Monday, August 20 as a regular holiday nationwide declared by President Aquino by signing Proclamation 455 on Aug. 13, 2012, in observance of the Feast of Ramadhan or Eid’l Fitr.

The following are national holidays to be observed in August 2012:

  • August 20, Monday – Eid’l Fitr (a regular holiday)
  • August 21, Tuesday – Ninoy Aquino Day (a special non-working day)
  • August 27, Monday – National Heroes Day (a regular holiday)

August 20 as a regular holiday: Pay rules

✍ Premises that an employee is entitled to holiday pay

The Department of Labor (DOLE) sets the conditions that an employee is entitled to the holiday pay when:

  • An employee is present on the workday immediately preceding the regular holiday; or
  • An employee is on leave of absence with pay on the day immediately preceding the regular holiday.

✍ Computation of holiday pays based on the standard labor provisions

Based on DOLE Compilation of Question and Answers on Workers’ Benefits, the current minimum wage in the National Capital Region (NCR) is already Php446 COLA inclusive(basic wage Php426 + COLA Php20) effective on June 3, 2012.

Meanwhile, effective on Nov. 1, 2012, the minimum wage in NCR will be Php456 because of the approved additional Php10 to COLA.

The Omnibus Rules  in Labor Code provides (chanrobles.com):

SECTION 4. Compensation for holiday work. — Any employee who is permitted or suffered to work on any regular holiday, not exceeding eight (8) hours, shall be paid at least two hundred percent (200%) of his regular daily wage.

If the holiday work falls on the scheduled rest day of the employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday rate of 200% based on his regular wage rate.

Illustration 1: Employee Y worked on a regular holiday (no overtime). That is,

basic or regular daily wage   x   2   =   daily worked regular holiday pay

Illustration 2: Employee Y worked on a regular holiday, which is his scheduled rest day. That is,

(regular daily wage   x   2)   +   30% of (regular daily wage   x   2)   =   daily worked regular holiday-rest day pay

SECTION 5. Overtime pay for holiday work. — For work performed in excess of eight hours on a regular holiday, an employee shall be paid additional compensation for the overtime work equivalent to his rate for the first eight hours on such holiday work plus at least 30% thereof.

Illustration: (regular daily wage   x   2)   ÷   8 hours   =   holiday hourly ratethen,

(holiday hourly rate)   +   (30% of holiday hourly rate)   =   hourly overtime pay for holiday work

Where the regular holiday work exceeding eight hours falls on the scheduled rest day of the employee, he shall be paid additional compensation for the overtime work equivalent to his regular holiday-rest day for the first 8 hours plus 30% thereof.

The regular holiday rest day rate of an employee shall consist of 200% of his regular daily wage rate plus 30% thereof.

Illustration: (daily worked regular holiday-rest day pay)   ÷   8 hours   =   hourly worked regular holiday-rest day rate; then,

(hourly worked regular holiday-rest day rate) + (30% of hourly worked regular holiday-rest day rate) = hourly overtime pay for worked regular holiday-rest day

According to HR Practitioners’ Guide, a website for HR practitioners, only the basic wage, excluding COLA, is used in computing overtime, night differential, 13th month, and retirement pays.

The Labor Code further provides (chanrobles.com):

SECTION 8. Holiday pay of certain employees. — (a) Private school teachers, including faculty members of colleges and universities, may not be paid for the regular holidays during semestral vacations. They shall, however, be paid for the regular holidays during Christmas vacation;

(b) Where a covered employee, is paid by results or output, such as payment on piece work, his holiday pay shall not be less than his average daily earnings for the last seven (7) actual working days preceding the regular holiday; Provided, however, that in no case shall the holiday pay be less than the applicable statutory minimum wage rate.

(c) Seasonal workers may not be paid the required holiday pay during off-season when they are not at work.

(d) Workers who have no regular working days shall be entitled to the benefits provided in this Rule.

SECTION 9. A Regular holiday falling on rest days or Sundays. — (a) A regular holiday falling on the employee’s rest day shall be compensated accordingly.

(b) Where a regular holiday falls on a Sunday, the following day shall be considered a special holiday for purposes of the Labor Code, unless said day is also a regular holiday.

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Sources:
Philippine Official Gazette
Chan Robles Virtual Law Library
DOLE
NWPC

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