Regular Holiday Pay Rules for January 1, 2020 with Sample Computations

Regular Holiday Pay Rules for January 1, 2020 with Sample Computations

Holiday pay should be paid accordingly, particularly the regular holiday.

On November 15, 2019 Presidential Proclamation No. 845 declared, among others, January 1, 2020 (Wednesday) as regular holiday being New Year’s Day . See the PDF Version of Proclamation 845 here.

Hence, the Department of Labor and Employment (DOLE) issued Labor Advisory 13, Series of 2019 on the computation of pay during this regular holiday. See the PDF Version of Labor Advisory 13, Series of 2019 here.

Thus:

If the employee in NCR did not work on said regular holiday of January 1, 2020, 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 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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