If you have approved vacation leave that falls on or around May 1 (Labor Day), you are likely wondering whether you will still receive holiday pay for this regular holiday. Many employees in the Philippines face this exact situation every year. The good news is that Philippine labor law protects your right to holiday pay even when you are on vacation leave, provided you meet a key eligibility condition. This article explains the rules in clear, practical terms so you know exactly what you are entitled to, how vacation leave interacts with May 1 pay, common mistakes employers make, and what steps to take if something goes wrong with your payroll.

May 1 as a Regular Holiday Under Philippine Law

May 1, officially called Labor Day or Araw ng Paggawa, is a regular holiday under Article 94 of the Labor Code of the Philippines (Presidential Decree No. 442, as amended). Regular holidays are special because covered employees receive their regular daily wage even if they do not work, unlike special non-working holidays where the general rule is “no work, no pay” (unless your company has a more generous policy or you actually work that day).

On a regular holiday such as May 1:

If you do not work, you are entitled to 100% of your regular daily wage as holiday pay.
If you work on May 1, you are entitled to 200% of your regular daily wage for the first eight hours (plus overtime premiums if applicable).

This benefit applies to almost all private-sector employees, whether you are paid daily, weekly, or monthly, and whether you are regular, probationary, or project-based.

Legal Basis: Article 94 of the Labor Code and the Omnibus Rules

Article 94 of the Labor Code states: “Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten (10) workers.”

The detailed conditions appear in the Omnibus Rules Implementing the Labor Code, Book III, Rule IV. The Supreme Court has consistently upheld these rules in cases such as Nippon Paint Philippines, Inc. v. NIPPEA (G.R. No. 229396, June 30, 2021), confirming that holiday pay is a mandatory, non-diminishable benefit.

The law aims to protect workers from income loss during national holidays and to allow them to participate in commemorations without financial penalty.

The Most Important Rule: The Day Immediately Before the Holiday

To receive the 100% holiday pay for an unworked regular holiday like May 1, you must have been either:

Present at work, or
On leave of absence with pay

on the working day immediately preceding May 1.

This is the single biggest factor that determines entitlement. “Leave of absence with pay” includes any approved paid leave — using your vacation leave credits, Service Incentive Leave (SIL) of five days after one year of service, sick leave with pay, maternity leave, or other company-paid leaves. The leave must be paid; unpaid leave (LWOP) does not count.

If you were on unpaid leave the day before May 1 and did not work on the holiday itself, you generally lose the 100% holiday pay. This rule stops employees from extending weekends or holidays through unpaid absences right before a paid holiday.

How Vacation Leave Affects Your May 1 Holiday Pay

Being on approved vacation leave does not disqualify you from holiday pay on May 1, as long as you met the “day before” condition.

Here is how it usually works in practice:

If you were on paid vacation leave on the working day immediately before May 1, you qualify for 100% holiday pay on May 1.
If your approved vacation leave period includes May 1, your employer should still pay you the full 100% holiday pay for that day.
Your vacation leave credits should not be deducted for May 1 itself. The holiday is already a paid day by law. Deducting a leave credit on top of (or instead of) holiday pay would reduce your benefits, which is not allowed.

Many companies automatically adjust leave records when a regular holiday falls inside an approved vacation period. They code May 1 as a holiday pay day and only deduct leave credits for the actual working days you took off. If your HR or payroll team deducts a VL day for May 1 and does not pay holiday pay separately, you have grounds to ask for correction.

Comparison of Common Scenarios

Scenario	Status on Day Before May 1	Status on May 1	Holiday Pay Entitlement	Vacation Leave Credits Deducted for May 1?
Paid VL before and during holiday period	Paid leave (qualifies)	On approved VL, no work	100%	No — holiday is paid separately
Unpaid leave (LWOP) before May 1	Unpaid leave	No work	None (unless you worked on May 1)	N/A
Worked on May 1	Any status	Worked	200%	N/A (you worked)
May 1 falls on your scheduled rest day	Paid leave or present	Rest day, no work	100% (if preceding day qualified)	No
May 1 on rest day and you worked	Any	Worked on rest day + holiday	At least 230% (200% + 30% rest day premium)	N/A

Common Pitfalls Employees Face

Many workers lose holiday pay or have leave wrongly deducted because of these frequent issues:

Employer assumes that anyone on leave automatically loses holiday pay (incorrect if the preceding day was paid leave).
Payroll system automatically deducts VL credits for every calendar day in the leave period, including holidays.
Employee took unpaid leave the day before without realizing it affects holiday pay.
Small establishment claims exemption even when it regularly employs 10 or more workers.
Confusion when May 1 falls on a rest day or during successive holidays.

