Holiday Pay When an Employee Is Absent Before or After a Philippine Regular Holiday
Philippine labour law recognises twelve (12) “regular holidays.” On those days, the general rule is “no-work, yet paid.” An employee who does not render work still receives 100 % of the basic daily wage—but only if the statutory qualifying-day rule is met. Below is a one-stop guide to that rule, its exceptions, and its application when a worker is absent either immediately before or immediately after the holiday.
1 | Legal Foundations
| Source | Key text |
|---|---|
| Labour Code, Art. 94 | Establishes the right to holiday pay and empowers DOLE to issue implementing rules. (Wikipedia) |
| Book III, Rule IV, § 6, Omnibus Rules | “An employee absent without pay on the work-day immediately preceding a regular holiday shall not be entitled to the holiday pay …” (Headhunter Philippines) |
| DOLE Handbook on Workers’ Statutory Monetary Benefits (latest ed. 2024) | Re-states the § 6 qualifier and gives sample computations. (Facebook) |
| Supreme Court jurisprudence | Clarifies grey areas (e.g., Insular Life (1992); Intercontinental Broadcasting (2021)). (Lawphil) |
2 | Who Is (and Is Not) Covered
Covered
- Rank-and-file and supervisory employees in the private sector, regardless of status (probationary, regular, contractual, project-based) and tenure, except those listed below.
Statutory exclusions
- Government personnel;
- Kasambahays unless expressly provided in their contract (RA 10361 treats them separately);
- Managerial employees and other Article 82 “non-covered” categories (field personnel on pure commission, etc.);
- Retail or service establishments that permanently employ < 10 workers. (Headhunter Philippines)
Note: Even where excluded, a CBA or company policy may voluntarily extend holiday pay; once granted, it becomes a vested benefit that cannot be unilaterally withdrawn (Art. 100, non-diminution). (Lawphil)
3 | The Qualifying-Day Rule
| Scenario | Entitlement to 100 % holiday pay for unworked hours |
|---|---|
| Present or on any form of paid leave on the work-day immediately preceding the holiday | Yes |
| Absent without pay on that work-day | No |
| Day before the holiday is the employee’s scheduled rest day or a firm-wide non-working day | Yes, provided the employee worked (or was on paid leave) on the last work-day before that rest / non-working day |
| Absence is with pay (e.g., approved VL, SL, maternity leave, SSS-compensated sickness) | Yes |
The rule applies only to regular holidays. “Special non-working days” follow the “no work, no pay” principle unless a more favourable CBA/policy says otherwise. (Headhunter Philippines)
4 | Effect of Absence After the Holiday
The Labour Code itself is silent about the day after the holiday. Two practical situations arise:
- “Sandwich rule” or “critical work-day” policies – Employers sometimes require presence on the work-day following a holiday to qualify for the pay. DOLE allows this if it does not defeat the statutory right to the preceding-day rule; i.e., it may affect future incentives but may not retroactively claw back the holiday pay already earned. (RESPICIO & CO.)
- Consecutive regular holidays – Absence (unpaid) on the work-day before the first holiday disqualifies the employee for all succeeding holidays in that chain unless the employee actually works on any of them, which “cures” the disqualification moving forward. (Respicio & Co.)
5 | What Happens if the Employee Works Despite a Disqualifying Absence?
Even when disqualified from the 100 % “idle-hours” pay, the worker who actually renders service on the holiday still earns the premium pay:
- 200 % of the basic daily wage for the first eight (8) hours;
- +30 % of the hourly rate for overtime;
- +30 % if the holiday likewise falls on the employee’s scheduled rest day. (Lawphil)
6 | Illustrative Computations
Assume daily wage = ₱610.
| Attendance pattern | Pay for 8 hrs on holiday | Explanation |
|---|---|---|
| Present on the day before; did not work on the holiday | ₱610 (100 %) | Fully qualified. |
| Absent w/o pay on the day before; did not work on the holiday | ₱0 | Disqualified by § 6. |
| Absent w/o pay on the day before; worked 8 hrs on the holiday | ₱1 220 (200 %) | Premium for hours actually worked; no 100 % idle-hours component. |
| Approved paid sick leave on the day before; did not work | ₱610 | Paid leave counts as “present.” |
| Unpaid absence before a two-day holiday (Thu–Fri); worked on Friday | Thu: ₱0; Fri: ₱1 220 | Disqualified for first holiday; working on Friday restores entitlement only for the day worked. |
7 | Jurisprudence Snapshot
| Case | Take-away |
|---|---|
| Consolidated Food v. NLRC (1992) | Holiday-pay statutes are remedial; resolve doubts in labour’s favour. (Lawphil) |
| Intercontinental Broadcasting v. IBC Union (2021) | Employer that voluntarily pays more than the law cannot later reduce the benefit (Art. 100). (Lawphil) |
| Eastern Telecoms line of cases | “Monthly-paid” employees are deemed paid for all regular holidays; qualifying-day rule is irrelevant to them because their salaries already cover all days of the month, worked or unworked. (Lawphil) |
| Auto-Bus & Coca-Cola rulings | Exemptions (e.g., < 10 retail workers) are strictly construed against employers claiming them. (Lawphil) |
8 | Compliance Tips for Employers
- Document absences clearly; mark “LWOP” to support any holiday-pay deduction.
- Automate payroll so that a single unpaid absence can flag disqualification for consecutive holidays.
- Spell out any “sandwich rule” in the handbook and CBA to avoid disputes.
- Monitor head-count; once a retail/service establishment reaches 10 employees, holiday-pay obligations automatically attach.
- Keep DOLE advisories handy; they restate the exact premium rates each year (e.g., Labor Advisory No. 27-23 for Bonifacio Day 2024).
Failure to comply exposes the employer to money claims, 10 % legal interest, plus possible fines under the Labour Inspectorate procedures.
9 | Key Take-aways
- Holiday pay hinges on one qualifying day: the last scheduled work-day before the holiday.
- Unpaid absence on that day = forfeiture of the 100 % idle-hours pay—but not of premium pay for hours one actually works.
- The law is silent about the day after a holiday; any “after-day” requirement must come from a clear, mutually-agreed policy that does not undermine statutory rights.
- Monthly-paid workers and those on paid leave are automatically considered present.
- Company practice and CBAs can only improve, never diminish, the statutory minimum.
Updated: 1 June 2025 • All citations reflect the latest DOLE issuances and Supreme Court rulings as of this date.