HOLIDAY PAY AND PREMIUMS
Classification of Holidays
| Holiday Type | If NOT Working | If WORKING (1st 8 Hours) |
|---|---|---|
| Regular Holiday | 100% Pay | 200% Pay (Double Pay) |
| Special Non-Working Holiday | No Work, No Pay | 130% Pay (30% Premium) |
| Special Working Holiday | No Work, No Pay | 100% Pay (Ordinary Rate) |
Holiday Pay Rules
The Company observes holidays in accordance with Philippine labor laws and government proclamations. Holiday compensation depends on the type of holiday and whether the employee is required to work.
Regular Holidays
Regular Holidays are fixed holidays mandated by law (e.g., New Year’s Day, Independence Day, Christmas Day).
Compensation Rules
- Unworked Holiday: Employees shall receive 100% of their daily wage, provided they were present or on approved paid leave on the workday immediately preceding the holiday.
- Worked Holiday: Employees required and authorized to work shall receive 200% (Double Pay) of their basic daily rate for the first eight (8) hours.
Overtime Rate on a Regular Holiday
- Regular Holiday Work Beyond 8 Hours
Employees who work on a Regular Holiday beyond the standard 8-hour workday are entitled to overtime pay in addition to the Holiday Premium.
Base Holiday Pay
- First 8 hours = 200% of the daily rate (Double Pay)
Overtime Rate on a Holiday
Overtime hours on a Regular Holiday are computed as 25% of the hourly rate based on the 200% holiday rate.
- Formula:
Example Computation
Daily Rate: ₱500
Regular Holiday Worked: 10 hours (8 regular hours + 2 OT hours)
| Step | Description | Calculation | Result |
|---|---|---|---|
| 1 | Base Holiday Pay (First 8 hours) | ₱500*2 | ₱1,000.00 |
| 2 | Holiday Hourly Rate | ₱1,000.00/8 | ₱125.00/hr |
| 3 | Holiday OT Hourly Rate | ₱125.00*1.25 | ₱156.25/hr |
| 4 | Total Overtime Pay (2 hours) | ₱156.25* 2 | ₱312.50 |
| TOTAL | Total Holiday Pay for the Day | ₱1,000 + ₱312.50 | ₱1,312.50 |
Key Notes
- Regular Holidays are paid non-working days by default
- Work on a Regular Holiday must be authorized by Management
Special Non-Working Holidays
Special Non-Working Holidays are days declared by the government where work is generally suspended, but pay is not mandated (e.g., Ninoy Aquino Day).
Compensation Rules
No Work: The No Work, No Pay principle applies.
Optional Paid Rest: Employees may use an approved leave credit to receive pay.
Worked Holiday (Voluntary or Required):
- If the employee volunteers to work, compensation is at 100% of the daily rate.
- If the employee is directed by the Company to work, compensation shall include a 30% premium, for a total of 130% of the basic daily rate.
Special Working Holidays
Special Working Holidays are days declared for commemorative purposes but are treated as ordinary working days (e.g., EDSA People Power Revolution Anniversary).
Compensation Rules:
- Attendance: Work is mandatory.
- Pay Rate: Employees are compensated at 100% of their regular daily rate.
- No Premium Pay: Holiday premiums and the No Work, No Pay rule do not apply.
General Provisions
All work on holidays must be pre-approved or expressly directed by Management to be compensable. Unauthorized work on any holiday shall not be entitled to premium pay. Holiday pay computation shall follow the Labor Code of the Philippines and applicable DOLE issuances.
Work Performed on Regular Holidays (Non-Shift Employees)
As the Company does not operate on shifting or rotating schedules, Regular Holidays are treated as non-working days for all employees unless work is expressly required by Management due to urgent or critical business needs.
Applicable Compensation
- Employees required to work on a Regular Holiday shall be compensated in accordance with the Labor Code at two hundred percent (200%) of their basic daily rate.
- The Rest Day premium shall not apply, as Regular Holidays are not considered Rest Days under the Company’s standard work schedule.
Clarification
The Double Premium rate of 260% applies only to employees with formally established shifting or rotating schedules, which the Company does not maintain. Filing, designating, or claiming a Rest Day on a Regular Holiday shall not create entitlement to additional premium pay.
