Holiday Pay Rules, Deferment, Exemption, with Sample Computation for Independence Day Holiday June 12, 2020 with PDF
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Holiday pay should be paid accordingly, particularly the regular holiday.
On November 15, 2019 Presidential Proclamation No. 845 declared, among others, June 12, 2020 (Friday) as a regular holiday nationwide. See PDF copy of Proclamation 845 here.
On June 10, 2020, the Department of Labor and Employment (DOLE) issued a Labor Advisory providing for rules on the payment of wages for the regular holiday on June 12, 2020.
View the PDF file of the Labor Advisory No. 22, Series of 2020 here.
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 PhP2,775.065
Deferred Payment due to COVID-19 Pandemic
Labor Advisory 22, Series of 2020 provides that in view of the existence of a national emergency arising from the Coronavirus Disease 2019 (COVID-19) situation, employers are allowed to defer payment of the holiday pay on June 12, 2020, until such time that the present emergency situation has been abated and the normal operations of the establishment is in place.
Exempted Establishments: Closed or Ceased Operation
Further, it states that establishments that have totally closed or ceased operation during the community quarantine period are exempted from the payment of the holiday pay under this Advisory.
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