Holiday Pay Entitlements for Absences in the Philippines
A comprehensive guide based on the Labor Code of the Philippines, as amended, Department of Labor and Employment (DOLE) issuances, and controlling Supreme Court jurisprudence (cut-off: April 29 2025).
1. Legal Foundations
| Source | Key Provisions |
|---|---|
| Labor Code (Presidential Decree 442) – Art. 94 | Establishes the general right of every covered employee to holiday pay equal to 100 % of the regular daily wage for any unworked regular holiday. |
| Art. 95 | Enumerates service incentive leave; relevant because paid leave immediately before a holiday counts as “present.” |
| Republic Acts | – RA 10361 (Domestic Workers Act) extends holiday pay to kasambahays. – RA 11210 (105-Day Maternity Leave) clarifies that women on paid ML are deemed “present” for holiday-pay purposes. |
| DOLE Implementing Rules (IRR) | Book III, Rule IV, §§1-11 flesh out computation rules, exemptions and the “absent on the day preceding” qualifier. |
| Notable DOLE Advisories & Wage Orders | Labor Advisories issued almost every holiday (e.g., LA No. 27-20, 23-21, 17-22, 27-23) consistently restate the “present or on leave with pay” condition. |
| Supreme Court Cases | • Auto Bus Transport Systems v. Bautista (G.R. 156367, 23 Jan 2006) – clarifies burden to prove absence. • *Cebu Royal Plant v. Deputy Minister * (G.R. 30524, 25 May 1989) – reiterates that payment is a legal obligation, not a bonus. • Philippine Global Communications v. De Vera (G.R. 178046, 17 Dec 2014) – monthly-paid employees are already deemed paid. |
2. Regular vs. Special Days
| Holiday Type | Legal Basis | Default Pay-Rule | Effect of Absence |
|---|---|---|---|
| Regular Holiday (e.g., 1 Jan, 12 Jun, 25 Dec) | Proclamations & Administrative Code §26, Art. 94 Labor Code | 100 % of daily wage even if the worker does not work – provided present or on paid leave on the day immediately preceding. | Worker absent without pay on the workday immediately before (or after when so required by CBA/company policy) forfeits the benefit. |
| Special Non-Working Day (e.g., Ninoy Aquino Day, EDSA Anniversary) | Proclamations; no Labor-Code-level mandate | No work, no pay principle unless company policy, CBA, or practice says otherwise. | Absence before/after is irrelevant because benefit is discretionary. |
| Special Working Day | Usually economic-recovery measures | Treated as an ordinary workday; no premium or holiday pay. | N/A |
| Double Holiday (Two regular holidays coincide) | Art. 94(c) | If unworked, still 100 % (not 200 %) because entitlement attaches to the day not the number of holidays. If worked, 300 % (first 200 % for first holiday, plus 100 % for second). | Same “present or on paid leave” qualifier applies. |
3. The Crucial “Presence” Requirement
3.1 Statutory Text
“Every employee shall be paid his regular daily wage for any unworked regular holiday: provided he is present or is on leave with pay on the work day immediately preceding the regular holiday.” – Art. 94(a), Labor Code
3.2 DOLE Clarifications
- “Work day immediately preceding” means the last SCHEDULED workday, not necessarily the calendar day before.
- “Leave with pay” includes:
- vacation/SIL
- paid sick leave
- maternity/paternity/Solo-Parent/violence-against-women leave
- quarantine leave when charged to company-paid quarantine credits (per Labor Advisory 01-22).
- Suspension of Work: If operations are suspended by management or LGU, all employees are deemed present; holiday pay must still be given.
- Successive Absences Rule (IRR §6): If the employee is on leave without pay both immediately before and after the holiday, he loses the benefit even if he worked on other days earlier that week.
- Offsetting/Make-up Work: Later offsetting the unpaid absence (e.g., via forced leave conversion) does not revive forfeited holiday pay, absent CBA terms stating otherwise.
4. Coverage & Exclusions
| Included | Excluded |
|---|---|
| Rank-and-file, probationary, apprentices, learners regardless of tenure | Government employees, managerial staff, field personnel whose hours cannot be determined and who are paid purely on commission (Art. 82) |
| Kasambahays / domestic workers (RA 10361) | Establishments regularly employing < 10 workers – but many continue to grant voluntarily to avoid morale issues. |
| Piece-rate or task-based workers inside the employer’s premises | Workers paid purely on “pakyao” basis and off-site, unless a CBA/contract says otherwise. |
| Night workers, security guards, seafarers (POEA contracts incorporate Art. 94) | Gig-economy freelancers (platform-based) – currently unprotected unless reclassified as employees. |
5. Computation Scenarios
5.1 Daily-Paid Employees
| Scenario | Sample Daily Wage | Payroll Treatment |
|---|---|---|
| Unworked regular holiday, present on Dec 24 | ₱610 | Holiday Pay = ₱610 Daily rate stays the same. |
| Worked on holiday | ₱610 | 200 % × ₱610 = ₱1 220 for first eight hours. + Overtime beyond 8 h: 260 % × hourly rate. |
| Worked overtime on double holiday | ₱610 | 300 % × ₱610 = ₱1 830 (first 8 h) + OT: 390 % × hourly. |
| Absent 23 & 24 Dec (unpaid) | ₱610 | Zero holiday pay; wage for those two absences is ₱0. |
| On paid SIL on 23 Dec | ₱610 | SIL counts as “present.” Holiday pay due. SIL day also paid. |
5.2 Monthly-Paid Employees
Formula: -- Monthly rate ÷ working days in the month -- already spreads 12 regular holidays across the year.
