DOLE Memorandum on Holiday Pay Rules 2004

The circular establishes uniform holiday pay rules for private sector employers when declared holidays are observed.
The circular is issued to respond to queries received when proclaimed or legislated holidays affect pay computations.

The guidelines apply to all employers in the private sector.
The rules apply when proclaimed or legislated days are declared as regular holidays, special days, or special working holidays.
The circular organizes pay rules based on whether the day is an employee’s regular workday, an employee’s rest day, or a special working holiday.

For regular holidays under EO 203 (incorporated in EO 292) as amended by RA 9177, the listed days are New Year’s Day (January 1), Maundy Thursday (Movable Date), Good Friday (Movable Date), Araw ng Kagitingan (April 9), Labor Day (May 1), Independence Day (June 12), National Heroes Day (Last Sunday of August), Bonifacio Day (November 30), Eidul Fitr (Movable Date), Christmas Day (December 25), and Rizal Day (December 30).
If the regular holiday is an employee’s regular workday:
- If unworked, the employee is entitled to 100% pay.
- If worked, the employee is entitled to 200% pay for the first 8 hrs, and for excess of 8 hrs the pay is plus 30% of hourly rate on said day.
If the regular holiday is an employee’s rest day:
- If unworked, the employee is entitled to 100% pay.
- If worked, the employee is entitled to plus 30% of 200% for the first 8 hrs, and for excess of 8 hrs the pay is plus 30% of hourly rate on said day.

For declared special days such as Special Non-Working Day, Special Public Holiday, and Special National Holiday, the circular treats these in addition to the two (2) nationwide special days listed under EO 203 as amended: November 1 (All Saints Day) and December 31 (Last Day of the Year).
If the special day falls on an employee’s situation and is unworked, the employee receives No pay, unless a favorable company policy, practice, or collective bargaining agreement (CBA) grants payment of wages on special days even if unworked.
If the special day is worked on an employee’s regular workday:
- For the first 8 hrs, pay is plus 30% of the daily rate of 100%.
- For excess of 8 hrs, pay is plus 30% of hourly rate on said day.
If the special day falls on the employee’s rest day and the employee is worked:
- For the first 8 hours, pay is plus 50% of the daily rate of 100%.
- For excess of 8 hours, pay is plus 30% of hourly rate on said day.

For special working holidays, work performed is treated as work on ordinary working days for premium-pay purposes.
For work performed on special working holidays, the employee is entitled only to his basic rate.
The circular states no premium pay is required for special working holidays because the work performed on those days is considered work on ordinary working days.