Philippines Independence Day: Holiday Pay Rules and Guide for Employers

June 12 is not just a national celebration of freedom. It’s also a regular holiday that comes with important labor and payroll implications. Whether you’re managing a remote team, overseeing shift schedules in retail, or simply confirming if you’re entitled to extra pay, understanding how holiday pay works during Independence Day is essential.

This updated 2025 guide explains your rights and responsibilities under Philippine labor law. It’s designed to help employers ensure compliance and employees understand their entitlements.

Why Is June 12 a Regular Holiday in the Philippines?

June 12 marks the country’s declaration of independence from Spanish colonial rule in 1898. Under Republic Act No. 4166, June 12 was officially declared the Philippine Independence Day, replacing July 4. This is observed nationwide as a regular holiday, which means employees are entitled to specific holiday pay rates under the law.

Regular Holiday vs. Special Non-Working Holiday: What’s the Difference?

Knowing the classification of a holiday is key. Here’s a quick breakdown:

June 12 is a regular holiday, so even if employees don’t work, they are still entitled to full pay.

DOLE Holiday Pay Rules for Independence Day (2025)

1. If the employee does not work on June 12

• Entitlement: 100% of daily wage
  
• Formula: Daily Rate x 100%
  

2. If the employee works on June 12 (first 8 hours)

• Entitlement: 200% of daily wage
  
• Formula: Daily Rate x 200%
  

3. If the employee works overtime on June 12

• Entitlement: Additional 60% of hourly rate on top of 200%
  
• Formula: Hourly Rate x 200% x 60%
  

4. If the employee works on June 12, which also falls on their rest day

• Entitlement: 200% + 60% = 260% of daily wage
  
• Formula: Daily Rate x 260%
  

5. If the employee works overtime on June 12 and it is also their rest day

• Entitlement: Additional 30% of hourly rate on top of 260%
  
• Formula: Hourly Rate x 260% x 130%
  

However, employers should weigh the cost of non-compliance (e.g., labor disputes, low morale) against minimal savings.

Sample Computation (For a Daily Rate of PHP 1,000)

For Employers: How to Stay Compliant on June 12

• Check DOLE Advisories: Always refer to the Department of Labor and Employment’s (DOLE) official holiday pay bulletin for final confirmation.
  
• Review Work Schedules Early: Inform employees in advance who will be on duty.
  
• Use Payroll Tools: Consider software to automate holiday computations.
  
• Communicate Clearly: Include pay breakdowns in payslips to build transparency.

For Employees: Know Your Rights This Independence Day

• Check your payslip to see if holiday rates were applied.
  
• Ask HR how your holiday pay is calculated, especially if you’re on a flexible schedule.
  
• Keep a record of hours worked on holidays.

What If Holiday Pay Isn’t Paid Correctly?

Underpayment or non-payment of holiday pay can lead to:

• Labor complaints to DOLE
  
• Back pay liabilities for employers
  
• Damage to employee trust and morale
  

Frequently Asked Questions (FAQ)

Is June 12 a paid holiday in the Philippines?
Yes. It is a regular holiday, and employees who don’t work are entitled to 100% of their daily rate.

Are part-timers or probationary employees entitled to holiday pay?
Yes, if they have worked at least 1 day in the 30 calendar days before the holiday.

What if the company has a no-work policy on June 12?
Employees must still be paid, unless exempt under specific small business rules.

Do I get more pay if June 12 falls on my rest day?
Yes, you are entitled to 260% of your daily wage if you work that day.

Holiday Payroll Checklist for Employers

BEFORE THE HOLIDAY

1. Confirm Holiday Status

☐ Verify June 12 as a regular holiday via DOLE’s official list.
☐ Update internal holiday calendars and send company-wide announcements.

2. Identify Affected Employees

☐ Who is scheduled to work on June 12?
☐ Who will be on rest day or leave?
☐ Identify exempt employees (e.g., on unpaid leave or in businesses with <10 workers).

3. Review Holiday Pay Rules

DURING THE HOLIDAY

4. Validate Attendance and Overtime

☐ Track clock-ins/outs and approved overtime.
☐ Check if work fell on a rest day or required a shift change.

5. Apply Correct Pay Computations

☐ Ensure accurate formulas in payroll system:

• Work on holiday: Daily Rate x 2
  
• Holiday + Rest Day: Daily Rate x 2 x 1.3 = 260%
  
• Overtime: Hourly rate x applicable OT multiplier
  

AFTER THE HOLIDAY

6. Communicate Pay Details

☐ Share payslips or summaries with breakdowns of holiday pay.
☐ Answer employee queries promptly.

7. Maintain Documentation

☐ Archive time records and payslips for audit.
☐ Ensure data is DOLE-compliant and accessible.

8. Consider Automation

☐ Use a payroll tool or provider (e.g., Penbrothers) to reduce manual errors.
☐ Schedule an audit for other 2025 holidays in advance.

Pro Tip: Stay compliant year-round by creating a holiday pay tracker covering all regular and special holidays, based on DOLE’s annual labor advisory.

Final Thoughts: Celebrate Freedom, Honor Fair Pay

Commemorating Independence Day isn’t just about waving flags. It’s about honoring the labor rights we’ve won and upholding fairness in the workplace. Whether you’re signing off on payroll or clocking in on June 12, knowing the holiday pay rules empowers everyone to do what’s right.

Ensure compliance, avoid legal pitfalls, and build trust with your team because that’s the true spirit of independence. If you’re still unsure about your Independence Day pay rules, you can consider offshore HR experts in the Philippines to help you.