Therefore, no separate holiday-pay add-on if the employee did not work.
If the monthly-paid employee works on the holiday, premium for work (usually 30-100 %) applies per company policy or CBA.
6. Interaction with Absences & Leave Types
| Leave / Status | Does it Count as “Present”? | Notes |
|---|---|---|
| Approved Vacation / SIL | ✔︎ | Chargeable to leave credits. |
| Approved Sick Leave (paid) | ✔︎ | If credits exhausted → unpaid SL counts as absence, so entitlement lost. |
| Maternity / Paternity Leave (paid) | ✔︎ | Art. 133 and RA 11210 treat it as fully paid for entitlement purposes. |
| Forced Leave Without Pay | ✘ | Unless the forced leave is management-initiated suspension of operations. |
| AWOL / Unapproved Leave | ✘ | Holiday pay forfeited. |
| Suspension for Cause | ✘ | Supreme Court: suspension is not leave with pay. |
| Floating Status under Art. 301 | Generally ✘, but DOLE often directs payment if the suspension of operations is employer-initiated. | |
| Strike / Lockout | Strike: ✘; Lockout: ✔︎ because absence is employer-imposed. |
7. Successive Holidays & Sandwich Absences
- Two consecutive regular holidays (e.g., Maundy Thursday & Good Friday)
Employee is absent on Wednesday (unpaid) but works on Black Saturday.
Result: Holiday pay lost for both Thursday & Friday. - Holiday falls between two paid leave days – still entitled.
- “Sandwich rule” in some CBAs (present on the day after is also required): valid so long as it does not defeat statutory benefits; DOLE views it as acceptable provided the first-day-preceding rule remains intact.
8. Establishments with Fewer than 10 Employees
Under Book III, Rule IV, §1, micro-establishments are exempt from the holiday-pay mandate.
Best practices:
- Many barangay-scale businesses still grant pro-rated holiday pay to stay competitive.
- Once the workforce hits 10 (even seasonally), the obligation immediately attaches.
9. Penalties & Enforcement
- Labor Standards Case – Non-payment is an illegal deduction under Art. 116; employees may file individually or collectively.
- Money Claims Jurisdiction – NLRC/Labor Arbiter within 3 years from cause of action (Art. 291).
- Wage Orders – Non-compliance may trigger administrative fines under the latest DOLE Rules on Labor Standards Enforcement.
- Criminal Aspect – Willful refusal constitutes an offense under Art. 303; punishable by fine and/or imprisonment (rarely imposed, but real).
10. Illustrative Payroll Template
Step-by-step for a daily-paid worker who worked 10 hours on a regular holiday, was present the day before:
- Basic Holiday Pay (100 %)
- 8 h × ₱610 = ₱4 880
- Premium for Working (additional 100 %)
- 8 h × ₱610 = ₱4 880
- Overtime Premium (first add 30 % to hourly—total 260 %)
- Hourly = ₱610 ÷ 8 = ₱76.25
- OT rate = ₱76.25 × 2.60 = ₱198.25
- 2 h OT = ₱396.50
Total for the day = ₱4 880 + ₱4 880 + ₱396.50 = ₱10 156.50
11. Frequently Litigated Issues
| Issue | Typical Ruling |
|---|---|
| Employer claims “no proof of presence”. | Burden shifts to employer to show absence (Auto Bus). |
| Employee dismissed; employer withholds accrued holiday pay. | Must still be paid up to last day worked. |
| Holiday pay mistakenly rolled into “all-in” rate. | Only valid if rate is explicitly broken down and equal or higher than statutory minimum. |
| BPO night-shift crosses two calendar days. | Holiday credit applied to hours worked within the holiday calendar day. |
| Hybrid work / WFH on holiday. | Treated the same as on-site work; presence verified via company time-tracking tools. |
12. Best-Practice Compliance Checklist (for Employers)
- Timekeeping – digital logs to prove presence/absence.
- Payslip Transparency – itemize basic wage, holiday premium, OT premium.
- Clear Attendance Policies – state when “sandwich rule” or “present after” applies.
- Training for Payroll Staff – refreshers every Q4 before proclamations of next year’s holidays.
- Document Leave Decisions – approved/denied with signature; store for 3 years (prescriptive period).
13. Practical Tips for Employees
- File leave in writing; an approved leave memo is your best proof if a dispute arises.
- Keep copies of payslips and digital attendance screenshots for at least three years.
- If on “no work, no pay” status, negotiate voluntary holiday pay in your employment contract.
- In case of non-payment, exhaust internal grievance channels first, then file a complaint at the nearest DOLE Regional Office or NLRC.
14. Outlook & Pending Bills (as of April 2025)
- House Bill No. 10155 seeks to grant universal holiday pay regardless of workforce size (would scrap the “< 10 employees” exemption).
- Senate Bill No. 1379 proposes to codify an automatic inflation-adjusted holiday premium (e.g., 20 % increase every five years).
- DOLE is drafting a unified Holiday Premium Computation Manual aimed for release in 2026.
Final Word
Holiday pay is a statutory, demandable right in the Philippines, but it is also conditional: an unexcused absence immediately before (or, by policy, after) a regular holiday can legally forfeit the pay. Knowing—and documenting—the difference between paid leave and absence without pay is therefore critical for both employers and employees.
(This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a Philippine labor-law practitioner or the DOLE.)