Management Options for Special Non-Working Holidays
The Company provides employees with optional arrangements to manage their productivity and leave credits. Unlike Regular Holidays where the company declares a total closure, for Special Non-Working Holidays, employees are given the following three (3) options:
Option 1: Voluntary Rest (Unpaid)
The employee may choose not to work. Under the "No Work, No Pay" principle, they will not receive compensation for this day.
Option 2: Use of Leave Credit
The employee may choose not to work but request to apply one (1) credit from their Wellness Leave/SIL pool. This allows them to receive their full daily wage while staying home.
Option 3: Voluntary Productivity (Standard Rate)
At Management’s discretion, employees may be permitted to work for a maximum of eight (8) hours.
- Rate: Employees choosing this option agree to work at their Standard Daily Rate (100%) without the 30% holiday premium.
- Authorization: This option must be requested and approved by the Department Head/President to ensure tasks are available.
MANDATORY WORK DURING SPECIAL NON-WORKING DAYS
The Mandate Principle
In accordance with DOLE regulations, the Company reserves the prerogative to require work on a Special Non-Working Day to meet critical project deadlines, address system emergencies, or fulfill urgent client obligations.
If the Company, through the President or an authorized Department Head, requires or directs an employee to report for work on a declared Special Non-Working Day, the payment of a 30% premium is mandatory and non-negotiable.
Special Non-Working Day Pay Computation (Company-Directed Work)
A. Rate Definitions
| Item | Formula | Explanation |
|---|---|---|
| Regular Hourly Rate | Daily Rate ÷ 8 | Standard hourly rate |
| Special Day Hourly Rate (First 8 Hours) | Hourly Rate × 1.30 | 130% premium applies |
| Special Day OT Rate | Special Day Hourly Rate × 1.30 | OT is an additional 30% |
| Equivalent OT Rate | Hourly Rate × 1.69 | Combined special day + OT premium |
B. Pay Rules by Work Period
| Work Period | Applicable Rate | Computation |
|---|---|---|
| First 8 Hours | 130% of regular rate | Hourly Rate × 1.30 |
| Beyond 8 Hours (OT) | 169% of regular rate | Hourly Rate × 1.69 |
Assumptions:
- Regular Hourly Rate: ₱100
- Total Hours Worked: 9 hours
- Special Non-Working Day (Company-Directed)
Special Day (first 8 hrs)
- ₱100 × 1.30 = ₱130
OT on Special Day
- ₱130 × 1.30 = ₱169 or
- ₱100 × 1.69 = ₱169
C. Sample Computation
| Work Segment | Formula | Amount |
|---|---|---|
| First 8 Hours | ₱100 × 1.30 × 8 | ₱1,040 |
| 9th Hour (OT) | ₱100 × 1.69 | ₱169 |
| Total Pay | ₱1,040 + ₱169 | ₱1,209 |
D. Key Notes (Policy Clarification)
| Rule | Description |
|---|---|
| Mandatory Premium | 130% pay is required when work is company-directed |
| OT Premium | OT on a Special Non-Working Day is an additional 30% of the holiday rate |
| Authorization | Overtime must be pre-approved |
| Compliance | Computation follows DOLE holiday pay rules |
Distinction from Voluntary Work
- Directed Work (130%): Triggered when the Company issues an instruction to work. This is considered "Company-Directed" and requires the 30% premium pay.
- Voluntary Work (100%): Triggered only when an employee requests to work to avoid "No Work, No Pay" status or to preserve leave credits. This is considered "Employee-Initiated" and is paid at the standard 100% rate.
Documentation Requirement
To ensure accurate payroll processing, all work on a Special Non-Working Day must be supported by a Special Holiday Work Authorization (SHWA) form, signed by the President, which explicitly tags the work as either "Mandatory" or "Voluntary."
RULE ON SPECIAL WORKING DAYS
Definition and Status
In accordance with Philippine labor laws, "Special Working Days" are holidays where the government encourages celebration but maintains that the day remains a standard business day. At the Company, these days are treated as Ordinary Working Days.
Attendance and Pay Policy
Mandatory Attendance
Unlike other holidays, a Special Working Day is a compulsory business day. Employees are required to report for their regular shifts as they would on any ordinary day. These are not "stay-at-home" days.
