Pay rules for 2019 holidays out

By DOLEPublished on October 5, 2018

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MANILA, Oct. 5 -- To guide the employers in the private sector on how wages will be
computed if their workers report for work during declared nationwide holidays for 2019,
an advisory prescribing the appropriate determination of holiday pay was released by
the labor department.

Labor Advisory No. 15, series of 2018, provides the computation and proper wage
payments for the 12 regular holidays and nine special (non-working) days in 2019,
declared under Proclamation No. 555, series of 2018, issued by President Rodrigo
Duterte.

In the list of regular holidays are New Year’s Day (January 1), Araw ng Kagitingan (April
9), Maundy Thursday (April 18), Good Friday (April 19), Labor Day (May 1),
Independence Day (June 12), National Heroes Day (August 26), Bonifacio Day
(November 30), Christmas Day (December 25), and Rizal Day (December 30).

Also included are the observance of Muslim holidays such as Eidul Fitr or celebration of
the end of Ramadhan and Eidul Adha or commemoration of the ‘Feast of Sacrifice, the
proclamations of which will be issued after the approximate dates of the Islamic
Holidays have been determined in accordance with the Islamic calendar (Hijra) or the
lunar calendar, or upon Islamic astronomical calculations.

For these holidays, the pay rules state that work done during these days shall be paid
200 percent of an employee’s wage for the first eight hours or, [(Basic wage + COLA) x
200 percent]; while for work done in excess of eight hours (overtime), an additional 30
percent of the employee’s hourly rate, or [(Hourly rate of the basic wage x 200% x 130%
x number of hours worked)] shall be paid.

Meanwhile, work done during these days that also fall on employee’s rest day shall be
paid an additional 30 percent of his/her basic wage of 200 percent, or [(Basic wage +
COLA) x 200%] + [30% (Basic wage x 200%)]; while for work done in excess of eight
hours (overtime), an employee shall be paid an additional 30 percent of his/her hourly
rate, or [(Hourly Rate of the basic wage x 200% x 130% x 130% x number of hours
worked)].
If the employee, however, does not report for work during these days, he/she shall still
be paid 100 percent of his/her wage for that day, or [(Basic wage + COLA) x 100%].

As for the special (non-working days), included in the list are Chinese New Year
(February 5), EDSA People Power Revolution (February 25), Black Saturday (April 20),
Ninoy Aquino Day (August 21), All Saints’ Day (November 1), Feast of the Immaculate
Conception of Mary (December 8), and Last Day of the Year (December 31).

Added as special (non-working days) are November 2 and December 24, which
according to the Malacañang Proclamation, are made to strengthen family ties by
providing more time to observe their most cherished traditions, All Saints’ Day, All Souls’
Day; and Christmas commemorative activities; as well as to promote domestic tourism.

The pay rules for these holidays provide that for work done on these days, an employee
shall be paid an additional 30 percent of his/her basic wage on the first eight hours, or
[(Basic Wage x 130%) + COLA]; while for work done in excess of eight hours (overtime),
employee shall be paid an additional 30 percent of his/her hourly rate, or [(Hourly Rate
of the basic wage x 130% x 130% x number of hours worked)].

For work done during these days that also fall on employee’s rest day, he/she shall be
paid an additional 50 percent of his/her basic wage on the first eight hours, or [(Basic
wage x 150%) + COLA]; while for work done in excess of eight hours (overtime), an
employee shall be paid an additional 30percent of his/her hourly rate, or [(Hourly Rate
of the basic wage x 150% x 130% x number of hours worked)].

But if the employee does not report for 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. (Tim Laderas-DOLE)

https://pia.gov.ph/news/articles/1013712

Salary Computation
Computing Pay for Work Done on
 A Regular Day (basic daily rate = monthly rate x number of months in a year (12) / total working
days in a year)
 A Special Day (130% x basic daily rate)
 A Special Day, which is also a scheduled Rest Day (150% x basic daily rate)
 A Regular Holiday (200% x basic daily rate)
  A Regular Holiday, which is also a scheduled Rest Day (260% x basic daily rate)

Computing Night Shift Premium where Night Shift is a

Regular Work
 Ordinary Day (110% x basic hourly rate)
 Rest Day, Special Day or Regular Holiday (110% of regular hourly rate)

Computing Overtime
 On Ordinary Days
o Number of hours in excess of 8 hours (125% x hourly rate)
 On a Rest Day, Special Day, or Regular Day
o Number of hours in excess of 8 hours (130% x hourly rate)
 On a Night Shift
o Ordinary Day (110% x basic hourly rate)
o Rest Day, Special Day or Regular Holiday (110% x overtime hourly rate)

Computing 13th Month Pay

 Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential
pay divided by 12 = 13thmonth pay

Conditions of Employment and Benefits provided for

Employees
 Employment Conditions
o Normal working hours shall not exceed eight (8) hours a day
o Payment of overtime work shall consist of an addition of at least 25% of the regular wage
per hour worked or 30% thereof during holidays or rest days
o Minimum wage rates for Agricultural and Non-Agricultural lines of work vary in every
region and should be properly observed
o Minimum age of employment is 18 years old but those aged 15 to 18 can be employed
given that they work in non-hazardous environments
o In the event of a bankruptcy or liquidation, workers shall be paid their full salary before
other creditors may establish any claim to a share in the employer’s assets
 Mandatory Benefits and Contributions
o Companies are mandated by the Labor Code to give their regular employees a thirteenth
month pay equivalent to one (1) month of their annual salary
o Service incentive leave of at least 5 days with pay for every year of service
o Employees have a right to a weekly rest period of not less than 24 consecutive hours after
every 6 consecutive normal work days
 o Withholding a portion of an employee’s monthly salary to remit as contributions to
government agencies is a requisite for employers, these agencies are as follows:
 Social Security System (SSS)
 Home Development Mutual Fund (HDMF)
 Philhealth
o Provision of holiday pay
o Paternity and maternity leave benefits

https://kcrecruitment.com/hr-consulting/labor-and-employment/salary/