1) Why the “day before” matters

In Philippine labor standards, holiday pay depends not only on what kind of holiday it is, but also on whether the employee was present or on paid status on the employee’s workday immediately preceding the holiday. This “day before” rule is mainly relevant to regular holidays when the employee does not work on the holiday.

The controlling framework is found in the Labor Code holiday pay provisions and their implementing rules, as applied in guidance issued by the Department of Labor and Employment (DOLE).

2) Start with the type of holiday

A. Regular Holidays (paid even if not worked, if eligible)

Regular holidays are those where eligible employees are generally entitled to 100% of the daily wage even if they do not work, subject to rules and exceptions (including the “day before” rule).

If the employee works on a regular holiday, premium pay applies (discussed below).

B. Special (Non-Working) Days / Special Holidays (generally “no work, no pay”)

Special non-working days are different: the general rule is no work, no pay, unless:

there is a company policy or practice, or
a CBA/contract grants pay, or
the employee works on that day (premium pay applies).

Because it is generally “no work, no pay,” the absence-on-the-day-before rule is usually not the determining factor for entitlement on special non-working days (the key question is typically: did the employee work?).

Many pay disputes happen because people use “special holiday” loosely. In practice, the crucial legal divide is regular holiday vs special non-working day.

3) The “day immediately preceding” rule for REGULAR holidays

The core rule (when the employee does NOT work on the regular holiday)

An employee is not entitled to regular holiday pay if the employee is absent without pay on the employee’s workday immediately preceding the regular holiday.

Key points that often get misunderstood:

“Immediately preceding” means the employee’s scheduled workday immediately before the holiday, not necessarily the calendar day before.
If the calendar day before the holiday is a rest day or non-working day, you look back to the last scheduled workday before the holiday.

What counts as being “present” the day before?

Generally, holiday pay is preserved if the employee was:

physically present, or
on paid leave or otherwise on paid status (e.g., approved leave with pay, paid sick leave under policy/CBA, paid vacation leave, etc.) on the workday immediately preceding the holiday.

What breaks eligibility?

Holiday pay is typically forfeited (for that holiday) if the employee was:

absent without pay on the immediately preceding scheduled workday (e.g., AWOL, unpaid leave, unexcused absence).

4) Absences: what changes the result

A. Unpaid absence on the preceding workday

Effect (regular holiday, not worked): No holiday pay.

Example: Holiday is Wednesday (regular holiday). Employee’s schedule is Mon–Fri. Employee is absent unpaid on Tuesday. Employee does not work Wednesday. ➡️ No holiday pay for Wednesday.

B. Paid leave on the preceding workday

Effect: Employee remains eligible for holiday pay (regular holiday, not worked), because the employee is on paid status.

Example: Employee uses approved paid sick leave on the preceding workday. ➡️ Holiday pay remains due (if the holiday is regular and the employee otherwise qualifies).

C. Rest day immediately preceding the holiday

If the day right before the holiday is the employee’s rest day, you check the last working day before that rest day.

Example: Holiday is Monday. Employee’s rest day is Sunday. Employee was absent without pay on Saturday (last workday). Employee does not work Monday. ➡️ Holiday pay may be denied because the workday immediately preceding (Saturday, in this schedule) was unpaid absence.

D. Where there are schedule changes, compressed workweeks, or shifting schedules

The “day before” test follows the actual, established schedule. If schedules are documented and consistently applied, the preceding workday is determined from that schedule.

E. Suspension of work / temporary closure on the day before

If the employee did not work due to a work suspension (e.g., employer declared no work) and the employee is not at fault, disputes can become fact-specific—especially on whether the employee is considered “absent without pay” versus “no work due to employer/force majeure policy.” In practice, employers often rely on DOLE advisories or internal policy for such scenarios.

F. Strikes, lockouts, and similar work stoppages

These situations are highly case-specific and can affect pay entitlement depending on legality and circumstances. Treat them separately from ordinary absences.

5) If the employee WORKS on the holiday, does the “day before” rule still matter?

Regular holiday worked

When the employee works on a regular holiday, premium pay rules apply. The “day before” condition is mainly used to decide entitlement to holiday pay when the holiday is not worked.

Practical implication: even if an employee was absent without pay on the preceding workday, if the employee is required/allowed to work on the regular holiday, the employee must still be paid for work performed on that holiday at the applicable premium rate (see pay rules below). Employer cannot avoid paying for work actually rendered.

Special non-working day worked

Because special days are generally “no work, no pay,” the preceding-day absence is typically irrelevant. The decisive fact is that the employee worked.

6) Consecutive regular holidays (the “two holidays in a row” rule)

A common Philippine scenario is two successive regular holidays (e.g., Maundy Thursday and Good Friday, when both are declared regular holidays).

