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This article will show you how to compute overtime pay on a regular holiday in the Philippines. If you don’t get holiday pay, you can always count on Robocash loan for a vacation. You must be a Filipino citizen from 21 to 70 years old and provide 1 valid ID. And in 15 minutes the money will be in your pocket!

Key takeaways:

  • How well do you understand the holiday pay rules?
  • Do you know how to compute holiday pay for monthly paid employees?
  • How to compute overtime pay on a regular holiday?
  • And finally, where do you borrow money if you don’t get holiday pay?

Holiday Pay Computation in the Philippines

Have you experienced working on a holiday? Then, you must be familiar with the holiday pay here in the Philippines. As a Filipino worker, you have probably worked on a holiday at least once. The Labor Code requires additional pay for employees who work during holidays. But it applies not just only during regular holidays because there are also special non-working holidays.

Sounds interesting, right? But how well do you understand the holiday pay rules? Do you have an idea on how to compute holiday pay for monthly paid employees? How to compute overtime pay on a regular holiday?

Holiday Pay Rules in the Philippines

Holiday pay is the compensation given to employees aside from their basic pay, whenever they work during holidays.

There are two types of holiday pay:

–  Regular holiday;
– Special non-working holiday pay.

The Department of Labor and Employment (DOLE) set rules for holiday pays that all employers nationwide should observe.

For official regular holidays:

–  The employee shall receive 100% of basic pay even if he/she did not report for work that day.
–  The employee shall receive 200% of basic pay if he/she reports for work for the first 8 hours of the day.
–  An additional 30% of the hourly rate shall be given if the employee worked beyond 8 hours.
–  An additional 30% of 200% daily rate shall also be given if he/she reports for work on a holiday that falls on his/her rest days.
–  An additional 30% of the hourly rate shall be given if the employee worked beyond 8 hours during a holiday that falls on his/her rest days.

For special non-working holiday:

– There will be no compensation if the employee did not report for work on that day, unless the company has a policy granting employees their basic pay even if they did not work on that day.
– The employee shall receive 100% of basic pay if he/she reports for work for the first 8 hours of the day, plus 30% of his/her daily rate.
– An additional 30% of the hourly rate shall be given if the employee worked beyond 8 hours.

Note: there are “special working days” declared by the President for this year. These are:

– November 2 – All Souls’ Day;
– December 24 – Christmas Eve;
– December 31 – New Year’s Eve.

Previously, these holidays were part of special non-working holidays. Accordingly, the purpose of the amendment of holidays is to encourage the country’s economic productivity. The special working holiday pay is equivalent only to the basic pay of the employee. Employees will no longer receive additional pay even if they report for work on these days.

FAQ

  • Is holiday pay mandatory Philippines?
    Piece-rate workers are entitled to holiday pay. Seasonal employees are not entitled to holiday pay during off-season. Workers without regular workdays are entitled to holiday pay.
  • Who are entitled to holiday pay Philippines?
    An employee who does not work on a regular holiday is entitled to be paid 100% of the salary for that day. An employee who works on a regular holiday is entitled to 200% of salary for that day. An employee who works more than 8 hours (overtime work) shall be paid an additional 30% of the hourly rate.
  • Is holiday pay taxable?
    Minimum wage earners and people who has overtime pay, night differential pay,are exempted from withholding taxes for their holiday pay.

Who are Entitled to Holiday Pay in the Philippines?

Every Filipino worker, unless it is exempted by the law, is eligible to receive holiday pay. But workers, who belong to any of the following groups, do not have the eligibility to claim the benefit:

  • Government employees;
  • Kasambahays;
  • Managerial employees and managerial staff members/officers;
  • Family members of the employer (dependent on the employer’s support);
  • Employees engaged on commission basis, task, or contract;
  • Workers who are engaged in service or retail companies having less than 10 regular employees.

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The Two Types of Holiday Pay

As mentioned above, there are two types of holiday pay – the regular holiday and special non-working holiday.
Typically, the regular holidays refer to the holidays that have a fixed date. The special non-working holidays, on the contrary, refer to those enacted by Congress or declared by the President.
Here are the official list of regular and special non-working holidays for this year:

Regular Holidays

  • January 1 – New Year’s Day;
  • April 1 – Maundy Thursday;
  • April 2 – Good Friday;
  • April 9 – Day of Valor;
  • May 1 – Labor Day;
  • June 12 – Independence Day;
  • August 30 – National Heroes’ Day;
  • November 30 – Bonifacio Day;
  • December 25 – Christmas Day;
  • December 30 – Rizal Day.

Special Non-Working Holidays

  • February 12 – Chinese New Year;
  • February 25 – EDSA People Power Revolution Anniversary;
  • April 3 – Black Saturday;
  • August 21 – Ninoy Aquino Day;
  • November 1 – All Saints’ Day;
  • December 8 – Feast of the Immaculate Conception of Mary.

The computation of these two types and some examples are in the next parts below.

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DOLE Holiday Pay Rules Before and After

There are certain rules that DOLE requires in the implementation of this payment rule before and after the holiday. All employers shall observe these rules as stated in the Labor Code.

