The Department of Labor and Employment (DOLE) issued Labor Advisory No. 13 last August 23. Outlined in this advisory are the rules regarding the Payment of Wages for the Regular Holidays and Special Non-Working days.
This Labor Advisory No. 13 is pursuant to the Proclamation No. 50 issued by President Duterte last August 16, 2016.
Provided below are the details of the wage payment rules on holidays PLUS formulas on how to compute the wage for a particular holiday for daily paid workers. The pay rules for monthly-paid employees are different.
MONTHLY PAID versus DAILY PAID Employees
Based on DOLE’s definition monthly-paid employees are those who are paid every day of the month, including unworked rest days, special days and regular holidays. Daily-paid employees are those who are paid for days actually worked and on unworked regular holidays.
If your company says you are a ‘no work, no pay’ employee, then you are a “daily paid employee” even if you get your salary every 15th/30th of the month. If you want to be certain whether or not you are monthly paid or a daily paid employee, visit your HR office and inquire directly from them.
REGULAR HOLIDAY RULES ON WAGE PAYMENT
The DOLE mandates the following pay rules be implemented for REGULAR HOLIDAYS on the following dates: January 1; April 9, 13, and 14; 1 May 1; June 12; August 28; November 30; December 25 and 30; and for the observance of Eid’l Fitr and Eid’l Adha 2017 which will be announced later via a separate proclamation by the president.
- If an employee did not work, said employee shall be paid 100 percent of his/her salary for that day. The COLA is included in the computation of holiday pay.
Computation: [(Daily rate + COLA) x 100%]
- If an employee worked, said employee shall be paid 200 percent of his/her regular salary for that day for the first eight hours. The COLA is also included in the computation of holiday pay.
Computation: [(Daily rate + COLA) x 200%].
- If an employee worked in excess of eight hours (overtime work), said employee shall be paid an additional 30 percent of his/her hourly rate on said day.
Computation for the first 8 hours on a holiday (A): [(Daily rate + COLA) x 200%]
Computation for the OT work (in excess of 8 hours) (B): [Hourly rate of the basic daily wage x 200% x 130% x number of hours worked]
Total payment for the day is the sum of A and B or “A+B = Wage for the day”
- If an employee worked during a regular holiday that also falls on his/her rest day, said employee shall be paid an additional 30 percent of his/her daily rate of 200 percent.
Computation: [(Daily rate + COLA) x 200%] + (30% [Daily rate x 200%)]
- If an employee worked in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, said employee shall be paid an additional 30 percent of his/her hourly rate on said day.
Computation for the first 8 hours worked on rest day that is a holiday (A): [(Daily rate + COLA) x 200%] + (30% [Daily rate x 200%)]
Computation for the OT work (in excess of 8 hours) (B): (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked).
Total payment for the day is the sum of A and B or “A+B = Wage for the day”
SPECIAL (Non-Working) HOLIDAY RULES ON WAGE PAYMENT
Under the DOLE pay rules, the following shall apply on special non-working holidays, specifically the following: January 28, February 25, April 15, August 21, October 31, November 1, and December 31.
The pay rules mandate 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 special day.
- For work done during the special day, the employee shall be paid an additional 30 percent of her/his daily rate on the first eight hours of work.
Computation: [Daily rate x 130%) + COLA]
- For work done in excess of eight hours (overtime work), the employee will be paid an additional 30 percent of their hourly rate on said day.
Computation for the 1st 8 hours of work on a special holiday (A): [Daily rate x 130%) + COLA]
Computation for the OT work (in excess of the 8 hours) (B): [Hourly rate of the basic daily wage x 130% x 130% x number of hours worked]
Total wage for working on a special holiday with Overtime work: A + B
- For work done during a special day that also falls on the employee’s rest day, they shall be paid an additional 50 percent of their daily rate on the first eight hours of work.
Computation: [(Daily rate x 150%)+ COLA]
- For work done in excess of eight hours (overtime work) during a special day that also falls on the employee’s rest day, said employee shall be paid an additional 30 percent of their hourly rate on said day.
Computation for the 1st 8 hours you work on a special holiday that is also your rest day (A): [(Daily rate x 150%)+ COLA]
Computation for the OT work (in excess of 8 hours) (B): (hourly rate of the basic daily wage x 150% x 130% x number of hours worked)
Total wage for the work done on a special holiday that is also your rest day with overtime: A + B = Wage for the day
You can now compute easily using the formulas above if you want to know how much you will get as wage during a holiday if you work, did not work, work with overtime, work on a rest day, work on a rest day with overtime.
DEMO: Compute Holiday Pay
In our sample computations to demo the DOLE prescribed pay rules during Regular and Special Holidays, we will use the new minimum basic wage for Non-Agriculture Industry/Sector in NCR which is P481. The Cola rate for NCR beginning June 2016 is P10.
