The pay rate is different when the date is a REGULAR Holiday and if it is a SPECIAL (Non-Working) HOLIDAY in the Philippines. We will explain below how you should compute for your Daily Rate if the date is a Regular Holiday as declared by Malacanang. An example of regular holiday is Eid’l Fitr this coming July 17,2015.
Refer to this article for pay rules for the remaining 2015 and upcoming 2016 Regular Holidays. If you want to know how much you will earn if you will work on a Special (Non-Working) Holiday, read this article.
1PisoFare will also be giving you a complete List of 2016 Holidays as Declared by Malacanang, once it has been announced by the Palace. Normally, the Office of the President announces holidays for the following year around August or September of the current year. Watch out for the Philippines 2016 Holiday List! Prepare your travel plans and destinations ahead, who knows there will be a new Piso Fare 2016 promo from Cebu Pacific or Air Asia Zest!
PAY RULE: Regular Holiday
EXAMPLE SCENARIO
Maria works for an airline company, and her daily rate is P1000. She also enjoys a COLA of P100.
*COLA is abbreviation for ‘Cost of Living Allowance’.
Maria worked 10 hours on a regular holiday. So that is 8 hours of regular normal work PLUS additional of 2 hours as Overtime. How much will be her salary during a regular holiday if she work the normal 8 hours? How much will be her salary during a regular holiday if she rendered overtime? How much is her day salary if she did not work on a regular holiday?
You can use the same formula that we will demo below to compute for your own pay rate if you work on a regular holiday, if you did not work on a regular holiday, or if you work overtime during a regular holiday in the Philippines, or you work on a rest-day-regular-holiday. You need to know first your regular daily rate, COLA, and hourly rate to use the holiday pay formulas.
You can compute for your hourly rate by using this formula: Daily rate / 8 hours
( A ) I WORKED 8 HOURS ON A REGULAR HOLIDAY
If you will work on a Regular Holiday – you will get 200% of your regular daily rate + cola for work done on the first 8 hours.
Computation is: (Daily Rate + COLA) x 200%
In Maria’s case, she will get P2,200 (Overtime work rendered not yet included)
Regular daily rate P1000 + COLA P100 = P1,100
Regular holiday benefit multiplier = 200%
Payment for the first 8 hours (no overtime)
= P1,100 x 200%
= Php2,200 –>This is what Maria will get for working 8 hours on a regular holiday.
( B ) I WORKED OVERTIME DURING A REGULAR HOLIDAY
If you will work on a Regular Holiday – you will get 200% of your regular daily rate + cola for work done on the first 8 hours. Now if you work overtime, you will be paid more on the excess hours!
Formula to compute is: [ (Daily Rate + COLA) x 200% ] + (Hourly rate x no. of overtime hours x 2.6)
In our example of Maria, she will get P2,200 for the work she rendered on the first 8 hours. But Maria is a hard working individual so even if it’s a regular holiday like Eid’l Fitr or All Soul’s Day or National Heroes Day etc, she not only worked the normal 8 hours, she even rendered 2 hours of overtime! This will be the total pay she will get for working overtime on a regular national holiday.
Maria’s hourly rate is P1000 / 8 = P125 per hour
Overtime work rendered: 2 hours
= ((1000 + 100) x 200%) + (125 x 2 hrs OT x 2.6)
= P2,200 + P650
= P2,850 –> Maria will be paid this amount for working 10 hours (2 hrs OT) on a regular holiday.
( C ) I DID NOT WORK ON A REGULAR HOLIDAY
If you did not work on a regular holiday because you are out vacationing somewhere, or staycationing at your house for some rest and relaxation, you will still get regular holiday pay.
Formula to compute is Daily Rate + COLA
Let’s take Maria’s example. Maria was tired so she chose not to work on a regular holiday so she can rest. Maria will be paid P1,100 on this day.
= P1000 + COLA P100
= P1,100 –> Maria will still receive holiday benefit pay even though she did not show up at the office on this national holiday.
( D ) I WORKED ON A REGULAR HOLIDAY THAT IS ALSO MY REST DAY
If you worked on a regular holiday that falls on your rest day, you will get additional 30% of your daily pay rate of 200%. Double benefits! Here’s how to compute:
Computation formula is [(Daily Rate + COLA) x 200%] + [ (Daily Rate x 2) x 30%)]
Employees in the private sector have a different rest days. There are some who have the weekends, Saturdays and Sundays, as their off days or rest days. There are also some especially in the Travel, BPO, and Service industries whose rest days are on weekdays.
In our example case, let’s say that Maria’s rest days are every Sundays and Mondays. What if she worked normally, 8 hours on a regular holiday that also happens to be her rest day (a Monday)? How much will she get as holiday pay? Let’s compute!
Regular daily rate P1000 + COLA P100 = P1,100
Regular holiday benefit multiplier = 200%
Using the Philippine holiday pay formula, we will come up with:
((P1000 + 100)*200%) + ((P1000 x 2)*30%)
= P2,200 + P600
= P2,800 –> Maria’s holiday pay for working on a rest day (normal 8 hours)
( E ) I WORKED OVERTIME ON A REGULAR HOLIDAY THAT IS ALSO MY REST DAY
If you rendered overtime on a regular holiday that is also your rest day, my, my, you are one hard-working individual, you are raking those special holiday rate percentages and multipliers. Good for you! How much holiday payment will you get for this scenario? Check our example. =)
Holiday computation formula is [(Daily Rate + COLA) x 200%] + [ (Daily Rate x 2) x 30%)] + [(Hourly rate x Number of Overtime hours x 2.6]
Since our sample says Maria rendered 2 hours of OT work, this is how we compute the payment using the holiday formula:
= ((P1000 + 100)*200%) + ((P1000 x 2)*30%) + (P125 x 2 hrs x 2.6)
= P2,200 + P600 + P650
= P3,450 à Take home pay of Maria for working on a rest day that is a regular holiday.
Do you want to work on a rest day – regular holiday? You’d earn higher with the regular holiday pay! 😉
*Contact your company’s Human Resource Department if in case you feel that you were not given the correct holiday pay. You can also reach out to the Department of Labor and Employment for any questions or to report companies that does not follow the Philippine mandated pay rules for regular holidays.
*EXCEPTION: This holiday pay rules does not apply to companies with a more favorable treatment of national holidays payment either via the company’s internal policy, practice, or via Collective Bargaining Agreement (CBA) between the Employers – Employees.
Do you want to know how to compute your pay if the day is a Special (Non-Working) Holiday? READ this other useful post -> SPECIAL HOLIDAYS PAY RULE – Formula, Explanation and Sample Computation
LIKE AND SHARE this post!!!
employee says
how about if worked on a regular holiday but did not reach 8 hours?