Holiday Pay and Overtime Pay Computation Using the NCR Minimum Wage of P537

Holiday Pay and Overtime Pay Computation Using the NCR Minimum Wage of P537

Holiday pay is one of benefits which every employee anticipates during the month of December. There are regular holidays and special days in this month.

December 8 is a special non-working holiday. December 25, Christmas Day, is a regular holiday, while December 30 is also a regular holiday being Rizal Day and December 31 is a special holiday being the end of the year.

Seeming like luck favored the employees in NCR, effective November 22, 2018, Wage Order No. NCR-22 raised the minimum wage to P537 from the previous P512. The increase in the minimum wage impacts on the basic, overtime, and premium pay in the sense that it increases both the hourly and daily rate based benefits.

For this post, sample computations using the new rate will be used to illustrate the pay for the holidays and overtime work.

The Labor Code of the Philippines 2018 Edition (Re-numbered and Updated)

Let us say X works in Makati as a minimum wage earner with a shift of 8:00 a.m. to 5:00 p.m. He worked during the holidays mentioned above and rendered overtime of two hours in each of said days. Thus, his pay will be as follows:

Basic Daily Wage                            –           P537.00

Hourly equivalent                             –           P67.13

Special Day Rates

Basic Daily Wage                            –           P698.10

Premium Hourly rate                      –           P87.26

Overtime rate                                    –           P113.44

Regular Holiday Rates

Basic Daily Wage                            –           P1,074.00

Premium Hourly rate                      –           P134.25

Overtime Rate                                  –           P174.53

DECEMBER 8 – FEAST OF THE IMMACULATE CONCEPTION

Day’s Basic Wage                           –           P698.10

OT work (2 hours)                           –           P226.88

Total Pay                                           –           P924.98

DECEMBER 25 – CHRISTMAS DAY

Day’s Basic Wage                           –           P1,074.00

OT work (2 hours)                           –           P349.05

Total Pay                                           –           P1,423.05

DECEMBER 25 – RIZAL DAY

Day’s Basic Wage                           –           P1,074.00

OT work (2 hours)                           –           P349.05

Total Pay                                           –           P1,423.05

DECEMBER 31 – END OF THE YEAR

Day’s Basic Wage                           –           P698.10

OT work (2 hours)                           –           P226.88

Total Pay                                           –           P924.98

Master the rules and principles related to labor laws: Avail of the Discounted HR Book Bundle

See related video by Atty. Elvin discussing premium and overtime:

 

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