Situation 1: Pedro works 12 hours on a Regular holiday, his daily rate is P481 with daily COLA of P10. How much will he get? Following the DOLE rules, he will get P1,607.35 as total wage for the day.
Pedro’s hourly rate = P481 / 8 hours = P60.13 per hour
Pedro’s wage for the 1st 8 hours = (481 Daily rate + 10 COLA) * 200% = P982
Pedro Overtime worked rendered: 12 hours less 8 = 4 hours OT
Pedro’s Overtime rate for the day is: hourly rate of P60.13 x 200% x 130% x 4 hours OT= P625.35
Pedro’s total wage for working 12 hours on a regular holiday = P982 + 625.35 = P1,607.35
Situation 2: Maria works 10 hours on a Special Non-Working Holiday which is also her rest day. How much will be her total wage for working with OT for this day? Assuming her daily rate is P512, with Cola of P10.
Maria’s hourly rate = P512 / 8 hours = P64 per hour
Maria’s wage for the 1st 8 hours = [P512 * 150%] + P10 Cola = P778
Maria’s number of overtime hours: 10 less 8 = 2 hours OT
Maria’s overtime rate for this day: P64 x 150% x 130% x 2 hours OT = P249.60
Maria’s total wage for working 10 hours on a special holiday which is also her rest day: P778 + P249.60 = P1,027.60
Please refer again to the formula outlined on the Pay Rules discussion above if you get confused with how we compute our demos.
IMPORTANT: To qualify for holiday pay, DOLE rule is that the employee must work on the day preceding the holiday or the employee is absent but is on PAID LEAVE on the day preceding a holiday.
If the employee is absent without pay on the work-day before a holiday, then the employee is not entitled to the holiday pay.
REPORT EMPLOYERS who doesn’t follow this labor pay Rules
Employers must pay their workers correctly based on the pay rules set by DOLE with respect to the nationwide holidays, unless the company implements a more favorable benefit system to its workers. If you encounter such employers or companies, don’t hesitate to file a complaint-report in the DOLE office.
DOLE’s hotline numbers are 1349 or (02) 527-8000. You can also visit the DOLE main office at this address: Department of Labor and Employment (DOLE) Building Muralla Wing cor. General Luna St., Intramuros, Manila, 1002. Or if you are not in Metro Manila, please visit the nearest DOLE regional office.
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Mosh says
Good day Sir! I would like to ask if for example the last day of work this week will be on Wednesday April 17, 2019 but we swapped it to last April 13, 2019. Based on the law, the regular holiday pay will be based on the last day of work before the holiday, but I heard someone who said that whoever was absent last April 13 cannot receive a holiday pay good for Maundy Thursday(4/18) and Good Friday(4/19). My question is: Technically the last day of work is tomorrow April 16, 2019, does the regular holiday pay is based on April 13th, or must be based on tomorrow April 16 (the last day of work before holiday) technically?
Please shed a light on this. Thank you very much Sir.
iSensey says
Hi Mosh, we consulted with an HR manager; she said that the law provides holiday pay if on the last working day prior to a holiday, the employee rendered the required hours or was on leave with pay.
In their case, all their employees who will work come April 17, 2019 (their last day of work before Holy Thursday and Good Friday) or who are on leave with pay on that day will get the full holiday pay for April 18 and 19, 2019.
Now, on the April 13 swap. She said that if there is an official memo or document or notice received by the employee to swap April 17 to April 13 as the ‘last working day’, then the swap is binding. In this case, the employee who was absent last April 13 but was on approved leave WITH PAY, then said employee will still received the holiday pay.
But please don’t take our word for it, it is still best to consult with DOLE directly on this matter so you are 100% sure.
Cheneelyn says
Hi Good Day., april 18 is holiday but im absent on april 17. I want to ask if i can get a double in april 18.
iSensey says
Hi Cheneelyn, per our HR consultant hindi po unless absent ka on official leave with pay today April 17.
Emily says
Hi Sir Ma’am, may i ask if an employee is absent before, after and on the holiday regardless special or regular, will she/he get paid?
Earvin Ross says
Hi ISENSEY,
What will be my holiday pay rules if i’m a MONTLY-PAID employee?
Thank you and Mabuhay
Che Dulay says
Hi ask ko lang po ano po ba talaga ang rules ng Regular Holiday?
Example:
Papasok po ako ng Before Holiday Aug.26, 2019 tapos mag absent po ako ng Aug. 27,2019 may bayad po ba ako?
Please answer my question.
Thank you in advance 🙂
Ric Gorospe says
Good Day, Ask lang po.. Sa isa po bang Company or Cooperative tama po ba n mayroon 2 klase ng Pautang ( Super Tipid at Wish Loan )..?
Herbert R. Dela Cruz says
Good day, should an employee pay regular holidays, even if they are not regular with a company? Thank you