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    Difference between holiday pay and holiday premium



    Dear PAO,

    I am working with a BPO company as a voice agent. Last June 12, I saw from my payslip that I received a day less from my salary. When I asked my team leader, he said that the deduction was because I did not report to work on July 12. Was he correct?

    Jericho

    Dear Jericho,

    To answer your query, the payment of holiday pay is provided in Article 194 of the Labor Code of the Philippines, viz.:

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    ART. 94. Right to Holiday Pay. –

    (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten (10) workers; (b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate; and (c) As used in this Article, “holiday” includes: New Year’s Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the 12th of June, the fourth of July, the 13th of November, the 25th and 13th of December, and the day designated by law for holding a general election.

    Simply stated, holiday pay refers to the payment of an employee’s regular daily wage for any unworked regular holiday.

    Further, Section 6, Rule IV, Book III of the Omnibus Rules Implementing the Labor Code provides the following:

    “SECTION 6. Absences. — (a) All covered employees shall be entitled to the benefit provided herein when they are on leave of absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he has not worked on such regular holiday; (b) Employees shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee’s compensation or social security payment, whichever is higher, if they are not reporting for work while on such benefits; and (c) Where the day immediately preceding the holiday is a nonworking day in the establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the nonworking day or rest day.”

    On the other hand, paragraph (c) of Article 93 of the Labor Code provides the rules on holiday pay premium, which states that, “Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30 percent) of the regular wage of the employee. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least fifty percent (50 percent) of his regular wage.”

    Otherwise stated, an employee who works on a regular holiday is entitled to holiday day pay premium.

    Applying the above in your situation, you are entitled to holiday pay, as long as you were not absent on June 11, or if you were, the same is a leave with pay. But if you also worked on June 12, you are also entitled to holiday pay premium, in addition to the holiday pay.

    However, if you were absent or on leave without pay on June 11, you are not entitled to holiday pay. But if despite being absent or on leave without pay on June 11, and yet you worked on June 12, you are still entitled to holiday pay premium.

    We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

    Thank you for your continued trust and support.

    Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].



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