How to Compute Special Day Pay for October 31, 2022Atty Elvin
Special days under R.A. 9492 include the last day of the year obviously falling on December 31. On December 28, 2017, R.A. 10966 was declared as a special non-working holiday in the entire country to commemorate the Feast of Immaculate Concepcion of Mary.
On 11 October 2022, the President declared October 31, 2022 (Tuesday) as Nationwide Special Day.
With this, it connects with the holidays declared under Proclamation No. 1236 declaring 1 November 2022 (All Saint’s Day) and 2 November 2022 (All Soul’s Day).
The declaration of 31 October 2022 as special day is aimed to strengthen family ties and promote domestic tourism.
Here is a copy of Proclamation No. 79 (Original File Not Mine).
Now, during this special day employees have to get paid if they work under certain situation. In all, HR practitioners should be ready with the computation for work on 31 October 2022.
Since this belongs to the same category which is a special day, it should be computed under the same rules. Note that special days follow the no-work, no-pay rule, unlike the regular holiday where the employee is entitled to 100% of the pay even if he did not work.
Now, the rules on the payment of special days are as follows:
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. 23 has no more COLA.
Daily Wage – PhP570.00
Hourly Equivalent – PhP 71.25
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.
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]
Special Day Pay = [(PhP570 x 130%) + 0.00]
[(PhP741.00) + 0.00]
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
Overtime Pay = (PhP71.25 x 130% x 130% x 2 hours of OT)
(PhP92.625 x 130% x 2 hours of OT)
(PhP120.4125 x 2 hours of OT)
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]
Special Day Pay = [(PhP570 x 150%) + 0.00]
[(PhP855.00) + 0.00]
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)
Overtime Pay = (PhP71.25 x 150% x 130% x 2 OT hours)
(PhP106.875 x 130% x 2 OT hours)
(PhP138.9375 x 2 OT hours)
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
PhP741.00 + PhP240.825 = PhP981.825
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
PhP855.00 + PhP277.875 = PhP1,132.875
The DOLE has yet to issue the Labor Advisory for this special day as of this writing.
Read more on procedural due process discussion by Atty. Elvin:
Read more on procedural due process by Atty. Villanueva: