I. Overview
Holiday pay is a core monetary benefit under Philippine labor law. For sales personnel, however, entitlement is not always straightforward because:
- They may be field-based or store/office-based
- They may be paid on daily, monthly, piece-rate, or purely commission basis
- They may work in small retail/service establishments or large companies
- Some may be treated as managerial or supervisory staff
This article walks through the entire legal framework for holiday pay as it applies to sales personnel, and then applies it to concrete sales roles (e.g., store sales clerk, field sales rep, merchandiser, sales manager, commission-only agent).
II. Legal Foundations
Constitutional policy
The Constitution mandates protection of labor, including just and humane conditions of work and a living wage. Holiday pay is one concrete expression of that policy.
Labor Code provisions
Historically, Article 94 of the Labor Code (renumbered in later issuances) governs holiday pay, providing, in essence, that:
- Every worker shall be paid their regular daily wage during regular holidays, whether worked or not, subject to conditions set by law and regulations.
- If the employee works on a regular holiday, they should receive a higher rate than ordinary days.
Implementing Rules and DOLE issuances
The Department of Labor and Employment (DOLE) issues:
- Implementing Rules of the Labor Code
- Labor advisories and guidelines on holiday pay, and
- Explanatory matrices each year for specific holidays (e.g., New Year’s Day, Labor Day, etc.).
These fleshed out:
- Coverage and exemptions
- Rates of pay when holiday is worked or unworked
- Qualification rules (e.g., presence on the workday before the holiday).
Holiday classification in practice
In Philippine practice, holidays are normally grouped as:
- Regular holidays (e.g., New Year’s Day, Araw ng Kagitingan, Maundy Thursday, Good Friday, Labor Day, Independence Day, National Heroes’ Day, Bonifacio Day, Christmas Day, Rizal Day, and any others declared as regular).
- Special (non-working) days and special working days, which follow different “no work, no pay” and premium pay rules.
This article focuses on regular holidays and special non-working days, where holiday pay questions for sales personnel usually arise.
III. General Rules on Holiday Pay
A. Regular Holidays (General Rule)
For covered employees:
If NOT worked:
Employee gets 100% of the regular daily wage for that day (assuming they meet ANY qualification rule that may be applied by DOLE or by contract).
If worked:
For the first 8 hours → 200% of the daily wage (double pay).
If also the employee’s rest day, premium may increase further (e.g., 260% in DOLE matrices).
Overtime on a regular holiday is paid at an additional premium (on top of the holiday rate).
B. Special Non-Working Days
As a general rule:
If NOT worked:
“No work, no pay,” unless:
- Company policy,
- Collective Bargaining Agreement (CBA), or
- Established practice
grants payment for unworked special days.
If worked:
The hours worked are paid with a premium percentage (commonly 130% of basic wage for the first 8 hours, higher if also a rest day) as set by DOLE guidelines.
C. “Qualification” Rule
Traditionally, to receive holiday pay for an unworked regular holiday, an employee had to be:
- Present or on leave with pay on the workday immediately preceding the holiday.
Many employers still follow this rule unless a more favorable arrangement is in place (e.g., CBA).
IV. Coverage vs. Exemptions: Where Sales Personnel Fit
Holiday pay does not cover everyone. The Implementing Rules list those NOT covered by the holiday pay law, including:
- Government employees
- Managerial employees
- Managerial staff/other officers meeting certain criteria
- Field personnel and others whose time and performance are unsupervised, especially if paid on task, contract, or purely commission basis
- Kasambahay/domestic workers and persons in the personal service of another
- Employees of retail and service establishments regularly employing less than 10 workers
Sales personnel can fall into almost any of these, depending on their actual situation.
A. Key Legal Concepts Affecting Sales Personnel
Field Personnel
In the Labor Code’s implementing rules, “field personnel” generally refers to:
- Employees whose performance of duties is away from the principal place of business or branch, and
- Whose actual hours of work cannot be determined with reasonable certainty, and
- Whose time and performance are unsupervised by the employer.
Some salespeople (e.g., roaming sales agents calling on clients without fixed timekeeping, purely commission-based) may be classified as field personnel.
Managerial Employees / Managerial Staff
Sales personnel who:
- Manage the establishment or a department,
- Have authority to hire, fire, or effectively recommend such actions, and
- Exercise independent judgment,
may be managerial, and therefore exempt.
“Managerial staff” requiring the use of discretion in tasks related to management policies may also be excluded from holiday pay.
Small Retail/Service Establishments (Less than 10 workers)
Employees of retail (e.g., sari-sari store, small boutique) or service establishments with fewer than 10 employees are, by regulation, not entitled to holiday pay, unless company practice or contract grants it.
