President Aquino signed Proclamation No. 455 on August 13, 2012, declaring Monday, August 20, 2012, a regular holiday nationwide in observance of the Feast of Ramadhan or Eid’l Fitr. The following are nationwide holidays to be observed in August 2012:
- August 20, Monday – Eid’l Fitr (regular holiday)
- August 21, Tuesday – Ninoy Aquino Day (special non-working day)
- August 27, Monday – National Heroes Day (regular holiday)
⇒ READ: Pay Rules on Holidays
What are the premises that an employee is entitled to a holiday pay?
The Department of Labor (DOLE) sets the following conditions that an employee is entitled to a 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 for 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 ₱446 COLA inclusive (basic wage ₱426 + COLA ₱20) effective on June 3, 2012.
Moreover, effective November 1, 2012, the minimum wage in Metro Manila will become ₱456, because of the approved additional ₱10 to the 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.
- Employee Y worked on a regular holiday (no overtime). That is, [basic or regular daily wage x 2 = daily worked regular holiday pay].
- 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 an additional compensation for the overtime work equivalent to his rate for the first eight hours on such holiday work plus at least 30% thereof.
(regular daily wage x 2) ÷ 8 hours = holiday hourly rate
(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 an 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.
(daily worked regular holiday, rest day pay) ÷ 8 hours = hourly worked regular holiday, rest day rate
(hourly worked regular holiday, rest day rate) + (30% of an hourly worked regular holiday, rest day rate) = hourly overtime pay for worked regular holiday, rest day.
In accordance to the Labor Advisory 2011, 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. 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.
(Sources: Philippine Official Gazette, Chan Robles Virtual Law Library, DOLE, National Wages and Productivity Commission)