Tarlac State University

School of Law

Labor Law 1

A Report on
Holiday Pay, Premium Pay
and
Night Workers

By

Mae Abegail Tabuzo

Galilee Patdu

September 14, 2019

Holiday Pay
Is a form of premium accorded to an employee who does not work on regular holidays. If he works on said regular
holidays, he is entitled to an additional compensation over his regular or basic remuneration known as premium
pay

Premium pay
It is also known as differential compensation and an additional pay granted to a covered employee for services
rendered on holidays and restdays.

Monthly-Paid and daily-paid employees distinguished

A “monthly-paid” employee is one whose salary includes payments for every day of the month although he does
not regularly work on his restdays, Sundays, regular and special holidays. On the other hand, a “daily -paid”
employee is one who is paid on the day he actually worked except unworked regular holidays when he is present or
on leave of absence with pay on the working day immediately preceding the legal holiday (In re united South
Dockhandlers, Inc., Opinion of the Bureau of Working Conditions; 23 November 1987)

Significance of the divisor in determining payment of holiday pay for monthly paid
employees
The division is significant in determining whether or not holiday pay has already been included in the salary of the
monthly paid employees. Where the company undertake a six-day working schedule indicates that the ten (10)
now eleven (11) legal holidays have already been included in the monthly salary paid employees ( Producers Bank
v. NLRC, 335 SCRA 489).

On the other hand, where the company provides for a five-day working period, the divisor indicates that the
holiday pay has already been included in the monthly salary of the employee.

Premium pay for work on a rest day, Sunday or holiday

Not covered:

a. Government employees including those employed in government-owned or control corporations with

original charters;
b. The Right to Holiday Pay (Article 94 Labor Code) Every Worker shall be paid his regular daily wage during
regular holidays except in retail and service establishments regularly employing less thn ten (10) workers.
c. Domestic servants;
d. Managerial employees;
e. Officers or members of the managerial staff;
f. Field personnel and other employees whose time is unsupervised by the employer;
g. Workers paid by results or piece of work;
h. Members of the family of the employer who are dependent upon him for support; and
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 i. Persons in the personal service of another.

Holiday Pay of certain types of employees

The following are the holiday pay of certain types of employees

a. Private school teachers, including faculty members of colleges and universities, may not be paid for the
regular holidays during semestral vacations. They shall, however, be paid for the regular holidays during
Christmas vacation.
Faculty members paid per lecture hour are not entitled to holiday pay because they are paid only for work
actually done. They should not expect payment for said unworked days.
b. Where a covered employee is pad by results or output, such as payment on piecework, his holiday pay shall
not be less than his average daily earrings for the last seven (7) actual working days preceding the regular
holiday; Provided however, that in no case shall the holiday pay be less than the applicable statutory
minimum wage rate.
c. Seasonal workers may not be paid the regular holiday pay during off-season when they are not at work.
d. Workers who have no regular working days shall be entitled to the benefits

Regular and Special Holidays

The following are the regular holidays:

o New Year’s Eve - January 1

o Maundy Thursday - Movable date
o Good Friday - Movable date
o Eidul Fitre - Movable date
o Araw ng Kagitingan - Monday nearest April 9
o Labor Day - Monday Nearest May 1
o Independence day - Monday nearest June 12
o National Heroes Day - Last Monday of August
o Bonifacio Day - Monday nearest November 30
o Christmas day - December 25
o Rizal Day - Monday nearest December 30

The following are the special holidays

o Ninoy Aquino Day - Monday nearest August 21

o All Saint’s Day - November 1
o Last Day of the year - December 31

NOTE: For movable holidays, the President shall issue a proclamation at least six months prior to the
holiday concerned, the specific date shall be declared as a non-working day

Rules
First, determine the daily and hourly rate of an employee

Example: an employee on a monthly rate wanted to know his premium pay on different applications
listed below.

Monthly Rate: Php 18,000/ month

Working days: 5
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 To get the daily rate:
Monthly rate x 12 months/ 261 days
Daily Rate = 18,000 x 12 months/ 261 days
= Php 827.59
To get the hourly rate:
Hourly Rate = Daily Rate/ 8hrs
= Php 827.59 / 8hrs
= Php 103.45
a. Additional for work on a scheduled rest day; 30% of regular wage

Premium pay = Hourly Rate x 130% x8 hrs

=103.45 x 130% 8 hrs
=________________________
b. Additional compensation for work on a Sunday only when it falls on scheduled rest day; 30 % of regular
wage

Premium pay = Hourly Rate x 130% x8 hrs

=103.45 x 130% 8 hrs
=________________________

c. Additional compensation for work on a Sunday and holidays when nature of work of an employee is such
that he has no regular workdays and rest days scheduled; 30% of regular wage
Premium pay = Hourly Rate x 130% x8 hrs
=103.45 x 130% x 8 hrs
=________________________

d. Additional compensation for work on a special holiday; 30% of regular wage

Premium pay = Hourly Rate x 130% x8 hrs
=103.45 x ____% x 8 hrs
=________________________
e. Additional compensation where special holiday work also falls on scheduled rest day; 150% of regular wage
Premium pay = Hourly Rate x ____% x8 hrs
=103.45 x 150% x 8 hrs
=________________________
f. Additional compensation for work on a regular holiday; 200% of regular wage
Premium pay = Hourly Rate x 200% x8 hrs
=103.45 x 200% x 8 hrs
=________________________
g. Additional compensation where regular holiday work also falls on a scheduled restday; 260% of regular
wage
Premium pay = Hourly Rate x ____% x8 hrs
=103.45 x 260% x 8 hrs
=________________________

h. Additional compensation for a work on a Double Holiday; 300 % of regular wage

Premium pay = Hourly Rate x 300% x8 hrs
=________________________
=________________________

