Understanding how to compute holiday pay in the Philippines is essential for every employee and payroll manager. Under the Department of Labor and Employment (DOLE) Proclamation No. 1006, pay rules differ significantly between Regular Holidays and Special Non-Working Days.
Quick Summary: The Holiday Pay Cheat Sheet
If you are looking for the basic rates, here is the standard multiplier for the first 8 hours of work:
| Holiday Type | If You Don’t Work | If You Work |
| Regular Holiday (e.g., May 1) | 100% (Paid) | 200% (Double Pay) |
| Special Non-Working Day | 0% (No Work, No Pay) | 130% (Premium Pay) |
| Special Working Holiday | 100% (Regular Pay) | 100% (Regular Pay) |
1. How to Compute Regular Holiday Pay
Regular holidays (like Labor Day, Independence Day, and Christmas) are mandatory paid days.
The “Double Pay” Formula
If you work a full 8-hour shift on a regular holiday:
Formula: $Daily\ Rate \times 2.00$
Regular Holiday Overtime (OT)
If you work more than 8 hours, you earn an additional 30% of your holiday hourly rate.
Formula: $(Hourly\ Rate \times 2.00) \times 1.30 \times OT\ Hours$
Regular Holiday on a Rest Day
If the holiday falls on your scheduled day off and you still report for work:
Formula: $Daily\ Rate \times 2.00 \times 1.30 = \mathbf{260\%}$
2. How to Compute Special Non-Working Day Pay
Special days follow the “no work, no pay” principle unless company policy states otherwise.
Working on a Special Day
If you work a full 8-hour shift:
Formula: $Daily\ Rate \times 1.30$
Special Day Overtime (OT)
Formula: $(Hourly\ Rate \times 1.30) \times 1.30 \times OT\ Hours$
Real-World Example
Let’s say your daily rate is ₱1,000 (₱125 per hour) and you work 10 hours on May 1, 2026 (Labor Day):
- First 8 Hours: $₱1,000 \times 2.00 = ₱2,000$
- 2 Hours Overtime: $(₱125 \times 2.00) \times 1.30 \times 2 = ₱650$
- Total Daily Pay: ₱2,650
The “Day Before” Rule
To receive 100% pay for an unworked regular holiday, you must be present or on paid leave on the workday immediately preceding the holiday.
- Example: Since May 1, 2026, is a Friday, you must be present or on paid leave on Thursday, April 30.