This is crucial: a sales clerk in a small shop with fewer than 10 workers may legally be excluded from holiday pay, unless a better benefit is voluntarily provided.
V. Types of Sales Personnel and Their Entitlement
Below is a practical classification of sales personnel and how holiday pay rules generally apply.
1. Store-Based / Office-Based Sales Personnel
Examples:
- Sales clerks in malls or large retail chains
- Customer service/sales staff in showrooms
- Tele-sales staff in offices
Typical features:
- Work at a fixed place of business
- Use company timekeeping (bundy clock, biometrics)
- Hours and performance are directly supervised
- Paid daily or monthly wage, sometimes with commissions or incentives
Holiday pay treatment (general):
Covered employees under the holiday pay law, provided:
- They are not managerial/managerial staff; and
- Employer is not a small retail/service establishment with <10 data-preserve-html-node="true" workers.
Regular holiday not worked:
Paid 100% of their daily wage (for that day) if they meet qualification rules.
Regular holiday worked:
Paid at 200% (or higher, if also rest day) for the first 8 hours.
Special non-working day worked:
Paid with premium rate (e.g., 130% or more of daily wage as per DOLE matrices).
Special non-working day not worked:
Typically unpaid (no work, no pay), unless company policy/CBA says otherwise.
2. Field Sales Representatives (Account Executives, Territory Sales, Medical Reps, etc.)
Examples:
- Sales reps visiting clients in their territory
- Medical representatives calling on doctors and hospitals
- Institutional account sales agents visiting supermarkets, accounts, and distributors
Key questions to determine holiday pay entitlement:
Are they field personnel in the legal sense?
- Do they spend most work time away from the office?
- Can the employer reasonably determine their actual hours? (e.g., strict schedules, required time-in/time-out, GPS-assisted monitoring, ride-along checks)
- Are they truly unsupervised, or is fieldwork closely monitored?
How are they paid?
- Purely commission-based?
- Or a basic wage + commissions?
- Or “guaranteed wage” plus overrides/incentives?
General tendencies in application:
If they are:
- Field personnel whose time/performance are unsupervised, AND
- Paid on purely commission or other result-based arrangement,
they are often treated as excluded from holiday pay coverage.
If they:
- Have a basic salary (even if plus commissions),
- Are subject to company timekeeping, quotas, and supervision, and
- Their hours can be reasonably determined,
they are more likely to be treated as covered employees entitled to holiday pay.
Holiday pay computation for covered field sales reps:
Base of computation:
Usually the basic daily wage (or daily equivalent of monthly rate).
Commissions and performance incentives may or may not be included, depending on:
- Contract language
- CBA provisions
- Jurisprudence on when commissions form part of “basic wage.”
Regular holiday not worked:
Paid the equivalent of one day of basic wage.
Regular holiday worked:
Paid at double the basic wage for hours worked (plus overtime premiums if applicable).
3. Commission-Only Sales Agents / Independent Sales Representatives
Examples:
- Insurance agents
- Real estate brokers/agents
- Direct selling/network marketing distributors
- Commission-only product promoters with no fixed wage
Often these people are:
- Paid strictly on commission (per sale)
- Free to set their own schedules and strategies
- Often treated as independent contractors or non-regular employees, depending on the arrangement
Key points:
If they are truly independent contractors, with:
- Control over their own means and methods of work
- No employer-employee relationship in law
then Labor Code holiday pay rules do not apply at all, because they are not employees.
If they are employees, but:
- Paid purely on commission, and
- Work as field personnel with unsupervised hours,
they may fall under the holiday pay exemption in the Implementing Rules.
However, labels in contracts are not controlling. Even if called “independent contractors” or “professionals,” if the legal four-fold test of employment (selection, payment of wages, power to dismiss, control over work) is satisfied, they may legally be employees.
Because of this, disputes often arise and are resolved on a case-by-case basis by DOLE or labor tribunals.
4. Merchandisers and In-Store Promoters Assigned by Agencies
Examples:
- Merchandisers deployed by manpower agencies to supermarkets
- Brand promoters stationed at booths inside malls
Typical features:
Work inside stores, with fixed schedules
Time and performance are supervised either by:
- The agency,
- The client (principal), or
- Both
Paid daily or monthly wage, sometimes with allowances or incentives
Holiday pay treatment:
Generally covered employees under holiday pay, because:
- They are not field personnel; and
- Their hours and performance are supervised.
Entitlement to holiday pay usually follows the standard scheme:
- Unworked regular holiday = 100% daily wage
- Worked regular holiday = 200% (or higher with rest day)
- Special days follow “no work, no pay” unless otherwise agreed, with premiums if worked.
