In the Philippines, employers must consider two types of holidays when computing payroll for their employees: regular and special holidays. Regular holidays, also known as legal holidays, are recognized nationwide and paid regardless of whether an employee works on that day or not. Special holidays, on the other hand, are determined by local government units or specific industries and may or may not be paid depending on the employer’s policy.
Holy Week is an important religious event in the Philippines, which includes several significant days such as Maundy Thursday, Good Friday, Black Saturday, and Easter Sunday. Maundy Thursday and Good Friday are regular holidays, while Black Saturday is a special holiday.
To understand the computation of holiday premiums, the employer must first know the employee payment type—monthly-paid employees or daily-paid employees. Monthly-paid employees are paid a fixed amount per pay period, while daily-paid employees are paid based on the actual number of days worked.
If a monthly-paid employee works on Maundy Thursday or Good Friday, they are entitled to receive an additional 100% of their regular daily rate, and it will be “double pay” for daily-paid employees. Working on Black Saturday grants an additional 30% for monthly-paid and 130% for daily-paid of their regular daily rate. Here’s what their payroll computation would look like:
Working on Maundy Thursday (April 6):
Daily rate = Php 1,000
Monthly-paid = Php 1,000 on top of their basic pay
Daily paid = Php 2,000
Working on Black Saturday (April 8):
Daily rate = Php 1,000
Monthly-paid = Php 300 on top of their basic pay
Daily paid = Php 1,300
Employee Payment Type: | Regular Holiday | Special Holiday |
Monthly/Semi-monthly-paid employees | If unworked, paid (no absences deduction) | If unworked, paid (no absences deduction) |
Daily-paid employees | If unworked, paid 100% of their daily rate | If unworked, no pay |
It’s essential to note that when computing payroll in the Philippines, employers must comply with the law and pay their employees correctly based on the hours worked and the type of holiday. At Zalamea HR, we have a team of experts to assist you with your payroll needs. Whether you need a hybrid or end-to-end payroll outsourcing service, we can customize a solution that fits your business needs.
In conclusion, employers in the Philippines must distinguish between regular and special holidays when computing employee payroll. Contact us at marketing@zalameahr.ph to learn how we can help you streamline your payroll process and ensure compliance with Philippine payroll regulations.