Double Regular Holidays Computation During COVID-19 Lockdown (April 9 and 10, 2020)

Holiday pay should be paid accordingly, particularly the regular holiday. The DOLE usually issues Labor Advisory providing the rules for the pay on regular holidays. For the year 2020, the basis for such issuance will be Proclamation No. 845.

The Presidential Proclamation was issued on November 15, 2019 declaring April 9, 2020 as regular holiday (Araw ng Kagitingan). However, it also falls as Maundy Thursday which is another regular holiday.

When Araw ng Kagitingan falls on the same day as Maundy Thursday or Good Friday, a covered employee is entitled to at least two hundred percent (200%) of his/her daily wage even if said day is unworked. Where the employee is required to work on that day, he/she is entitled to an additional 100% of the daily wage. (See Page 14, DOLE Handbook on Benefits, 2019 Edition).

However, the payout application becomes a bit complicated with the lockdown under Malacañang Memorandum dated March 16, 2020 placing the entire Luzon under Enhanced Community Quarantine (ECQ). This prohibits companies not engaged in the production of non-essential services (related to food and medicine) from opening. Thus, its employees are also prohibited from going out of their houses except to access basic necessities.

With the situation, how should the companies that open and those that temporarily close deal with the mandate of regular holidays on April 9 and 10, 2020?

For purposes of distinguishing the applicable rules, sample employees below shall be classified into “essential employees” (those allowed to work since its employer is engaged in essential services) and “non-essential employees” (those not allowed to work since its employer is not engaged in essential services).

In general, there are two regular holidays to be paid:

For the regular holidays on April 9, 2020

“ESSENTIAL EMPLOYEE”

The “essential employee” did not work

If the “essential employee” in NCR did not work on the two regular holidays mentioned, Araw ng Kagitingan and Maundy Thursday, he shall be paid 200% of the wage. Since the NCR rate will be used, there is no COLA.

Formula:        [(Basic Wage + COLA) X 200%]

Illustration:

PhP537.00 x 200%  = PhP1,074.00

The “essential employee” worked

If the “essential employee” worked on the regular holiday he shall be paid 300% of his wage for that day for the first eight hours of work.

Formula:        [(Basic Wage + COLA) X 300%]

Illustration:

PhP537.00 x 300%          = PhP1,611.00 

If the “essential employee” worked in excess of eight hours or overtime work, he shall be paid additional 30% of his hourly rate on said regular. For instance, he worked for two (2) hours.

Formula:        [(Hourly Rate of the Basic Wage X 300% x 130% x number of hours worked]

Illustration:

PhP537.00 / 8 hours = PhP67.125

OT work rate 130%

OT work is 2 hours

PhP67.125 x 300% x 130% x 2

PhP201.375 x 130% x 2

PhP261.7875 x 2

PhP523.575

Thus:

First 8 hours                                      PhP1,611.00

OT Work of 2 hours                         PhP   523.575

TOTAL PAY                                    PhP2,134.575

If the “essential employee” worked on regular holiday which also falls on his rest day he shall be paid additional 30% of the basic wage of 300%.

Formula:        [(Basic Wage + COLA) 300%] + [30% (Basic Wage x 300%)]

Illustration: (Disregard COLA there being no COLA in NCR)

[PhP537.00 x 300%] + [30% (PhP537.00 x 300%)]

PhP1,611.00 + [30% (PhP1,611.00)]

PhP1,611.00 + PhP483.30

PhP2,094.30 

If the “essential employee” rendered overtime work on a regular holiday which falls also on his rest day, he shall be paid an additional 30% of his hourly rate on said day. For instance, he worked for 2 hours.

