HRM - Holidays

The Philippines group their holidays into three Computation for Employees Who Worked Overtime
categories:
If you worked for more than eight hours during a regular
1. Regular holidays - the amount eligible holiday such as the May 1 holiday in the Philippines,
employees in the private sector receive— you should be paid an additional 30% of your hourly
whether they worked or not—on a regular or rate.
special non-working holiday.
2. Special working holidays Hourly rate x 200% x 130% x number of hours
3. Special non-working holidays worked
Public Holidays
Let's say your hourly rate is ₱125, and you worked
Under the Philippine Labor Code, employees covered
by holiday pay rules should receive at least 100% of overtime for two hours (for total overtime of 10
their salary even if they didn't report for work hours). This should be your regular holiday pay
during legal holidays in the Philippines, as long as
computation:
they're present on the workday or on paid leave on the
day immediately before the holiday.
₱125 x 2 x 1.30 x 10 hours = ₱3,250
 New Year’s Day - January 1
 Maundy Thursday - Varies per year Computation for Employees Who Worked for 8
 Good Friday - Varies per year Hours During Their Rest Day
 Araw ng Kagitingan - April 9 (moved to April If you worked during a regular holiday that also falls on
10 in 2023) your rest day (a Saturday or a Sunday, for example), you
 Labor Day - May 1 must receive 30% of your 200% salary in addition to
 Independence Day - June 12 200% of your salary.
 National Heroes Day - Last Monday of August
Use this holiday pay formula for a simpler computation:
 Bonifacio Day - November 30 (moved to
November 27 in 2023)
[(Basic wage + COLA) x 200%] + [30% (Basic wage
 Christmas Day - December 25
 Rizal Day - December 30 x 200%)]
Computation for Employees Who Did Not Work For a daily rate of ₱1,000, the holiday rest day pay
For example, if you didn't report for work on the is computed as follows:
Bonifacio Day holiday in the Philippines (November 27,
2023), you'll still receive your full salary for that day. [(₱1,000 x 2)] + [0.30 (₱1,000 x 2)]
You shouldn't be deducted for work that isn't performed
on a holiday. [₱2,000] + [0.30 x ₱2,000]
Computation for Employees Who Worked for 8
Hours ₱2,000 + ₱600 = ₱2,600
If you reported for work on a regular holiday, such as the Computation for Employees Who Worked Overtime
April 9 or December 30 holiday in the Philippines, you During Their Rest Day
should be paid double your salary (basic wage + cost of
living allowance or COLA) for the first eight hours If you worked for more than eight hours on a regular
worked. holiday (which is also your rest day), you'll get paid an
additional 30% of your hourly rate.
Here's how to compute regular holiday pay:
Hourly rate x 200% x 130% x 130% x number of
(Basic wage + COLA) x 200%
hours worked
For example, if your daily rate is ₱1,000, your

Here's how to compute your holiday pay with
double pay for that holiday should be calculated as
overtime on your rest day:
follows:
₱125 x 2 x 1.30 x 1.30 x 10 hours = ₱4,225
₱1,000 x 2 = ₱2,000
NOTE: When a regular holiday falls on a Sunday, the Computation for Employees Who Worked Overtime
following Monday shall not be a holiday, unless an order
is issued declaring it a special day. If you work overtime, you'll get an additional 30% of
your hourly rate. The holiday pay for those who have to
work overtime on October 30 (a special non-working
day for the Barangay and SK Elections 2023), for
Here are the holiday pay computation rules that instance, is computed thus:
apply to the following special non-working days:
 Day after New Year's Day - January 2 Hourly rate of the basic wage x 130% x 130% x
 EDSA People Power Revolution - February 25 number of hours worked
(moved to February 24 in 2023)
 Black Saturday - Varies per year (April 8 in With an hourly rate of ₱125 and two hours of
2023)
overtime work, here's how to calculate your pay
 Ninoy Aquino Day - August 21
 Barangay and Sangguniang Kabataan during a special non-working day:
elections - October 30
 All Saints’ Day - November 1 ₱125 x 1.30 x 1.30 x 10 hours = ₱2,112.50
 All Souls' Day - November 2
Computation for Employees Who Worked for 8
 Feast of the Immaculate Conception of Mary Hours on Their Rest Day
- December 8
 Last Day of the Year - December 31 If you worked on a special non-working day that also
falls on your rest day, you'll get an additional 50% of
Note: The President issues separate proclamations your basic wage for the first eight hours.
declaring national holidays for the observance of Eid’l
Fitr, the end of the month-long Ramadan, and Eid’l For a simpler holiday pay computation, use this formula:
Adha, the Feast of the Sacrifice, after the Ramadan 2023
dates are determined in accordance with the Islamic (Daily rate × 150%) + COLA
calendar or the lunar calendar.
For a daily rate of ₱1,000 (no COLA), your holiday
Computation for Employees Who Did Not Work
pay is computed as follows:
The no work, no pay rule applies when you don't report
for work on special non-working days such as the ₱1,000 x 1.50 = ₱1,500
February 25 holiday in the Philippines, unless your Computation for Employees Who Worked Overtime
employer has a policy or collective bargaining on Their Rest Day
agreement (CBA) that requires payment on such a
holiday. If you worked overtime on a special non-working day
(which is also your rest day), you'll receive an additional
Computation for Employees Who Worked for 8 30% of your hourly rate.
Hours
How to compute your November 1 holiday pay in 2023 Hourly rate of the basic wage x 150% x 130% x
if you have to report to work on the day? If you work number of hours worked
during a special non-working day, you must receive an
additional 30% of your basic wage on the first eight Here's how to compute your holiday rest day pay
hours worked. with overtime of two hours:
Here's the special non-working holiday pay computation:
₱125 x 1.50 x 1.30 x 10 hours = ₱2,437.50
(Basic Wage x 130%) + COLA Note: All the sample holiday pay computations above
are based on DOLE's holiday pay rules under Labor
If your daily rate is ₱1,000 (no COLA), your holiday Advisory No. 24 Series of 2023.[3]
pay is computed as follows:
₱1,000 x 1.30 = ₱1,300 Is Holiday Pay Taxable?

 Only minimum-wage earners (MWE) are
exempted from withholding taxes for their
holiday pay. This goes the same with overtime
pay, night differential pays, and hazard pay
earned by an MWE.
Final Thoughts
 Holiday pay rules exist to protect the rights of
workers to compensation that's due to them.
Employees must scrutinize their pay slips and
report any incorrect holiday pay computation to
the HR or Accounting Department. For their
part, employers should make sure they compute
their employees' holiday pay correctly.
 Bookmark this holiday pay computation guide
for the next time you need to determine your
holiday pay in the Philippines.

HRM - Holidays

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HRM - Holidays

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The Philippines group their holidays into three Computation for Employees Who Worked Overtime

For example, if your daily rate is ₱1,000, your

₱1,000 x 1.30 = ₱1,300 Is Holiday Pay Taxable?

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