Special vs. Regular Holiday Computation
Philippine labor law treats regular holidays and special (non-working) holidays differently, and the pay depends on whether the employee is monthly-paid or daily-paid. Getting this wrong is one of the most common payroll compliance errors. Here is the plain version.
Regular vs special holidays
Regular holidays (also called legal holidays) are fixed by law and paid whether or not the employee reports for work. Special non-working holidays follow the "no work, no pay" principle unless a more favorable company policy or CBA applies. The Presidential proclamation each year sets the exact dates, but the pay rules below stay the same.
How the pay is computed
| Employee type | Regular holiday | Special non-working holiday |
|---|---|---|
| Monthly-paid | If unworked, paid with no deduction. If worked, an extra 100% of the daily rate. | If unworked, paid with no deduction. If worked, an extra 30% of the daily rate. |
| Daily-paid | If unworked, 100% of the daily rate. If worked, an extra 100% (total 200%, the familiar "double pay"). | If unworked, no pay. If worked, an extra 30% (total 130%). |
Night differential, overtime, and rest-day premiums stack on top of these figures when they apply, which is where manual computation usually breaks down.
Where employers slip up
- Treating a special non-working holiday like a regular one, or the reverse.
- Forgetting that daily-paid employees are still paid for an unworked regular holiday.
- Missing the premium stacking when a holiday also falls on a rest day or involves overtime.
Zalamea runs payroll for employers across every industry, with holiday premiums, night differential, and government computations handled automatically. See our payroll and HR solutions or talk to our team.
Frequently asked questions
What is the difference between a regular and a special holiday in the Philippines?
A regular holiday is fixed by law and paid whether or not the employee works. A special non-working holiday follows no work, no pay unless a more favorable company policy applies. Pay premiums for working also differ: 100% extra on a regular holiday versus 30% extra on a special non-working holiday.
How much is holiday pay if an employee works on a regular holiday?
A daily-paid employee who works on a regular holiday receives 200% of the daily rate (double pay). A monthly-paid employee receives their normal pay plus an extra 100% of the daily rate for the hours worked.
Are daily-paid employees paid on a regular holiday they do not work?
Yes. Daily-paid employees are entitled to 100% of the daily rate for an unworked regular holiday, provided they were present or on paid leave on the workday immediately before it.
Is a special non-working holiday paid if the employee does not report for work?
No, by default. Special non-working holidays follow the no work, no pay principle unless the company has a policy, practice, or agreement that grants pay.
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Make payroll easier for your team
Holiday rates change every year, and one wrong multiplier shows up on every payslip. We can run your payroll for you through payroll outsourcing, or set your team up on our cloud payroll software so you run it in house. Either way, computations and government contributions stay up to date. Tell us about your company and our payroll team will reach out.