Computation of pay for holidays: Regular, special non-working, special working

One of the more confusing matters, for employees and HR people alike, is the computation of holiday pay, complicated by the fact that there are different “kinds” of holidays. This is cleared by Memorandum Circular No. 1 of the Department of Labor and Employment (DOLE), the full text of which is reproduced and discussed below.

(8 March 2004)

Pursuant to the provisions of the Labor Code, as amended in relation to the observance of declared holidays and in response to the queries received every time a Presidential Proclamation or a law is enacted by Congress which declares certain days either as a regular holiday, a special day or a special working holiday, the following guidelines shall be observed by all employers in the private sector:

1. For regular holidays as provided for under EO 203 (incorporated in EO 292) as amended by RA 9177:

New Year’s Day – January 1
Maundy Thursday – Movable Date
Good Friday – Movable Date
Araw ng Kagitingan – April 9
Labor Day – May 1
Independence Day – June 12
National Heroes Day- Last Sunday of August
Bonifacio Day – November 30
Eidul Fitr – Movable Date
Christmas Day – December 25
Rizal Day – December 30

the following rules shall apply:

1. If it is an employee’s regular workday

* If unworked – 100%
* If worked

  • 1st 8 hours – 200%
  • excess of 8 hours – plus 30% of hourly rate on said day

2. If it is an employee’s rest day

* If unworked – 100%
* If worked

  • 1st 8 hours – plus 30% of 200%
  • excess of 8 hours – plus 30% of hourly rate on said day

2. For declared special days such as Special Non-Working Day, Special Public Holiday, Special National Holiday, in addition to the two (2) nationwide special days (November 1, All Saints Day and December 31, Last Day of the Year) listed under EO 203, as amended, the following rules shall apply:

1. If unworked

* No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked.

2. If worked

* 1st 8 hours – plus 30% of the daily rate of 100%
* excess of 8 hours – plus 30% of hourly rate on said day

3. Falling on the employee’s rest day and if worked

* 1st 8 hours – plus 50% of the daily rate of 100%
* excess of 8 hours – plus 30% of hourly rate on said day

3. For those declared as special working holidays, the following rules shall apply:

For work performed, an employee is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days.

Please be guided accordingly.


Note: If you still don’t know it yet, one of the more helpful government websites is that of the DOLE. It boasts of useful features such as the Frequently Asked Questions (FAQs), and, to my delight, a fully functional email-query system.

To test the email-query system, I sent a query regarding holiday pay for regular holidays falling on the employee’s rest day (in this case, 29 April 2006, Araw ng Kagitingan). In an hour or so, I received a reply. Here’s my e-mail:


I write in connection with DOLE Memorandum Circular No. 01, which provides a summary of an employee’s entitlement to holiday pay for regular, special working and special non-working holidays.

As stated in said Circular, if a regular holiday falls on an employee’s rest day and it is UNWORKED, the employee receives 100% of his/her daily salary. This, however, has caused confusion because some MONTHLY-paid employees believe that they are entitled to an additional payment of one day. This is exacerbated by the news item which appeared on 7 April 2006 on your website (“DOLE issues Araw ng Kagitingan pay rules“), which states that “[i]f the day falls on an employee’s rest day and is unworked, he or she is paid on that day. xxx” Kindly clarify that there should be a distinction between monthly-paid and daily-paid employees, as the former is deemed paid for the entire month, even on regular holidays.

Your usual prompt action on this matter is highly appreciated.

Here’s the reply:

Dear Mr. Pamaos:

Good afternoon.

Anent your query, MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular or special days, although he does not regularly work on these days.

DAILY PAID EMPLOYEE refers to one who is paid his wage or salary only on the days he actually worked, except in cases of regular holidays wherein he is paid his wage or salary even if he does not work during those days, provided that he is present or on leave of absence with pay on the working day immediately preceding the regular holiday.

As distinguished from monthly-paid employees who are assured of being paid for every day of the month, the provision of the Labor Code on holiday pay is principally intended to benefit a daily-paid employee who is normally bound by the principle of “no work no pay”. Before the advent of the Labor Code, they are not paid for unworked regular holidays.

We hope that this answers your query.

Please be informed that our opinion on the matter is strictly advisory and may not be invoked in any court of law or before any administrative body.

Thank you for writing.

Legal Service, DOLE

By the way, please note that the opinion contained in the reply is merely “advisory” and, for one reason or another, you may not necessarily agree that it’s correct.