Standard Compensation (100%)
Work performed on these days is compensated at the Standard Daily Rate (100%). Because the law classifies these as ordinary working days, no additional premium, 30% bonus, or holiday pay is applicable.
No Work, No Pay
If an employee does not report for work, the "No Work, No Pay" principle applies. The day will be marked as Unpaid unless the employee files for an Approved Paid Leave (Wellness Leave or SIL).
Overtime (OT) Rate
- Pre-Approval Required: Any work exceeding eight (8) hours per day must be pre-approved by the Department Head. - Unapproved OT will not be processed for payment.
- Rate: Work beyond 8 hours on an ordinary day is paid at an additional 25% of the hourly rate.
The "Day Before" Rule
(Eligibility for Regular Holiday Pay)
To be entitled to 100% pay for an unworked Regular Holiday, an employee must satisfy the following condition:
- The employee must be physically present at work OR on an Approved Paid Leave (e.g., Wellness Leave, SIL, or Maternity Leave) on the workday immediately preceding the holiday.
- Forfeiture: If an employee is on Leave Without Pay (LWOP) or is Absent Without Official Leave (AWOL) on the day immediately preceding the Regular Holiday, they shall not be entitled to holiday pay for the unworked day.
Successive Regular Holidays
In cases where two regular holidays fall back-to-back (e.g., Maundy Thursday and Good Friday):
- The employee must be present or on paid leave on the day immediately preceding the first holiday to be entitled to pay for both unworked holidays.
- If the employee is present on the first holiday but absent on the day immediately preceding it, they are entitled to pay for the second holiday.
THE "BRIDGE RULE" FOR CONSECUTIVE REGULAR HOLIDAYS
In accordance with the Labor Code and DOLE regulations, the Company applies the "Bridge Logic" to determine eligibility for pay during successive regular holidays (e.g., Maundy Thursday and Good Friday).
Eligibility Requirement (The "Paid Status" Principle)
To be entitled to 100% pay for an unworked regular holiday, an employee must be in a "Paid Status" on the workday immediately preceding the first holiday. An employee is in Paid Status if they are:
- Present: Physically reporting for work; or
- On Paid Leave: Using an approved Wellness Leave, SIL, or other company-granted paid leave.
Application to Successive Holidays
When two or more regular holidays occur consecutively, the following rules shall apply:
- Rule Interpretations
- Forfeiture of Both Days: If an employee is absent without pay on the workday immediately preceding the first holiday, they forfeit the pay for both successive unworked holidays.
- Re-qualification by Work: An employee who was absent without pay on the day before the first holiday can "re-qualify" for the second holiday by reporting for work on the first holiday.
Buddy System Responsibility
Employees are responsible for coordinating with their Buddy to ensure any absence before a holiday cluster is covered by an Approved Paid Leave to protect their holiday pay.
INTEGRATION OF THE BUDDY SYSTEM AND HOLIDAY ELIGIBILITY
The Company provides a 30-day leave package to encourage rest and wellness. However, to maintain operational continuity and comply with DOLE "Bridge Rule" standards, the following mandatory coordination protocol applies:
- Individual Accountability for Holiday Pay
Eligibility for holiday pay is strictly an individual entitlement. An employee’s right to receive pay for an unworked Regular Holiday depends solely on their own attendance record or approved leave status.
- Paid Status Requirement An employee must be physically present or on an Approved Paid Leave on the workday immediately preceding a Regular Holiday to receive holiday pay.
- No "Proxy" Eligibility The presence of an employee’s "Buddy" does not qualify the absent employee for holiday pay if the absent employee is on AWOL or Unpaid Leave status.
The Buddy System as an Enabler for Paid Leave
The Buddy System is the mandatory process by which an employee secures the "Approved" status of their leave, thereby protecting their holiday pay:
- The Coordination Process: Before filing a leave for a "Bridge Day" (the day before a holiday), the employee must secure a commitment from their designated Buddy to cover their essential duties.
- Approval Authority: Management will only approve a "Bridge Day" leave application if the Buddy is confirmed to be present and able to handle the workload.
- The Resulting Benefit: Once the leave is Approved and Paid, the employee is legally considered in "Paid Status." This successfully builds the "Bridge," and the employee will receive full pay for the succeeding unworked Regular Holidays.
