With the number of holidays observed in the Philippines yearly, it’s easy to confuse Regular Holidays and Special Holidays.
Here is a quick guide of their difference, plus their effect on payroll computation rules.
Regular Holidays and Special Non-working Days
In general, Philippine holidays fall into either one of these two categories only:
Regular Holidays fall on fixed dates such as Christmas Day, New Year’s Day, and Independence Day. The only regular holidays that change dates each year are National Heroes Day and religious holidays. These are Maundy Thursday, Good Friday, Eid’l Fitr, and Eidul Adha. In sum, Regular Holidays—from its name—are regularly observed annually, typically on fixed dates.
On the other hand, Special Holidays or otherwise also known as Special Non-working days have more flexible dates. Congress can enact them, or declared by the President. However, they may also be declared for specific regions only.
Here are the Regular Holidays and Special Non-working Days for 2019 declared in Proclamation No. 555, signed by President Rodrigo Duterte on Wednesday, August 15, 2018:
How to compute Holiday Pay
It’s important to note that payroll computation differs between the two, which includes pay rules for hours worked, overtime, and rest day premiums. The Philippines’ Official Gazette has put together below a quick guide about this on their site:
For the full resource from the Official Gazette, click here.
Of course, there may still be additional rules for organizations to factor in payroll computation. This includes provincial holidays, or special rules affecting companies that observe foreign holidays. BPOs are one example. That said, organizations that are particular about payroll accuracy often use software and engage a professional payroll services provider to take care of this on their behalf.
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David on Making Holidays Count
Business is a competitive endeavour. I think too many managers and their team members forget this. Team members should want to “win” by providing better value to customers and operating a better organization. When choosing how to approach your holidays, think about the two things that lead to winning teams: the people and the performance. Encourage your team not to waste their holidays (especially the almost arbitrary ones). Instead, encourage them to do things that help the Person (such as rest, exercise, spend time with loved ones) and the Performance (catch-up on emails, write reports, study).
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Want to get accurate payroll without the hassle? Visit www.bridgepayday.ph and we can take from it here.