Holiday Pay Rules with Sample Computation for Eid’l Adha Regular Holiday per Labor Advisory 25, Series of 2020

Holiday pay should be paid accordingly, particularly the regular holiday.

On November 15, 2019 Presidential Proclamation No. 845 declared, among others, Eid’l Adha as a national holiday.

Section 2 of R.A. 9849 amended Section 26, Chapter 7, Book I of Executive Order No. 292, otherwise known as “The Administrative Code of 1987”, as amended including Eidul Adha among the Regular Holidays. It is considered as a movable date.

Under Proclamation No. 845, the proclamations declaring national holidays for the observance of Eid’l Adha shall be issued after the approximate dates of the Islamic holidays have been determined in accordance with the Islamic calendar (Hijra) or the lunar calendar, or upon Islamic astronomical calculations, whichever is possible or convenient. To such end, the National Commission on Muslim Filipinos (NCMF) is tasked to inform the Office of the President of the actual dates on which these holidays shall respectively fall.

The tenth day of Zhul Hijja, the twelfth month of the Islamic Calendar, was hereby declared as a national holiday for the observance of Eidul Adha. Eidul Adha is a tenth day in the month of Hajj or Islamic Pilgrimage to Mecca wherein Mulims pay homage to Abraham’s supreme act of sacrifice and signifies mankind’s obedience to God.

View the PDF File of Proclamation No. 845 here.

On July 29, 2020, Proclamation No. 985 was issued declaring July 31, 2020 as a national holiday in observance of Eidul Adha based on the recommendation of the NCMF. View the PDF of Proclamation No. 985 here.

On July 30, 2020, the Department of Labor and Employment (DOLE) issued Proclamation No. 25, Series of 2020 providing pay rules for July 31, 2020 Eidul Adha regular holiday. See the PDF version at the bottom of this post.

Based on pay rules for regular holidays, 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, the regular holiday to be paid based on circumstances is as follows:

1. 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

1. 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

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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 25, 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 July 31, 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.

See the PDF Version of Labor Advisory 25, Series of 2020 below: