Salary Computation During COVID-19 Lockdown

Salary computation is among the major concerns of employees and business during the Luzon lockdown.

On March 16, 2020, Malacañang issued a Memorandum placing the entire Luzon under Enhanced Community Quarantine. This is basically a stricter form than the previously issued Memorandum dated March 13, 2020 involving merely the NCR.

Generally, the government wants the people to stay home, a.k.a. “home quarantine”. The exceptions include people who are involved in frontline services like medical and food. Other industries should also remain open like power, telecommunication, petroleum, and funeral services. Other businesses which do not belong to the essential activities should not open.

For its part, the Department of Labor and Employment (DOLE) issued corresponding advisories and department order in support of the Malacañang pronouncements. The DOLE issued Labor Advisories, 9, 11, and 12, Series of 2020. It also issued Department Order (DO) No. 209, Series of 2020 (Giving CAMP benefits to affected workers).

Essentially, the advisories and the DO mention about employees who are suspended as a result of the COVID-19 infection. Those who were placed under flexible work arrangements such as reduced work hours, rotation, and forced leaves.

Hence, there will be different types of employees during this period (March 17, 2020 to April 13, 2020):

• Those who are working from home (WFH) per initiative of employer where the employees are paid, e.g. employee X
• Those who are under rotation, e.g. employee Y
• Those who are working under reduced work hours e.g. employee Z
• Those who are under forced leaves, e.g. employee A
• Those who were suspended as a result of the COVID-19 or temporary suspension or closure of establishment e.g. employee B

So how should employees above get paid? The DOLE has not yet issued specific guidelines on this. But HR practitioners need to implement for payroll purposes.

Thus, in this post we make pay projections based on the labor advisories and department order mentioned just to move forward. Adjustments can be made later when DOLE has finally issued the guidelines.

For example, the employees involved are receiving minimum wage in NCR, workweek of 6 days or a factor of 313 per year.

In the case of X (On WFH)

Since X was qualified for WFH, he will continue to receive his wages and benefits during the lockdown period. Thus:

Pay for six (6) ordinary days in a week

PhP537.00 per day x 6 = PhP3,222.00

Pay on April 9 (Araw ng Kagitingan, Maundy Thursday) and April 10, 2020 (Good Friday)

April 9

PhP537 x 300% = PhP1,611.00

April 10

PhP537 x 200% = PhP1,074.00

In the case of Y (On Rotation)

Let us say Y was under rotation of just 3 days a week (MWF).

Pay for three (3) ordinary days in a week

PhP537.00 per day x 3 = PhP1,611.00

Pay on April 9 (Araw ng Kagitingan, Maundy Thursday) and April 10, 2020 (Good Friday)

April 9 [Thu] (not working)

PhP537 x 200% (2 regular holidays) = PhP1,074.00

April 10 [Fri] (Working)

PhP537 x 200% = PhP1,074.00

CAMP COVID-19

Total days of work from March 17, 2020 to April 13, 2020 = 19 days

SIL credits applied = 5 days

19 (work) + 5 (SIL) = 24 days

No. of working days from Mar. 17 to Apr. 13, 2020 = 24 days

Days without pay = 24 – 24 = 0 day

There may be no CAMP COVID-19 benefit since there is no deficiency in wage and benefits

In the case of Z (On Reduced Work Hours)

Let us say Z was under work hours of just 4 hours per day, 6 days a week.

Pay for 6 ordinary days in a week

PhP537.00 per day x 6 / 2 = PhP1,611.00

Pay on April 9 (Araw ng Kagitingan, Maundy Thursday) and April 10, 2020 (Good Friday)

April 9

PhP537 x 200% (2 regular holidays) = PhP1,074.00

PhP537 / 2 x 200% = PhP537.00

April 10

PhP537 / 2 x 200% = PhP537.00

CAMP COVID-19

Total days of work from March 17, 2020 to April 13, 2020 = 24 days

24 days / 2 (worked only for 4 hours) = 12 days

SIL credits applied = 5 days

Days without pay = 24 – 17 = 7 days

CAMP Benefit: PhP5,000.00

In the case of A (Under Forced Leave from March 17-April 13, 2020)

Let us say Z was among those who cannot WFH. He was not even qualified for work rotation or work hours reduction. Hence, he should be made to utilize his leave credits during the lockdown.

SIL credits = 5 days (Applied March 17, 18, 19, 20, 21)

PhP537 x 5 = PhP2,685.00

Pay from March 22 onwards = without pay

CAMP COVID-19

Total days of work from March 17, 2020 to April 13, 2020 = 23 days

SIL credits applied = 5 days

Days without pay = 23 –5 = 18 days

CAMP Benefit: PhP5,000.00

The DOLE may prorate this P5,000 based on the number of days depending on its specific guidelines.

In the case of B (Suspended relationship due to Temporary Closure or Suspension of Establishment)

Let us say the company of B declared temporary closure or suspension of establishment due to the lockdown. Hence, there is no work from March 17 to April 13, 2020. If B did not choose to use up his 5 days SIL he shall have no pay but he retains his leave credits.

Pay from March 17 to April 13, 2020 = PhP00.00

CAMP COVID-19

Total days of work from March 17, 2020 to April 13, 2020 = 24 days

SIL credits applied = 5 days

Days without pay = 24 –5 = 19 days

CAMP Benefit: PhP5,000.00