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Hours
Holiday premium
Holiday premium is the extra pay for hours worked on a regular holiday or a special non-working day, computed on the correct base and stacked with night differential or overtime when those also apply.
How it works
Regular holiday work is commonly 200% for the first eight hours. Special non-working work is commonly 130%. Rest-day combinations multiply further. Night hours inside 10 p.m.-6 a.m. still take Article 86’s 10% on the applicable hourly base. Payroll software that applies only one premium is underpaying. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.
Example: regular holiday night shift, eight hours all inside the NSD window: 200% then 10% NSD on that rate for those hours - 220% on the ordinary hourly, not 210% added loosely. Confirm the company’s published formula against the Code tables.
How it differs
Rest day premium is the rest-day rule. Overtime is hours beyond eight. NSD is the night window.
Common errors
Paying a flat ₱500 ‘holiday bonus’ instead of the percentage. Skipping premiums for WFH.
In practice
Treat Holiday premium as a week-one operating object. Write the hours and the next Philippine holiday on the same page as the job brief. If this word would change pay or coverage that week, lock it before the interview. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have holiday premium yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.