Sample Computation of Holiday Pay Under the New NCR Wage Order 23 Mandating P33 Additional Wage
The NCR RTWPB has approved the additional daily minimum wage of PhP33.00 making the NCR daily minimum wage PhP570.00
How will the additional wage impact on computation for the work on regular holiday? Let us consider the upcoming 12 June 2022 holiday being independence day.
Based on the usual pay rules, here is a sample computation of pay using a fictional scenario applying the daily rate of PhP570.00:
Ms. Julie Henderson is a Waitress of Murana Marumifa Foodhouse located in NCR with at least twenty employees. She receives minimum wage for her pay. For instance, she worked on the said regular holiday and even rendered an overtime of two (2) hours. How should her pay be computed?
In the example provided below, the COLA will be disregarded since the NCR minimum wage based on Wage Order No. 23 has no more COLA.
Thus:
Daily Wage – PhP570.00
Hourly Equivalent – PhP 71.25
Thus, there are two regular holidays to be paid:
- The employee did not work
If the employee in NCR did not work on the regular holiday mentioned, she shall be paid 100% of
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the wage. Since the NCR rate will be used there is no COLA.
Formula: [(Basic Wage + COLA) X 100%]
Illustration:
PhP570.00 x 100% = PhP570.00
- The employee worked
If the employee worked on the regular holiday he shall be paid and additional 100% of his wage for that day for the first eight hours.
Formula: [(Basic Wage + COLA) X 200%]
Illustration:
PhP570.00 x 200% = PhP1,140.00
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:
PhP578.00 / 8 hours = PhP71.25
OT work rate 130%
OT work is 2 hours
PhP71.25 x 200% x 130% x 2
PhP142.50 x 130% x 2
PhP185.25 x 2
PhP370.50
Thus:
First 8 hours PhP1,140.00
OT Work of 2 hours PhP 370.50
TOTAL PAY PhP1,510.05
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)
[PhP570.00 x 200%] + [30% (PhP570.00 x 200%)]
PhP1,140.00 + [30% (PhP1,140.00)]
PhP1,140.00 + PhP342.00
PhP1,482.00
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:
PhP570.00 / 8 hours = PhP71.25
OT work rate 130%
OT work is 2 hours
PhP71.25 x 200% x 130% x 130% x 2
PhP142.50 x 130% x 130% x 2
PhP185.25 x 130% x 2
PhP240.825 x 2
PhP481.65
Thus:
First 8 hours (rest day) PhP 1,482.00
OT Work of 2 hours PhP 481.65
TOTAL PAY PhP1,963.65
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