Formula:        (Hourly rate of the basic wage x 300% x 130% x 130% x number of hours worked)

Illustration:

PhP537.00 / 8 hours = PhP67.125

OT work rate 130%

OT work is 2 hours

PhP67.125 x 300% x 130% x 130% x 2

PhP201.375 x 130% x 130% x 2

PhP261.7875 x 130% x 2

PhP340.32375 x 2

PhP680.6475

Thus:

First 8 hours (rest day)                    PhP 2,094.30

OT Work of 2 hours                         PhP    680.76475

TOTAL PAY                                     PhP2,775.06

“NON-ESSENTIAL EMPLOYEE”

No pay since the employment relationship is suspended as a result of bona fide suspension of operations.

However, if the “non-essential employee” agreed to charge his home quarantine lockdown against his leave credits and it covers April 9, 2020, he shall be paid as follows:

Formula:        [(Basic Wage + COLA) X 200%]

Illustration:

PhP537.00 x 200%  = PhP1,074.00

He can also be included in the CAMP Benefit of DOLE pursuant to DO 209, Series of 2020 and avail of the PhP5,000.00 lump-sum, non-conditional cash grant.

For the Regular Holiday on April 10, 2020

“ESSENTIAL EMPLOYEE”

The “essential employee” did not work

If the “essential employee” in NCR did not work on April 10, 2020 which is a regular holiday, he shall be paid 100% of the wage only. Since the NCR rate will be used there is no COLA.

Formula:        [(Basic Wage + COLA) X 100%]

Illustration:

PhP537.00 x 100%  = PhP537.00

The “essential employee” worked

If the “essential employee” worked on April 10, 2020 he shall be paid 200% of his wage for that day for the first eight hours.

Formula:        [(Basic Wage + COLA) X 200%]

Illustration:

PhP537.00 x 200%          = PhP1,074.00

If the “essential employee” worked in excess of eight hours or overtime work, he shall be paid additional 30% of his hourly rate on said regular. For instance, he worked for two (2) hours.

Formula:        [(Hourly Rate of the Basic Wage X 200% x 130% x number of hours worked]

Illustration:

PhP537.00 / 8 hours = PhP67.13

OT work rate 130%

OT work is 2 hours

PhP67.13 x 200% x 130% x 2

PhP134.25 x 130% x 2

PhP174.53 x 2

PhP349.06

Thus:

First 8 hours                                      PhP 1,074

OT Work of 2 hours                         PhP349.06

TOTAL PAY                                PhP1,423.06

If the “essential employee” worked on regular holiday which also falls on his rest day he shall be paid additional 30% of the basic wage of 200%.

Formula:        [(Basic Wage + COLA) 200%] + [30% (Basic Wage  x 200%)]

Illustration: (Disregard COLA there being no COLA in NCR)

[PhP537.00 x 200%] + [30% (PhP537.00 x 200%)]

PhP1,074.00 + [30% (PhP1,074.00)]

PhP1,074.00 + PhP322.20

PhP1,396.20

If the “essential employee” rendered overtime work on a regular holiday which falls also on his rest day, he shall be paid an additional 30% of his hourly rate on said day. For instance, he worked for 2 hours.

Formula:        (Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked)

Illustration:

PhP537.00 / 8 hours = PhP67.13

OT work rate 130%

OT work is 2 hours

PhP67.13 x 200% x 130% x 130% x 2

PhP134.26 x 130% x 130% x 2

PhP174.538 x 130% x 2

PhP226.90 x 2

PhP453.80

Thus:

First 8 hours (rest day)                    PhP 1,396.20

OT Work of 2 hours                         PhP   453.80

TOTAL PAY                                     PhP1,850.00

“NON-ESSENTIAL EMPLOYEE”

No pay since the employment relationship is suspended as a result of bona fide suspension of operations.

However, if the “non-essential employee” agreed to charge his home quarantine lockdown against his leave credits and it covers April 10, 2020, he shall be paid as follows:

Formula:        [(Basic Wage + COLA) X 100%]

Illustration:

PhP537.00 x 100%  = PhP537.00

He can also be included in the CAMP Benefit of DOLE pursuant to DO 209, Series of 2020 and avail of the PhP5,000.00 lump-sum, non-conditional cash grant.