Holiday Pay for Daily-Paid Employees in the Philippines
A comprehensive legal guide as of July 2025
1. Statutory foundation
| Legal source | Key provisions |
|---|---|
| Labor Code (Pres. Decree 442, as amended) – Art. 93 | Establishes the right of every worker to holiday pay equal to at least a day’s basic wage. |
| Omnibus Rules Implementing the Labor Code – Book III, Rule IV | Details coverage, conditions for entitlement, computation, and exemptions (e.g., small retail/service firms with < 10 workers). |
| R.A. 9492, R.A. 10966, R.A. 9849 & subsequent presidential proclamations | Fix and occasionally add regular and special holidays (e.g., Eid al-Fitr, Eid al-Adha). |
| D.O.L.E. Labor Advisories / Handbook on Workers’ Statutory Monetary Benefits | Issue the official pay-formula charts used by plantilla officers, auditors, and payroll providers. |
| Jurisprudence (e.g., Auto Bus vs. Bautista, G.R. 164062 [2005]; St. Martin doctrine cases) | Clarify entitlement where status or wage structure is disputed (e.g., piece-rate “pakyaw” workers). |
Daily-paid employees receive wages only for days actually worked and for unworked days that the law deems payable (regular holidays, service incentive leaves, etc.). They are distinct from monthly-paid employees whose compensation already covers all days of the month.
2. Kinds of Philippine holidays (updated list)
| Holiday classification | Present roster (as of 2025) | Default pay rule |
|---|---|---|
| Regular holidays (currently 13-15 per year)* | New Year’s Day (1 Jan) • Maundy Thursday • Good Friday • Araw ng Kagitingan (9 Apr) • Labor Day (1 May) • Independence Day (12 Jun) • National Heroes Day (last Mon Aug) • Bonifacio Day (30 Nov) • Christmas Day (25 Dec) • Rizal Day (30 Dec) • Eid al-Fitr • Eid al-Adha (movable) • Ninoy Aquino Day (21 Aug) if declared regular by proclamation | No work: 100 % of basic daily wage Work: 200 % Work + OT: 200 % + 30 % of hourly basic rate |
| Special non-working days | EDSA People Power (25 Feb) • Black Saturday • All Saints’ Day (1 Nov) • All Souls’ Day (2 Nov, often “special”) • Feast of the Immaculate Conception (8 Dec) • Last working day before Christmas (24 Dec, occasionally) • Year-end Special (31 Dec) • Local or barangay charter days | No work: No pay (“no work, no pay”) unless company policy grants otherwise. Work: 130 % of basic wage Work + OT: 130 % + 30 % OT premium |
* Exact count varies whenever the President upgrades or downgrades a holiday by proclamation under Administrative Code of 1987, Book I, Sec. 27.
3. Coverage and conditions for entitlement
Nature of enterprise Retail and service establishments regularly employing fewer than 10 workers are exempt from paying holiday pay (Labor Code, Art. 93-D; D.O. No. 20-04).
If the workforce later reaches ≥ 10, exemption automatically ends.
Employee status • All daily-paid rank-and-file workers, whether probationary, regular, seasonal, project-based, or casual, become entitled once they have rendered service. • Managerial employees are ordinarily covered only if company policy says so. • Kasambahay (household helpers) are entitled under R.A. 10361. • Apprentices and learners are excluded.
“Present or on leave with pay” rule A daily-paid worker must be present (or on an approved paid leave) on:
- the workday immediately preceding the holiday; and
- if required to work, the holiday itself. Absence without pay on that control date forfeits the holiday benefit unless the worker later proves the absence was due to force majeure or the employer voluntarily waives the rule.
Successive holidays Example: Maundy Thursday and Good Friday (both regular). Presence on the day before Maundy Thursday entitles the worker to both days.
Rest-day overlap
- Not worked: no additional pay.
- Worked: 200 % + 30 % = 260 % of basic wage.
- OT on rest-day regular holiday: 260 % + 30 % OT premium.
Double regular holiday on the same calendar day (rare, e.g., Araw ng Kagitingan + Good Friday, 2026): • Not worked: 200 % (100 % × 2). • Worked: 300 % (100 % base + 200 % premium). • OT: add 30 % of 300 % hourly rate.
