Special Days and Regular Holiday in November 2020: How to Compute Holiday Pay

Special days under R.A. 9492 include the All Saints Day falling on November 1. Presidential Proclamation No. 845 declared November 2, 2020 as additional special non-working days throughout the country intended to strengthen family ties by providing more time for the traditional “All Saints’ Day and All Souls’ Day.”

November 30, 2018 is Bonifacio Day which is a regular holiday under R.A. 9492.

Now, during these November special days employees have to get paid under certain situation. In all, HR practitioners should be ready with the computation on the following days:

1. November 1, 2020
2. November 2, 2020
3. November 30, 2020

Since November 1 and November 2 belong to the same category which is special days, they should be computed under the same rules. Note that special days follow the no-work, no-pay rule, unlike the regular holiday where the employee is entitled to 100% of the pay even if he did not work.

The DOLE issued Labor Advisory 29, Series of 2020 providing for the rules on payment of special days and regular holiday. See the PDF version of the Labor Advisory 29, Series of 2020 here.

Based on said advisory, the rules on the payment of special days are as follows:

For instance, 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 special day 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. 22 has no more COLA.

Thus:

Daily Wage                   –        PhP537.00

Hourly Equivalent         –        PhP  67.125

The basic principle here is that if the employee did not work, the “no-work, no-pay” principle shall apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day.

Rule A:

For work done during the special day, the employee shall be paid an additional 30% of the basic wage on

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the first eight hours of work.

Formula:    [(Basic wage x 130%) + COLA]

Sample Computation:

Special Day Pay =         [(PhP537 x 130%) + 0.00]

                                    [(PhP698.10) + 0.00]

                                    PhP698.10

Rule B:

For work done in excess of eight hours (overtime work), the employee shall be paid an additional 30% of the hourly rate on said day

Formula:    (Hourly rate of the basic wage x 130% x 130% x number of hours worked)

Sample Computation:

Overtime Pay =            (PhP67.125 x 130% x 130% x 2 hours of OT)

(PhP87.2626 x 130% x 2 hours of OT)

(PhP113.44125 x 2 hours of OT)

PhP226.88

Rule C:

For work done during a special day that also falls on the employee’s rest day, he shall be paid an additional 50% of the basic wage on the first eight hours of work

Formula:    [(Basic wage x 150%) + COLA]

Sample Computation:

Special Day Pay =         [(PhP537 x 150%) + 0.00]

                                    [(PhP805.50) + 0.00]

                                    PhP805.50

Rule D:

For work done in excess of eight hours (overtime work) during the special day that also falls on the employee’s rest day, he shall be paid an additional 30% of the hourly rate on said day

Formula:    (Hourly rate of the basic wage x 150% x 130% x number of hours worked)

Sample Computation:

Overtime Pay =            (PhP67.125 x 150% x 130% x 2 OT hours)

                                    (PhP100.6875 x 130% x 2 OT hours)

                                    (PhP130.9375 x 2 OT hours)

                                    PhP261.79

Thus, total pay for the day based on different rules:

Under Rule A and Rule B (Work on Special Day with OT on such Day):

Basic Daily Wage + OT of 2 Hours

PhP698.10 + PhP226.88 = PhP924.98

Under Rule C and Rule D (Work on Special Day Falling on Rest Day with OT on such Day):

Basic Daily Wage + OT of 2 Hours

PhP805.50 + PhP261.79 = PhP1,067.29

Now, the rule on November 30, 2020 which is a regular holiday states that:

Thus:

If the employee in NCR did not work on said regular holiday of November 30, 2019, he shall be paid 100% of the wage. Since the NCR rate will be used in the examples below 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. Following the same facts:

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 1,074.00

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

Deferment of payment of regular holiday pay

However, in view of the existence of a national emergency arising from the Coronavirus Disease 2019 (COVI-19) situation, employers are allowed to defer payment of the holiday pay on November 30, 2020, until such time that the present emergency situation has been abated and the normal operations of the establishment is in place.

Exemption from payment of the regular holiday pay

Establishments that have totally closed or cease operation during the community quarantine period are exempted from the payment of the holiday pay on November 30, 2020 under the said advisory.