If you receive a fixed monthly salary in the Philippines, holiday pay can be confusing because your payslip may show the same salary every cut-off whether there was a holiday or not. The practical question is usually this: is holiday pay already included in my monthly salary, or should I receive additional pay when a regular holiday occurs or when I work on a holiday? The answer depends on the type of holiday, your salary structure, your work schedule, your employment status, and the divisor or “factor” used to convert your monthly salary into a daily rate.
The basic rule: monthly-paid employees are not automatically excluded from holiday pay
Under Article 94 of the Labor Code, every covered worker must be paid their regular daily wage during regular holidays. If the employee is required or allowed to work on a regular holiday, the employee must be paid compensation equivalent to twice the regular rate.
The Supreme Court has repeatedly explained that holiday pay is a statutory benefit, not a bonus or gratuity. In Nippon Paint Philippines, Inc. v. Nippon Paint Philippines Employees Association, the Court stated that employees covered by holiday pay must receive their regular daily wage on a regular holiday even if no work is rendered, subject to the attendance rule under the Omnibus Rules. The Court also reiterated that work on a regular holiday must be paid at least 200% of the regular daily wage.
For fixed monthly salary employees, the real issue is usually not whether holiday pay exists. It exists if the employee is covered by law. The real issue is whether the monthly salary was computed in a way that already includes pay for regular holidays, rest days, and special days.
Regular holiday, special non-working day, and special working day: why the distinction matters
Philippine payroll rules treat holidays differently. Many salary disputes happen because employees and employers use the word “holiday” loosely.
| Type of day | If the employee does not work | If the employee works |
|---|---|---|
| Regular holiday | Paid 100% of daily wage, if covered and qualified | Paid at least 200% for the first 8 hours |
| Regular holiday falling on rest day | Paid 100% if qualified | Paid 200% plus 30% of the 200% holiday rate |
| Special non-working day | Generally no pay, unless company policy, CBA, or contract says otherwise | Paid 130% for the first 8 hours |
| Special non-working day falling on rest day | Generally no pay, unless a better policy applies | Paid 150% for the first 8 hours |
| Special working day | Treated like an ordinary working day unless a law, proclamation, policy, or agreement gives a better benefit | Usually ordinary wage only |
The official holiday list changes every year by presidential proclamation. For example, the 2026 regular holidays and special non-working days were declared under Proclamation No. 1006, s. 2025, as announced by the Presidential Communications Office.
Regular holidays commonly include
Regular holidays generally include:
- New Year’s Day
- Maundy Thursday
- Good Friday
- Araw ng Kagitingan
- Labor Day
- Independence Day
- National Heroes Day
- Eid’l Fitr
- Eid’l Adha
- Bonifacio Day
- Christmas Day
- Rizal Day
- The day designated by law for holding a general election
Eid’l Fitr and Eid’l Adha are movable dates. Employers usually rely on the specific presidential proclamation or DOLE labor advisory for the exact date and pay rules.
Legal basis for holiday pay in the Philippines
The main legal sources are:
Labor Code, Article 94 This provides the right to holiday pay and the 200% rule for work on a regular holiday.
Omnibus Rules Implementing the Labor Code, Book III, Rule IV This gives detailed rules on coverage, monthly-paid employees, holiday work, overtime on holidays, absences before a holiday, and shutdowns.
Labor Code, Article 100 This prohibits the elimination or diminution of benefits already being enjoyed by employees.
Supreme Court decisions Important cases include:
- Chartered Bank Employees Association v. Ople, where the Court rejected an administrative rule that effectively excluded monthly-paid employees from holiday pay when the Labor Code did not do so.
- Trans-Asia Philippines Employees Association v. NLRC, where the Court looked at the company’s consistent divisor to determine whether holiday pay was already included in monthly salary.
- Wellington Investment and Manufacturing Corp. v. Trajano, where the Court recognized that a monthly salary may already include holiday pay if the salary factor properly accounts for paid holidays.
- Nippon Paint Philippines, Inc. v. NIPPEA, which restated the basic rules on regular holiday pay, holiday work, rest day premium, overtime, absences, and non-diminution of benefits.
Who is covered by holiday pay?
Holiday pay generally applies to employees in private establishments, whether paid daily or monthly, except those excluded by law and rules.
