Stop Payroll Mistakes: Your 5-Step Guide to DOLE’s December 2025 Pay Rules

Facing a busy holiday season is stressful enough without the added confusion of complex payroll rules. You're probably wondering what pay rate to use for Christmas Day or how to correctly handle an employee who works on Christmas Eve. Miscalculations on holiday pay can lead to serious compliance issues and employee disputes.

In this comprehensive guide, we'll break down the Department of Labor and Employment's (DOLE) Holiday Pay Rules for December 2025 into simple, actionable steps. We’ll specifically cover the two Regular Holidays and three Special Non-Working Days declared by Proclamation No. 727, Series of 2024, and Labor Advisory No. 17, Series of 2025. By the end, you'll understand exactly how to calculate the correct wages for your employees, empowering you to manage your payroll accurately and efficiently.

The Holiday Schedule

Before diving into the payment rules, it's essential to know which dates fall under which category, as the pay rules are completely different.

DOLE's Pay Rules Explained

1. Understanding Special Non-Working Day Pay Rules

Special Non-Working Days are those declared by the President where work is optional, and the “no work, no pay” principle is generally applied. This means if the employee does not report for work, they are not entitled to receive payment unless a company policy or a collective bargaining agreement grants special pay.

The rules apply to December 8, December 24, and December 31.

In simple terms... If an employee works on Christmas Eve (a special non-working day), their pay rate for that day will be their basic pay plus an extra 30%.

2. Understanding Regular Holiday Pay Rules

Regular Holidays are mandatory paid holidays, meaning employees are generally entitled to their full basic wage even if they don't report to work. This rule applies to December 25 (Christmas Day) and December 30 (Rizal Day).

The main condition for receiving this benefit is that the employee must have reported to work, or been on a leave with pay, on the day immediately preceding the regular holiday. If the day before was a non-working day or a rest day, the employee must report to work, or be on a leave with pay, on the last preceding working day.

Think of it like this... If an employee works on Christmas Day (a regular holiday), their pay rate for the first 8 hours is double their basic pay. If they work overtime, the double rate is then multiplied by an additional 30%.

3. Key Mistakes to Avoid & The 13th-Month Pay Reminder

A common mistake is applying the Regular Holiday rules to the Special Non-Working Days. Remember, a Regular Holiday guarantees 100% pay for a non-working employee, while a Special Non-Working Day generally uses the "no work, no pay" rule.

Don't Forget the 13th-Month Pay!

DOLE has also reminded private employers that the 13th-month pay must be given to employees on or before December 24, 2025. This payment should be at least one-twelfth (1/12) of the employee's total basic salary earned in a calendar year.

Frequently Asked Questions

• How much does working on Christmas Day cost the employer?
  It costs the employer 200% of the employee's basic wage for the first eight hours of work.

• Do I have to pay my employee for December 31 if they don't report for work?
  Generally, no. December 31 is a Special Non-Working Day, which follows the "no work, no pay" principle, unless your company has a policy or a collective bargaining agreement that says otherwise.

• How is the holiday pay calculated if a Regular Holiday falls on an employee's rest day?
  If the employee works on the Regular Holiday that is also their rest day, they must be paid 200% of their basic wage plus an additional 30% of that 200% for the first eight hours.

The holiday season brings unique challenges, but navigating DOLE's mandated pay rules for December 2025 doesn't have to be one of them. By understanding the critical distinction between Regular Holidays (December 25 & 30) and Special Non-Working Days (December 8, 24, & 31), you can ensure every payroll run is compliant and accurate.

You now have a foundational understanding of the correct pay rules for every scenario, from working on Rizal Day to taking a leave on Christmas Eve. Don't let compliance questions create unnecessary risk for your business.

Contact us if you need an expert review of your current holiday payroll policies or assistance in drafting a comprehensive employee handbook for the upcoming year.