· If the employee is on leave of absence without pay before the regular holiday, he/she will not receive holiday pay, unless the employee will report for work on the regular holiday.
· If the employee is on leave of absence with pay before the regular holiday, he/she will receive holiday pay. This rule still applies even if the employee will not report for work on the regular holiday.
· If the employee is on a scheduled rest day or it is a non-working day before the regular holiday, he/she will receive holiday pay.
· If there are successive regular holidays, the employee will receive holiday pay if:

       – he/she reports for work on the day before the first holiday;
       – he/she is on leave of absence with pay before the first holiday.

DOLE Holiday Pay Rules for Monthly Paid Employees

The holiday pay rules for monthly paid employees are the same as the daily paid workers eligible for the benefit. Thus, monthly paid employees can receive their regular holiday pay regardless if they do not report for work.

Unless it is a special non-working holiday, monthly paid employees shall still work on that day. Otherwise, they will not receive the benefit. There will only be an exemption with the special non-working holiday pay rule if the company:

– has explicitly stated in the policy that monthly paid employees will receive the benefit regardless if unworked;
– has a collective bargaining agreement that requires them to provide the benefit to the monthly paid employees regardless if unworked.

Thus, the computation rules of the holiday pay for daily paid workers also apply to the monthly paid employees.

Examples of Holiday Pay Computation

For a better understanding of the holiday pay computation, here are some examples.

For regular holiday pay:

Let’s assume that an employee’s daily rate is PHP 800 and there is no cost of living adjustment (COLA).

· If the employee did not report for work that day, then
Holiday Pay = (Basic Pay + COLA) x 100%
Holiday Pay = PHP 800

· If the employee reports for work for the first 8 hours of the day, then
Holiday Pay = (Basic Pay + COLA) x 200%
Holiday Pay = PHP 800 x 2
Holiday Pay = PHP 1,600

· If the employee worked beyond 8 hours, then (assuming the employee has PHP 100 hourly rate and worked for 10 hours)
Holiday Pay = Hourly Rate of Basic Pay x 200% x 130% x number of hours worked
Holiday Pay = PHP 100 x 2 x 1.3 x 10 hours
Holiday Pay = PHP 2,600

· If the employee reports for work on a holiday that falls on his/her rest days, then
Holiday Pay = (Basic Pay + COLA) x 200% + [(Basic Pay x 200%) x 30%]
Holiday Pay = (PHP 800 x 2) + [(PHP 800 x 2) x 0.30]
Holiday Pay = PHP 1,600 + P480
Holiday Pay = PHP 2,080

· If the employee worked beyond 8 hours during a holiday that falls on his/her rest days, then (assuming the employee has PHP 100 hourly rate and worked for 10 hours)
Holiday Pay = Hourly Rate of Basic Pay x 200% x 130% x 130% x number of hours worked
Holiday Pay = PHP 100 x 2 x 1.3 x 1.3 x 10 hours
Holiday Pay = PHP 3,380

For special non-working holiday pay:

Let’s assume that an employee’s daily rate is PHP 800 and there is no cost of living adjustment (COLA).

· If the employee did not report for work on that day, there will be no compensation.

Typically, the “no work, no pay” principle applies in this situation, unless the company has an explicit policy or collective bargaining agreement (CBA), requiring payment for employees on special non-working holidays.

· If the employee reports for work for the first 8 hours of the day, then

Holiday Pay = (Basic Pay x 130%) + COLA
Holiday Pay = PHP 800 x 1.3
Holiday Pay = PHP 1,040

· If the employee worked beyond 8 hours, then (assuming the employee has PHP 100 hourly rate and worked for 10 hours)

Holiday Pay = Hourly Rate of Basic Pay x 130% x 130% x number of hours worked
Holiday Pay = PHP 100 x 1.3 x 1.3 x 10 hours
Holiday Pay = PHP 1,690

What if You don’t Get Holiday Pay

As a Filipino employee, regardless of your payroll period, it’s always helpful to know your rights with holiday pay. However, it is a basic company policy that any holiday pay shall release to employees exactly on the payroll date. It means that even if you already earned the holiday pay, you must be patient and wait for the payday. But what if you need your holiday pay already?

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There are a lot of ways to get financial assistance, such as online cash loans. Robocash provides financial relief to many Filipino employees who struggle with their finances. You can borrow from PHP 1,000 to PHP 25,000. Additionally, the loan application is very easy. You can apply anytime and anywhere through the Robocash website or mobile app.

With Robocash, your short-term financial struggles will never be a huge burden to you. Robocash always aims to help Filipinos with their finances.

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Written by: Sean Martin D. Plantado

Author pages:
Sean Martin Plantado is the head of Customer Care Dept. and Online Sales Dept. of Robocash Finance Corp. creating articles, blogs, and other learning mediums that helps Filipinos struggling on their financial literacy. Sean also loves Cycling, Photography, Cinematography, Online gaming, Fine Arts, and dreams of becoming a Doctor of Veterinary Medicine.

Reviewed by: Rafael Hular

Author pages:
Rafael “Raffy” L. Hular is, the Finance and Accounting Manager. of Robocash Finance Corp., monitoring and controlling the flow of cash that comes in and out of the company to meet the company’s business needs, preparing the financial reports and analysis of income and expenses, and monitoring tax compliance.  Raffy loves reading Japanese comics called manga and watching Japanese animated cartoon series. He dreams of establishing his own Accounting and Auditing Firm and teaching in a University.