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 i. Additional compensation where Double Holiday work also falls on a scheduled restday; 300 % of regular
wage
Premium pay = Hourly Rate x ____% x8 hrs
=_______________________
=________________________

Regular holiday and special day distinguished. We all know this  no emphasis needed

Effects of Absence on holiday pay; successive regular holiday

- The following are the effects of absences on holiday pay:

a. If an employee is on leave of absence with pay, he is entitled to holiday pay;
b. If an employee is on leave of absence without pay on the day immediately preceding the regular holiday,
he is not entitled to holiday pay.
c. If the day immediately preceding the holiday is a non-working day or the scheduled rest day of an
employee, he is not considered to be on leave on that day, in which case he shall be entitled to holiday
pay if the employee w=should work on the day immediately preceding the non-working day or rest day.
d. If there are two (2) successive regular holidays like Holy Thursday and Good Friday, an employee is not
entitled to holiday pay for both holidays if he absents himself from work without pay on the day
immediately preceding the first regular holiday. But if he works on the first holiday, he is entitled to
holiday pay on the second holiday. ( Sec.6 and 10, Rule IV, Book III, Rules Implementing the Labor Code)

Effects of business closure on holiday pay

- The following are the instances that affect payment of holiday pay in the event the business operation
ceases:
a. In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as
when a yearly inventory or when a yearly inventory or when the repair or cleaning of machineries and
equipment is undertaken, the regular holidays falling within the period shall be compensated;
b. The regular holidays during the cessation of operation of an enterprise due to business reverses as
authorized by the Secretary of labor may not be paid by the employer. ( Sec.7, Rule IV, Book III, Rules
Implementing the Labor Code)

Republic Act 10151: Night Workers

The act repealed Articles 130 and 131 of PD 442 and inserted Chapter V, Book Three, Title III of the said decree.

"Chapter V
"Employment of Night Workers

"Article 154. Coverage. - This chapter' shall apply to all persons, who shall be employed or permitted or suffered to
work at night, except those employed in agriculture, stock raising, fishing, maritime transport and inland
navigation, during a period of not less than seven (7) consecutive hours, including the interval from
midnight to five o'clock in the morning, to be determined by the Secretary of Labor and Employment, after
consulting the workers' representatives/labor organizations and employers.

"'Night worker' means any employed person whose work requires performance of a substantial number of hours of
night work which exceeds a specified limit. This limit shall be fixed by the Secretary of Labor after consulting the
workers' representatives/labor organizations and employers."

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Right to free health assessment before undergoing night work:

The night workers have the right to undergo a health assessment without charge and to receive advice on
how to reduce or avoid health problems associated with their work during the following periods:

a. Before taking up an assignment as night worker;

b. At regular intervals during such an assignment; and

c. If they experience health problems during such an assignment which are not caused by factors
other than the performance of night work.

With the exception of a finding of unfitness for night work, the findings of such assessment shall not be
transmitted to others without the worker’s consent and shall no be used to their detriment.

Right to safe and healthful working conditions:

The employers are required under the law to provide the following subject to exception sas may be
provided by the DOLE:

a. Suitable first-aid facilities;

b. Sleeping or resting quarters in the establishment;

c. Transportation from the work premises to the nearest point of their residence

In addition, appropriate social service shall be provided for nigh workers and, where necessary, for workers
performing night work.

Right to be transferred to a similar job which they are fit to work

Night workers who are found unfit for night work due to health reasons shall have the right to be
transferred, whenever practicable to a similar job for which they are fir to work.

If such transfer to a similar job is not practicable, these workers shall be granted the same benefits as other
workers who are unable to work, or to secure employment during such period.

Furthermore, a night worker certified as temporarily unfit for night work shall be given the same protection
against dismissal or notice of dismissal as other workers who are prevented from working for health
reasons

Right of pregnant women to alternatives to night work

Pregnant women have the right to alternatives to night work during the following periods:

a. Before and after childbirth for at least 16 weeks, to be divided between the time before and after
childbirth;

b. For additional periods, in respect which a medical certificate is procured stating that said
additional periods are necessary for the health of the mother or child:

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 i. During pregnancy; and

ii. During a specified time beyond the period after childbirth as allowed above, the length
of which shall be determined by the DOLE after consulting the labor organizations and
employers.

The alternatives referred to may include transfer to day work where it is possible, the provisions of social
security benefits or an extension of maternity leave.

Right of pregnant women against dismissal and diminution of benefits

Pregnant women have the right against dismissals (except for just or authorized causes) on account of
pregnancy, childbirth and childcare responsibilities.

Moreover, a woman worker shall not lose the benefits regarding her status, seniority and access to
promotion which may attach to her regular night work position.

Compensation of night workers

The compensation for night workers in the form of working time, pay or similar benefits shall recognize
the exceptional nature of night work.

Right to regular consultation

The night workers have the right to be regularly consulted on the following:

a. Schedules and the forms of organization of night work that are best adapted to the
establishment and its personnel; and

b. The occupational health measures and social services

The employer is required to consult the workers’ representatives/ labor organizations concerned, before
introducing work schedules requiring services of night workers, on the details of such schedules and the
forms of organization of night work that are best adapted to the establishment and its personnel, as well as
on the occupational health measures and social services which are required.

Source
Poquiz, S. A. (2012). Labor Standards LAw with NOtes and Comments.

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