Filipino employees who rendered their valuable time and effort working amid Regular Holidays or Special (Non-Working) Days, are you sure you received an accurate payment of wages from your boss? Did the company you working with using correct formula mandated by the Department of Labor and Employment?

Unfortunately, according to the Labor and Employment Secretary Silvestre H. Bello III, Non-payment of holiday pay is one of the most common concerns brought by workers to the Department. If employers will follow prescribed guidelines and observe fair labor practices, then workers will have no reason to complain because their rights at work are respected.

In this article I will show a simplified illustration of proper computation of wages to the workers during Regular Holidays and Special (Non-Working) Days based on the Department of Labor and Employment (DOLE) pay rules.

For example:

• Employee: Z
• Daily Rate/Basic Wage: P335
• Cost Of Living Allowance (COLA): P5
• Hourly Basic Rate: P41.875

## The Implemented Pay Rules mandated by DOLE with the following condition:

REGULAR HOLIDAYS

These are the remaining Regular Holidays for 2017

• Monday -August 28, 2017 – National Heroes Day
• Friday-September 1, 2017 – Eid Al-Adha
• Thursday- November 30, 2017- Bonifcio Day
• Monday- December 25, 2017- Christmas Day
• Saturday- December 30, 2017-Rizal Day

1. If the employee did not work, he/she shall be paid 100 percent of his/her salary for that day. The COLA is included in the computation of holiday pay. Sample computation: [(Daily rate + COLA) x 100 percent];

ILLUSTRATION: Employee Z DID NOT WORK
Formula: [(Daily Rate + COLA) x 1]
Computation: [(335+5) x 1]
Z Salary: Php.340.00

2. If the employee worked, he/she 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. Sample computation: [(Daily rate + COLA) x 200 percent].

ILLUSTRATION: Employee Z DID WORK
Formula: [(Daily Rate + COLA) x 2]
Computation: [(335+5) x 2]
Z Salary: Php680.00

3. If the employee worked in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day. Sample computation: [Hourly rate of the basic daily wage x 200 percent x 130 percent x number of hours worked];

ILLUSTRATION: Employee Z OVER TIME WORK for additional 4 hrs.
Formula: [(Daily Rate + COLA) x 2] + (Basic Hourly Rate x No. of excess hrs. x 2.6)
Computation: [(335+5) x 2] + (41.875 x 4 x2.6)] = (680+435.50)
Z Salary: Php1, 115.50

4. If the employee worked during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her daily rate of 200 percent. Sample computation: [(Daily rate + COLA) x 200 percent] + (30 percent [Daily rate x 200 percent)];

ILLUSTRATION: Employee Z WORKED ON A REST DAY
Formula: [(Daily Rate + COLA) x 2] + [(Daily Rate x 2) x .30]
Computation: [(335+5) x 2] + [(335 x 2) x.30]
= (680) + [(670) x.30]
= (680+201)
Z Salary: Php881.00

5. If the employee worked 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 percent of his/her hourly rate on said day. Sample computation: (Hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked)

ILLUSTRATION: Employee Z WORKED OVERTIME additional 4 hrs. ON A REST DAY
Formula: [(Daily Rate + COLA) x 2] + [(Daily Rate x 2) x .30] + [(Basic Hourly Rate x 2.6) x No. of excess hrs. x 1.3]
Computation: [(335+5) x 2] + [(335 x 2) x.30] + [(4.875 x 2.6) x 4x 1.3)]
= [(680) + [(670) x.30] + [(108.875x4x1.3)]
= (680+201+566.15)
Z Salary: Php1, 447.15

And for the Implemented Pay Rules mandated by DOLE by the following condition during SPECIAL (NON-WORKING) DAYS.

These are the remaining Special (Non-Working) Days for 2017

• Monday- August 21, 2017-Ninoy Aquino Day
• Tuesday-October 31, 2017-Public Holiday
• Wednesday-November 1, 2017-All Saints Day
• Sunday-December 31, 2017- New Year’s Eve

6. 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.

ILLUSTRATION: Employee Z DID NOT WORK
RULE: NO WORK, NO PAY

7. For work done during the special day, the workers shall be paid an additional 30 percent of their daily rate on the first eight hours of work. The ‘Daily rate x 130 percent plus COLA’ scheme will be observed.

ILLUSTRATION: Employee Z DID WORK
Formula: [(Daily Rate x 130%+ COLA]
Computation: [(335 x 1.3) + 5]
Z Salary: Php440.50

8. For work done in excess of eight hours (overtime work), the workers will be paid an additional 30 percent of their hourly rate on said day. The computation will be: hourly rate of the basic daily wage x 130 percent x 130 percent x number of hours worked.

ILLUSTRATION: Employee Z OVER TIME WORK for additional 4 hrs.
Formula: [(Daily Rate x 1.3] +COLA] + (Basic Hourly Rate x 1.69 x No. of excess hrs.)
Computation: [(335 x 1.3] + 5] + (41.875x 1.69 x4)
= (440.50+283.08)
Z Salary: Php723.58

9. For work done during a special day that also falls on the workers’ rest day, they shall be paid an additional 50 percent of their daily rate on the first eight hours of work, thus, the ‘Daily rate x 150 percent + COLA’ computation will apply.

ILLUSTRATION: Employee Z WORKED ON A REST DAY
Formula: [(Daily Rate x 1.5) + COLA)]
Computation: [(335 x 1.5) + 5]
= (502.50+ 5)
Z Salary: Php507.50

10. For work done in excess of eight hours (overtime work) during a special day that also falls on the workers’ rest day, they shall be paid an additional 30 percent of their hourly rate on said day, or a computation of ‘hourly rate of the basic daily wage x 150 percent x 130 percent x number of hours worked.

ILLUSTRATION: Employee Z WORKED OVERTIME additional 4 hrs. ON A REST DAY
Formula: [(Daily rate x 1.5) + COLA] + (Basic Hourly Rate x 1.95 x No. of excess hrs.)
Computation: [(335 x 1.5) + 5] + (41.875x 1.95 x4)
= (507.50+326.63)
Z Salary: Php2, 030.00

That’s it; you can now recheck your wages during holiday seasons based on DOLE pay rules. If you don’t received the right amount you can settle first to the company payroll master for clarification. If you are not entertained, you can report to the Department of Labor and Employment (DOLE) because for them every employee is valued.

Please note that Effective December 1, 2017 the Integration of COLA into the basic pay. For more information, you may call DOLE Hotline: 1349 from your fixed-line phones.