Double Pay? Holiday Pay Computation for Maundy Thursday & Good Friday

Maundy Thursday and Good Friday are recognized as regular holidays in the Philippines, entitling employees to specific holiday pay benefits. Employees who report to work on these days must receive double pay, while those who take the day off still qualify for their regular daily wage.

However, errors in payroll computation are common, leading to potential non-compliance with labor laws. This guide explains how to compute holiday premium pay correctly based on Department of Labor and Employment (DOLE) guidelines to ensure accurate compensation.

Regular Holidays vs. Special Non-Working Holidays

Holidays in the Philippines fall under two main types.

• Regular Holidays: Employees receive 100% of their daily wage even if they do not work and 200% (double pay) if they do.
• Special Non-Working Holidays: The “no work, no pay” rule applies unless a company policy states otherwise. Employees who work receive 130% of their daily wage.

Maundy Thursday and Good Friday are regular holidays, which means the double pay rule applies to those who work on these days.

Related: If you want to know if you’re getting fair salaries, check out the Penbrothers Philippines Salary Guide 2025.

Holiday Computation for Pay on Maundy Thursday & Good Friday

Computation varies depending on whether an employee works or takes the day off. Below are the standard DOLE formulas.

Scenario 1: Employee Does Not Work on a Regular Holiday

Formula:
Daily Rate × 100%

Example:

• Daily rate: 1,000
• Computation: 1,000 × 100% = 1,000 (paid even without working)

Scenario 2: Employee Works on a Regular Holiday (Double Pay Rule)

Formula:
Daily Rate × 200%

Example:

• Daily rate: 1,000
• Computation: 1,000 × 200% = 2,000

Scenario 3: Employee Works Overtime on a Regular Holiday

Formula:
(Hourly Rate × 200%) + (Hourly Rate × 60% Overtime Premium × Overtime Hours)

Example:

• Daily rate: 1,000
• Hourly rate: 1,000 ÷ 8 = 125
• Overtime pay for two extra hours:
  • Regular holiday premium: 2,000
  • Overtime pay: 125 × 160% × 2 = 400
  • Total pay: 2,400

Pay Rules for Different Work Setups

This computation varies depending on employment status and work setup.

Full-Time Employees:

Employees must meet DOLE requirements, such as working the day before the holiday.

Night Shift and Overtime Workers:

• Employees working at night (10 PM – 6 AM) receive an additional 20% night differential on top of said pay.
• Overtime workers earn an additional 60% premium pay.

Work-From-Home Employees:

Remote employees are entitled to holiday premiums if covered under a standard employment contract.

Common Mistakes in Computation & How to Avoid Them

Payroll errors related to holiday premiums can result in non-compliance with labor laws. Common mistakes include:

• Incorrect double pay computation: Some businesses fail to apply the full 200 percent for employees working on a regular holiday.
• Overlooking overtime and night differential: Employees working beyond regular hours must receive both holiday premium and overtime pay.
• Non-compliance with DOLE regulations: Employers failing to provide mandatory holiday premiums may face penalties.

Related: How to compute your income tax

How to Avoid Payroll Errors:

• Use payroll automation software to eliminate miscalculations.
• Conduct regular payroll audits to ensure compliance with labor laws.
• Stay updated with DOLE advisories regarding holiday payroll policies.

Employer Compliance & DOLE Guidelines

Employers must ensure that holiday payroll is computed accurately and disbursed on time. DOLE mandates that businesses:

• Provide holiday payroll to all eligible employees.
• Follow the correct payroll schedule as per labor laws.
• Maintain payroll records for transparency and compliance audits.

Failure to comply with DOLE regulations may result in fines and legal consequences. Employers should refer to the latest DOLE guidelines for complete compliance details.

Conclusion: Ensuring Accurate Payroll for Holiday Work

Proper holiday payroll computation is essential for both employees and employers. Ensuring accuracy helps businesses remain compliant while providing employees with fair compensation.

Key takeaways:

• Maundy Thursday and Good Friday are regular holidays with double pay for employees who work.
• Payroll errors in holiday payroll can lead to legal penalties and employee dissatisfaction.
• DOLE compliance is necessary for smooth payroll processing and labor law adherence.

Stay Compliant & Check Your Holiday Pay

For Employees:
Review your payslips to confirm that the holiday payroll is correctly applied. If discrepancies arise, consult your HR department.

For Employers:
Ensure compliance with DOLE regulations by using automated payroll systems or consulting payroll specialists.

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By ensuring accurate holiday payroll computation, both employees and businesses can maintain a fair, transparent, and legally compliant payroll system.