Common employees who are usually covered
Covered employees commonly include:
- Rank-and-file employees
- Supervisory employees who are not truly managerial
- Probationary employees
- Regular employees
- Project employees
- Fixed-term employees
- Part-time employees, if an employment relationship exists
- Foreign employees working in the Philippines, if they are covered employees under Philippine labor law
A foreigner employed by a Philippine company in the Philippines generally enjoys the same basic labor standards as Filipino employees, including holiday pay, unless the position or employment arrangement falls under a legal exclusion.
Employees commonly excluded
Under the Labor Code and implementing rules, holiday pay rules generally do not cover:
- Government employees
- Managerial employees
- Officers or members of managerial staff who meet the legal tests
- Field personnel whose time and performance are unsupervised
- Domestic workers or kasambahay, who are governed by Republic Act No. 10361, the Domestic Workers Act
- Persons in the personal service of another
- Certain retail and service establishments regularly employing fewer than 10 workers
- Workers paid by results in certain circumstances, depending on the nature of supervision and applicable rules
A job title alone is not controlling. An employee called “manager” may still be entitled to holiday pay if the employee does not actually perform managerial functions under the Labor Code.
What “fixed monthly salary” really means
A fixed monthly salary means the employee receives a set amount per month, such as ₱25,000 or ₱60,000, instead of being paid only by the day.
But not all monthly salaries are built the same way.
Some monthly-paid employees are paid for all calendar days of the month, including:
- Ordinary working days
- Rest days
- Regular holidays
- Special non-working days
In DOLE wage computations, this is commonly associated with a 365-day factor, where the monthly salary is designed to cover every day of the year.
Other employees are called “monthly-paid” simply because payroll is released twice a month, but their salary may still be based on a smaller number of paid days, such as a 5-day or 6-day workweek. This is why the divisor matters.
The divisor: the most important payroll detail to check
The divisor is the number used to convert monthly salary into daily rate.
Example:
Monthly salary ÷ divisor × 12 months = daily rate Or, more commonly: monthly salary × 12 ÷ annual factor = daily rate
For holiday pay disputes, the divisor can show whether holiday pay is already included in the fixed monthly salary.
| Common factor or divisor | What it usually suggests |
|---|---|
| 365 | Salary is intended to pay all calendar days, including rest days, regular holidays, and special days |
| 313 | Often used for employees who do not work on rest days but are paid for regular holidays and certain special days, depending on policy |
| 261 or 262 | Often used for a 5-day workweek where rest days are not paid, but regular holidays may be included depending on the formula |
| 251, 253, or similar lower factors | May suggest that regular holidays or special days are not fully built into the monthly salary |
The divisor is not always printed on the payslip. You may need to check:
- Employment contract
- Company handbook
- Payroll policy
- CBA, if unionized
- HR memorandum
- Payslip formula for absences, overtime, late deductions, and holiday work
- Actual payroll practice over several months
In Chartered Bank Employees Association v. Ople, the Supreme Court considered the employer’s use of different divisors in computing overtime and absences. Where there was doubt, the Court resolved the issue in favor of labor. In Trans-Asia, the Court gave weight to the employer’s consistent use of a divisor showing that regular holidays were already incorporated into monthly pay.
How to compute holiday pay for fixed monthly salary employees
Step 1: Identify the type of holiday
First, confirm whether the day is:
- Regular holiday
- Special non-working day
- Special working day
- Local holiday
- Rest day only
- Double holiday
Use the applicable presidential proclamation, local ordinance or proclamation, and DOLE labor advisory.
Step 2: Find your daily rate
For a monthly-paid employee, the daily rate usually depends on the divisor.
Example using a 365 factor:
Monthly salary: ₱30,000 Annual salary: ₱30,000 × 12 = ₱360,000 Daily rate: ₱360,000 ÷ 365 = ₱986.30
Example using a 261 factor:
Monthly salary: ₱30,000 Annual salary: ₱360,000 Daily rate: ₱360,000 ÷ 261 = ₱1,379.31
Notice that the daily rate changes significantly depending on the divisor. That affects holiday pay, overtime, night shift differential, leave conversion, and deductions for absences.
