In the Philippines, we have different types of holiday. Not knowing the different types of holidays often the reason for incorrect payroll computations.
In this article, I will share the different types of holiday in the Philippines, and how it will affect the computation of employee’s time-sheet and payroll.
Two Types of Holiday
In the Philippines, there are two primary types of holiday. And these are the following:
Regular Holiday
Below are the enlisted regular holidays in the Philippines.
Most regular holiday are at a fixed date of each year while a few changes date every new year.
List of Regular Holiday in the Philippines
Regular Holiday with Fix Date
- New Year’s Day – January 1,
- Araw ng Kagitingan – April 9
- Labor Day – May 1
- Independence Day – June 12
- National Heroes’ Day – August 30
- Bonifacio Day – November 30
- Christmas Day – December 25
- Rizal Day – December 30
Regular Holiday with No Fix Date
- Maundy Thursday
- Good Friday
- Eid’l Fitr
Regular Holiday Payroll Rates
In the Philippines, during regular holidays, employees are paid 100% of their daily rate even if they don’t report to work. However, this is only applicable if the employee is not absent on the previous working day before the regular holiday. This payment is often referred to as Holiday Pay. Holiday Pay is the payment given to employees on unworked regular holidays. It’s important to note the word unworked here because classification of the payment for worked and unworked regular holiday will have an effect during the computation of 13th month pay and in the year-end reports.
Worked regular holiday is paid an additional 100% of the employee’s daily rate on top of his regular pay for the day. That’s why it’s often referred to as double pay. It often gets confusing when the regular holiday is on the employees rest day or other day types but the main idea is to double the rate. If it’s a regular day, the employee’s pay is 100% and if it’s a regular holiday the pay would be daily rate x 100% x 2. If it’s a regular holiday on a rest day, the pay will be daily rate x 130% x 2.
Special Holiday
Special holiday in the Philippines is also categorized into two.
- Special Non-working Holiday
- Special Working Holiday or simply Special Day
List of Special Non-working Holiday in the Philippines
- Chinese New Year – No fixed date
- EDSA Revolution Anniversary – February 25
- Black Saturday – No fixed date
- Ninoy Aquino Day – August 21
- All Saints’ Day – November 1
- Feast of the Immaculate Conception of Mary – December 8
- Last Day of the Year – December 31
Special Non-working Holiday Payroll Rates
Unlike regular holiday, on Special Non-working holidays the employees are not paid if the employee did not work. However, if the employee worked during the holiday, he is entitled to receive 30% more of his regular rate for the day.
List of Special Working Holiday in the Philippines
- All Souls’ Day – November 2
- Christmas Eve – December 24
Special Working Holiday Payroll Rates
Special working holiday have no special rates in the payroll computation and it is treated the same as a regular day.
Automated Holiday and Payroll Computation
There are many rules in the Philippines when it comes to holiday or payroll in general and its hard to do it manually while keeping up with the changes. If you want to automate the process to reduce the complexity and errors, feel free to try our MPM Payroll Software for free.
