Philippine Labor Law Glossary
Definition: A regular holiday is a day on which Article 94 of the Labor Code entitles a worker to the regular daily wage even without working; an employee who does work is paid twice the regular rate. Article 94 itself excepts only retail and service establishments regularly employing fewer than ten workers.
Sa Filipino · Filipino Explanation
Ano ang Regular Holiday?
Ang regular holiday ay araw na may bayad ka kahit hindi ka pumasok. Ito ang pinakamalaking pagkakaiba sa special non-working day, kung saan “no work, no pay” ang tuntunin.
Kung pumasok ka, 200% ang bayad. Kung rest day mo rin, 260%. Isang bagay na madalas ipagkamali: may karapatan din sa holiday pay ang monthly-paid — ipinawalang-bisa ng Korte Suprema noong 1984 ang panuntunang nag-aalis nito (IBAAEU v. Inciong). Pero mag-ingat: kung absent ka nang walang bayad sa araw bago ang holiday at hindi ka rin pumasok sa mismong holiday, puwedeng mawala ang bayad.
The Entitlement
Article 94(a) of the Labor Code states the rule plainly: “Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten (10) workers.”
Article 94(b) covers the employee who works: “The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate.”
2027 dates: the regular holidays for 2027 are set by Proclamation No. 1427, s. 2026 — see the 2027 regular holidays and DOLE pay rules.
Two observations on the text. First, the Code never uses the figure “200%” — that is the Department of Labor and Employment’s rendering of “twice his regular rate,” and it is the standard way the entitlement is expressed in payroll practice. Second, the only exemption written into the statute is the small retail and service establishment; there is no general exemption for small employers in other industries.
Monthly-Paid Employees Are Entitled
Monthly-paid employees are entitled to regular holiday pay in the Philippines: Insular Bank of Asia and America Employees’ Union v. Inciong voided rules that excluded them. Whether the amount appears separately in payroll depends on the divisor used to derive the daily rate, not on whether the employee has the entitlement.
The original implementing rules and Policy Instructions No. 9 attempted to exclude monthly-paid employees from holiday pay on the theory that their monthly salary already included it. In Insular Bank of Asia and America Employees’ Union v. Inciong, decided 23 October 1984, the Supreme Court struck both down as null and void, holding that the Secretary of Labor had exceeded his statutory authority in carving out an exclusion the Code itself did not contain.
The rule since then is straightforward: a monthly-paid employee is entitled to holiday pay. The practical question is only whether the monthly rate was computed on a factor that already includes the regular holidays — a matter of the divisor used, not of entitlement.
The Pay Grid
| Situation | Pay |
|---|---|
| Regular holiday, did not work | 100% of the daily rate |
| Regular holiday, worked (first 8 hours) | 200% of the daily rate |
| Regular holiday falling on a rest day, worked | 260% of the daily rate |
| Overtime on a regular holiday | Hourly rate × 260% |
| Overtime on a regular holiday that is also a rest day | Hourly rate × 338% |
These multipliers are as published in the Department of Labor and Employment Handbook on Workers’ Statutory Monetary Benefits.
The Absence Rule
Regular holiday pay may be withheld after an absence only when both Department of Labor and Employment conditions apply: the employee was on leave without pay immediately before the regular holiday and did not work on the holiday. Paid leave before the holiday preserves the entitlement, while work performed on the holiday must be paid.
Note the two conditions that must combine: the preceding-day absence must be without pay, and the employee must also not work on the holiday itself. An employee on paid leave the day before keeps the holiday pay, and an employee who works the holiday is paid for the work regardless.
Two Regular Holidays on One Date
Two regular holidays falling on one date produce 200% unworked holiday pay, not 100%, under Asian Transmission Corporation v. Court of Appeals. The Court held that the coincidence cannot reduce the ten holiday pay benefits to which a worker is entitled. The page does not state a worked-double-holiday multiplier.
A figure for a worked double holiday circulates widely in Philippine payroll material. We have not been able to trace it to an official source, and we do not publish it here. Employers facing that situation should seek a ruling rather than rely on a commonly repeated number.
Where the List Comes From — and Why Article 94(c) Should Not Be Used
Article 94(c) of the Labor Code contains its own list of holidays, and that list is obsolete. It still carries “the fourth of July” and omits Eidul Fitr, Eidul Adha and National Heroes Day. Reproducing it as current law is a common and significant error.