Nevertheless, credit must be given where it is due. Congratulations to the DOLE’s electronic portal team.

(Added: Please note that Congress enacted R.A. 9492, rationalizing the celebration of national holidays. Here’s the list of 2008 holidays.)

47 thoughts on “Computation of pay for holidays: Regular, special non-working, special working

  1. Jackie

    Hi, I would like to ask if an employee can have a holiday pay when she/he worked less than 8 hours on the day before the holiday? thank you…

  2. Chiqui.1025


    Last 27 Sept 2011 during the onslaught of Typhoon PEDRING, our Company decided to send the employees home. Question is how will the company pay them specifically the daily paid and the monthly paid employees?

    Pls enlighten us on this matter.


    actually i am not going to make any reply, i just don’t know where to go because i also have question regarding daily rate computation, I just would like to know how daily rate is being computed having a monthly salary of Php:15,700.00, because what i have learned from our company the daily rate is computed as 15700X12/365=516.16, but i overheard from a discussion working from other company with different computation as follows 15700X12X314=600. the divisor in our company is 365 days (number of days in a year) while other company is 314 days.Please enlighten me on this, thanks!

  4. odellsangs

    Greetings. I would just like to ask regarding our holiday pay on our job. I worked as professional at one of the popular hospital in Taguig. We are paid P404.00 a day excluding the P50.00 COLA. On a legal holiday we only received an additional of 10% when we report for work. And on a Special/non-working holiday we recieved an additional of 30%. Is there a different Labor Code for a hospital based employee? And are we getting the right pay for our holiday duty? Thank you very much.

  5. raine lopez

    Hi, good afternoon…
    i just want to clear something…
    I’m working in a private school in Antipolo, during the month of June, we’re asked to come to work for 2 Saturdays ,June 11 (declared holiday by the province of Rizal as ‘Araw ng Lalawigan ng Rizal’) and June 12 (Independence Day) because the day after 12th is the opening of our class so we are required to work for enrolment purpose and making sure that everything’s okay…
    Today, June 13, we received our pay for June 15, we only received 4 days overtime pay, can i asked how the overtime for 2 saturdays, june 11 & june 12 are computed?
    we’re just wondering how our accountant is computing our overtime pay… she said that we only received 130% for June 12 because the 100% is already paid for our June 15 salary… Saturdays are paid 125%… and June 11 is not a holiday because it’s for Rizal province only…
    I hope you can help me with my queries… thank you very much…

  6. wise6161star

    hello. actually this is a query. I am receiving a monthly basic pay. should the management deduct from my pay if i am not made to work on special non-working holidays?…it is stated in MEMORANDUM CIRCULAR NO. 01, number 2.1…that if unworked=no pay…does this mean i will be deducted on the special non-working day if the management won’t let me work on that day…..thanks

  7. mcjoel.ramirez

    Good Day Sir, Madam

    I am presently working in a call center in Makati.
    I would like to ask about the Holiday pay, there was a case
    That I came from a rest day like Dec 24, 2011 and I am working
    On Dec 25, 2011 and I am in grave shift do I have to be paid as double in this day.

    But after receiving my pay slip the company just gives me additional 3hrs paid on this day.

    Cause they said that I’ve just work 3 hours on the said day.
    This kind of rule or policy of company is unfair for the worker who works in evening shift.

    Even we received night differential and we don’t have such privileged in holiday pay.
    It is better to work in day shift. Please help us out in this kind of issues.

    Thanks & Best Regards

  8. minosthea

    Is it allowed for the company to deduct the salary of its employee if he/she refuse to attend any events ( like Christmas party)?



  10. arnel tegelan

    Good day! In my understanding, if worked on a special holiday and at the same time restday it is equivalent to 150%, what about if worked, and it’s legal at the same time restday? Appreciate your reply. Thanks in advance.

  11. walter

    In cases of natural calamities, should the management pay the MONTHLY paid employees even they didn’t come for work?

    Also, in cases of power outage/ brownout daily paid employees who has already worked 4 hours should be paid full 8 hours?

    Best Regards

  12. Natari

    What do you mean by work & unwork?

    My daily work is from Monday to Friday. And the local government declared Festival as a special non working holiday. If my salary is 800 per day and this festival falls on Friday and I work on that day, what is the computation or what is my salary on that day?

    If i do not work on that declared holiday, no payment?

    What do you mean by special non working holiday and special working holiday?

  13. Joel

    I just wanna know , what is the computation of salary when legal holiday falls on sunday? where employee worked or not.


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