Payment of Wages for the Regular Holidays and Special (Non-Working) Days
The Department of Labor and Employment has issued Labor Advisory No. 13, Series of 2016 reiterating the guidelines on the computation of daily wage during holidays:
Regular Holidays
If the employee did not work, he/she shall be paid 100% of his/her salary for that day [(Daily rate + COLA) x 100%];
For work done during the regular holiday, the employee shall be paid 200% of his/her regular salary for that day for the first eight hours [(Daily rate + COLA) x 200%];
For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x number of hours worked);
For work done during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her daily rate of 200% [(Daily rate + COLA) x 200%] + [30% (Daily rate x 200%)]; and
For work done in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked).
Special (Non-Working) Days
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;
For work done during the special holiday, he/shall be paid an additional 30% of his/her daily rate on the first eight hours of work [(Daily rate x 130%) + COLA];
For work done in excess if eight hours (overtime work), he/shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 130% x 130% x number of hours worked);
For work done during a special day that also falls on his/her rest day, he/shall be paid an additional 50% of his/her daily rate on the first eight hours of work [(Daily rate x 150%) + COLA]; and
For work done in excess of eight hours (overtime work) during a special holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 150% x 130% x number of hours worked).
This article does not constitute and is not intended to be legal advice. If you have any question or need any assistance, please feel free to send us an email at roselle.jean@nonatolaw.com.
[1] Cost of Living Allowance (COLA) is included in the computation of holiday pay
