Philippine Holidays And Holiday Pay: What Employers Should Know

Key Takeaways

• The Philippines observes regular holidays and special non-working days, plus local holidays, adding up to well over a dozen a year.

• Philippine labor law sets premium pay rates for employees who work on holidays. Contractors follow their agreement instead.

• Decide in writing which holidays your remote staff observe: Philippine, US, or a blend.

• Plan coverage for the days that matter and be generous with the rest. It costs little and builds loyalty.

Two Types Of Holidays

The Philippines distinguishes between regular holidays, such as New Year's Day, Labor Day, Independence Day, and Christmas Day, and special non-working days, such as certain religious and commemorative dates. The government publishes the list each year, and some dates move. There are also local holidays by city or province. In total, staff in the Philippines see considerably more public holidays than US staff.

How Holiday Pay Works For Employees

Under Philippine labor law, employees are generally paid for regular holidays even if they do not work, and receive premium rates if they do work. Special non-working days follow a different rule, with premium pay for work performed and typically no pay if not worked, unless company policy says otherwise. The exact percentages are set by the Department of Labor and Employment and are worth confirming each year with your employer of record if you employ staff locally.

What Applies To Contractors

Most small US businesses engage Philippine staff as independent contractors. Holiday pay law applies to employees, so for contractors the agreement governs. The fair, common practice is to agree a fixed set of paid holidays in the contract. Read what to include in contracts.

Choosing Which Holidays To Observe

• Philippine holidays only: simplest for the worker, but leaves you uncovered on days your business is open.

• US holidays only: matches your calendar, but asks the worker to work on days their family and community are off.

• A blend: the major Philippine holidays plus US holidays when your business closes. This is the most common and works well.

Write the list into the agreement and revisit it each January when the official dates are published. Our guide on holidays and time off for global teams has a template.

Planning Coverage

For roles where coverage matters, such as customer support, plan ahead. Ask staff to note which holidays they want off, arrange cover between team members or with a colleague in Latin America, and offer premium pay for working a holiday rather than assuming it. Christmas and New Year are the most important family dates in the Philippines. Be generous there.

The Practical Approach

Pay for a reasonable set of holidays, be clear about which ones, offer a premium for working them, and never surprise anyone. The cost is small. The loyalty it builds is not. See our guide on hiring in the Philippines for the rest of the setup, and how we help with the details.

What This Looks Like In Practice

A US e-commerce brand with three support reps in the Philippines is surprised when all three are off on a Monday it did not know was a holiday. Customers wait a day for replies. The owner realizes the agreements never mentioned holidays at all.

They fix it by writing a blended list: the major Philippine regular holidays, plus US Thanksgiving and Christmas week when the brand slows. For any other Philippine holiday, at least one rep works at a premium rate, chosen by rotation. The list goes into every agreement and gets reviewed each January. The team appreciates the clarity and the premium. The brand never has an uncovered day again, and the reps say it is the first client that has ever been organized about it.

A Quick Checklist Before You Start

• The current official Philippine holiday list for the year.

• A decision on Philippine, US, or blended holidays.

• The list written into the contractor agreement or employer-of-record terms.

• A premium rate for working a holiday.

• A coverage rota for roles where it matters.

• A calendar reminder each January to update the list.

Clarity about holidays is one of the cheapest ways to keep a Philippine team happy.

Questions Owners Ask

How Many Paid Holidays Should I Offer A Philippine Contractor?

Ten to fifteen is common, blending the major Philippine dates with US dates when your business closes. Write the list into the agreement.

Do Philippine Holidays Move Each Year?

Some do, and the government also declares additional special days at short notice. Check the official list every January and stay flexible.

What If I Need Coverage On A Philippine Holiday?

Ask in advance, offer premium pay, and arrange cover with another team member or a colleague in a different region.