Consequences of Non-Coordination
Failure to coordinate with a Buddy resulting in an unapproved absence (AWOL) on a Bridge Day shall result in:
- Loss of Pay for the date of absence.
- Forfeiture of Holiday Pay for all succeeding unworked Regular Holidays.
- Disciplinary Action for "Empty Desk" or "Operational Negligence" violations as per the Code of Conduct.
2026 Philippine Official Holiday Calendar
| Category | Date | Holiday Name |
|---|---|---|
| Regular | January 1 (Thu) | New Year’s Day |
| Regular | April 2 (Thu) | Maundy Thursday |
| Regular | April 3 (Fri) | Good Friday |
| Regular | April 9 (Thu) | Araw ng Kagitingan (Day of Valor) |
| Regular | May 1 (Fri) | Labor Day |
| Regular | June 12 (Fri) | Independence Day |
| Regular | August 31 (Mon) | National Heroes Day |
| Regular | November 30 (Mon) | Bonifacio Day |
| Regular | December 25 (Fri) | Christmas Day |
| Regular | December 30 (Wed) | Rizal Day |
| Special Non-Working | February 17 (Tue) | Chinese New Year |
| Special Non-Working | April 4 (Sat) | Black Saturday |
| Special Non-Working | August 21 (Fri) | Ninoy Aquino Day |
| Special Non-Working | November 1 (Sun) | All Saints' Day |
| Special Non-Working | November 2 (Mon) | All Souls' Day |
| Special Non-Working | December 8 (Tue) | Feast of the Immaculate Conception |
| Special Non-Working | December 24 (Thu) | Christmas Eve |
| Special Non-Working | December 31 (Thu) | Last Day of the Year |
| Special Working | February 25 (Wed) | EDSA People Power Revolution Anniversary |
| Note: Eid’l Fitr (est. March) and Eid’l Adha (est. May) dates to be announced. |
MANAGEMENT PREROGATIVE ON HOLIDAY ELIGIBILITY
While the "Day Before" rule is the standard policy of the Company in accordance with DOLE mandates, the Company recognizes that unforeseen and meritorious circumstances may arise.
Discretionary Waiver The Company, at its sole discretion and as an act of Management Prerogative, may choose to waive the "Day Before" rule and grant holiday pay to an employee who was on unpaid leave or was absent the day before a holiday, provided that:
- Valid Reason: The absence was due to a documented emergency, sudden illness, or a force majeure event (e.g., severe weather or calamity).
- Good Standing: The employee has a consistent record of good attendance and professional integrity.
- Prior Performance: The employee has not incurred any "Grave Offenses" within the current calendar year.
Non-Precedence
The granting of a waiver in one instance does not create a "company practice" or a "vested right." Each case will be evaluated individually. The Company’s decision to be flexible in a specific case does not obligate it to waive the rule for other employees or for future holidays.
Approval Process Any request for a waiver of the "Day Before" rule must be submitted in writing (via email or Slack) to the Corporate Services Manager or the President for final approval.
Holiday Pay – Probationary Employees
Regular Holidays Probationary employees are entitled to holiday pay if the regular holiday falls on a scheduled workday.
Eligibility Requirement (Day-Before Rule): The employee must have been present at work on the workday immediately preceding the regular holiday. Unexcused absences on that day will void the holiday pay entitlement.
Working on a Holiday: If a probationary employee is required to work on a regular holiday, they shall receive 200% of their daily rate (Double Pay) for the first eight (8) hours.
Special Non-Working Days Probationary employees are not automatically entitled to pay on special non-working days.
Company-Directed Work: If required to report for work, they are entitled to 130% of the daily rate for the first eight (8) hours.
Overtime on Special Days: Any work beyond eight (8) hours will be compensated according to the Company’s overtime policy.
Compliance & Exceptions
- Holiday pay and special day premiums are applicable only when the above eligibility rules are met.
- Absences on the day before a holiday without approved leave void the holiday pay entitlement.
- All holiday pay rules for probationary employees are subject to verification by HR and Management.
Note:
Probationary employees do not yet earn Statutory Incentive Leave (SIL) or Company-Granted Leave credits during their probation period. Only actual presence at work counts for holiday pay eligibility.