1) Overview: what the dispute usually is

In the Philippines, holiday pay rules turn less on whether an employee “skipped” a regular holiday and more on:

whether the day is a regular holiday (not a special non-working day),
whether the employee is covered by holiday pay rules,
whether the employee is paid or unpaid on the holiday when they do not work,
what happens if the employee is absent without pay or without leave on the holiday,
and how the “no work, no pay” principle interacts with statutory holiday pay, company policy, and attendance rules.

The most common question: If the employee does not report for work on a regular holiday, are they still entitled to holiday pay? The answer is often yes, but with important exceptions—especially involving absences on the workday immediately preceding the holiday, employee classification, and whether the employee is on leave with pay or without pay.

2) Core concepts and definitions

A. Regular holiday vs special non-working day

Regular holidays carry a statutory entitlement: employees generally receive 100% of their daily wage even if they do not work, subject to coverage and eligibility rules.
Special non-working days follow different pay rules and often follow a “no work, no pay” default unless company policy or a CBA grants pay.

This article focuses on regular holidays.

B. Holiday pay vs premium pay

Holiday pay is the pay an employee receives for a regular holiday even if they did not work (or the base component when they did).
Premium pay is the additional percentage paid when an employee works on a regular holiday.

C. “Skips work” can mean different legal situations

“Skipping work on a regular holiday” can mean:

The employee’s schedule normally includes that day, but they did not report.
The employee is not scheduled to work (rest day), and the holiday falls on a rest day.
The employee is on approved leave (with pay or without pay).
The employee is absent without leave (AWOL) on the holiday itself.
The employee is absent on the day immediately preceding the holiday without pay/leave.

The legal consequences differ.

3) Who is covered by regular holiday pay

Holiday pay rules generally apply to employees in the private sector, but some categories can be excluded or treated differently depending on how they are paid and the nature of their work.

Common coverage principles:

Monthly-paid employees are typically considered to have holiday pay integrated in their monthly salary (because monthly pay generally covers all days of the month, including regular holidays), subject to payroll practice and policy.
Daily-paid employees are commonly entitled to holiday pay for regular holidays, even if they do not work, if they meet eligibility rules.
Certain workers such as government employees fall under different rules (not covered here).
Certain job types (e.g., field personnel or those paid purely by results) can have special treatment, but the classification must be genuine and defensible.

In practice, most disputes involve rank-and-file daily-paid employees and attendance-based rules.

4) The default rule: entitlement to pay even without work (regular holiday)

For covered employees, the default rule on a regular holiday is:

If the employee does not work, they are generally paid 100% of the daily wage for that day.

This statutory holiday pay is meant to ensure employees are not deprived of wages on nationally recognized regular holidays.

5) The critical exception: absence on the workday immediately preceding the holiday

A key eligibility limitation commonly applied in Philippine labor standards practice is:

If the employee is absent without pay on the workday immediately preceding the regular holiday, the employee may lose entitlement to holiday pay for that holiday, unless the absence is covered by an allowable exception (e.g., leave with pay, certain justifiable absences under company policy, or the employee worked on the holiday).

A. Why the “day before” matters

This rule prevents employees from taking an unpaid absence right before a holiday simply to “bridge” time off and still collect holiday pay.

B. What counts as “absent without pay”

Typically includes:

AWOL,
unauthorized absence,
leave without pay (LWOP),
suspension without pay (in many payroll treatments).

C. What usually does not disqualify

Generally, the employee remains eligible for holiday pay if the preceding-day non-work is:

rest day (not a scheduled workday),
approved leave with pay (e.g., paid vacation leave, paid sick leave if policy grants pay),
certain approved justified absences treated as paid or non-disqualifying by law/policy/CBA.

D. If the employee worked on the holiday despite being absent the day before

Where the employee works on the regular holiday, premium pay rules apply; some payroll treatments still allow premium pay even if the employee was absent the day before, because the employee rendered work on the holiday itself. However, the computation and entitlement to the base holiday pay vs premium components can become technical and policy-dependent. Practically, employers usually pay for the hours worked with holiday premiums, but disputes can arise if an employer tries to deny the base holiday entitlement due to preceding-day absence.

6) What if the employee “skips” the holiday itself?

A. If the employee is not required to work on the holiday

Most employees are not required to work on a regular holiday unless the employer schedules operations. If the employee does not work because no work is required, the employee still receives holiday pay (100%), subject to eligibility.

