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Simple guide on how to compute for holiday pay in the Philippines

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Will you get paid this coming December 24 and December 30, as you’re scheduled to be on duty those dates? As an employee, you might wonder if you’ll get paid or not, or perhaps you want to know how much exactly you’d earn on a Special working holiday like December 24 and December 31. Most companies utilize a payroll software to compute all these as data is inputted. 

Anyway, what is a holiday pay? It is the amount due to the employee, given to them whether they worked or not during a regular holiday, non-working holiday or special working holiday. The Philippine Labor Code has instituted holiday pay rules and has mandated 100% of the salary for those who are entitled, whether they reported to work or not.

And how do you compute for your holiday pay? Instead of going to the HR Department or checking out your company’s payroll software, you can just determine the figures quickly. Also, employers must observe holiday pay rules to ensure law compliance.

An employee needs to know about the labor laws of the Philippines and the corresponding pay computation just to make sure you will receive the exact pay for the number of hours you have rendered. But first, are you even eligible in the first place? 

Are you entitled to holiday pay? What is the nature of your job? As a rule, all employees are entitled to receive holiday pay but there are also employees belonging to certain positions who are exempt from receiving the benefits of holiday pay. They are the following:

  • Managerial employees including managerial staff and officers – those belonging to higher management do not receive any holiday pay whether or not they report to work on a special working holiday.
  • Retail and Service employees who are under a company with less than 10 regular employees.
  • Government employees – People working in the government do not report to work when it is a holiday, hence it is no work/no pay for them despite special holidays.
  • Household help – Helpers in a household’s employ do not also receive special holiday pay since they stay home round the clock unless otherwise, the employer decides to give them holiday pay.
  • Contractual workers and commissioned-based employees are also not entitled to any holiday pay.

The Department of Labor and Employment (DOLE) has implemented two sets of holiday pay rules which applies one for regular holidays and another one for special non-working holidays. Employees who are covered under the holiday pay rule are entitled to receive at least an additional 100% of their salary on top of their daily earnings. With the recent amendment, there is another set which is the special working holiday. 

Before showing how to compute for holiday pay, here is a list of holidays divided into the regular holiday, special non-working holidays, and special working holidays.

Regular holidays

 New Year’s Day– January 1 (Friday)

 Araw ng Kagitingan– April 9 (Friday)

 Maundy Thursday– April 1

 Good Friday– April 2

 Labor Day– May 1 (Saturday)

 Independence Day– June 12 (Saturday)

 National Heroes’ Day– August 30 (Last Monday of August)

 Bonifacio Day– November 30 (Tuesday)

 Christmas Day– December 25 (Saturday

 Rizal Day -December 30 (Thursday)       

Special non-working days

 Chinese New Year– February 12 (Friday)

 Edsa People Power Anniversary– February 25 (Thursday)

 Black Saturday– April 3

 Ninoy Aquino Day– August 21 (Saturday)

 All Saints’ Day– November 1 (Monday)

 Feast of the Immaculate Conception of Mary– December 8 (Wednesday)

Additional special (working) days

 All Souls’ Day – November 2 (Tuesday)

 Christmas Eve – December 24 (Friday)

 Last Day of the Year– December 31 (Friday)

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How to compute holiday pay is easy for as long as you have this simple guide. First, find out if the holiday is a regular, special non-working or special working. Once you know which classification the holiday is set, then you are ready to compute the following. By the way, please do consider COLA or Cost of Living Allowance which varies depending on the region you belong to. For major cities, COLA is pegged at P150 while for smaller ones, COLA is P100.

  1. Computation for Regular Holidays
  • Employees who did not work during a regular holiday – — – You should receive 100% of your salary for that day even without working.
  • Employees who have rendered work during a regular holiday – Basic Wage + COLA x 200%
  • Employees who have rendered overtime work on a regular holiday – Rate per hour x 200% x 130% x Number of Hours Rendered
  • Employees who have rendered overtime work on their day-off – Rate per Hour x 200% x 130% x 130% x Number of Hours Rendered
  1. Computation for Special Non-Working Holidays
  • Employees who have rendered a whole day’s work – Basic wage x 130% + COLA
  • Employees who have rendered a whole day’s work during their day-off or rest day – Daily Rate x 150% + COLA
  • Employees who have rendered overtime work – Hourly rate x 130% x 130% x Number of hours rendered for work
  • Employees who have rendered overtime work during their day-off or rest day – Hourly rate x 150% x 130% x Number of hours rendered for work
  1. Computation for Special Working Holidays
  • Employees who did not work on a Special working holiday receive no pay.
  • Employees who rendered a whole day of work – Basic wage x 130% + COLA

With this helpful guide, you can now anticipate your take-home pay during this Yuletide season and plot out your vacation leave for a time to be spent well with family and friends.

A reliable payroll software enables the payroll officer to work efficiently and systematically. There are many providers of HRIS Software Philippines available with helpful features. It is up to you to browse through and decipher which one suits your company best. Remember, automation is the key in HR processes and a trustworthy and cost-effective payroll software gets the job done. With EasyHR, you will be able to work with the best and committed team to plan and develop a payroll software according to your needs and requirements. 

With EasyHR, human resources tasks are no longer tedious and boring. It saves a lot of time in computing your payroll and managing records of employees anytime and anywhere.

For as low as P3,500/ month, you will have a more sound and robust HR recording and payroll functions, Check out EasyHR, https://human-incubator.com/easy-hr/

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