Labor Day (May 1, 2022) Regular Holiday Pay Rules

Labor Day, May 1, 2022 is one of the regular holidays throughout the country.

Proclamation No. 1236 issued on 29 October 2021 declared, among others, declared 1 May 2021 (Sunday) as regular holiday.

View the PDF copies of Proclamation No. 1236 (original file not mine).

The Department of Labor and Employment (DOLE) issued Labor Advisory (LA) No. 11, Series of 2022 governing the rules on payment for this holiday.

View the PDF copy of Labor Advisory No. 11, Series of 2022 (original file not mine).

To illustrate the pay rules:

If the employee in NCR did not work on a regular holiday, he 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

If the employee worked on the regular holiday he shall be paid 200% of his wage for that day for the first

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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 = PhP67.13

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 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 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 = PhP67.13

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

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