MANILA, Philippines — The Department of Labor and Employment (DOLE) reminded employers on Thursday about the correct wage computation for regular holidays, special non-working days, and special working days in 2025.
The advisory was issued through Labor Advisory No. 16, series of 2024, signed by Labor Secretary Bienvenido Laguasma.
Basis of the Advisory
DOLE explained that the advisory aligns with Proclamation No. 727, Series of 2024, which outlines the regular holidays and special non-working days for 2025.
“The Labor Advisory is pursuant to Proclamation No. 727, Series of 2024 declaring the regular holidays and special (non-working) days for the year 2025,” DOLE stated.
Wage Rules for Holidays and Special Days
The advisory detailed the following rules for computing employee wages on various types of holidays, including overtime and work on rest days:
Regular Holiday Pay Rules
- If the employee does not work:
Employees are entitled to 100% of their wage for the day, provided they report to work or are on leave with pay the day before the holiday. If the day before the holiday is a non-working day or rest day, the entitlement remains if the employee worked or was on leave with pay on the prior working day. - If the employee works on a regular holiday:
- For hours worked on the holiday, employees receive 200% of their wage (basic wage x 200%).
- For overtime, they earn an additional 30% of their hourly rate (hourly rate x 200% x 130% x number of hours worked).
- If the holiday coincides with their rest day, employees receive an additional 30% of their 200% wage (basic wage x 200% x 130%).
- For overtime on a holiday that is also a rest day, employees earn another 30% on top of the hourly rate (hourly rate x 200% x 130% x 130% x number of hours worked).
Special Non-Working Day Pay Rules
- If the employee does not work:
The “no work, no pay” policy applies unless there is a company policy, practice, or collective bargaining agreement (CBA) granting payment for such days. - If the employee works on a special non-working day:
- Employees earn an additional 30% of their basic wage for the first eight hours (basic wage × 130%).
- For overtime, employees receive an additional 30% of their hourly rate (hourly rate x 130% x 130% x number of hours worked).
- If the day is also a rest day, employees get an additional 50% of their basic wage for the first eight hours (basic wage x 150%).
- For overtime on a special day that is also a rest day, employees earn another 30% on the hourly rate (hourly rate x 150% x 130% x number of hours worked).
Special Working Day Pay Rules
- Special working days are treated as ordinary working days.
- If the employee does not work:
The “no work, no pay” policy applies unless a company policy, practice, or CBA states otherwise. - If the employee works:
- For the first eight hours, employees receive their basic wage (basic wage x 100%).
- For overtime, employees earn an additional 25% of their hourly rate (hourly rate x 125%).
Employers are reminded to comply with these guidelines to ensure fair compensation for workers on holidays and special days.
