With the number of holidays observed in the Philippines yearly, it’s easy to confuse Regular Holidays and Special Holidays. Here is a quick summary of their difference, plus their effect on payroll computation rules.
Regular Holidays and Special Holidays
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. They may also be declared for specific regions only, such as the ASEAN Summit in 2017 which affects work and class suspensions only in NCR, Bulacan and Pampanga.
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.
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.