General approach used in labor standards practice:

If the employee is absent without pay on the workday immediately preceding the first regular holiday, the employee may lose entitlement to holiday pay for both holidays if the employee does not work on the first holiday.
If the employee works on the first holiday, the employee may become entitled to holiday pay for the second holiday (depending on the exact application and facts), because working on the first holiday can satisfy the “day before” logic for the second.

Because consecutive-holiday pay disputes can turn on scheduling and whether the employee worked on the first holiday, employers typically compute these carefully and document attendance.

7) Who is entitled to holiday pay (and who is commonly excluded)

Holiday pay rules apply mainly to rank-and-file employees, with common exclusions in labor standards practice such as:

managerial employees (as defined under labor standards),
certain field personnel (those who perform work away from the employer’s premises and whose actual hours cannot be determined with reasonable certainty),
workers paid purely by result/task/commission in certain configurations (fact-specific),
and other categories recognized in implementing rules and jurisprudence.

Eligibility also depends on whether the employee is within the coverage of the holiday pay provisions given the nature of work and pay arrangement.

8) Pay computations (core statutory patterns)

These are the standard premium structures typically used in payroll practice in the Philippines. (Actual application can vary with sector rules, CBAs, and special proclamations.)

A. Regular holiday

If not worked (eligible):

100% of daily rate

If worked:

200% of daily rate for the day (first 8 hours)

If worked and it’s also the employee’s rest day:

Typically 260% of daily rate for the day (first 8 hours) (This is commonly expressed as the regular holiday rate plus rest day premium layering.)

Overtime on a regular holiday:

Additional premium applies on top of the holiday/rest day rate (commonly computed as an OT premium on the hourly equivalent of the day’s premium rate).

B. Special non-working day

If not worked:

Generally no pay (unless policy/CBA/practice grants pay)

If worked:

Commonly 130% of daily rate for the day (first 8 hours)

If worked and it’s also the employee’s rest day:

Commonly 150% of daily rate for the day (first 8 hours)

Overtime on a special non-working day:

Additional OT premium applies on the hourly equivalent based on the day’s premium rate.

Note: Some proclamations create “special working days” (which are different from special non-working days). Special working days are generally treated as ordinary workdays unless a specific rule states otherwise.

9) Monthly-paid vs daily-paid employees (a frequent source of confusion)

Monthly-paid employees

Monthly-paid employees are typically paid their full monthly salary regardless of holidays within the month (because the monthly rate is designed to cover all days in that pay scheme). However:

Working on a regular holiday still generates an additional premium because the employee renders work on a day already compensated in the monthly salary structure.
For special non-working days, whether an additional amount is due when not worked depends on how the monthly wage is structured and employer policy, but many monthly-paid setups already cover the day; the premium usually attaches when the employee works.

Daily-paid employees

Daily-paid employees are paid based on days actually worked, but:

For regular holidays, eligible daily-paid employees receive holiday pay even if not worked (subject to the “day before” rule and other eligibility conditions).
For special non-working days, daily-paid employees usually follow “no work, no pay” unless worked or granted by policy/CBA/practice.

10) Common real-world scenarios (quick answers)

Scenario 1: Absent without pay the day before a regular holiday; does not work on the holiday

➡️ No holiday pay (regular holiday).

Scenario 2: Absent without pay the day before a regular holiday; works on the holiday

➡️ Must be paid for work on the holiday at premium rate (regular holiday worked). The “day before” rule is mainly for unworked holiday pay.

Scenario 3: On paid leave the day before a regular holiday; does not work on the holiday

➡️ Holiday pay applies (treated as paid status).

Scenario 4: Absent without pay the day before a special non-working day; does not work on the special day

➡️ Typically no pay anyway (special day = “no work, no pay”), so the preceding absence generally does not change the outcome.

Scenario 5: Absent without pay the day before a special non-working day; works on the special day

➡️ Paid at special day premium (commonly 130% or 150% if rest day).

Scenario 6: Holiday falls after a rest day

➡️ Look back to the last scheduled workday before the holiday to apply the “day before” test (for regular holidays).

11) Compliance and documentation notes (employer and employee perspective)

For employers

Define and document work schedules clearly (especially for shifting/compressed schedules).
Distinguish holiday types per proclamation and payroll coding.
Record whether the absence before the holiday is paid or unpaid.
Apply consecutive-holiday logic consistently.

For employees

Check whether the holiday is regular or special non-working.
Confirm whether the “absence” the day before was with pay (paid leave) or without pay.
If the day before is a rest day, identify the last working day before the holiday.

12) Bottom line rule set

Regular holiday + not worked: holiday pay generally applies unless the employee was absent without pay on the immediately preceding scheduled workday (with key exceptions for paid status).
Regular holiday + worked: premium pay applies for work rendered.
Special non-working day + not worked: generally no pay (unless policy/CBA/practice).
Special non-working day + worked: premium pay applies; preceding-day absence usually does not control entitlement.
For consecutive regular holidays, absence before the first holiday can affect entitlement to both, especially if the first holiday is not worked.