The Department of Labor and Employment (DOLE) has officially outlined the compensation rules for employees who will be working during the upcoming holiday season. According to the latest advisory, workers reporting for duty on December 24 and 25, 2025, are entitled to receive premium pay as mandated by law.
Pay Rules for December 24: A Special Non-Working Day
December 24, 2025, has been declared a special non-working day under Proclamation No. 727 (2024). For employees who work on this day, the pay structure is clear. They will receive an additional 30 percent of their basic wage for the first eight hours of work. Any overtime rendered on December 24 will be paid an extra 30 percent of their hourly rate on top of the premium.
The pay rate increases significantly if the special non-working day coincides with an employee's scheduled rest day. In such cases, the employer must pay a premium of 50 percent of the basic wage for the first eight hours. Overtime pay on a rest day that is also a special non-working day will still be an additional 30 percent of the hourly rate.
For those not working on December 24, the principle of "no work, no pay" generally applies. However, this can be overridden if the company has an existing policy or a collective bargaining agreement (CBA) that provides payment for special non-working days.
December 25 Pay: A Regular Holiday with Higher Rates
December 25 remains a regular holiday, and the compensation for work on this day is substantially higher. Employees required to work on Christmas Day must be paid 200 percent of their basic wage for the first eight hours. This means they get their 100% daily wage plus a 100% premium. Overtime work on this regular holiday commands an additional 30 percent of the hourly rate.
If Christmas Day falls on an employee's rest day and they are still asked to work, the computation is different. The employer must pay an extra 30 percent of the basic wage based on the 200 percent holiday rate. Overtime on such a day also gets the standard 30 percent additional hourly rate.
Critically, even if an employee does not work on December 25, the employer is obligated to pay 100 percent of the employee's daily wage. This is a key distinction from the rules for special non-working days.
Understanding Your Rights and Employer Obligations
The release of Labor Advisory No. 17-2025 serves as a timely reminder for both workers and employers in the Philippines. The advisory, signed by DOLE, aims to prevent confusion and ensure proper compensation during the holidays.
Employees are encouraged to understand these rules to ensure they receive the correct holiday pay. Employers, on the other hand, must strictly adhere to these mandated rates to avoid labor violations and disputes. The clear differentiation between a special non-working day (December 24) and a regular holiday (December 25) is crucial for accurate payroll computation.
With these guidelines, Filipino workers can better plan for the holiday season, knowing the financial compensation for their service during these important dates is protected by law.
