HOW TO COMPUTE PAY IF REGULAR HOLIDAY COINCIDES WITH SPECIAL DAY

HOW TO COMPUTE PAY IF REGULAR HOLIDAY COINCIDES WITH SPECIAL DAY

How to compute pay if the employee works on a day falling as Eid’l Adha, a regular holiday, and also a special day?

The President issued Proclamation No. 556 declaring August 21, 2018 a regular holiday.

Of course, August 21, 2018 is also a special day. The rules on payment of wages on a regular holiday pay states that:

Status                        Pay

Unworked                100%

Worked                     200%

On the other hand, the rules on special day are as follows:

Status                        Pay

Unworked                none

Worked                     130%

How should pay be computed if both holidays fused in one day?

The proper way to compute the pay is as follows:

Assuming that Anne S. Ayasaya is an NCR employee receiving minimum wage. At present, the minimum wage in NCR is PhP512.00 consisting of PhP502 Basic Wage and PhP10.00 COLA.

How much should Anne receive on August 21, 2018 under different scenarios?

Get a copy of the updated and revised Labor Code 2018 Edition by Atty. Villanueva 

Scenario A:   Anne did not work on August 21

Rule:                          100% of the MW

Formula:                   [(Daily Rate + COLA) x 100%]

Computation:          [(PhP502.00 + PhP10.00) x 100%]

[PhP512.00 x 100%]

PhP512.00

Pay:                         PhP512.00

Scenario B:   Anne worked on August 21

Rule:                          200% of the MW plus 30% of Daily Rate multiplied by 200%

Formula:                    [(Daily Rate + COLA) x 200%] + [30%(Daily rate x 200%)]

Computation:           [(PhP502.00 + PhP10.00) x 200%] + [30%(PhP502.00 x 200%)]

[PhP512.00 x 200%] + [30%(PhP1,004.00)]

PhP1,024.00 + PhP301.20

PhP1,325.20

Pay:                            PhP1,325.20

Learn the rules on payment of wages (prohibitions and deductions) from the book Guide on Employee Compensation and Benefits Volume 2

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