4. Computation formulas
Let BDW = basic daily wage; HR = hourly rate (BDW ÷ 8).
| Scenario (daily-paid) | Pay computation |
|---|---|
| Unworked regular holiday | BDW × 1.00 |
| Worked regular holiday | BDW × 2.00 |
| Worked regular holiday + OT | (BDW × 2.00) + (HR × 2.00 × 1.30 × OT hours) |
| Worked regular holiday falling on rest day | BDW × 2.60 |
| Special day – unworked | 0 (unless voluntary benefit) |
| Special day – worked | BDW × 1.30 |
| Special day on rest day – worked | BDW × 1.50 (130 % + 20 % rest-day premium) |
| Special day – OT | add HR × 1.30 × 1.30 × OT hours |
Piece-rate or task-based workers use the average daily earnings in the last 7–12 actual workdays or the actual task rate × output for that day, whichever is higher, then apply the same multipliers.
5. Interaction with other pay items
| Situation | Interaction |
|---|---|
| 13th-Month Pay | Holiday pay is part of “basic salary,” so it must be included when computing the 13th-month pay base (P.D. 851 IRR §3[c]). |
| SIL (Service Incentive Leave) | Holiday pay is not credited as SIL; SIL covers non-working leave days enjoyed apart from statutory holidays. |
| Minimum-wage orders | Holiday pay must use the current Daily Minimum Wage Rate (inclusive of Cost-of-Living Allowance) per region, even if the worker usually receives a lower piece rate. |
| Collective Bargaining Agreements / company policy | May grant amounts over and above statutory minima, but never less. Always apply the more favorable rule (“principle of non-diminution”). |
6. Enforcement, penalties, remedies
- Administrative – DOLE Regional Directors can issue Compliance Orders after a routine or complaint inspection (Art. 128), immediately executory unless stayed by the Secretary of Labor.
- Money claims – Employees may file under Art. 129 (≤ PHP 5 million, no reinstatement) or via NLRC single-entry approach, then compulsory arbitration.
- Criminal – Willful non-payment is punishable under Art. 303 with a fine of PHP 40 000–400 000 and/or imprisonment.
- Prescription – 3 years from each violation.
- Burden of proof – Employer bears the duty to produce payroll and time-keeping records.
7. Frequently litigated questions & DOLE clarifications
| Issue | Administrative / judicial stance |
|---|---|
| “No work, no pay” clause in contract | Cannot defeat Art. 93. Holiday pay is statutory, not purely contractual. |
| Field personnel paid purely by results | Still entitled if the employer can control their schedule (DO No. 4-Series of 1994). |
| Workers under “contracting out” / job contractor | Principal solidarily liable if contractor fails to remit holiday pay (Art. 106). |
| Barangay Micro Business Enterprises (BMBE) with Certificate of Authority | Not exempt – holiday pay exemption applies only to small retail/service firms under Art. 93-D; BMBE law affects income tax, not labor standards (DOLE Op. 2010-10-05). |
| Absence after the holiday | Entitlement not affected. What matters is presence before the holiday. |
| Floating status / temporary suspension | No entitlement because there is no “employment” during bona fide suspension of operations. |
| Pandemic-induced flexible work arrangements | If the day was still calendared as a regular holiday, statutory pay rules applied, even if the worker ultimately rendered work-from-home. |
8. Practical compliance checklist for employers
- Update the regional wage order in payroll software each time the RTWPB issues a new wage hike.
- Tag holidays correctly at the start of each year (consult yearly Presidential Proclamation) and for movable Eid dates (depend on National Commission on Muslim Filipinos advisory).
- Time-in/time-out capture – maintain logs (biometrics or digital) for at least 3 years as evidence for crediting / denials.
- Pay slips – identify holiday pay as a separate line item, citing the multiplier used (e.g., “RegHol 200 % – P 1 120”).
- Communicate special-day work schedules and the applicable 130 % pay at least 24 h beforehand to avoid implied wage reduction claims.
- Review head-count monthly to ensure that small-establishment exemptions remain valid; dropping below 10 after entitlement has accrued does not claw back benefits already earned.
- Earned-wage access apps – confirm that any third-party cash-advance platform also releases holiday pay on the same cut-off to prevent constructive dismissal issues.
9. Key take-aways
- Daily wage workers are protected equally: Apart from the “presence on the day before” rule and a few narrow exemptions, holiday pay is due regardless of how sporadic the worker’s schedule is.
- Multipliers are mandatory minima: 100 % (unworked) and 200 % (worked) on regular holidays; 130 % on special days.
- Record-keeping is critical: In disputes, courts invariably resolve doubts in favor of labor when employers lack complete payroll/time records.
- Stay alert for proclamations: Presidents routinely re-classify certain days (especially the Islamic feasts). Adjust payroll tables promptly.
Disclaimer: This article synthesizes statutes, regulations, and leading cases as of July 7 2025. It is not a substitute for formal legal advice. For enterprise-specific compliance, consult a Philippine labor-law practitioner or the nearest DOLE Field Office.