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.)

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

  1. SMP

    Just a inquiry I am a reliever physician ask to go on duty on a holiday, am i entitled with a holiday ? I yes what in DOLE rules states that? Thank you


    Gud am,
    I just want to know. We have daily paid employee. working on a compressed schedule 7 am to 5 pm. Legal Holiday fall on a sat. Are they paid one day?

    Second scenario, We have daily paid employee. working on a compressed schedule 7 am to 5 pm. Legal Holiday fall on aSUNDAY Are they paid one day?

    PLEAse revert back to me. in need of assistance.

  3. devina

    i just want to ask about regular holidays
    what if regular holiday like may 1, 2016 labor day
    and it falls to Sunday and at the same time it is my schedule day off.
    please let me know?thanks you.

  4. Leny O.

    We are monthly paid employees.Our company deducted additional 1/2 day to our salary for the reason we went 1/2 day on Saturday June 11,2016 the day before Sunday (rest day) which is also a holiday (Independence Day).The reason for our half day leave is we were given an overnight excursion in Zambales by our management which we enjoy every year.When we clarify this issue to the one assigned in payroll,she just reasoned out that we were half day on the day that preceded the holiday which is our rest day.In addition to our query, if we were deducted 1/2 day to our salary, where is the other half-day payment on holiday pay?

    We hope you can enlighten us on the above issue.More power to your department.

  5. monch

    Hi Sir / Madam,

    May I ask if it is a special non working holiday (like Quezon City Day), for salary computation of a field agent based in Q.C., is it our right to receive an additional 30% based on our salary? Or is there a possibility of not receiving the 30% more because it still depends if the company has less than 20 personnel, like a small company?

  6. lyn

    where can I find the provisions stating that you should be present the day before holiday for you to get your holiday pay on the day of holiday itself? thank you!

  7. Hazzel

    I would like to inquire if employees may file vacation leave or sick leave on special non-working holiday?

    Thank you.

  8. Rolando

    I was hired as a Financial Consultant for BF Corporation at the outset and later given an additional assignment as the Accountant of a joint venture project in a BLT agreement with the National Government PPP project for the School Infrastructure Project through the DepED and was required to work even on Saturdays although my contract does not include work on Saturdays in my desire to be of service to the BF Goup of Companies from 2012 to 2014 and was being paid even on Spcial and Official Public Holidays since I am a monthly paid employee. Our dailky rate is computed as follows: Monthly Salary divided by 26 days equals our daily rate. when the company decided to open up an office in Mamplasan, Binan, Laguna I was re assigned as the Administrative Manager of InfraMachineries Corporation which is 90% owned by the BF Group of Companies with The Trinidad family owning the other 10%. Since this is a full time job as compared to a regular financial consultant, I was later on designated to be the Administrative Director in charge of Admin operations in IMC Mamplasan office. Later on the Parts Department which include Parts Inventory and Sales with Full authority over Admin, Parts and Finance. I requested then that I be transferred under the payroll of Inframachineries Corp considering that my new and expanded assignment requires my full time except on Saturdays, and Holidays which was not granted. Since then, I enjoyed my full monthly salary even during holidays. Lately however, when I signified my intention not to renew my contract which expires Nov. 30, 2016, situation became different. Last October 31, 2016 a declared holiday, I was not paid for October 31, 2016 since the Payroll Staff/Secretary to the Executive Director said am not entitled to the pay since I did not report for work on that day, a holiday, which am challenging hence this formal complaint and inquiry. What’s is the real or correct basis for entitlement to special public and official holidays. Isnt not that the basis should be as expounded by DOLE should be whether your are paid on a monthly basis or daily basis referring to DOLE’s explanation under Section 2 for declared special days such as Special Public Holiday/Special National Holiday of Nenoru=andum Circular No. 01 dated March 8, 2004 as published under Computation of Payu for Holidays: Regular, Spacial NOn Working, and Special working holidays by Atty. Fred July 28, 2016 which Am attaching herewith for your reference. In addition, may I also cite the definitions of Computation of wages which I quote hereunder:

    The salaries and wages of your employees depend on whether you pay them on a monthly or daily basis.
    Monthly paid employees are those whom you pay every day of the m onth, including unworked rest days and special days and regular holidays.
    Daily paid employees are those whom you pay for days actually worked and unworked regular holidays.

    Thank you for your earliest reply to this query. Am doing this in representation of other consultants in our organization who are treated the way am treated. Rolando E. Josef, Admini Director, Inframachineries Corporation. May I also asked are consultants assigned to perform a regular job enttiled to a bonus or 13th month pay? Thank you.

  9. May

    Hi ,

    My question is that is the 25th of December a paid holiday. We work on an hourly basis, from Mon-Fridays.
    We are not working on the 25th, are we entitled to be paid on that day??

  10. Lala


    I have a query, Dec 23, 2016 -half day po sa work, how much holiday pay should a monthly employee get on holidays Dec 24, 25 & 26 which is Dec 24 & 26 special holiday.


  11. Joe Mae

    I just wanna know for fixed rate monthly if special non working holiday and special holiday it still considered with pay even if it not work?Thank You.

  12. Lady

    what are the basis to have a holiday pay? because in our company our basis to have a regular holiday is you must be present before and after the holiday. or you must only be present before the regular holiday? because most of my other co-workers are confused. thank you.


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