SEFJBTE 
j i i i C ~  
OF THE SECRETARY 
THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
) 
s NOV 21 Ai: 3 2  
Second Regular Session 
) 
S. Bill No. 2167 
INTRODUCED BY HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
This bill seeks to provide consistency and predictability in the schedule of observance 
of Philippine legal holidays and order in the current government practice of holiday 
economics, i.e., the adjustment of observance dates of national holidays to give way to longer 
weekends to encourage domestic tourism. 
Tourism, along with transportation and telecommunications, is a ‘sunrise industry’ 
because this is an industry where the Philippines can harness its competitive advantage. As a 
service industry, tourism is lumped in the government’s economic accounts under services, 
which is one of the most promising economic sectors. Tourism also has indirect linkages 
with other industries such as hotels and other lodging services, food and beverage, cultural 
services, recreational and other entertainment, passenger transport, utilities, and 
telecommunication. 
Global travel and tourism is expected to generate $58.5 trillion in global activity by 
2010 and could generate 252 million jobs, according to worldwide industry estimates. 
According to a study conducted by the National Statistical Coordination Board (NSCB), if 
consumptions in tourism-related industries increased by 10% as a result of extended 
weekendsholidays, the country could actually experience a 3.5% growth in the level of 
Gross Domestic Product (GDP). The NSCB likewise reported that if consumption in 
tourism-related industries increased by 10% due to holiday economics, consumer spending 
would grow by 4.9%, and the growth levels of trade and food manufacturers would likely 
expand by 8.8% and 5.5%, respectively. 
In the Philippines, there are 15 legal holidays declared to be non-working days for 
both public and private sector. To promote domestic tourism, holiday economics was 
introduced in 2001. Legal holidays have been moved from the actual date Tied by law for its 
observance to dates that would promote longer weekends. While the intent of holiday 
economics have yielded positive results, the business sector has expressed concern on the 
unpredictability of the dates set for the actual observance of legal holidays. 
The discretion exercised in moving the actual observance of legal holidays to days 
that would create longer weekends has given way to last-minute holidays. Workers and 
employees are confused on whether or not to report for work; employers, whether or not to * 
apply the regular rate or the holiday rate in paying the compensation of their daily-wage 
workers. In the end, erratic declaration of the actual observance of a non-working day 


prevents the planning of long weekends to give way to local tourism while prejudicing the 
productivity of certain industries. 
This bill seeks to remedy such confusion by providing a standard schedule for 
observing non-working holidays. By providing predictability and consistency in holiday 
economics, the promotion of local tourism and careful consideration of the unique 
requirements of businesses and industries can be harmonized. 
In view of the foregoing, approval of this bill is earnestly requested. 
Senator 


SNATE 
i t  i 
>it 
ciE SHE SECRETARY 
THIRTEENTH CONGRESS OF 
THE REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
INTRODUCED BY HONORABLE MAR ROXAS 
AN ACT PROVIDING PREDICTABILITY IN HUNG THE OBSERVANCE OF LEGAL 
HOLIDAYS TO PROMOTE DOMESTIC TOURISM AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House OfRepresentatives of the Philippines in Congress 
Assem bled: 
Section 1. Title. -This Act shall be known as the “HoIidyAcr of 2005.’’ 
Section 2. Declaration of Policy. - It is hereby declared the policy of the state to 
promote domestic tourism as tool for attaining sustainable economic growth. 
Section 3. Coverage. - (A) This Act shall apply to all regular holidays and special days 
under Section 26, Chapter 7 of Executive Order No. 292, otherwise known as the 
Administrative Code of 1987, except the following: 
(1) 
Movable dates 
(a) Maundy Thursday 
(b) Good Friday 
(c) Eid‘lFitr 
(2) 
Fixed dates 
(a) New Year’s Day 
(b) Independence Day 
June 12 
(c) All Saints’ Day 
(d) Christmas Day 
December 25 
(e) Rizal Day 
December 30 
(f) Last day of the year 
December 31 
January 1 
November 1 
If the fixed-date holidays enumerated in subparagraph 2 falls on a Saturday or 
Sunday, the immediately preceding Friday shall also be a holiday. 
(B) This Act shall likewise apply to any other legal non-working holiday, except Black 
Saturday and Easter Sunday. 


Section 4. Workers or Employees Covered. - All public and private employees are 
covered by this Act. 
Section 5. Fixing of Non-Working Day. - For purposes of this Act, the day to be 
declared as non-working day in accordance with the celebration of the following legal 
holidays shall be: 
(1) EDSA People Power Revolution 
(2) Araw ng Kagitingan 
(3) Labor Day 
(4) Ninoy Aquino Day 
(5) National Heroes Day 
(6) Bonifacio Day 
Last Monday of February 
First Friday of April 
First Monday of May 
Third Monday of August 
Last Friday of August 
Last Monday of November 
Section 6. Local Holidays. - For local special days, the nearest Friday to it shall he 
assigned as the non-working day; Provided that the declaration by the provincial, city or 
municipal government is supported by an ordinance from the sanggunian. 
Section 7. Rules for Computing Compensation. - For the purpose of laws relating to 
labor standards governing public and private workers or employees, holiday pay shall be 
computed based on the work done on the date of actual observance of the non-working day. 
For a worker or an employee whose basic workweek is other than Monday through 
Friday, if the holiday falls on his or her scheduled rest day, the worker is entitled to have the 
rest day on the immediately succeeding workday; Provided, that the worker or employee 
required to work on such immediately succeeding workday shall be entitled to additional 
compensation as if such worker or employee worked on his scheduled rest day. 
Section 8. Separability Clause. - Any portion or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions and 
provisions hereof as long as such remaining portion or provision can still subsist and be given 
effect in their entirety. 
Section 9. Repealing Clause. -All other laws, decrees, executive orders, proclamations 
and administrative regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
Section 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national papers of general circulation. 
Approved.