Labor Day (May 1, 2020) Pay Rules per Labor Advisory 15, Series of 2020
Labor Day, May 1, 2020 is one of the regular holidays throughout the country.
The Presidential Proclamation was issued on November 15, 2019 declaring May 1, 2020 as regular holiday (Labor Day). On April 30, 2020, the Department of Labor and Employment (DOLE) issued Labor Advisory 15, Series of 2020 providing for the pay rules for said day.
Here is the link of the PDF Version of Labor Advisory 15, Series of 2020.
The payout application becomes complicated with the lockdown under Malacañang Memorandum dated March 16, 2020 placing the entire Luzon under Enhanced Community Quarantine (ECQ). In the case of NCR, this was extended until May 15, 2020.
Hence, this prohibits companies within the ECQ areas not engaged in the production of non-essential services (related to food and medicine) from opening. Thus, its employees are also prohibited from going out of their houses except to access basic necessities.
For purposes of distinguishing the applicable rules, sample employees below shall be classified into “essential employees” (those allowed to work since its employer is engaged in essential services or those on work-from-home [WFH]) and “non-essential employees” (those not allowed to work since its employer is not engaged in essential services).
For the regular holiday on May 1, 2020
“ESSENTIAL EMPLOYEE”
The “essential employee” did not work:
If the “essential employee” in NCR did not work on May 1, 2020 which is a regular holiday, he shall be paid 100% of the wage only. Since the NCR rate will be used there is no COLA.
Formula: [(Basic Wage + COLA) X 100%]
Illustration:
PhP537.00 x 100% = PhP537.00
If the “essential employee” worked:
If the “essential employee” worked on May 1, 2020 he shall be paid 200% 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
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If the “essential 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 = PhP67.13
OT work rate 130%
OT work is 2 hours
PhP67.13 x 200% x 130% x 2
PhP134.25 x 130% x 2
PhP174.53 x 2
PhP349.06
Thus:
First 8 hours PhP 1,074
OT Work of 2 hours PhP349.06
TOTAL PAY PhP1,423.06
If the “essential 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 the “essential employee” 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 = PhP67.13
OT work rate 130%
OT work is 2 hours
PhP67.13 x 200% x 130% x 130% x 2
PhP134.26 x 130% x 130% x 2
PhP174.538 x 130% x 2
PhP226.90 x 2
PhP453.80
Thus:
First 8 hours (rest day) PhP 1,396.20
OT Work of 2 hours PhP 453.80
TOTAL PAY PhP1,850.00
“NON-ESSENTIAL EMPLOYEE”
No pay since the employment relationship may have been suspended as a result of bona fide suspension of operations on account of ECQ. Unless, the employer made favorable arrangement such as paying despite no actual work.
However, if the “non-essential employee” agreed to charge his home quarantine lockdown against his leave credits and it covers May 1, 2020, he shall be paid as follows:
Formula: [(Basic Wage + COLA) X 100%]
Illustration:
PhP537.00 x 100% = PhP537.00
Interestingly however, the DOLE issued Labor Advisory 13-A, Series of 2020 providing that employers may defer the payment of the holiday pay for the holidays April 9, 10, and 11, 2020. Further, establishments that have totally closed or ceased operations during the ECQ, holiday pay may not be granted as they are exempted from this requirement.
There is no similar issuance for the May 1, 2020, yet.
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