How To Compute Regular and Special Non-Working Holiday Pay in the Philippines

March 10, 2020 | Jantzein Malaya

All of us enjoy well-deserved holidays and vacations year-round. Although there are some holidays that still require our presence in the workplace, our time spent in the office during holidays are of course, compensated accordingly.

However, if we will talk about managing payroll with these modifications, it will mean longer hours in the office, and more effort in providing perfect calculations. But additional work worries aside, holidays are some of the most anticipated days of every employee.

In the Philippines, holidays are classified into regular and special holidays. The amount of the employee’s compensation for the day will differ, depending on what kind of holiday it is. It will  also still rely on the employee’s hourly or daily rate.

To help you better understand and compute employee’s holiday compensations, here are the guidelines observed as indicated on the Payment of Wages for the Regular Holidays and Special (Non-working) Days for the Year 2020 (Labor Advisory No. 13, s. 2019), issued by the Department of Labor and Employment (DOLE), with the pay formula and computation:

Suppose an employee gets Php 50.00/hour and works 8 hours/day.

For Regular Holidays

If a regular holiday falls on an employee’s regular workday, these rules shall apply:

If employees did not work – 100%

Since the employee did not render his/her services for the day, he/she will only get the regular amount he/she gets on a daily basis. However, this will still be subjected to certain conditions under the implemented rules and regulations of the company.

If employees worked – 200%

If an employee renders his/her services on a regular holiday, he/she will be compensated 200% of his/her daily rate.


{[(Hourly rate + COLA) × 200 percent] × 8 hours} = Regular Holiday Pay
[(Php 50.00 × 2.00) × 8] = Php 800.00 (Regular Holiday Pay)

* COLA – Cost of Living Allowance

The usual working hours for employees is 8 hours, and if an employee worked overtime on a regular holiday, there will be plus 30% of hourly rate on said day.

For example, the employee worked overtime for two hours.


{[(Regular Holiday Hourly Pay x 30 percent) + Regular Holiday Hourly Pay] x 2 hours} = Regular Holiday Pay for Overtime of two hours
{[(Php 100.00 x .30) + Php 100.00] x 2} = Php 260.00 (*Regular Holiday Pay for Overtime of two hours)

*The Regular Holiday Pay for Overtime will be added to the Regular Holiday Pay and the total will be the employee’s salary for the day if he/she has overtime.

If a regular holiday falls on an employee’s rest day:

If employees did not work – 100%

Since the employee did not render his/her services for the day, he/she will only get the regular amount he/she gets on a daily basis.

If employees worked  – 230%

If an employee renders his/her services on a regular holiday that also happens to be his/her rest day, then he/she will be compensated 200% of his/her daily rate and an additional 30% of his rate for that day.  


{[(Hourly rate + COLA) x 200 percent] + [30 percent (Hourly rate x 200 percent)] 8 hours} = Regular Holiday and Rest Day Pay
{(Php 50.00 × 2.00) + [0.30 (Php 50.00 x 2.00)] 8} = Php 1,040.00 (Regular Holiday and Rest Day Pay)

The usual working hours for employees is 8 hours, and if an employee worked overtime on a regular holiday that is also his/her rest day, there will be plus 30% of hourly rate on said day.

Take for example, the employee worked overtime for two hours.


{[(Regular Holiday and Rest Day Hourly Pay x 30 percent) + Regular Holiday and Rest Day Hourly Pay] x 2 hours} = Regular Holiday and Rest Day Pay for Overtime of two hours
{[(Php 130.00 x .30) + Php 130.00] x 2} = Php 338.00 (*Regular Holiday and Rest Day Pay for Overtime of two hours)

*The Regular Holiday and Rest Day Pay for Overtime will be added The Regular Holiday and Rest Day Pay and the total will be the employee’s salary for the day if he/she has overtime.

For Special Non-Working Holidays

If a special non-working holiday falls on an employee’s regular workday, these rules shall apply:

If employees did not work:

 If the employee did not render his/her services on a special non-working holiday, the ‘no work, no pay’ principle shall be applied. However, if there is a favorable company policy, practice or collective bargaining agreement granting payment on special holidays, the employee will still be compensated.

If employees worked:

If an employee renders his/her services on a special non-working holiday, he/she will be compensated an additional of 30% of his/her daily rate.  


{[(Hourly rate + COLA) + 30% of Hourly Rate] × 8 hours} = Special Non-Working Holiday Pay
[(Php 50.00 + Php 15.00) × 8] = Php 520.00 (Special Non-Working Holiday Pay)

The usual working hours for employees is 8 hours, and if an employee worked overtime on a regular holiday that is also his/her rest day, there will be plus 30% of hourly rate on said day.

Take for example, the employee worked overtime for two hours.


{[(Special Non-Working Holiday Hourly Pay x 30 percent) + Special Non-Working Holiday Hourly Pay] x 2 hours} = Special Non-Working Holiday Pay for Overtime of two hours
{[(Php 65.00 x .30) + Php 65.00] x 2} = Php 169.00 (*Special Non-Working Holiday Pay for Overtime of two hours)

*The Special Non-Working Holiday Pay for Overtime will be added to the Special Non-Working Holiday Pay and the total will be the employee’s salary for the day if he/she has overtime.

If a special non-working holiday falls on an employee’s rest day:

If employees did not work:

 If the employee did not render his/her services on a special non-working holiday, the ‘no work, no pay’ principle shall be applied. However, if there is a favorable company policy, practice or collective bargaining agreement granting payment on special holidays, the employee will still be compensated.

If employees worked:

If an employee renders his/her services on a special non-working holiday, he/she will be compensated 150% of his/her daily rate.


{[(Hourly rate + COLA) × 150 percent] × 8 hours} = Special Non-Working Holiday and Rest Day Pay
[(Php 50.00 × 1.50) × 8] = Php 600.00 (Special Non-Working Holiday and Rest Day Pay)

The usual working hours for employees is 8 hours, and if an employee worked overtime on a regular holiday, there will be plus 30% of hourly rate on said day.

For example, the employee worked overtime for two hours.


{[(Special Non-Working Holiday and Rest Day Hourly Pay x 30 percent) + Special Non-Working Holiday and Rest Day Hourly Pay] x 2 hours} = Special Non-Working Holiday and Rest Day Pay for Overtime of two hours
{[(Php 75.00 x .30) + Php 75.00] x 2} = Php 195.00 (*Special Non-Working Holiday and Rest Day Pay for Overtime of two hours)

*The Special Non-Working Holiday and Rest Day Pay for Overtime will be added to the Special Non-Working Holiday and Rest Day Pay and the total will be the employee’s salary for the day if he/she has overtime.

For Special Working Holidays

For days declared as special working holidays, employees will be entitled only to their basic rate. No additional compensation is required since work performed on said days is considered work on ordinary working days. If an employee does not work on said days, the “no work, no pay” principle will be applied.

Working with these many formulas can be tiring and confusing, and can result into making mistakes in computations. This will not work well with your employees and your business, and will cause problems in your workplace. Lucky for you, there is a system that will automatically do this job for you. SweldoMo is perfect for all kinds of businesses and will help you in your payroll and Human Resources management needs. It will also provide perfect and precise calculations and computations for your holiday pay, giving you more time to spend for yourself and with the people you love especially on holidays. Use SweldoMo now, and have the holidays you deserve. 

Sources:

“Philippine Holiday Pay Rules” (2018). Retrieved from https://www.officeholidays.com/holiday-information/philippines

Department of Labor and Employment (2019). Labor Advisory No. 13: Payment of Wages for the Regular Holidays and Special (Non-working) Days for the Year 2020. Author.