Philippine holiday pay rules: regular vs special non-working days (2026)
Regular holiday, special non-working day, rest day — each has a different pay rate. Miss one and you are exposed to a DOLE complaint. The full rules, computation formulas, and worked examples for every scenario.
In this guide
- Types of holidays in the Philippines
- Regular holiday pay rules
- Special non-working day pay rules
- Rest day premium pay
- Stacked scenarios: holiday + overtime + night shift
- 2026 Philippine holidays list
- Common mistakes
- FAQs
Types of holidays in the Philippines
Philippine labor law distinguishes three types of days that affect payroll: regular holidays, special non-working days, and rest days. Each carries a different premium pay rate — and the rates compound when scenarios overlap.
| Type | Examples | Employee did not work | Employee worked |
|---|---|---|---|
| Regular Holiday | New Year's Day, Labor Day, Christmas Day, Rizal Day | 100% of daily rate (paid even if absent) | 200% of daily rate |
| Special Non-Working Day | EDSA People Power Anniversary, All Saints' Day, Christmas Eve | 0% (no work, no pay) | 130% of daily rate |
| Special Working Holiday | Declared by proclamation | 0% (no work, no pay) | 130% of daily rate |
| Rest Day (no holiday) | Employee's designated day off | 0% | 130% of daily rate |
No work no pay
For special non-working days, the rule is: no work, no pay. Unlike regular holidays, employees who do not report for work on a special non-working day are not entitled to pay for that day. This is the most commonly misunderstood rule in Philippine payroll.
Regular holiday pay rules
There are 12 regular holidays annually in the Philippines. Employees are entitled to 100% of their daily basic rate even if they do not work — this is the legal holiday pay. If they do work, the rate doubles.
Employee did not work — regular holiday
Holiday Pay = Daily Rate × 100%
Employee worked — regular holiday
Holiday Pay = Daily Rate × 200%
Employee worked overtime — regular holiday
Overtime Rate = (Daily Rate ÷ 8) × 200% × 130%
Scenario 1
Employee works a full day on Christmas Day
Daily rate: ₱1,300. Christmas Day is a regular holiday. Employee reports for work and completes 8 hours.
Scenario 2
Employee absent on a regular holiday
Daily rate: ₱1,300. Employee does not report on New Year's Day — no prior leave filed, no approval.
Special non-working day pay rules
Special non-working days follow a no-work, no-pay policy. If the employee works, they receive a 30% premium on top of their daily rate.
Employee worked — special non-working day
Pay = Daily Rate × 130%
Employee worked overtime — special non-working day
Overtime Rate = (Daily Rate ÷ 8) × 130% × 130%
Scenario 3
Employee works on All Saints' Day
Daily rate: ₱1,000. November 1 is declared a special non-working day. Employee works 8 hours.
Scenario 4
Employee does not work on a special non-working day
Employee is absent on EDSA People Power Anniversary (special non-working day). No prior leave filed.
Rest day premium pay
If an employee works on their designated rest day (not coinciding with a holiday), they are entitled to a 30% premium on their daily rate.
Employee works on rest day (not a holiday)
Rest Day Pay = Daily Rate × 130%
Overtime on rest day
OT Rate = (Daily Rate ÷ 8) × 130% × 130%
Stacked scenarios: holiday + overtime + night shift
| Scenario | Rate multiplier | Example (₱100/hr base) |
|---|---|---|
| Regular day OT | × 125% | ₱125/hr |
| Rest day work | × 130% | ₱130/hr |
| Rest day OT | × 130% × 130% | ₱169/hr |
| Regular holiday work | × 200% | ₱200/hr |
| Regular holiday OT | × 200% × 130% | ₱260/hr |
| Regular holiday + night shift | × 200% × 110% | ₱220/hr |
| Regular holiday + OT + night shift | × 200% × 130% × 110% | ₱286/hr |
| Special non-working day work | × 130% | ₱130/hr |
| Special non-working day OT | × 130% × 130% | ₱169/hr |
Key rule
Night shift differential (10% for private sector) is applied multiplicatively — not additively. Multiply the applicable holiday/overtime rate by 110% to get the correct night shift stacked rate.
2026 Philippine regular holidays
| Date | Holiday |
|---|---|
| January 1 | New Year's Day |
| April 9 | Araw ng Kagitingan (Bataan & Corregidor Day) |
| April 17–18 | Maundy Thursday & Good Friday |
| May 1 | Labor Day |
| June 12 | Independence Day |
| August 25 | National Heroes Day (last Monday of August) |
| November 30 | Bonifacio Day |
| December 25 | Christmas Day |
| December 30 | Rizal Day |
| TBD | Eid'l Fitr (date based on lunar calendar) |
| TBD | Eid'l Adha (date based on lunar calendar) |
Always check the proclamation
The President declares official holidays and special non-working days annually via proclamation. Additional local holidays may be declared by the respective LGU. Always verify against the latest DOLE and Official Gazette issuances before finalising your payroll calendar.
Common mistakes
Treating special non-working days like regular holidays
Special non-working days follow no-work, no-pay. Paying 100% of daily rate for absences on these days — as you would for regular holidays — is overpayment, and creates an inconsistency that is difficult to reverse.
Not stacking rates correctly
When a holiday falls on a rest day, rates must be applied multiplicatively — not added. Rest day (130%) × regular holiday (200%) is not 330%; it is 260%.
Missing LGU-declared local holidays
LGUs may declare additional local holidays that apply only within their jurisdiction. Metro Manila, Davao, and Cebu frequently declare these. Payroll systems must be updated to reflect them.
Using gross pay instead of basic daily rate as the base
Holiday pay is computed on the basic daily rate — not on total compensation. Allowances, overtime, and other earnings are excluded from the base.
Holiday pay — computed correctly, automatically.
KAMI Payroll applies the correct holiday rates automatically — regular holidays, special non-working days, rest days, and all stacked scenarios. It pulls holiday declarations from the official calendar and flags any rate changes before your next cut-off.
No slides. We'll show you your PH payroll, running on KAMI.
Frequently asked questions
What if a regular holiday falls on a Sunday (the employee's rest day)?
The employee is entitled to rest day pay on top of holiday pay — the rate becomes 260% of the daily rate if they work. If the employee does not work, the holiday pay rules still apply: 100% of daily rate.
Are probationary employees entitled to holiday pay?
Yes. Holiday pay applies to all rank-and-file employees regardless of employment status, as long as they have worked for at least one month.
What if the holiday is moved by proclamation?
When the President moves a holiday (e.g. moves a Thursday holiday to the nearest Monday), the premium pay rules apply on the moved date — not the original date. Always monitor DOLE advisories.
Does holiday pay apply to daily-paid employees?
Yes. Regular holiday pay applies to both monthly-rate and daily-rate rank-and-file employees. For daily-rate employees, the 100% regular holiday pay is mandatory even if they do not report.
This guide reflects Philippine law and DOLE/BIR guidelines current as of May 2026. Regulations change — always verify against the latest government issuances, or consult a licensed Philippine labour lawyer for specific situations. Published by KAMI Workforce.
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