Holiday Pay Sample Computation for Black Saturday 2021

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Black Saturday Day is not one of the special days provided under R.A. 9492 which amended Section 26, Chapter 7, Book 1 of Executive Order No. 292, as amended, otherwise known as the Administrative Code of 1987.

However, on 20 July 2020, Proclamation No. 986 was issued providing for the celebration of Black Saturday as a special non-working holiday, although it falls on a Saturday. Further, Proclamation No. 986 was amended by  Proclamation No. 1107 on 26 February 2021 reiterating the same declaration.

View the PDF copies of Proclamation No. 986 and 1017 here (original files not mine).

On 29 March 2021, the Department of Labor and Employment (DOLE) issued Labor Advisory (LA) 4, Series of 2021 providing rules for payment of wages on Black Saturday falling on 3 April 2021, among others.

View the PDF copies of Labor Advisory 4, Series of 2021 here (original file not mine). Thus, based on said issuances, below is a sample illustration of the computation for the pay on said special day:

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 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

The DOLE stated in its labor advisory that due to the existence of a national emergency arising from the COVID-19 situation establishments that have totally closed or ceased operation during the community quarantine period are exempted from the payment of the holiday pay on 1 and 2 April 2021.