August 2026 DOLE Holiday Pay Rules

The Department of Labor and Employment (DOLE) has officially issued Labor Advisory No. 13, Series of 2026, which outlines the mandatory payment of wages for the two significant holidays occurring in August 2026. All private sector employers and employees across the Philippines must be guided by these directives to ensure accurate payroll processing and fair compensation.

This advisory provides the specific computations for the upcoming Special Non-Working Day on August 21, 2026, commemorating Ninoy Aquino Day, as well as the Regular Holiday on August 31, 2026, in observance of National Heroes Day. It is crucial for human resource departments, payroll officers, and business owners to strictly implement these statutory formulas to maintain compliance with Philippine labor standards.

Below is the detailed breakdown of the official wage guidelines based on the latest DOLE advisory.

Guidelines for August 21, 2026: Ninoy Aquino Day (Special Non-Working Day)

Because August 21 is declared a Special Non-Working Day, the primary rule that applies is the no work, no pay principle. However, if an employee is required to report for duty, they are entitled to premium pay.

For unworked days: If the employee does not report for work, the no work, no pay principle shall apply. This is the standard rule unless there is a favorable company policy, practice, or an existing collective bargaining agreement granting payment on a special non-working day.
For work performed during the first eight hours: The employer shall pay the employee an additional 30 percent of their basic wage. The formula used is Basic Wage x 130 percent.
For work performed in excess of eight hours (overtime): The employer shall pay the employee an additional 30 percent of the hourly rate on the said day. The formula is Hourly rate of the basic wage x 130 percent x 130 percent x number of hours worked.
For work performed on a rest day: If the special day also falls on the scheduled rest day of the employee, the employer shall pay an additional 50 percent of the basic wage for the first eight hours of work. The formula is Basic Wage x 150 percent.
For overtime work on a rest day: For work in excess of eight hours during a special day that also falls on the rest day, the employer shall pay an additional 30 percent of the hourly rate. The formula is Hourly rate of the basic wage x 150 percent x 130 percent x number of hours worked.

Sample Computation for August 21

Assuming an employee earns a daily basic wage of Php 800.00 (equivalent to Php 100.00 per hour):

Working 8 hours on a regular schedule: Php 800.00 x 1.30 = Php 1,040.00
Working 10 hours on a regular schedule: Php 1,040.00 + (Php 100.00 x 1.30 x 1.30 x 2 hours) = Php 1,378.00
Working 8 hours on a scheduled rest day: Php 800.00 x 1.50 = Php 1,200.00

Guidelines for August 31, 2026: National Heroes Day (Regular Holiday)

August 31 is a Regular Holiday, which means employees are entitled to receive their basic daily wage even if they do not report to work, provided they meet specific eligibility conditions.

For unworked days: If the employee does not work, the employer shall pay 100 percent of the wage for that day. The employee must have reported to work or been on leave of absence with pay on the day immediately preceding the regular holiday to be eligible. If the preceding day is a non-working day or rest day, the employee is entitled to holiday pay if they worked or were on paid leave on the day immediately preceding the non-working day or rest day. The formula is Basic Wage x 100 percent.
For work performed during the first eight hours: The employer shall pay a total of 200 percent of the wage of the employee for that day. The formula is Basic wage x 200 percent.
For work performed in excess of eight hours (overtime): The employer shall pay the employee an additional 30 percent of the hourly rate on the said day. The formula is Hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked.
For work performed on a rest day: If the regular holiday falls on the rest day of the employee, the employer shall pay the employee an additional 30 percent of the basic wage of 200 percent. The formula is Basic wage x 200 percent x 130 percent.
For overtime work on a rest day: For work in excess of eight hours during a regular holiday that also falls on the rest day, the employer shall pay an additional 30 percent of the hourly rate. The formula is Hourly rate of the basic wage x 200 percent x 130 percent x 130 percent x number of hours worked.

Sample Computation for August 31

Assuming the same daily basic wage of Php 800.00 (equivalent to Php 100.00 per hour):

Unworked but eligible: Php 800.00 x 1.00 = Php 800.00
Working 8 hours on a regular schedule: Php 800.00 x 2.00 = Php 1,600.00
Working 10 hours on a regular schedule: Php 1,600.00 + (Php 100.00 x 2.00 x 1.30 x 2 hours) = Php 2,120.00
Working 8 hours on a scheduled rest day: Php 800.00 x 2.00 x 1.30 = Php 2,080.00
Working 10 hours on a scheduled rest day: Php 2,080.00 + (Php 100.00 x 2.00 x 1.30 x 1.30 x 2 hours) = Php 2,756.00

By strictly adhering to Labor Advisory No. 13, Series of 2026, companies can ensure a fair and lawful compensation process for all their workers during the national holidays this August. Careful monitoring of employee schedules, especially regarding rest days and overtime hours, is highly recommended to compute the correct final pay structures.