Holiday Pay Rules and Exemption, with Sample Computation for Independence Day Holiday June 12, 2021
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Holiday pay should be paid accordingly, particularly the regular holiday.
On 20 July 2020 Proclamation No. 986 was issued, as amended by Proclamation No. 1107, issued on 26 February 2021, declaring, among others, June 12, 2021 (Saturday) as a regular holiday nationwide. See PDF copy of Proclamation No. 986 and Proclamation No. 1107 here.
On 11 June 2021, the Department of Labor and Employment (DOLE) issued a Labor Advisory 12, Series of 2021 providing for rules on the payment of wages for the regular holiday on 12 June 2021.
View the PDF file of the Labor Advisory No. 12, Series of 2021 here (Original file not mine).
Based on said pay rules, here is a sample computation of pay using a fictional scenario:
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 regular holiday 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
Thus, there are two regular holidays to be paid:
- The employee did not work
If the employee in NCR did not work on the regular holiday mentioned, she shall be paid 100% of the wage. 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 employee worked
If the employee worked on the regular holiday he shall be paid and additional 100% 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 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 = PhP67.125
OT work rate 130%
OT work is 2 hours
PhP67.125 x 200% x 130% x 2
PhP134.25 x 130% x 2
PhP174.525 x 2
PhP349.05
Thus:
First 8 hours PhP1,074.00
OT Work of 2 hours PhP 349.05
TOTAL PAY PhP1,423.05
If the 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 he 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 = PhP67.125
OT work rate 130%
OT work is 2 hours
PhP67.125 x 200% x 130% x 130% x 2
PhP134.25 x 130% x 130% x 2
PhP174.525 x 130% x 2
PhP226.8825 x 2
PhP453.765
Thus:
First 8 hours (rest day) PhP 1,396.20
OT Work of 2 hours PhP 453.765
TOTAL PAY PhP1,849.97
Exempted Establishments: Closed or Ceased Operation
Labor Advisory 12, Series of 2021 states that establishments that have totally closed or ceased operation during the community quarantine period are exempted from the payment of the holiday pay on 12 June 2021 under said Advisory.
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