Special Days and Regular Holiday in November 2021: How to Compute Holiday Pay
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Special days under R.A. 9492 include the All Saints Day falling on November 1.
On 30 July 2020, Proclamation No. 986 was issued by Malacañang providing the list of regular holidays and special days for the year 2021. Special days are non-working under such proclamation. It also provides for two (2) additional special non-working days.
Specifically, All Soul’s Day, falling on 2 November 2021 and Christmas Eve on 24 December 2021 were added as special non-working days. This means that these special days can be celebrated away from work.
However, on 26 February 2021 Proclamation No. 1107 was issued declaring the added special days as special working days. As seeming rationale for the changes, the 3rd and 4th Whereas Clauses of Proclamation No. 1107 provide that due to the country being under the State of Calamity on account of COVID-19, the health authorities discourage large gatherings and festivities that usually take place during public commemorations.
PDF copies of Proclamation No. 986 and Proclamation No. 1107 are available here (original copies not mine).
Further, in an effort to help the country recover from the adverse economic impact of the COVID-19 pandemic, the government encourages economic productivity by minimizing work disruptions.
Hence, 2 November 2021, became one of the special working days instead of special non-working days. Apparently, the conversion is intended to discourage large gatherings and festivities and minimize work disruptions to encourage economic productivity.
November 30, 2018 is Bonifacio Day which is a regular holiday under R.A. 9492. On 26 October 2021, the DOLE issued Labor Advisory 19, Series of 2021 providing pay rules for the said holidays.
PDF Copy of the Labor Advisory 19, Series of 2021 is available here (original file not mine).
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:
- November 1, 2021
- November 2, 2021
- November 30, 2021
For November 1, being a special day, it follows 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.
Now, 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 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
The rule on special working day applicable to 2 November 2021 states, that:
For work performed on a declared Special Working Day, an employee is entitled only to his/her daily wage. No premium pay is required since work performed on said day is considered work on an ordinary working day.
Formula: [(Basic wage x 100%) + COLA]
Sample Computation:
Special Working Day Pay = [(PhP537 x 100%) + 0.00]
[(PhP537.00) + 0.00]
PhP537.00
Now, the rule on 30 November 2021 which is a regular holiday states that:
Thus:
If the employee in NCR did not work on said regular holiday of November 30, 2021, 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
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, 2021 under the said advisory.
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