Demystifying Offshoring – Public Holidays
Posted 31 May 2018
Philippine Public Holidays… often the source of much confusion and bewilderment from our clients.
‘What’s a regular holiday? What’s a special non-working holiday? How much extra do I pay? Why didn’t I know about that holiday before?’
In reality, the Philippine public holiday system’s pretty easy to understand, as long as you know the basics. Here’s a quick rundown of the two types of public holidays in the Philippines – Regular Holidays and Special Non-Working Holidays – and how they could potentially affect your workforce.
Regular Holidays – regular holidays are public holidays that fall on the same date every year, ie 25 December is Christmas Day, 1 January is New Years Day. The exceptions to this rule are certain religious holidays (Maundy Thursday, Good Friday, Eid’l Fitr, and Eidul Adha) and National Hero’s Day. As a guide, if you have staff working on regular holidays, you’ll be paying them double time rates and up to 2.6x if they do overtime hours.
Special Non-Working Holiday – special non-working holidays are flexible public holidays either passed by Congress or issued as an official decree from the President (sometimes with little notice). They are generally for cultural reasons such as Chinese New Year or the EDSA Revolution Anniversary. It’s not uncommon for the President to give as little as 2-3 days notice for a special non-working holiday. As a guide, if you have staff working on special non-working holidays, you’ll be paying them 1.3x their usual salary with up to 1.69x on overtime hours.
It’s a simple as that. You can find a full list of public holidays on The Republic of Philippines government website – www.gov.ph. If you have an offshore team based in the Philippines be sure to check with your offshoring provider or local government to ensure you understand your responsibilities when staff work public holidays.
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