What you should do:

Keep copies of your approved leave form and payslips.
Check your May payslip carefully for a separate “holiday pay” line and verify leave credit deductions.
Send a short written request (email or memo) to HR asking how they handled May 1 in your case and citing Article 94 of the Labor Code.
If the response is unsatisfactory, file a complaint with the nearest DOLE Regional Office through the free Single Entry Approach (SEnA) mediation. Unpaid wage and benefit claims prescribe after three years.

What If You Are Asked to Work on May 1?

Employers may require work on regular holidays, but you must receive 200% pay. If you already have approved paid vacation leave, the employer generally cannot force you to cancel it without a valid operational reason. Discuss the situation with HR. If you end up working while on approved leave, you are still entitled to the 200% rate.

Frequently Asked Questions

Do I get holiday pay on May 1 if I am on approved vacation leave?
Yes, as long as you were on paid leave or present on the working day immediately before May 1. Being on vacation leave on May 1 itself does not remove your entitlement to the 100% holiday pay.

Will my vacation leave credits be deducted for May 1 if the holiday falls during my approved leave?
Usually no. Regular holidays are paid through the statutory holiday pay benefit. Your leave credits should only be charged for scheduled working days. Ask HR to adjust the records if they deducted a day for May 1.

What happens if I was on leave without pay the day before May 1?
You will generally not receive 100% holiday pay for May 1 unless you actually worked on the holiday (then you receive 200%).

Can my employer require attendance the day after the holiday to receive holiday pay?
No. The law only requires the “day before” condition for unworked regular holiday pay. Post-holiday attendance is not a legal requirement, although repeated unexcused absences can still lead to disciplinary action under Article 297 of the Labor Code.

How is holiday pay calculated for monthly-paid employees?
It is based on your equivalent daily rate (monthly basic salary divided by the applicable divisor, commonly 26). You should receive the equivalent of one day’s pay as holiday pay for the unworked regular holiday, in addition to your regular monthly compensation.

Are probationary or project employees entitled to holiday pay?
Yes. The entitlement depends on meeting the conditions in Article 94 and the Omnibus Rules, not on your employment status.

What if I work in a retail or service establishment with fewer than 10 workers?
You are exempt from the mandatory holiday pay requirement under Article 94. However, many employers still grant it voluntarily or through company policy or collective bargaining agreement.

If May 1 falls on my scheduled rest day, do I still get holiday pay?
Yes, 100% if you met the preceding-day condition. If you work on that day, you receive at least 230% of your daily rate.

How do I file a complaint if my holiday pay is not given or leave is wrongly deducted?
Go to the nearest DOLE Regional Office and avail of the free Single Entry Approach (SEnA). Bring your payslips, leave approval, and employment documents. The process is worker-friendly and does not require a lawyer at the mediation stage.

Does this apply to foreigners working in the Philippines?
Yes. Private-sector employees, regardless of nationality, are generally covered by the same Labor Code provisions when they work in the Philippines under valid work authorization.

Key Takeaways

May 1 is a regular holiday. Qualified employees receive 100% holiday pay even if they do not work.
You must be present or on paid leave (including approved vacation leave) on the working day immediately before May 1 to qualify for 100% pay on an unworked holiday.
When your approved vacation leave includes May 1, you should still receive holiday pay, and your leave credits should normally not be deducted for that day.
If you work on May 1, you receive 200% pay.
Company policies cannot reduce your statutory rights. Always verify your payslip and leave records.
If there is a problem, document everything and seek free assistance from DOLE Regional Offices through SEnA mediation.
Knowing these rules helps you plan vacations confidently and protect your benefits as an ordinary worker in the Philippines.

Understanding your rights under the Labor Code gives you the confidence to ask the right questions and ensure you receive every benefit you have earned.