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COUNT YOUR BLESSINGS: COMPUTE YOUR HOLIDAY PAY!


Source: https://www.alburolaw.com/count-your-blessings-compute-your-regular-and-non-working-holiday-pay

There are two types of public holidays in the Philippines: Regular and Special Non-Working holidays.

Regular holidays are those that usually have a fixed date.  Special Non – Working Holidays, on the other hand, are more flexible. They are either enacted by Congress, or declared by the President.

 

On Regular Holidays, employees are on break but still entitled to get their regular daily wage. Meaning, employees should be expected to receive their full salary for that day. In the event that they are required to work, employers are to pay 200% of their regular rate.

 

ILLUSTRATIONS:

*For purposes of the following illustrations,  let us assume the following facts:

  • regular daily wage =  Php 600.00
  • the Cost of Living Allowance (COLA) = Php 100.oo
  • Hourly Rate (regular day)              = Php 87.50
  • Hours performed beyond 8hours = 4 hours

 

  1. Computation of Holiday pay of an employee who worked for 8 hours:

Holiday Pay  = (Regular daily wage + COLA) x 200%

                         = (Php 600.00 + Php 100.00) x 200 %

                         = (Php 700.00) x 200%

                         =  Php 1, 400.00

  • The employee who has worked for 8 hours within the Holiday is entitled to the amount of Php 1, 400.00
  • The next interesting question is, What if said employee worked for an overtime of four (4) hours? Please refer to the next computation

 

  1. Computation of Holiday Pay of an employee who worked overtime:

If the employee has worked for a total number of 12 hours (8+12) within the Holiday, he should be paid an additional 30% of his hourly rate.

 

Overtime Holiday Pay   = (Hourly rate x Holiday pay x Premium Pay x Total number of hours worked)

                                                                        = (Php 87.50 x 200% x 130% x 12)

                                                                        = (Php 87.50 x 2 x 1.3 x 12)

                                                                        = Php 2, 730.00

  • The employee who has worked for 12 hours during the Holiday is entitled to the amount of Php 2, 730.00
  • Suppose the Holiday falls on the employee’s Rest day?

 

  1. Computation for Holiday Pay (which incidentally, is also the rest day) of an employee who worked for 8 hours

Holiday and Rest day Pay = (Regular daily wage + COLA) x 200% x 130%

                                            = (Php600.00 + Php100.00) x 2 x 1.3

                                            = (Php 700.00) x 2 x 1.3

                                            = Php 1, 820.00

  • The employee who has worked during Holiday which falls on his rest day is entitled to the amount of Php 1, 820.00

 

  1. Computation of Holiday Pay for an employee who has worked for additional 4 hours during his rest day:

Holiday, Rest day, Overtime Pay = (hourly rate x 2 x 1.3 x 1.3 x total number of hours worked)

                                                                                   = (Php 87.5 x 2 x 1.3 x 1.3 x 12)

                                                                                   = Php 3, 549.00

  • The employee who has worked during Holiday which falls on his rest day and rendered an additional four hours is entitled to the amount of Php 3, 549.00

 

  1. Computation of Double Holiday Pay

The first question is, “Is Double Holiday even possible?” The answer is YES! Double Holiday may occur when a movable holiday lands on the same day as a fixed holiday. For example, Maunday Thursday or Good Friday (both are movable regular holidays in the month of April) is the same day as “Araw ng Kagitingan (a fixed regular holiday on the 9th of April)

 

Based on the earlier discussion and examples of this article, you should know by now that an employee is entitled to his regular pay even if he does not work on regular holiday. Thus, in cases of Double Holiday, without reporting for work, the employee is entitled to at least 200% of his regular wage.

    Double Holiday Pay (NOT worked) = (Regular daily wage + COLA) x 200%

                                                                              = (Php 600.00 + Php 100.00) x 2.00

                                                                              = Php 700 x 2.00

                                                                              = Php1, 400.00

  • The employee WHO HAS NOT WORKED on Double Holiday is entitled to receive an amount of at least Php1, 400.00

Double Holiday Pay (WORKED) = (Regular daily wage + COLA) x 300%

                                               = (Php 600.00 + P100.00) x 3.00

                                               = (Php 700.00) x 3. 00

                                                 = Php 2, 100.00

  • The employee WHO HAS WORKED on Double Holiday is entitled to receive an amount of at least Php 2, 100.00

 

Double Holiday and Overtime Pay = (Hourly rate x Holiday Pay x Premium pay x total number of hours worked)

= (Php 87.50 x 300% x 130% x 12)

= (Php 87.50 x 3 x 1.3 x 12)

= Php 4, 095.00

  • The employee who has WORKED for a total number of Twelve hours within the Double Holiday is entitled to an amount of Php 4, 095. 0o

 

Double Holiday and Rest day = (regular daily wage + COLA) x 300% x 130%

                                         = (Php 600.00 + Php 100.00) x 3 x 1.3

                                         = (Php 700.00) x 3 x 1. 3

                                         = Php 2, 730.00

  • The employee who has worked on Double Holiday which falls on his Rest day is entitled to an amount of Php 2, 730.00

 

Double Holiday, Rest day, and Overtime pay = (Hourly Rate x 300% x 130% x 130% x total number of hours worked)

= (Php 87.5 x 3 x 1.3 x 1.3 x 12)

Php 5, 323.50

  • The employee who has WORKED for a total number of 12 hours within a Double Holiday which falls on his rest day is entitled to an amount of Php 5, 323. 50

On Special Non-working Holidays, an employee any pay UNLESS there is a favorable company policy. If the employee has reported for work, he or she will be paid an additional 30% of their regular rate.

ALL RIGHTS RESERVED

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