The question in these cases is often who pays (agency vs. client), which is usually governed by:
- The service agreement between agency and principal, and
- Labor rules on contracting and subcontracting (DOLE Department Orders).
5. Sales Supervisors, Sales Managers, and Key Accounts Managers
Examples:
- Sales manager heading a team of sales agents
- Key accounts manager who manages major client relationships plus supervises subordinates
- Area sales supervisor overseeing branches or territories
If they:
- Exercise management prerogatives (e.g., their recommendation to hire/fire is given particular weight), and
- Perform primarily managerial functions, and/or
- Qualify as managerial staff under the rules,
they are often treated as managerial employees, and thus excluded from holiday pay coverage.
If they are merely “senior salespersons” in title but without actual managerial functions, they may still be rank-and-file and therefore covered.
VI. Modes of Payment and How They Affect Holiday Pay Computation
A. Daily-Paid Sales Personnel
Who they usually are:
- Store sales clerks paid on a per-day basis
- Promo staff with daily rates
Regular holiday – not worked
- Entitled to one day’s basic wage, provided they meet qualification rules (e.g., present or on leave with pay before the holiday).
Regular holiday – worked
- For first 8 hours: 200% of daily rate
- Overtime: additional premium on top of the 200% rate
Special non-working days:
- Not worked: usually unpaid unless otherwise agreed
- Worked: paid with a premium (e.g., 130% or more as per DOLE).
B. Monthly-Paid Sales Personnel
Who they usually are:
- Office-based sales executives
- Store managers (if not managerial in legal sense)
- Account officers on a fixed monthly salary
For monthly-paid employees, the monthly rate is often assumed to:
- Cover all working days,
- Rest days, and
- Regular holidays within the month,
subject to how the wage structure is defined.
Effect on holiday pay:
Unworked regular holidays are already built into the monthly salary, so no extra pay is usually added for those unworked holidays.
If they work on a regular holiday, they are typically entitled to:
- Their monthly salary (which already covers the day) plus
- The holiday premium (e.g., an additional 100% of the daily rate for hours worked, depending on the company’s pay scheme and DOLE rules).
Special non-working days:
C. Piece-Rate / Result-Based Sales Personnel
Some sales-related jobs are paid on a piece-rate or per-output basis (e.g., per account opened, per sale closed, per contract).
- If they are employees, not excluded as field personnel, and not in small retail/service establishments <10 data-preserve-html-node="true" workers, they are generally entitled to holiday pay.
- DOLE often treats their holiday pay as based on their average daily earnings, computed from a representative period.
If they qualify as field personnel paid on purely result/commission basis with unsupervised time, they may fall within the exemption.
D. Commission as Part of “Basic Wage”
Holiday pay is computed on the basis of “regular daily wage”, which is closely tied to “basic wage.” As a rule:
Basic wage excludes:
- Cost-of-living allowances (unless integrated by law),
- Profit-sharing,
- Occasional bonuses,
- Facilities and supplements.
Whether commissions form part of the basic wage for purposes of holiday pay is a legal and factual question:
- If commissions are directly tied to sales and not guaranteed, they may be treated as variable incentives that do not form part of the basic wage.
- If there is a guaranteed salary + production bonus, the salary component will clearly be part of basic wage; the treatment of the bonus depends on consistency, legal characterization, and company practice.
In practice, many employers compute holiday pay for sales personnel mainly on the fixed wage component, unless a CBA or company policy explicitly includes commissions.
VII. Special Issues and Frequent Questions for Sales Personnel
1. “No Work, No Pay” vs. Holiday Pay
Sales employees often work in quota-driven environments where management asserts “no work, no pay.”
- For regular holidays, however, the law overrides the “no work, no pay” principle for covered employees. They must still be paid one day’s wage for the unworked regular holiday (subject to qualification rules).
- For special non-working days, the “no work, no pay” principle generally applies, unless there is a more favorable policy or practice.
2. Quotas, Sales Targets, and Holiday Work
Employers cannot use failure to meet quota as a reason to withhold holiday pay from a covered employee who is otherwise qualified. Quotas relate to performance and possible incentives or disciplinary measures, but statutory benefits like holiday pay are mandatory.
3. Probationary, Casual, Project-Based, or Part-Time Sales Staff
As long as they are employees and not in an exempt category, their employment status (probationary, regular, project-based, casual, part-time) generally does not affect entitlement to holiday pay.
- A probationary sales clerk working in a large retail store is usually entitled to holiday pay on regular holidays.
- A project-based merchandiser deployed in-store is likely covered during the life of the project.
