Regular Holiday Pay for On-Call Employees in the Philippines: An Overview

In the Philippines, employees are entitled to certain benefits and premiums when work is performed—or even when no work is performed—during specific holidays. The Labor Code of the Philippines (particularly Book Three, Title I on Working Conditions and Rest Periods), together with various Department of Labor and Employment (DOLE) issuances, set out the rules governing holiday pay. Below is a comprehensive guide to understanding regular holiday pay as it applies to on-call employees.

1. What Is a Regular Holiday?

A regular holiday is a day designated by law or proclamation as having special significance for the entire country (e.g., New Year’s Day, Independence Day, Christmas Day). Under Philippine law, these days typically require employers to provide holiday pay whether or not the employee actually works on that day, subject to certain eligibility rules.

Key Points About Regular Holidays:

Employees not required to work on a regular holiday are entitled to 100% of their daily rate (i.e., their basic wage for the day), provided that they meet statutory requirements such as being present or on paid leave on the workday immediately preceding the holiday.
Employees who work on a regular holiday are entitled to 200% of their daily rate for the first eight hours.
Overtime, night shift differential, or work on rest days that coincide with a regular holiday are paid at higher rates on top of the holiday premium.

2. Defining “On-Call” Status

Being “on-call” typically means the employee is not necessarily on-site or actively engaged in the employer’s work at all times, but must be ready and available to report to work (or perform duties remotely, depending on the nature of the job) if and when the employer needs them.

2.1 When Is On-Call Time Compensable?

Philippine labor authorities generally look at control and restrictions to determine if on-call periods are considered hours worked:

If the employee is required to remain at the employer’s premises (or so close to them that the employee cannot effectively use the time for personal purposes), the on-call time is generally compensable.
If the employee may freely use the on-call time for personal pursuits and merely has to respond or report if called, then the period may not be considered working time unless the employee is actually called upon to render service.

3. Holiday Pay Principles for On-Call Employees

3.1 Entitlement to “Holiday Pay” Even Without Actual Work

Under Philippine labor rules, employees who do no actual work on a regular holiday are still entitled to 100% of their daily wage, as long as they are present or on paid leave on the workday immediately preceding the holiday. For on-call employees:

If they meet the attendance requirement (present or on approved leave on the day before the holiday) and the holiday is a designated regular holiday, they should still receive holiday pay even if the employer does not summon them to work.
Whether the on-call status by itself qualifies as “work” depends on the level of control or restriction imposed. Simply being reachable by phone/email does not necessarily mean the day counts as worked unless the employee actually reports or performs duties.

3.2 Entitlement to Holiday Premium When Actually Called In

If the on-call employee is instructed to work on a regular holiday, the standard rules on working during a holiday apply:

First 8 hours of work on a regular holiday = 200% of the employee’s daily wage.
Any work in excess of 8 hours = plus 30% of the hourly rate on that holiday premium (i.e., overtime pay on a holiday).
If the on-call duty extends into night shift hours or rest days, other applicable premiums (e.g., night shift differential, rest day rates) may also be factored in, on top of holiday pay.

3.3 Monthly-Paid vs. Daily-Paid Employees

Monthly-Paid Employees
Often, monthly-paid employees already have regular holidays built into their monthly salary. As long as they are not absent without leave (AWOL) or failing to meet the “present or on paid leave” requirement, they receive their full pay for that holiday. If required to work on that holiday, they should receive additional holiday premium (the extra 100% on top of their daily rate, effectively making it 200%).
Daily-Paid Employees
Holiday pay is provided in addition to any day’s pay earned through actual work. If they do not work on a regular holiday, they get 100% of their daily wage for that day (again, contingent upon meeting the presence/leave requirement). If called in to work, they receive 200% for the first 8 hours.

4. Frequently Asked Questions

4.1 Do On-Call Employees Automatically Receive Holiday Pay?

Yes—if the on-call employee is considered a regular employee (or otherwise entitled under law) and meets the “present or on paid leave on the workday immediately preceding the holiday” requirement. The fact of being “on-call” does not remove or negate the holiday pay entitlement.

4.2 Is Standby or Waiting Time on a Holiday Counted as Work?

If the employee must remain on the employer’s premises (or is so restricted that they cannot use the time freely for personal purposes), the hours spent “waiting” can be compensable. If, however, the employee merely needs to keep communication lines open but is free to otherwise go about personal errands, that standby time is not generally considered hours worked. The question of control and personal freedom becomes pivotal in determining whether wages must be paid for that standby period.

4.3 What If the Employee Is Called to Work Only for a Few Hours on the Holiday?

Under the Labor Code, once an employee works on a regular holiday, they are still entitled to holiday premium for the hours actually worked. The pay for those hours worked is computed at 200% of the proportional daily or hourly rate. Should overtime occur, overtime premiums apply accordingly.

4.4 Are There Exceptions for Certain Industries or Jobs?

Yes. Certain employees such as field personnel, government employees, and managerial staff, among others, may be subject to different rules on work hours and holiday entitlements. However, most private sector on-call employees—including those in industries like healthcare, customer support, security services, and technical support—remain covered by regular holiday pay rules unless specifically exempted by law or by DOLE regulations.

5. Practical Tips for Employers and Employees

Document On-Call Arrangements
Make sure employment contracts or company policies clearly define on-call expectations, standby protocols, compensation rates, and scheduling. This fosters mutual understanding and eases any dispute regarding whether standby time is compensable.
Keep Accurate Records
Employers should maintain clear records of hours actually worked, including on-call logs and call-in times. Accurate timekeeping helps avoid misunderstandings when calculating holiday premiums.
Observe Legal Requirements for Holiday Pay
Regular holiday pay is a statutory benefit. Non-compliance can expose employers to penalties, back-pay claims, and labor disputes. On-call employees who qualify should be paid the correct holiday wages.
Check for CBA or Company Policy Enhancements
If there is a Collective Bargaining Agreement (CBA) or a company policy more favorable than the Labor Code minimum, employees may receive additional benefits (e.g., higher premium rates, standby allowances, or guaranteed minimum hours) on top of the legally mandated holiday pay.
Seek Clarification from DOLE or Legal Counsel
In case of unusual scheduling or specialized industry practices, it is best to consult DOLE issuances or seek professional advice to ensure compliance with the latest guidelines and interpretations.

6. Summary

For on-call employees in the Philippines, regular holiday pay rights and obligations mirror those of other employees in most respects. The key difference is that on-call hours may or may not be compensable depending on the degree of control the employer exercises. Nonetheless, as far as regular holiday pay entitlement goes:

An eligible employee who does not work on a regular holiday is still entitled to 100% of the daily wage.
An eligible employee who does work on a regular holiday is entitled to 200% of the daily wage for the first eight hours.
On-call employees who are subject to substantial employer control during the holiday may be able to count their standby hours as work hours, while those merely waiting freely with minimal restrictions generally only count time when actually performing duties.

By understanding these principles and ensuring the proper documentation of on-call status and work hours, both employers and employees can fulfill their respective obligations and protect their rights regarding regular holiday pay.

Disclaimer: This article is for general informational purposes and does not constitute legal advice. For specific concerns or disputes about holiday pay, consult the Department of Labor and Employment (DOLE) or a qualified labor law practitioner for guidance.