The Department of Labor and Employment (DOLE) has officially released the guidelines for holiday pay applicable to employees who will be working during the upcoming Christmas celebrations in 2025. This announcement provides clear instructions for compensation on both December 24 and December 25, ensuring workers are fairly paid for their service during the holidays.
Understanding the Pay Rules for December 24
According to Labor Advisory No. 17-2025, December 24, 2025, which is declared a special non-working day under Proclamation No. 727 (2024), comes with specific pay rules. Employees who report for work on Christmas Eve are entitled to receive an additional 30 percent of their basic wage for the first eight hours of work.
If an employee works overtime on that day, the pay calculation includes an extra 30 percent of their hourly rate on top of the overtime pay. A different rate applies if the special non-working day coincides with the employee's scheduled rest day. In such cases, the pay for the first eight hours is an additional 50 percent of the basic wage, with overtime also paid at an additional 30 percent of the hourly rate.
The advisory reiterates that the "no work, no pay" principle generally applies if an employee does not work on December 24. However, payment may still be granted if stipulated by an existing company policy, a long-standing practice, or a collective bargaining agreement (CBA).
Christmas Day Pay: A Regular Holiday
December 25, 2025, remains a regular holiday. The compensation for working on this day is significantly higher. Employees must be paid 200 percent of their basic wage for the first eight hours of work rendered on Christmas Day.
Overtime work on this regular holiday commands an additional 30 percent of the hourly rate. Should the regular holiday fall on an employee's rest day, the pay rate increases further. The employer is required to pay an additional 30 percent of the basic wage, calculated on the 200 percent holiday rate, for the first eight hours, plus the standard overtime premium.
Crucially, even if an employee does not work on December 25, the law mandates that the employer must still pay 100 percent of the employee's daily wage. This provision protects workers' income during this important regular holiday.
Key Implications for Employers and Employees
The release of DOLE's Labor Advisory No. 17-2025 serves as a timely reminder for both businesses and the workforce. For employers, compliance is mandatory to avoid legal disputes and penalties. They should review their payroll systems to ensure correct computation for the upcoming holidays.
For employees, particularly those in retail, healthcare, hospitality, and essential services, understanding these holiday pay rules is crucial for asserting their rights. Workers are encouraged to keep track of their hours and verify their holiday pay in their upcoming salary statements.
By clarifying the pay structures for December 24 (special non-working day) and December 25 (regular holiday), DOLE aims to prevent confusion and promote harmonious labor relations during the festive season, ensuring that the spirit of Christmas is reflected in fair compensation for those on duty.
