Overview

In Philippine labor practice, special non-working holidays (often called “special days”) follow the no work, no pay principle. If an employee does not work, the day is generally unpaid unless a company policy, collective bargaining agreement (CBA), or individual contract grants pay. If an employee does work, premium pay applies—130% of the basic wage for the first eight (8) hours, with higher multipliers for rest days, overtime, and night work.

This article consolidates the governing rules, formulas, and edge cases so HR, payroll, and employees can compute special holiday pay confidently and consistently.

Key Definitions

Special non-working holiday (“special day”) – A day declared by law or presidential proclamation that carries no work, no pay by default. Examples historically include EDSA Anniversary, All Saints’ Day, and additional special days announced each year.
Basic wage – The employee’s pay for work excluding allowances and benefits (e.g., transport allowance, meal allowance, cash gifts) unless a policy or CBA states otherwise.
First 8 hours – The standard workday used for premium pay calculations. Overtime is any authorized work beyond 8 hours.
Rest day – The employee’s scheduled weekly rest. A special day may fall on a rest day.
Night Shift Differential (NSD) – Additional pay for hours worked between 10:00 p.m. and 6:00 a.m. (night hours).

Tip: Monthly-paid employees usually receive pay for all calendar days of the month (including unworked special days); daily-paid employees do not, unless there’s a policy granting it.

Core Rules & Multipliers (Special Non-Working Holidays)

1) If NO WORK is performed

Daily-paid: No pay (unless company policy/CBA says otherwise).
Monthly-paid: Day is paid as part of the fixed monthly salary; no premium since no work was rendered.

2) If WORK is performed (first 8 hours)

Special Day, regular workday: 130% of the basic wage (Formula: Daily Rate × 130%)
Special Day falling on the employee’s Rest Day: 150% of the basic wage (Formula: Daily Rate × 150%)

Rationale: The rest-day premium stacks on top of the special-day premium, yielding a widely-applied effective rate of 150% for work rendered on a special day that is also the employee’s rest day.

3) Overtime on a Special Day (beyond 8 hours)

Special Day (not a rest day): An additional 30% of the hourly rate on that day Effective OT hourly rate: 130% × 130% = 169% of the basic hourly rate.
Special Day + Rest Day: An additional 30% of the hourly rate on that day Effective OT hourly rate: 150% × 130% = 195% of the basic hourly rate.

4) Night Shift Differential (NSD) on a Special Day

Add 10% of the hourly rate on that day for each hour worked between 10:00 p.m. and 6:00 a.m.
- Special Day (not a rest day): NSD hourly = 130% × 10% = +13% of basic hourly.
- Special Day + Rest Day: NSD hourly = 150% × 10% = +15% of basic hourly.
Night OT (night hours beyond 8): Apply both OT premium and NSD, using the already-premiumed hourly rate on that day.
- Special Day, night OT: 169% + (169% × 10%) = 185.9% of basic hourly.
- Special Day + Rest Day, night OT: 195% + (195% × 10%) = 214.5% of basic hourly.

Quick Reference Table

Scenario	First 8 Hours	Overtime Hour	Night Hour (10pm–6am)	Night OT Hour
Special Day (worked)	130%	169%	143%	185.9%
Special Day + Rest Day (worked)	150%	195%	165%	214.5%
Special Day (unworked) – daily-paid	0%	—	—	—
Special Day (unworked) – monthly-paid	Paid as part of salary	—	—	—

Percentages are expressed as % of basic hourly/daily rate.

Step-by-Step Computation Examples

Assumptions: • Basic daily rate: ₱800; basic hourly rate: ₱100 (8 hours/day). • Night hours fall entirely between 10:00 p.m. and 6:00 a.m.

Example A: Special Day, 8 hours worked (day shift)

Pay = ₱800 × 130% = ₱1,040

Example B: Special Day, 10 hours worked (day shift; 2 hours OT)

First 8 hours = ₱800 × 130% = ₱1,040
OT hourly = ₱100 × 169% = ₱169
Two OT hours = ₱169 × 2 = ₱338
Total = ₱1,040 + ₱338 = ₱1,378

Example C: Special Day + Rest Day, 8 hours worked (day shift)

Pay = ₱800 × 150% = ₱1,200

Example D: Special Day + Rest Day, 9.5 hours worked (1.5 hours OT; day shift)

First 8 hours = ₱800 × 150% = ₱1,200
OT hourly = ₱100 × 195% = ₱195
1.5 OT hours = ₱195 × 1.5 = ₱292.50
Total = ₱1,200 + ₱292.50 = ₱1,492.50

Example E: Special Day, 8 hours worked, all at night (no OT)

Hourly on special day = ₱100 × 130% = ₱130
NSD per hour = ₱130 × 10% = ₱13
Night hourly total = ₱130 + ₱13 = ₱143
8 hours × ₱143 = ₱1,144