The operative source is Executive Order No. 292, Book I, Chapter 7, Section 26, as amended by Republic Act No. 9492 of 2007 and Republic Act No. 9849 of 2009, which made Eidul Adha a nationwide regular holiday. Republic Act No. 9492 also introduced the “holiday economics” mechanism, moving certain holidays to the nearest Monday and requiring movable holidays to be proclaimed at least six months in advance.
The specific dates for any given year come from the annual proclamation. Do not work from a memorised list.
Legal Basis
| Authority | Classification | Rule supported | Official source |
|---|---|---|---|
| Labor Code, Article 94(a) and 94(b) | Statute | Entitles every worker to the regular daily wage on regular holidays, except small retail and service establishments, and requires twice the regular rate for work performed. | Official text |
| Insular Bank of Asia and America Employees’ Union v. Inciong, G.R. No. L-52415, October 23, 1984 | Jurisprudence | Struck down as null and void the rule and policy instruction excluding monthly-paid employees from holiday pay. | Official decision |
| Asian Transmission Corporation v. Court of Appeals, G.R. No. 144664, March 15, 2004 | Jurisprudence | Holds that two regular holidays falling on the same date do not reduce the number of holiday pay benefits. | Official decision |
| DOLE Handbook on Workers’ Statutory Monetary Benefits, 2023 edition | Administrative guidance | Publishes the 100% / 200% / 260% / 338% multipliers and the leave-without-pay absence rule. | Official handbook |
| Executive Order No. 292, Section 26, as amended by Republic Act No. 9492 and Republic Act No. 9849 | Statute | Supplies the operative list of regular holidays, the Monday-nearest rule and advance proclamation of movable holidays. | Republic Act No. 9492 |
Practical Examples
Stayed home: Daily rate ₱800. The employee does not work on a regular holiday and was paid the day before. Holiday pay is ₱800.
Worked eight hours: Same rate. Pay is ₱800 × 200% = ₱1,600.
Worked on a regular holiday that is also the rest day: ₱800 × 260% = ₱2,080.
Common Misunderstandings
Misunderstanding: Monthly-paid employees are not entitled to holiday pay because it is already built into the salary.
Correct approach: IBAAEU v. Inciong voided the issuances that said so. Entitlement exists; the only real question is what divisor the monthly rate was computed on.
Misunderstanding: The list of regular holidays is in Article 94(c) of the Labor Code.
Correct approach: That list is obsolete — it still includes the fourth of July and omits the Islamic holidays and National Heroes Day. Use Executive Order No. 292 as amended, together with the current annual proclamation.
Common Questions
Which employers are exempt from paying holiday pay?
Article 94(a) exempts only retail and service establishments regularly employing fewer than ten workers. Other exclusions from the working-conditions chapter, such as those for managerial employees and field personnel, come from separate provisions and rules.
What if the holiday falls on a Sunday when we do not operate?
The entitlement attaches to the day, not to the operating schedule. Where the holiday coincides with a scheduled rest day and no work is performed, the unworked holiday pay is still due to covered employees.
Do daily-paid and monthly-paid employees receive the same thing?
Both are entitled. The difference is mechanical: a daily-paid employee sees the holiday pay as a distinct amount, while a monthly-paid employee’s entitlement is typically already reflected in the divisor used to derive the daily rate.
Sources and Legal Citations
- Labor Code of the Philippines, Presidential Decree No. 442, Article 94, official text. Classification: statute.
- Insular Bank of Asia and America Employees’ Union (IBAAEU) v. Inciong, G.R. No. L-52415, October 23, 1984, official decision. Classification: jurisprudence.
- Asian Transmission Corporation v. Court of Appeals, G.R. No. 144664, March 15, 2004, official decision. Classification: jurisprudence.
- Department of Labor and Employment, Handbook on Workers’ Statutory Monetary Benefits, 2023 edition, official handbook. Classification: administrative guidance.
- Republic Act No. 9492, 24 July 2007, official text; Republic Act No. 9849, 11 December 2009, official text. Classification: statutes.
Sources rechecked as of: August 23, 2026
Disclaimer
This glossary entry is for general educational and legal-information purposes and is not legal advice. Holiday dates are fixed annually by proclamation; confirm the current proclamation before applying these rules to a specific date.