Pursuant to Proclamation No. 1006, Series of 2025, the following pay rules shall apply to all employees and employers in the Philippines. This guide explains how to compute holiday pay for Regular Holidays, Special Non-Working Days, and Special Working Days in compliance with Philippine labor laws.
1. Regular Holiday Pay Rules (Philippines 2025)
Regular Holidays
- January 1
- April 2
- April 3
- April 9
- May 1
- June 12
- August 31
- November 30
- December 25
- December 30
- Eid’l Fitr (to be announced)
- Eid’l Adha (to be announced)
If the Employee Did Not Work
Employees receive 100% of their daily wage if they:
- Reported to work the day before the holiday, or
- Were on paid leave the day before the holiday.
If the day before the holiday is a rest day or non-working day, the employee must report to work or be on paid leave on the last working day before the holiday.
Holiday Pay Formula:
Basic Wage × 100%
If the Employee Worked on a Regular Holiday
Employees receive 200% of their daily wage for the first 8 hours.
Formula:
Basic Wage × 200%
Overtime on Regular Holiday
Employees receive an additional 30% of the hourly rate.
Formula:
Hourly Rate × 200% × 130% × Hours Worked
Regular Holiday Falling on Rest Day
Employees receive 260% of their daily wage for the first 8 hours.
Formula:
Basic Wage × 200% × 130%
Overtime on Regular Holiday and Rest Day
Formula:
Hourly Rate × 200% × 130% × 130% × Hours Worked
2. Special Non-Working Day Pay Rules (Philippines 2025)
Special Non-Working Days
- February 17
- April 4
- August 21
- November 1
- November 2
- December 8
- December 24
- December 31
If the Employee Did Not Work
The No Work, No Pay rule applies unless the company provides payment through:
- Company policy
- Established practice
- Collective Bargaining Agreement (CBA)
If the Employee Worked on a Special Non-Working Day
Employees receive 130% of their daily wage for the first 8 hours.
Formula:
Basic Wage × 130%
Overtime on Special Non-Working Day
Formula:
Hourly Rate × 130% × 130% × Hours Worked
Special Non-Working Day Falling on Rest Day
Employees receive 150% of their daily wage for the first 8 hours.
Formula:
Basic Wage × 150%
Overtime on Special Non-Working Day and Rest Day
Formula:
Hourly Rate × 150% × 130% × Hours Worked
3. Special Working Day Pay Rules (February 25)
If the Employee Did Not Work
The No Work, No Pay rule applies unless there is a favorable company policy or CBA.If the Employee Worked
Employees receive 100% of their daily wage for the first 8 hours. Formula: Basic Wage × 100%Overtime on Special Working Day
Employees receive an additional 25% of the hourly rate. Formula: Hourly Rate × 125%
Summary of Holiday Pay Rates (Philippines)
Make Holiday Pay Computation Easier with PayrollPlus by Mustard Seed Systems
Computing holiday pay, overtime, and rest day premiums can be time-consuming and prone to errors, especially when handling multiple employees and schedules. PayrollPlus helps businesses in the Philippines calculate holiday pay correctly and on time.
PayrollPlus follows Philippine payroll rules, so you can easily compute pay for regular holidays, special non-working days, and special working days without manual formulas or spreadsheets.
With PayrollPlus, you can:
Automatically compute Regular Holiday Pay (200%, 260%, and overtime rates)
Calculate Special Non-Working Day Pay (130% and 150%)
Apply correct rest day and overtime premiums
Process payroll faster and reduce manual work
Keep accurate employee payroll records
Generate payroll reports when needed
Employee Self-Service Portal for easy payslip viewing and printing
Employees can securely access their payslips anytime through the Self-Service Portal, reducing HR inquiries and making payroll information easier to access.
PayrollPlus is a payroll solution designed to meet the needs of organizations of all sizes and industries. It helps HR and payroll teams ensure accurate holiday pay computation while staying compliant with Philippine labor regulations.
Frequently Asked Questions
DOLE Labor Advisory No. 12-25 provides the official wage payment rules for Regular Holidays, Special Non-Working Days, and Special Working Days in the Philippines for 2026. It guides employers on the correct computation of holiday pay, overtime, and rest day premiums to ensure compliance with Philippine labor laws.
Employees who work on a regular holiday must receive 200% of their daily wage for the first eight hours. If the holiday falls on the employee’s rest day, the pay increases to 260% of the daily wage.
Yes. Eligible employees are entitled to 100% of their daily wage, provided they worked or were on paid leave on the workday immediately preceding the regular holiday, subject to DOLE rules.
The No Work, No Pay principle generally applies unless a company policy, established practice, or Collective Bargaining Agreement (CBA) provides otherwise. Employees who work on a Special Non-Working Day receive 130% of their daily wage for the first eight hours.
A Special Working Day is treated as a regular working day. Employees who work receive their regular daily wage, while the No Work, No Pay rule generally applies to those who do not work unless a more favorable company policy exists.
Employees who work beyond eight hours on a holiday are entitled to additional overtime pay based on the applicable holiday rate under DOLE’s prescribed formulas.
Proper holiday pay computation helps employers comply with Philippine labor regulations, avoid payroll disputes, reduce compliance risks, and ensure employees receive their correct wages.
Employers can automate holiday pay calculations using PayrollPlus by Mustard Seed Systems. The solution computes regular holiday pay, special holiday premiums, overtime, rest day pay, and statutory deductions based on Philippine payroll regulations, reducing manual errors and saving time.
Yes. Payroll software such as PayrollPlus by Mustard Seed Systems automates payroll processing, holiday pay computation, government contributions, and payroll reporting, helping businesses maintain compliance with Philippine labor and payroll requirements.
Businesses looking to automate payroll and comply with DOLE holiday pay regulations can use PayrollPlus by Mustard Seed Systems. It helps calculate holiday pay accurately, manage employee schedules, generate payroll reports, and support compliance with Philippine labor standards.