B. If the employee is scheduled to work on the holiday but fails to report (AWOL on the holiday)

If the business operates and the employee is required/scheduled to work but the employee does not report:

Holiday pay: the employee’s entitlement to holiday pay still generally depends on eligibility rules (including whether they were present/paid on the day immediately preceding).
Attendance/discipline: the employer may impose disciplinary action for AWOL/unauthorized absence under the company’s code of conduct and due process requirements.
Pay for the day:
- If the employee is entitled to holiday pay, they receive 100% for the holiday even without working, but
- the employer may treat the failure to report as an infraction (separately).

In practice, employers often conflate “no show” with “no pay.” Legally, for regular holidays, pay entitlement is statutory and not purely discretionary, but eligibility and exclusions apply.

C. If the employee is on approved leave on the holiday

If leave with pay: the employee generally receives pay (either as holiday pay or as paid leave credit depending on policy design; double counting is typically not allowed).
If leave without pay: the employee may not receive pay for that day and may also be disqualified depending on the “day before” rule and policy.

7) If the holiday falls on a rest day and the employee does not work

When a regular holiday coincides with an employee’s rest day:

If the employee does not work, many payroll practices still grant holiday pay because it is a regular holiday (subject to coverage/eligibility and whether the employee is monthly- or daily-paid).
If the employee works on that day, the pay becomes holiday + rest day premium (a higher multiplier).

Disputes arise when employers attempt to treat rest-day holidays as “not payable” for daily-paid employees; the correct handling depends on classification and the implementing rules used in Philippine labor standards practice.

8) Monthly-paid vs daily-paid: how “already paid” affects disputes

A. Monthly-paid employees

Monthly salary is commonly understood to cover all days in the month, including regular holidays. Thus:

the employee typically receives the same monthly pay regardless of whether they work on the holiday,
but if they work on a regular holiday, they are entitled to the appropriate premium on top of their monthly pay computation basis.

Attendance deductions for monthly-paid employees usually require careful handling; improper deductions can create underpayment claims.

B. Daily-paid employees

Daily-paid employees’ pay is more directly tied to days paid, so statutory holiday pay is more visible and often litigated. Eligibility rules (especially the “day before” rule) become crucial.

9) Interaction with “no work, no pay” and company policy

A. “No work, no pay” is not absolute on regular holidays

Regular holidays are a statutory exception: eligible employees may be paid even without working.

B. Company policy and CBA can be more generous but not less protective

Employers may adopt policies that:

broaden eligibility,
provide additional pay, or
treat certain absences as non-disqualifying.

But policies cannot validly reduce statutory minimum entitlements for covered employees.

C. Disciplinary rules are separate from wage entitlements

An employer may discipline an employee for skipping required work, but pay rules must still comply with labor standards. Penalties like withholding statutory holiday pay solely as punishment are legally risky unless the employee is genuinely ineligible under recognized rules.

10) Typical computation outcomes (conceptual, not numerical tables)

Case 1: Daily-paid employee, did not work on regular holiday, present/paid day before

Holiday pay: 100% of daily wage.

Case 2: Daily-paid employee, did not work on regular holiday, absent without pay day before

Holiday pay: commonly not payable (disqualified), unless an exception applies.

Case 3: Daily-paid employee, worked on regular holiday

Holiday premium pay: employee is paid more than the daily wage per statutory multipliers for work performed on a regular holiday.

Case 4: Monthly-paid employee, did not work on regular holiday

Pay: monthly salary generally unchanged (holiday already included).

Case 5: Regular holiday falls on rest day; employee works

Pay: higher premium (holiday + rest day premium).

11) Enforcement, disputes, and remedies

A. Common employer mistakes

treating a regular holiday like a special non-working day (“no work, no pay”),
blanket denial of holiday pay because the employee “skipped” the holiday, without applying eligibility rules properly,
improper deductions from monthly salary,
failure to pay correct premiums for holiday work.

B. Common employee pitfalls

not documenting schedules and attendance (day-before rule issues),
misunderstanding leave classifications (paid vs unpaid),
assuming holiday pay is always due regardless of absences.

C. Where disputes are raised

Holiday pay disputes are typically raised through:

internal HR grievance,
labor standards enforcement mechanisms, and
formal complaints where underpayment is alleged.

Records matter: payroll registers, time records, schedules, leave approvals, and company policies.

12) Key takeaways

For regular holidays, eligible employees are generally entitled to 100% holiday pay even if they do not work.
The most important eligibility limiter is often absence without pay on the workday immediately preceding the holiday, which can disqualify holiday pay.
Skipping work on the holiday can trigger disciplinary action, but wage entitlement depends on statutory rules and eligibility, not merely on “no show.”
Monthly-paid employees usually have holiday pay integrated into monthly salary; daily-paid employees see holiday pay as a distinct statutory item.
Correct classification of the day (regular holiday vs special day), employee pay status (monthly/daily), and preceding-day attendance/leave status usually determines the outcome.