PAYMENT OF WAGES FOR JANUARY 1, 2019 HOLIDAY

PAYMENT OF WAGES FOR JANUARY 1, 2019 HOLIDAY

January 1, 2019 is a regular holiday being New Year’s Day. As such, those who did not work are entitled to 100% of the pay while those who do should be paid 200%.

DOLE issued Labor Advisory 27 series of 2018 providing for the pay rules pursuant to Proclamation 555 issued by Malacañang on August 15, 2018.

If the employee did not work, he shall be paid 100% of the wage for January 1. 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 January 1 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

If the employee worked in excess of eight hours or overtime work, he shall be paid additional 30% of his hourly rate on said January 1. 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 for Jan. 1 Work          PhP1,423.06

If the employee worked on January 1 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 January 1 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 two (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                         PhP453.80

TOTAL PAY                                      PhP1,850.00

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