Holiday Rationalization Act

The measure seeks to reduce the number of annual public holidays in the Philippines from between 21 to 25 days to less than 21 days. House Bill 672, which is the only version of the measure that has been filed in the House, proposes that non-working and special non-working holidays include nine regular non-working holidays and seven selected special holidays that employees can commemorate based on their cultural, religious, and personal preferences. Each local government unit is entitled to one local holiday.

In the Senate, Senator Raffy Tulfo’s version of the measure includes 17 holidays: 12 nationwide holidays and 5 ‘special’ holidays. His bill also proposes to move the observance of national holidays that fall on a weekend to the following Monday to boost tourism and other sectors in the country. As of January 23, 2023, SB 1651 remains at the committee level, and it remains unclear how the bill will progress in the Senate. While the proposal will likely boost local tourism, House Assistant Minority Leader Arlene Brosas noted that it could negatively impact employees who receive salaries on a daily basis because moving the celebration of holidays that fall on a weekend to a weekday “would mean a deduction from their salary.”

PSA notes both the House and Senate bills are similar, with the exception that the Senate bill proposes to move holidays on Saturday and Sunday to Mondays. Meanwhile, the House bill only proposes moving holidays on a Sunday to Monday. Lawmakers note that the move is pursuant to the “principle of holiday economics,” or moving the observance of certain public holidays to a weekday nearest to the weekend so that the public can enjoy three rest days instead of the usual two (Saturday and Sunday).

The excessive holidays in the Philippines recently gained traction in the media as Senator Francis “Chiz” Escudero remarked the Philippines as having “too much holidays.” He clarified, “There is no issue with the existing holidays. The Senate’s stand is not to increase the number of existing holidays because there are too many already. We have no intention of reducing them.” The Philippine Chamber of Commerce and Industry (PCCI) stood in support of Senator Escudero’s statement saying that the abundance of holidays in the country “is detrimental to business and economic health, increasing labor costs and placing a heavier burden on smaller enterprises.”

PSA notes that generally, the Philippines observes regular holidays and special non-working holidays, which entail different remuneration and benefits for certain employees who are sometimes asked to report to work during these days. Regular holidays typically have a fixed date, like December 25th for Christmas Day, or may be celebrated at a specific period, like the last Monday of August for National Heroes’ Day.

Meanwhile, special non-working holidays are usually more flexible than regular holidays and can be enacted by Congress or be declared by the President depending on their discretion. This also includes different holidays observed by each local government, such as the founding day of a particular province and of a city or municipality, which are often celebrated on different occasions. On a separate note, there are also what the Philippine government – particularly during the Duterte administration – refers to as special working days. In 2021, these included days that are typically observed or previously proclaimed as special non-working holidays but were later amended as special working days “to minimize work disruption.”

Nonetheless, the measure is supported by the Joint Foreign Chambers and other business groups in the previous and current Congresses. In a letter to President Ferdinand “Bongbong” Marcos Jr. on July 20, 2022, local and foreign business groups have identified this as a priority measure out of the total 24 bills, and have called for its passage in the 19th Congress. With the slow receipt in both the House and Senate, some business chambers again listed this measure as part of the 21 priority bills endorsed to current President Marcos Jr. before the 3rd State of the Nation Address held last July 22, 2024.

Overall, it remains unclear at this time how the measure will fare during the 19th Congress. As of now, this measure has not been identified by President Marcos and the incoming officials as a priority bill, considering that the administration’s priorities are focused on economic recovery.