Special Working Holidays: Workday or Extra Pay Day?

Yearly, businesses and employees navigate special working holidays in the Philippines, but confusion often arises when it comes to compensation, work schedules, and employer obligations. Unlike regular holidays, where employees are entitled to full pay even if they don’t work, a special working holiday follows a different set of rules.

With several special working holiday 2025 dates lined up, businesses must ensure accurate payroll computations while employees should be aware of their entitlements to avoid disputes.

What is a Special Working Holiday?

A special working holiday is an official holiday where work continues as a regular business day. The key difference from regular holidays is that there is no mandatory extra pay—employees who work on a special working holiday in the Philippines are compensated at their regular daily rate.

The government declares special working holidays for cultural, religious, or historical events. Some examples of special working holiday 2025 dates include:

• February 25 (EDSA People Power Revolution Anniversary)
• November 2 (All Souls’ Day)
• December 24 (Christmas Eve)

How does Special Working Holiday Pay work?

For employees reporting to work on a special working holiday, the pay computation follows these rules:

• If the employee works, they receive their basic daily rate with no additional pay.
• If the employee does not work, there is no pay, unless the company provides additional benefits.
• If the employee works overtime, standard overtime rules apply (125% of hourly rate).

For instance, if an employee earns ₱1,000 per day and works on a special working holiday, they still receive only ₱1,000, unless company policy provides additional incentives.

How Employers Should Handle Special Working Holiday Pay

To avoid payroll errors and employee disputes, companies should:

• clearly communicate work schedules in advance for special working holiday pay.
• ensure payroll teams apply the correct pay computations in compliance with labor regulations.
• consider offering incentives (e.g., additional leave credits or extra pay) to boost employee morale.

Payday: Simplifying Payroll Computations for Businesses

At Payday, we automate payroll computations, ensuring that businesses stay compliant with special working holiday pay regulations while simplifying employee compensation processes.

Ensure accurate payroll management today. Contact us at Payday today.