Understanding Holiday Pay Rules

Holiday Pay Rules

So what are the rules involving holiday pay, and how is holiday pay calculated, specifically for Daily-Wage or Hourly-Wage employees? It all depends on the type of Holiday, and if your company follows the Holiday Pay Eligibility Rule.

The Holiday Pay Eligibility Rule states that for an employee to be entitled to holiday pay, he/she must have worked the previous working day, or was on leave with pay the previous working day. If the employee was absent (without leave) the previous working day before the holiday, the employee will NOT be entitled to holiday pay.

There are 2 types of holidays:

• Regular Holidays such as New Year’s Day, Maundy Thursday, Christmas Day, etc.
• Special Holidays like Black Saturday, Chinese New Year, Ninoy Aquino Day, All Saints Day.

Regular Holidays

• Employee did not work on the regular holiday
  • Employee worked the previous working day:  Employee is entitled to his/her daily wage
  • Employee was absent the previous working day: Employee is not entitled to his/her daily wage
• Employee worked for 8 hours or less during the regular holiday
  • Employee will be paid his equivalent (hourly wage + COLA) x # of hours worked x 200%
• Employee worked for more than 8 hours during the regular holiday
  • For the excess hours,  multiply the hourly wage x # of excess hours x 130% x 200%.

Regular Holidays that are also Restdays

• Employee worked for 8 hours or less during the regular holiday that also falls on a restday
• • Employee will be paid his equivalent (hourly wage + COLA) x # of hours worked x 200% x 130%
• Employee worked for more than 8 hours during the regular holiday that also falls on a restday
  • For the excess hours,  multiply the hourly wage x # of hours worked x 130% x 200% x 130%.

Special Holidays

• Employee did not work on the special holiday
  • The no work no pay rule applies unless the company has a favorable policy granting payment on Special Holidays. This may still be subject to the Holiday Pay Eligibility Rule.
• Employee worked for 8 hours or less during the special holiday
  • Employee will be paid his equivalent (hourly wage x # of hours worked x 130%) + COLA
• Employee worked for more than 8 hours during the special holiday
  • For the excess hours,  multiply the hourly wage x # of excess hours x 130% x 130%.

Special Holidays that are also Restdays

• Employee worked for 8 hours or less during the special holiday that also falls on a restday
• • Employee will be paid his equivalent (hourly wage x # of hours worked x 150%) + COLA
• Employee worked for more than 8 hours during the special holiday that also falls on a restday
  • For the excess hours,  multiply the hourly wate x # of excess hours worked x 150% x 130%.