Step 3: Apply the correct pay rule
If it is a regular holiday and you did not work
You should receive 100% of your daily wage for that day if you are covered and you worked or were on paid leave on the workday immediately before the holiday.
For a true 365-day monthly-paid employee, this is usually already included in the fixed monthly salary.
For an employee whose monthly salary does not include regular holidays, there may be an additional holiday pay item.
If it is a regular holiday and you worked
Minimum pay for the first 8 hours:
Daily wage × 200%
If your daily rate is ₱986.30:
₱986.30 × 200% = ₱1,972.60
If the fixed monthly salary already includes the 100% pay for the regular holiday, payroll may show only the additional 100% premium as a separate line. What matters is that the total pay for that holiday work reaches at least 200% of the regular daily wage.
If the regular holiday falls on your rest day and you worked
Minimum pay for the first 8 hours:
Daily wage × 200% × 130%
Using ₱986.30:
₱986.30 × 2.00 × 1.30 = ₱2,564.38
If you worked more than 8 hours on a regular holiday
Overtime must be paid with an additional 30% of the hourly rate on that holiday.
A practical formula is:
Hourly rate on that holiday × 130% × number of overtime hours
If the holiday also falls on a rest day, use the holiday-rest-day rate before applying the overtime premium.
Step 4: Check night shift differential if work is between 10 p.m. and 6 a.m.
If you worked between 10:00 p.m. and 6:00 a.m., night shift differential may also apply if you are covered. The minimum night shift differential is generally 10% of the applicable hourly rate.
This is often missed in BPO, hotel, restaurant, security, logistics, manufacturing, and healthcare payrolls.
The “day before the holiday” rule
For unworked regular holidays, the Omnibus Rules provide an important attendance condition.
An employee is generally entitled to holiday pay if the employee:
- Worked on the workday immediately before the regular holiday; or
- Was on approved leave with pay on that day.
If the employee was on leave without pay on the workday immediately before the regular holiday, the employee may not be entitled to holiday pay for the unworked regular holiday.
What if the day before the holiday was a rest day?
If the day immediately before the holiday was a non-working day in the establishment or the employee’s scheduled rest day, the employee is not treated as absent on that rest day. The employer should look at the workday immediately before that rest day.
Example:
- Friday: regular workday
- Saturday: rest day
- Sunday: rest day
- Monday: regular holiday
If the employee worked on Friday or was on paid leave on Friday, the employee generally remains qualified for Monday holiday pay.
Successive regular holidays, such as Maundy Thursday and Good Friday
Holy Week often creates payroll confusion because Maundy Thursday and Good Friday are successive regular holidays.
If the employee worked or was on paid leave on the workday immediately before the first regular holiday, the employee is generally entitled to holiday pay for both regular holidays, even if no work is performed on those holidays.
If the employee was absent without pay before the first holiday, the employee may lose entitlement to unworked holiday pay. However, if the employee works on the first holiday, that work may qualify the employee for pay for the next holiday, depending on the actual sequence and applicable rule.
Double holiday: when two regular holidays fall on the same day
A double holiday happens when two regular holidays fall on the same calendar date, such as when Araw ng Kagitingan coincides with Maundy Thursday or Good Friday.
In Asian Transmission Corporation v. Court of Appeals, the Supreme Court recognized that employees should not lose statutory holiday pay simply because two regular holidays fall on the same day. In that situation, covered employees may be entitled to the benefit for both holidays, subject to applicable DOLE guidance.
For payroll review, double holidays should be treated carefully. Do not assume the usual single-holiday 200% rule automatically answers every case.
Special non-working days and fixed monthly salary employees
Special non-working days follow the “no work, no pay” principle unless a more favorable rule applies.
This means that if you did not work on a special non-working day, you are generally not entitled to extra pay. However, you may still receive your full fixed monthly salary if your compensation package is based on a 365-day factor or if your company policy pays special non-working days even when unworked.
If you worked on a special non-working day, the usual minimum pay for the first 8 hours is:
Daily wage × 130%
If the special non-working day is also your rest day and you worked:
Daily wage × 150%
If you worked overtime on a special non-working day, overtime is computed based on the applicable rate for that day.
Local holidays: do they count?
Local holidays may apply only in a specific city, municipality, or province. These are common for charter days, foundation days, fiestas, or local commemorations.
