Overtime Pay and Holiday Pay: What Employers and Employees Need to Know - Blog

Holidays are always one of the most anticipated days in the working calendar. For employees, being able to take a short break from work while still getting paid is invaluable, especially on holidays when they can spend time with their loved ones. And while some employers can still require attendance on holidays, employees get the right to an increased holiday pay rate, as well as holiday overtime pay if they work in excess of eight hours. Presidential Decree No. 442, also known as The Labor Code of the Philippines, protects the rights and welfare of Filipino workers, ensuring that they are compensated fairly for their labor.

Both employers and employees need to know the ins and outs of holiday pay. Employees must understand it so that they are aware of what labor rights they are entitled to. Meanwhile, employers must understand it to ensure correct calculations of payrolls. Should an employer violate an employee's rights by not giving their due pay, the employee could file a complaint with DOLE or pursue legal action with legal representation from a law firm in the Philippines.

Here's what you need to know about overtime pay and holiday pay.

How Does Holiday Pay Work?

First, take note that holidays in the Philippines are split into two categories: regular holidays and special non-working holidays.

During regular holidays, employees who do not report for work are entitled to one day’s worth of their regular wage. This applies as long as the employee was either present or on paid leave the day preceding that holiday.

On the other hand, employees who do report for work on a holiday are entitled to receive 200% of their daily wage. This only applies for the first eight hours of work. If the employee continues to work in excess of eight hours, this is considered overtime and thus the employee is entitled to an additional 30% of their hourly rate.

For example, let us say your daily standard wage is PHP 1,500, and you worked for 10 hours during a regular holiday. You get 200% of your daily wage for the first 8 hours of work, which is PHP 1,500 x 2 = PHP 3,000. With this in mind, you can then calculate your hourly rate on a regular holiday to be PHP 3,000 / 8 hours = PHP 375. To find out your overtime hourly rate, you’d need to multiply it by 1.3, so PHP 375 x 1.3 = PHP 487.50. Since you worked overtime for two hours, we’d then need to calculate PHP 487.50 x 2 hours = 975. All in all, you can calculate your day’s pay as PHP 3,000 + 975 = PHP 3,975.

You can also use a time card calculator to calculate your wages during the holiday season as well. A time card calculator allows you to set a base pay and overtime rate. It automatically adds your worked hours and calculates the appropriate wages. This saves you the hassle of manual calculations.

President Ferdinand R. Marcos Jr. issued Proclamation No. 727, s. 2024, which declared all regular and special non-working holidays for 2025. With that, here is the list of all regular holidays in 2025:

New Year’s Day, January 1
Eidul Fitr, April 1
Araw ng Kagitingan, April 9
Maundy Thursday, April 17
Good Friday, April 18
Labor Day, May 1
Independence Day, June 12
National Heroes Day, August 25
Bonifacio Day, November 30
Christmas Day, December 25
Rizal Day, December 30

How Does Special Non-Working Holiday Pay Work?

During special non-working holidays, employees are subject to the “no work, no pay” rule. Should an employee skip work on these days, they will not be able to claim any pay. However, some employers do implement policies allowing payment during these days, so it’s best to consult with your employer about the company’s individual policy about the matter.

Employees who do report to work are entitled to an additional 30% of their daily standard wage, for a total of 130%. Employees who work overtime during a special non-working holiday are also entitled to 30% of their hourly rate.

For example, let us say you worked 10 hours during a special non-working holiday, and your daily standard wage is PHP 1,500, just like the first example. Your standard wage is multiplied by 1.3, totalling to PHP 1,950 for your first 8 hours. Your hourly wage is then PHP 1,950 / 8 hours = PHP 243.75. To find your overtime hourly rate, multiply your hourly wage of PHP 243.75 by 1.3 = PHP 316.87. Two hours are then worth PHP 633.75. All in all, your day’s pay would be PHP 1950 + 633.75 = PHP 2,583.75.

The list of special non-working holidays for 2025 are as follows:

Chinese New Year, January 29
Black Saturday, April 19
Founding Anniversary of Iglesia ni Cristo, July 27
Ninoy Aquino Day, August 21
All Saints’ Day Eve, October 31
All Saints’ Day, November 1
Feast of the Immaculate Conception of Mary, December 8
Christmas Eve, December 24
Last Day of the Year, December 31

Many working adults consider Philippine holidays a welcome respite from the daily grind. However, not everyone is aware of how the exact calculation for holiday pay works. As an employee, knowing the calculations of holiday pay and overtime pay are crucial to ensure you are getting paid correctly for your labor. As an employer, it’s important to be familiar with these calculations to avoid any crucial mistakes while processing payroll. This knowledge is essential so that both employees and employers aren’t treated unjustly when it comes to receiving and distributing fair wages.