-day pay? | Only if they actually work (or if a company policy/CBA grants the benefit despite “no work, no pay”). |
| May an employer withhold holiday pay until the employee becomes regular? | No. Doing so constitutes an unlawful deduction and a violation of Article 116. |
| What if the probationary employee was absent on the workday immediately before the holiday? | He/She forfeits the holiday pay unless the absence was covered by an approved leave with pay. |
2. Legal Foundations
| Source | Core Content |
|---|---|
| Labor Code (renumbered) • Art. 94 | Guarantees every rank-and-file employee a paid day off on all regular holidays, provided the “presence-on-the-preceding-workday” condition is met. |
| Book III, Rule IV, Omnibus Rules | Imposes the same entitlement on probationary as on regular employees; lists exemptions (e.g., managerial, field personnel, domestic helpers, family drivers, establishments regularly employing <10 data-preserve-html-node="true" workers). |
| Art. 296 (Probationary employment) | Confers the same labor standards rights (wage, COLA, 13th-month, holiday pay, etc.) on probationary employees except security of tenure beyond six months. |
| DOLE Handbook on Workers’ Statutory Monetary Benefits (2024 ed.) | Explicitly states that “all rank-and-file employees, irrespective of status, are entitled to holiday pay.” |
| Select jurisprudence | - Wellington Flour Mills v. Trajano (G.R. L-46535, Sep 21 1989) – holiday pay is a statutory benefit, immunity clauses in contracts are void. - San Miguel Corp. v. MAERC (G.R. 146206, Feb 2 2007) – probationary workers enjoy equal monetary benefits unless a valid exemption exists. - Macasero v. Southern Industrial (Holiday Pay) (G.R. 214927, Jan 26 2021) – reiterates that absence on the day before a holiday bars entitlement. |
3. Who Is Covered?
- Rank-and-file employees in the private sector paid on time-rate, piece-rate, or commission, including probationary employees;
- Employers with ≥10 workers (if fewer than 10, regular-holiday pay is not mandatory, but many small firms still grant it voluntarily or by CBA);
- Employees present or on authorized paid leave on the last working day immediately before the regular holiday.
Exclusions: Government employees, managerial employees, field personnel, domestic workers, family drivers, and employees of retail/service firms regularly employing <10 data-preserve-html-node="true" workers.
4. Difference Between Regular Holidays & Special Days
| Holiday type | If employee does not work | If employee works | Basis |
|---|---|---|---|
| Regular holiday (e.g., 1 Jan, 12 Jun, 25 Dec) | 100 % of daily wage | 200 % (first 8 hrs) +30 % premium on excess OT | Art. 94 & DOLE pay rules |
| Special non-working day (e.g., 9 Apr*, 31 Dec) | No work, no pay (unless CBA/company policy grants) | 130 % (first 8 hrs) +30 % premium on excess OT | Proclamations & DOLE advisories |
| Special working day (rare) | Treated as ordinary working day (100 %) | 100 % | Presidential proclamations |
*Araw ng Kagitingan is both a regular holiday by statute and often declared special—follow the “higher” rule (regular).
5. Computation Guide for Probationary Employees
A. Time-rate workers
Daily rate × applicable percentage (100 %, 130 %, 200 %)
B. Piece-rate/commission
Average daily earnings for the last 3 months × percentage
C. Monthly-paid (“monthly rate covers all days of the month”)
Already deemed to include 12 regular holidays; no additional premium unless they work on the holiday. Formula: Monthly Rate ÷ Actual Working Days in a Month = Equivalent Daily Rate (EDR).
Note: A probationary employee’s shorter tenure does not justify proration or deferral.
6. “Presence-on-the-Preceding-Workday” Rule
| Scenario | Entitlement |
|---|---|
| Present or on paid leave on 14 Aug; 15 Aug is a regular holiday | Full holiday pay |
| Absent without pay on 14 Aug | No holiday pay on 15 Aug |
| Suspended without pay preceding the holiday | No entitlement |
| Approved vacation leave with pay preceding the holiday | Entitled |
7. Common Compliance Pitfalls
- “Wait-and-see until regularization.” Illegal; probationary status is irrelevant.
- Offsetting holiday pay against future undertime without written agreement.
- Treating probationary piece-rate workers as exempt—exemption applies only to field personnel whose time & performance are unsupervised.
- Failure to update payroll software when the employee transitions from daily- to monthly-paid during probation.
Penalties include: (a) Wage Order violations under Art. 303; (b) double indemnity under R.A. 8188; (c) possible criminal prosecution for illegal deductions (Art. 116).
8. How to Claim or Enforce
- Plant-level grievance (if CBA exists).
- DOLE Regional Office: file a money-claims complaint under Art. 128 (visitorial power) or Art. 129 (small claims ≤₱5,000 per claimant).
- NLRC: money claim + illegal deduction, within 3 years from accrual.
- Small-claims computation: holiday pay × missed holidays × 2 (if worked).
9. Frequently-Asked Questions
| Q | A |
|---|---|
| Does six-month probation override holiday pay? | No. Holiday pay is a statutory benefit co-equal with minimum wage. |
| Is service incentive leave (SIL) a pre-condition? | No. Holiday entitlement is independent of SIL accrual. |
| Probationary employee resigned before holiday—still due pay? | If the holiday fell before the effective resignation date and requirements were met, yes. |
| Holiday overlaps with rest day—how much? | Work done: 260 % of daily wage (200 % + 30 % rest-day premium). |
| Holiday during temporary closure (e.g., force majeure)—payable? | If a shutdown is not due to employee fault, the employer still owes regular-holiday pay unless legitimately exempt. |
10. Checklist for Employers
- Identify covered probationary employees (rank-and-file, ≥10 workers, not exempt).
- Review attendance on the workday immediately preceding each regular holiday.
- Set payroll parameters: 100 %, 200 %, 130 %, etc.
- Document all approvals of leave with pay to avoid disputes.
- Communicate clearly in the Employee Handbook: “probationary employees enjoy full holiday pay rights.”
- Audit at least annually; reconcile with DOLE Handbook updates.
11. Conclusion
Philippine labor law draws no line between probationary and regular rank-and-file employees when it comes to holiday pay. The only relevant questions are: (1) Is the employee within the statutory coverage? (2) Was he/she present or on paid leave on the working day immediately preceding the holiday? Employers that attempt to withhold or defer payment until regularization not only expose themselves to back-pay liability but also to statutory penalties. Robust attendance monitoring, transparent payroll rules, and continuous HR compliance training are the best defenses against holiday-pay disputes—whether the worker has been with the company for six minutes or six years.