Holiday Pay Computation for Special Days in December 2020
Special days under R.A. 9492 include the last day of the year obviously falling on December 31. On December 28, 2017, R.A. 10966 was declared as a special non-working holiday in the entire country to commemorate the Feast of Immaculate Concepcion of Mary.
Presidential Proclamation No. 845 declared December 24, 2020 as additional special non-working days throughout the country intended to strengthen family ties by providing more time for the traditional Christmas Day commemorative activities, and will provide domestic tourism as well.
Now, during these December special days employees have to get paid if they work under certain situation. In all, HR practitioners should be ready with the computation on the following days:
- December 8, 2020
- December 24, 2020
- December 31, 2020
Since these dates belong to the same category which is special days, they should be computed under the same rules. Note that special days follow the no-work, no-pay rule, unlike the regular holiday where the employee is entitled to 100% of the pay even if he did not work.
Now, the rules on the payment of special days are as follows:
For instance, Ms. Julie Henderson is a Waitress of Murana Marumifa Foodhouse located in NCR with at least twenty employees. She receives minimum wage for her pay. For instance, she worked on the said special day and even rendered an overtime of two (2) hours. How should her pay be computed?
In the example provided below, the COLA will be disregarded since the NCR minimum wage based on Wage Order No. 22 has no more COLA.
Thus:
Daily Wage – PhP537.00
Hourly Equivalent – PhP 67.125
The basic principle here is that if the employee did not work, the “no-work, no-pay” principle shall apply
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unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day.
Rule A:
For work done during the special day, the employee shall be paid an additional 30% of the basic wage on the first eight hours of work.
Formula: [(Basic wage x 130%) + COLA]
Sample Computation:
Special Day Pay = [(PhP537 x 130%) + 0.00]
[(PhP698.10) + 0.00]
PhP698.10
Rule B:
For work done in excess of eight hours (overtime work), the employee shall be paid an additional 30% of the hourly rate on said day
Formula: (Hourly rate of the basic wage x 130% x 130% x number of hours worked)
Sample Computation:
Overtime Pay = (PhP67.125 x 130% x 130% x 2 hours of OT)
(PhP87.2626 x 130% x 2 hours of OT)
(PhP113.44125 x 2 hours of OT)
PhP226.88
Rule C:
For work done during a special day that also falls on the employee’s rest day, he shall be paid an additional 50% of the basic wage on the first eight hours of work
Formula: [(Basic wage x 150%) + COLA]
Sample Computation:
Special Day Pay = [(PhP537 x 150%) + 0.00]
[(PhP805.50) + 0.00]
PhP805.50
Rule D:
For work done in excess of eight hours (overtime work) during the special day that also falls on the employee’s rest day, he shall be paid an additional 30% of the hourly rate on said day
Formula: (Hourly rate of the basic wage x 150% x 130% x number of hours worked)
Sample Computation:
Overtime Pay = (PhP67.125 x 150% x 130% x 2 OT hours)
(PhP100.6875 x 130% x 2 OT hours)
(PhP130.9375 x 2 OT hours)
PhP261.79
Thus, total pay for the day based on different rules:
Under Rule A and Rule B (Work on Special Day with OT on such Day):
Basic Daily Wage + OT of 2 Hours
PhP698.10 + PhP226.88 = PhP924.98
Under Rule C and Rule D (Work on Special Day Falling on Rest Day with OT on such Day):
Basic Daily Wage + OT of 2 Hours
PhP805.50 + PhP261.79 = PhP1,067.29
Earlier this year 2020, Labor Advisories were issued stating that employers are allowed to defer payment of holiday pay until such time that the present emergency situation has been abated and the normal operations of the establishment is in place.
The DOLE states that for establishments that have totally closed or ceased operation during the community quarantine they are exempted from the payment of the holiday pay under said Advisories.
These advisories are Labor Advisory 15, Series of 2020, Holiday pay for May 1, 2020; Labor Advisory 20, Series of 2020, Regular holiday pay for May 25, 2020 in observance of Eid’l Fitr (Feast of Ramadhan); Labor Advisory 22, Series of 2020, Regular Holiday Pay for June 12, 2020; Labor Advisory 25, Series of 2020, Regular holiday pay on July 31, 2020 in Observance of Eid’l Adha (Feast of Sacrifice); and Labor Advisory 27, Series of 2020, Payment of wages for the special non-working day on August 21, 2020 and Regular Holiday on August 31, 2020.
Recently, the DOLE issued Labor Advisory 31, Series of 2020 requiring employers who were allowed to defer payment of the holiday pay of their employees to pay all covered employees of the deferred holiday pay equivalent to 100% of their daily wage.
Covered employers shall pay the qualified employees the deferred holiday pay on or before 31 December 2020.
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