The main questions remain:
- Are they covered employees under the holiday pay law?
- Are they in an exempt category (managerial, field personnel with unsupervised time and purely commission-based, or in a small retail/service establishment)?
4. “Floating” Status or Temporary Layoff
If a sales employee is placed on “floating” status (temporarily no work due to lack of assignments but employment not terminated):
- Entitlement to holiday pay during the floating period is contentious and very fact-specific.
- If the employee is effectively off the payroll and not considered working or available for work, employers may argue that holiday pay does not accrue.
- If there is an active employment relationship and the worker is ready and willing to work but simply not assigned, arguments can be made in favor of entitlement, especially where the employer’s own policies imply continued coverage.
5. Travel, Sales Conferences, and Seminars on Holidays
If sales personnel are required to attend company events, seminars, trainings, or sales conventions on a regular holiday:
- This typically counts as work performed on a holiday, and
- Should be compensated at holiday rates (double pay, plus rest day/OT premiums as applicable).
Even if the event is partly “team-building” or “recreational,” if attendance is required, it is usually treated as compensable work time.
VIII. Company Policies, CBAs, and More Favorable Benefits
Employers and employees may agree, through:
- Company policy,
- Employment contracts, or
- Collective Bargaining Agreements,
to grant better benefits than the Labor Code minimum, such as:
- Paying holiday pay for both regular and special days even if unworked
- Including commissions in the basis for computing holiday pay
- Granting holiday pay even to exempt categories (e.g., small establishment employees, managerial staff) as a voluntary benefit
Once consistently granted and practiced over time, these can ripen into:
- A company practice which employees may demand continuing as part of their benefits, unless properly modified following legal standards.
For sales personnel, CBAs in unionized environments sometimes contain detailed provisions on:
- Holiday pay rates and inclusions
- Treatment of commissions and productivity incentives
- Additional “sales holidays” or “company anniversaries” recognized as paid days.
IX. Enforcement and Remedies
If a sales employee believes they have been wrongly denied holiday pay, possible steps include:
Internal remedy
- Raise the issue with HR or management
- Refer to the company handbook, employment contract, and CBA (if any)
DOLE conciliation or complaint
Labor Arbiter / NLRC proceedings
- For more serious or unresolved disputes, file a case for monetary claims and/or illegal dismissal (if related).
The worker usually needs to establish:
- That they are an employee (not a true independent contractor)
- That they do not fall within an exemption
- The amount of unpaid holiday pay based on pay slips, time records, and company policies.
There is a prescriptive period for monetary claims under the Labor Code (typically three years from the time the cause of action accrued), so sales employees should not sit too long on their claims.
X. Practical Takeaways for Sales Personnel and Employers
For Sales Personnel
Identify your classification
- Are you store-based or field-based?
- Are you managerial, managerial staff, or rank-and-file?
- Is your employer a small retail/service establishment with fewer than 10 workers?
Check how you are paid
- Daily? Monthly? Piece-rate? Purely commission?
- Do you have a guaranteed basic salary at all?
Review written policies and contracts
- Employee handbook, contract, and any CBA
- Pay slips (to see how holiday pay is computed, if at all)
Watch for red flags
- Being required to work on regular holidays without any premium pay
- Being labeled “independent contractor” but treated like an employee
- Being classified as “field personnel” despite strict timekeeping and close supervision
For Employers
Properly classify your sales workforce
- Avoid “blanket” labels like field personnel, managerial, or contractor when the reality is otherwise.
- Misclassification can lead to labor disputes and backpay liabilities.
Ensure compliant pay structures
Document policies clearly
- In employee handbooks, contracts, and payroll practices.
- Clearly show how holiday pay is computed, especially for employees with basic plus commissions.
Consider more favorable schemes carefully
- Once a generous benefit becomes an established practice, it may create a binding obligation.
XI. Conclusion
In the Philippines, sales personnel are not a single legal category. Their entitlement to holiday pay depends on who they really are in law, not just their job title:
- Store-based, supervised sales staff in establishments with 10 or more workers are typically clearly entitled to statutory holiday pay.
- Field sales reps with genuine independence, unsupervised time, and purely commission-based pay may fall under the field personnel exemption, though each case is fact-specific.
- Commission-only agents and brokers may be outside the Labor Code entirely if they are true independent contractors, but may also be deemed employees if the control test is met.
- Managerial and small retail/service personnel are special cases with specific statutory exemptions.
For both workers and employers, the safest approach is to look beyond labels, examine actual work conditions and pay structures, and align holiday pay practices with both minimum legal standards and any more favorable company policies or CBAs that may apply.