Published: Thursday 22 December, 2016

Holiday Pay Computation for Regular & Special Christmas Holidays 2016

With so many holidays coming in the next week or so, it is important for employees to know how to compute their holiday pay.

Holiday pay

Know how to compute your holiday pay. (PHOTO: Facebook)

Some workers will get holiday pay because they will be required to work. These are mostly employees in the service and hospitality industries, or those who may have to work overtime during the holidays to finish a project.

The Philippine government has declared the following holidays this Christmas season:

December 25 (Christmas Day), December 30 (Rizal day)and January 1 (New Years Day) as regular holidays
December 24, 26, and 31 and January 2, 2017 areas special non-working days

The following are the computations for holiday pay in the Philippines for regular holidays and special holidays. It also includes computations for overtime pay if the OT is incurred during holidays.

Take not that these guidelines do not only apply for the the holidays this Christmas season but for ALL regular and special holidays.

Holiday Pay for Regular Holidays
  • If the employee did not work, he/she that still be paid 100 percent of his/her salary for that day. The COLA is included in the computation of holiday pay. Computation: Daily rate + Cost of Living Allowance x 100%.
  • If the employee worked, he/she shall be paid 200 percent of his/her regular salary for that day for the first eight hours. Computation: Daily rate + COLA x 200%. The COLA is also included in computation of holiday pay.
  • 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. Computation: Hourly rate of the basic daily wage x 200% x 130% x number of hours worked.
  • 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. Computation: [(Daily rate + COLA) x 200%] + 30% Daily rate x 200%).
  • 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. Computation: Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked.
Holiday Pay for Special Holidays
  • 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 a special day.
  • If the employee worked, he/she shall be paid an additional 30 percent of his/her daily rate on the first eight hours of work. Computation: (Daily rate x 130%) + COLA).
  • 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. Computation: Hourly rate of the basic daily wage x 130% x 130% x number of hours worked.
  • If the employee worked during a special day that also falls on his/her rest day, he/she shall be paid an additional fifty percent of his/her daily rate on the first eight hours of work. Computation: (Daily rate x 150%) + COLA.
  • If the employee worked in excess of eight hours (overtime work) during a special day 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. Computation: Hourly rate of the basic daily wage x 150% x 130% x number of hours worked.

It is important for employees to know how their salary is computed hence these guidelines. Be empowered. Know your rights.



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