For fixed monthly salary employees, the first question is whether the local holiday legally applies to the workplace location.
Practical examples:
- If your office is in Makati and Makati has a special non-working local holiday, employees working in that location may be covered.
- If your employer has branches in Cebu and Manila, the Cebu local holiday may not automatically apply to Manila employees.
- If you are remote, check the registered worksite or the location stated in your employment agreement and payroll policy.
Remote workers, BPO employees, and foreign employers
Holiday pay can be more complicated for remote workers and cross-border arrangements.
Filipino employee working remotely for a Philippine employer
If there is an employer-employee relationship under Philippine law, Philippine labor standards generally apply even if the employee works from home.
Filipino worker engaged by a foreign client as an independent contractor
If the arrangement is genuinely independent contracting, Philippine holiday pay rules may not apply in the same way. The contract governs payment unless the worker can prove an employer-employee relationship.
Common indicators of employment include control over work hours, tools, attendance, manner of work, discipline, and integration into the business.
Foreigner employed in the Philippines
Foreign nationals employed in the Philippines are generally protected by Philippine labor standards if they are employees. Their immigration or work permit status, such as an Alien Employment Permit, does not by itself remove statutory labor rights.
How to check if your holiday pay is correct
Use this practical process before raising a dispute.
List the holidays involved Identify the exact dates and whether each one was a regular holiday, special non-working day, or special working day.
Get your payslips Collect payslips for the holiday period, the previous cut-off, and the next cut-off.
Check your monthly salary structure Look for the divisor or factor. If it is not shown, ask HR or payroll what divisor is used for daily rate, absences, overtime, and holiday work.
Compare your attendance records Secure time logs, biometric records, screenshots of schedules, approved leave forms, overtime approvals, and holiday work instructions.
Compute your daily rate Use the divisor actually applied by payroll.
Compute the minimum legal holiday pay Compare your computation with the payslip.
Check for company policy or CBA benefits Some employers provide more than the legal minimum. If the benefit has been given consistently and deliberately, Article 100 on non-diminution may become relevant.
Put your payroll question in writing A calm written inquiry helps create a record and often resolves honest payroll errors.
Documents to prepare if you need to raise a holiday pay issue
| Document | Why it matters |
|---|---|
| Employment contract | Shows salary, work schedule, benefits, and employment status |
| Payslips | Shows actual pay, premiums, deductions, and payroll treatment |
| Time records or DTR | Proves whether you worked on the holiday |
| Work schedule or roster | Shows whether the day was your workday or rest day |
| Leave approval | Proves paid leave before the holiday |
| Company handbook or payroll policy | Shows divisor, holiday policy, and benefits |
| CBA, if unionized | May provide better holiday rates |
| Emails, chat instructions, or memos | Proves you were required or allowed to work |
| Prior payslips | Helps prove company practice or non-diminution issues |
Where to go for unpaid holiday pay
Holiday pay claims are usually treated as money claims or labor standards issues.
1. Start with SEnA
Most labor disputes go through the Single Entry Approach (SEnA), a mandatory conciliation-mediation process handled through DOLE, NLRC, NCMB, or appropriate labor offices. SEnA is designed to be fast, accessible, and non-adversarial, with a usual 30-calendar-day conciliation-mediation period.
You typically file a Request for Assistance (RFA) with the appropriate office. Bring copies of your payslips, employment contract, IDs, and computation.
2. If unresolved, the case may go to the proper forum
Depending on the situation:
- Small money claims may be handled by the DOLE Regional Director under Article 129 if the claim does not exceed the jurisdictional threshold and no reinstatement is involved.
- Larger money claims or claims connected with termination may go to the National Labor Relations Commission (NLRC) through the Regional Arbitration Branch.
- Unionized employees may have to check the CBA grievance machinery and voluntary arbitration clauses.
- Labor standards inspection issues may be handled through DOLE’s visitorial and enforcement powers.
3. Watch the three-year prescriptive period
Under Article 306 of the Labor Code (formerly Article 291), money claims arising from employer-employee relations generally must be filed within three years from the time the cause of action accrued. Holiday pay claims should not be allowed to sit for too long.
Common payroll mistakes involving monthly-paid employees
“You are monthly-paid, so you have no holiday pay.”