Example F: Special Day + Rest Day, 9 hours at night (1 hour OT at night)

Base first 8 hours = ₱800 × 150% = ₱1,200
Night premium for first 8 hours = 150% × 10% = +15% per hour
- Night hourly (first 8) = ₱100 × 165% = ₱165 → ₱165 × 8 = ₱1,320
For the 9th hour (night OT):
- OT hourly on that day = ₱100 × 195% = ₱195
- NSD on OT hour = ₱195 × 10% = ₱19.50
- Night OT hour = ₱195 + ₱19.50 = ₱214.50
Total = ₱1,320 + ₱214.50 = ₱1,534.50

Note on approach: In practice, it’s cleanest to compute each hour using the correct base for that hour (ordinary vs OT; day vs night) instead of adding premiums at the very end.

Special Situations & Policy Nuances

Monthly-Paid vs Daily-Paid
- Monthly-paid employees typically receive fixed pay for all days of the month (including unworked special days). If they work on a special day, the premium (e.g., 30% for the first 8 hours, etc.) is on top of their daily equivalent.
- Daily-paid employees apply the multipliers only to hours actually worked; unworked special days are unpaid unless a policy/CBA grants pay.
Allowances and COLA
- Premiums are computed on basic wage unless a CBA/company policy explicitly includes certain allowances. If a policy says “ordinary rate” or “regular rate,” check the definition; some employers include COLA in the base.
Piece-Rate, Hourly, and Commission-Based Workers
- Apply the same multipliers to the regular hourly equivalent or established rate per piece/hour. Where earnings vary (e.g., commission), compute an hourly equivalent consistent with company policy and prior practice.
Absences Adjacent to Special Days
- The no work, no pay principle for special days stands regardless of absences before/after the day, unless an internal policy conditions paid special-day benefits on presence or paid leave on adjacent days (a common rule for regular holiday pay does not automatically apply to special days).
Leave and Special Days
- If an employee is on paid leave and a special day occurs, whether the day is deducted from leave credits or paid outside leave depends on company policy/CBA. Many employers do deduct since special days are not guaranteed paid days when unworked.
Flexible Work Arrangements/Compressed Workweek
- Premiums still apply to the hours actually worked on the special day. If the schedule reassigns the rest day, use the actual rest day for “special day + rest day” computations.
Telework/Remote Work
- Location does not affect entitlement. Apply the same multipliers to hours worked remotely on a special day.
Service Charge and Tips (Hospitality)
- Premiums are computed on basic wage. Service charge distributions and tips are generally separate unless your CBA/policy integrates them into “regular rate.”
CBAs and Better-Than-Law Benefits
- A CBA or company policy may grant higher special-day premiums (e.g., 140% or paid rest-day special even if unworked). In such cases, apply the more beneficial terms.

Implementation Checklist for HR/Payroll

Identify the day type: special non-working vs regular holiday; confirm if it falls on an employee’s rest day.
Confirm employment pay scheme: monthly-paid vs daily-paid; check definitions of basic/regular rate in policy/CBA.
Capture actual hours worked (day vs night, ordinary vs OT).
Apply correct multipliers from the table.
Document any better-than-law policy or CBA provision applied.
Audit samples each payroll cycle to ensure consistent application (especially NSD + OT stacking).

Frequently Asked Questions (FAQ)

Q1: If an employee didn’t work on a special day, do we pay? A: For daily-paid employees, no, unless a policy/CBA says otherwise. Monthly-paid employees are typically paid for the day as part of their monthly salary.

Q2: How do we pay if the special day is also the employee’s rest day and they worked? A: Pay the first 8 hours at 150% of the daily/hourly rate. OT hours at 195% per hour. Add NSD (10%) for night hours based on the already-premiumed hourly rate.

Q3: Is NSD computed on top of the overtime rate or on the basic hourly? A: On special days, NSD is 10% of the hourly rate on that day. For night OT, compute NSD on the overtime hourly (i.e., stack NSD on top of the OT-premiumed rate).

Q4: Do allowances form part of the base? A: Not by default. Use basic wage unless a CBA/policy expands the base.

Q5: What if a presidential proclamation declares a special non-working day with short notice? A: The same special day rules apply. HR should announce the classification (special vs regular) and remind payroll of the correct multipliers.

Bottom Line

Work on a special non-working holiday: 130% for the first 8 hours; OT at 169%; NSD is 10% of the hourly rate on that day; if it’s also the rest day, use 150% for the first 8 hours, 195% for OT, and add NSD accordingly.
No work: No pay for daily-paid employees unless a more generous policy applies; monthly-paid employees are usually covered by their monthly salary.
Always check your CBA/company policy—apply whichever rule is more beneficial to employees.