How to compute your pay if you work on a holiday

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The matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

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Tough coming from varying perspectives, employers and employees are looking forward to, if not concerned on, holidays and non-working days. For many, holidays give extra time-off for the workers, who may use it for rest, leisure, self-enhancement activities, or simply work it out like an ordinary working day. As for employers, concerns abound as to how they will compensate their employees during these days. Since it is the law that defines rules on holiday compensation, employers thus have more reasons to keep themselves being on-the-know as to how to deal with the payroll come payday.

Holiday pay and premium pay

Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday. This constitutes an exception to the equitable principle of “no work, no pay.” The employee is entitled to at least 100% of his daily wage rate even if he does not report for work during a regular holiday, provided he is present or is on leave of absence with pay on the work day immediately preceding the holiday [See: Art. 94, Labor Code]. The law [R.A. No. 9849] enumerates the regular holidays, which are:

1. New Year’s Day, January 1
2. Maundy Thursday, Movable date
3. Good Friday, Movable date
4. Araw ng Kagitingan, Monday nearest April 9
5. Labor Day, Monday nearest May 1
6. Independence Day, Monday nearest June 12
7. National Heroes’ Day, Last Monday of August
8. Eidl Fitr, Movable date
9. Eidl Adha, Movable date
10. Bonifacio Day, Monday nearest November 30
11. Christmas Day, December 25
12. Rizal Day, Monday nearest December 30

Premium pay, on the other hand, refers to the additional compensation of 30% of his wage for work on non-working days, such as rest days (which usually falls on Sundays), and special holidays or special non-working days (which is also based on an 8-hour workday) [See: Art. 93]. The following are the special non-working days under R.A. No. 9849:

1. Ninoy Aquino Day, Monday nearest August 21
2. All Saints Day, November 1
3. Last Day of the Year, December 31

Rules on salary payment for regular holidays

The following are the rules to be observed in paying holiday pay to employees, per Labor Advisory No. 03, Series of 2017:

• If the employee did not work, he shall be paid 100% of his salary for that day [(Daily rate + COLA) x 100%].
• For work done during the regular holiday, the employee shall be paid 200% of his regular salary for that day for the first eight hours [(Daily rate + COLA) x 200%].
• For work done in excess of eight hours, he shall be paid an additional 30% of his hourly rate on said day [Hourly rate of basic daily wage x 200% x 130% x number of hours worked].
• For work done during a regular holiday that also falls on his rest day, he shall be paid an additional 30% of his daily rate of 200% [(Daily rate + COLA) x 200%] + [30% (Daily rate x 200%)].
• For work done in excess of eight hours during a regular holiday that also falls on his rest day, he shall be paid an additional 30% of his hourly rate on said day [Hourly rate of basic daily wage x 200% x 130% x number of hours worked].

Rules on salary payment for special non-working days

As to special non-working days, the rules outlined below in paying premium pay to employees are the ones to be followed:

• 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.
• For work done during the special day, he shall be paid an additional 30% of his daily rate on the first eight hours of work [(Daily rate x 130%) + COLA].
• For work done in excess of eight hours, he shall be paid an additional 30% ofhis hourly rate on said day [Hourly rate of basic daily wage x 130% x 130% x number of hours worked].
• For work done during a special day that also falls on his rest day, he shall be paid an additiona 50% of his daily rate on the first eight hours of work [(Daily rate x 150%) + COLA].
• For work done in excess of eight hours during a special day that also falls on his rest day, he shall be paid an additional 30% of his hourly rate on said day [Hourly rate of basic daily wage x 150% x 130% x number of hours worked].

The Department of Labor and Employment time and again had been reminding employers to pay their employees holiday and premium pay. More than the legal aspect, however, there is no doubt that payment of holiday and premium pay would give joy to the employees who, aside from being able to take an extra day off, also takes a little extra cash in their pockets while taking such day-off.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding labor standards, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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