This is too broad. Monthly-paid employees are not automatically excluded. The correct question is whether the monthly salary lawfully includes holiday pay based on the salary structure, divisor, agreement, and actual payroll practice.
“Your salary stayed the same, so everything is correct.”
Not always. A fixed salary may already include unworked regular holidays, but additional pay may still be required if the employee actually worked on the holiday.
“Special non-working days are always paid.”
Not always. Special non-working days are generally no-work-no-pay unless the employee works, or a company policy, contract, CBA, or 365-day salary structure provides otherwise.
“Managers never get holiday pay.”
Only true managerial employees are excluded. A title like “account manager,” “store manager,” “team manager,” or “social media manager” is not enough. Actual duties matter.
“If the holiday falls on a rest day, nothing is due.”
If the employee did not work, regular holiday pay may still be due if the employee is qualified. If the employee worked, additional holiday and rest day premiums may apply.
“Payroll software says so.”
Payroll software does not override the Labor Code. In Nippon Paint, the Supreme Court discussed a payroll system error in the context of additional benefits and company practice. Employers should still verify whether the legal minimums and existing benefits are being followed.
Frequently Asked Questions
Are fixed monthly salary employees entitled to holiday pay in the Philippines?
Yes, if they are covered employees. Being paid monthly does not automatically remove the right to holiday pay. However, the holiday pay for unworked regular holidays may already be included if the monthly salary was computed using a factor such as 365 days.
If my monthly salary is the same even with holidays, does that mean I was paid correctly?
Possibly, but not always. If your salary uses a 365-day factor, unworked regular holidays and even special days may already be built in. But if you worked on a regular holiday, you must still receive the correct total pay for holiday work, which is at least 200% for the first 8 hours.
How do I know what divisor my employer uses?
Check your contract, payslip, HR handbook, payroll policy, or CBA. If not stated, compare how the company computes absences, overtime, leave conversion, holiday work, and final pay. You may also ask HR or payroll directly in writing.
What is the correct holiday pay for a regular holiday if I worked?
For the first 8 hours, the minimum is 200% of your regular daily wage. If the regular holiday falls on your rest day, an additional 30% of the 200% holiday rate applies. Overtime beyond 8 hours has an additional overtime premium.
Do I get paid if I do not work on a special non-working day?
Generally, no. Special non-working days follow the no-work-no-pay rule unless your employer has a more favorable policy, your contract or CBA grants the benefit, or your fixed monthly salary structure already pays all calendar days.
I was absent before the holiday. Do I still get regular holiday pay?
If you were absent without pay on the workday immediately before the regular holiday, you may not be entitled to unworked regular holiday pay. If you were on approved leave with pay, you generally remain entitled. If the day before the holiday was your rest day, the relevant day is usually the workday immediately before that rest day.
Are probationary employees entitled to holiday pay?
Yes, if they are covered employees. Probationary status does not automatically exclude an employee from holiday pay.
Are remote workers entitled to Philippine holiday pay?
Remote workers employed by a Philippine employer are generally covered if there is an employer-employee relationship. For freelancers or independent contractors working for foreign clients, the answer depends on the contract and whether an employment relationship can legally be established.
Can my employer remove a holiday benefit it has been giving for years?
Not easily. Under Article 100 of the Labor Code, benefits that have ripened into a company practice may be protected by the rule against diminution of benefits. The facts matter, including how long the benefit was given, whether it was consistent and deliberate, and whether it was merely due to error.
How far back can I claim unpaid holiday pay?
Holiday pay claims are generally money claims under the Labor Code. The usual prescriptive period is three years from the time the claim accrued.
Key Takeaways
- Fixed monthly salary employees are not automatically excluded from holiday pay.
- For true monthly-paid employees using a 365-day factor, pay for unworked regular holidays is usually already included in the monthly salary.
- If a monthly-paid employee works on a regular holiday, total pay must still reach at least 200% of the regular daily wage for the first 8 hours.
- Special non-working days are generally no work, no pay, unless a better company policy, contract, CBA, or salary structure applies.
- The most important payroll detail is the divisor or factor used to compute the daily rate.
- Check payslips, contracts, schedules, leave records, and company policies before concluding that holiday pay is unpaid.
- Holiday pay claims generally prescribe after three years, so employees should document and raise payroll issues promptly.