MANILA, Philippines — Employers were reminded by the Department of Labor and Employment (DOLE) on Thursday about the proper computation of wages for employees working on regular holidays, special non-working days, and special working days in 2025.
The guidelines were issued under Labor Advisory No. 16, series of 2024, signed by Labor Secretary Bienvenido Laguasma.
Context and Basis
The advisory is based on Proclamation No. 727, Series of 2024, which declares the regular holidays and special non-working days for the upcoming year.
“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 emphasized.
Guidelines on Wage Computation
The advisory provides the following rules to guide employers on wage payments, including adjustments for overtime and rest days:
Regular Holiday Pay
- For employees who do not work:
Workers are entitled to 100% of their daily wage if they report to work or are on leave with pay on the working day before the holiday. If the preceding day is a non-working day or rest day, the entitlement still applies as long as the employee worked or was on paid leave on the last working day. - For employees who work on a regular holiday:
- Employees are paid 200% of their basic wage for hours worked (basic wage x 200%).
- For overtime work, an additional 30% of the hourly rate is applied (hourly rate x 200% x 130%).
- If the holiday falls on a rest day, employees receive an extra 30% on top of the 200% wage (basic wage x 200% x 130%).
- Overtime on a holiday that is also a rest day earns another 30% on the hourly rate (hourly rate x 200% x 130% x 130%).
Special Non-Working Day Pay
- For employees who do not work:
The “no work, no pay” rule applies unless there is a company policy, practice, or collective bargaining agreement (CBA) providing compensation for special non-working days. - For employees who work on a special non-working day:
- An additional 30% of the basic wage is given for the first eight hours (basic wage × 130%).
- Overtime work earns another 30% of the hourly rate (hourly rate x 130% x 130%).
- If the special day falls on a rest day, workers receive an extra 50% of their basic wage for the first eight hours (basic wage x 150%).
- Overtime on a special day that is also a rest day adds 30% to the hourly rate (hourly rate x 150% x 130%).
Special Working Day Pay
- Special working days are treated as ordinary working days for wage purposes.
- For employees who do not work:
The “no work, no pay” principle applies unless company policies or agreements state otherwise. - For employees who work:
- The first eight hours are paid at 100% of the basic wage (basic wage x 100%).
- Overtime is compensated with an additional 25% of the hourly rate (hourly rate x 125%).
Reminder to Employers
DOLE reiterated the importance of following these rules to ensure compliance with labor standards and fair compensation for employees during holidays and special days.
