Many international businesses choose to outsource work to Philippine providers. However, since there are differences in holidays among various countries, confusion may arise if clients and providers don’t align.
Here at StraightArrow, we have two different operating setups when it comes to holidays:
If your company works with team members under the shared support model, you need to be aware of the two types of public holidays in the Philippines: regular holidays and special non-working holidays. Since compensation is different between the two, it’s important to know their differences and to know which type the holiday falls under.
During regular holidays, members of the workforce are on break but are entitled to get their compensation. If they are required to work, employees are to receive 200% of their regular pay for the day. This is what we often call “double pay.”
On special non-working holidays, the workforce will not receive any payment unless there is a favorable company policy. If the employee reports for work, they will be paid an additional 30% of their regular pay, which adds up to 130% for the day.
Kindly note that while some Philippine holidays have fixed dates, others are determined by the calendar (e.g., National Heroes’ Day is observed on the last Monday of August). Therefore, the Philippines has some holidays whose dates change every year.
*Special non-working holiday
The Philippines also observes Islamic holidays: Eid al-Fitr (The End of Ramadan) and Eid al-Adha (The Feast of Sacrifice). The Philippine government issues separate proclamations to declare these Islamic holidays after the National Commission on Muslim Filipinos (NCMF) recommends the dates of these celebrations.
There are other pay rules covering overtime, work during rest days, and more. We recommend that you reach out and check with your outsourcing partner on these policies.
Being located in two different geographical locations inevitably entails many differences—including holidays. To avoid the disruption of day-to-day operations, clients and providers must be transparent with each other about their schedules and holidays to give ample time for planning.
Find out more about outsourcing and how your business can benefit from it. Schedule a free, no-obligation discovery call with us to learn more.
The content of this blog is updated based on relevant dates and information as necessary.
Originally posted by Cza Año on December 31, 2015.
Updated by Jade Albert on January 5, 2024.