Labor Advisories
Frequently Asked Questions regarding the Payment of Wages for August 20, 21 and 27, 2012

20 August 2012, Eid’l Fitr, a Regular Holiday pursuant
to Proclamation No. 455



1. What is Proclamation No. 455?

Answer: Proclamation No. 455 was issued by President Benigno S. Aquino III on
13 August 2012 declaring 20 August 2012 as regular holiday in celebration of
Eid’l Fitr, Feast of Ramadan.

2. What if the employee did not report for work during a regular holiday,
    is he/she still entitled to his/her salary?

Answer: Yes, as long as he/she reported for work on the working day or on leave of
absence with pay prior to the declared regular holiday, he/she is entitled to holiday pay.

3. How is the holiday pay computed when an employee is suffered or required
    to work during a regular holiday( 20 August 2012, Eid’l Fitr, Feast of Ramadan)?

Answer: An additional 100% holiday pay is added to the employee’s minimum wage
(Basic wage + COLA), or a total of 200%, which is computed as follows:

      (a) For normal 8-hour work, usually rendered from 8:00 A.M. to 5:00 P.M. (with

           one hour non-compensable meal break),an employee should be entitled to a total
           amount of P892.00.

           Sample computation using NCR minimum wage rate of P426 + P20 COLA).
           This formula can also be applied to all regions using their applicable daily rates.)

                    Applicable daily rate = (Basic wage + COLA) x 200%
                                                  = (P426 + P20 COLA) x 200%
                                                  = P446 x 2
                                                  = P892.00

      (b) For shift work rendered from 10:00 P.M. of 19 August, an ordinary day to

           7:00 A.M. of 20 August 2012, a regular holiday:

Answer: For the said work schedule, an employee should be entitled to a total amount
of P844.40 (P122.15 + P610.75 + P111.50), derived from the following computations:

                  B.1. For work rendered from 10 P.M. to 12:00 M.N. of 19 August 2012, an ordinary
                         day:

                         10:00 P.M. to 12:00 M.N. = (Hourly rate x night shift pay x number of hours) 
                                                                   + COLA (proportionate)
                                                               = P426/8 x 110% x 2 hours + P5.00 (COLA)
                                                               = P53.25 x 1.1 x 2 hours + P5.00
                                                               = P122.15

                  B.2. For work rendered from 12:01 A.M. to 6:00 A.M. of 20 August 2012, a regular holiday:

                        12:01 A.M. to 6:00 A.M. = (Hourly rate x holiday pay) + [night shift pay x
                                                               (hourly rate x holiday pay)] x number of hours

                                                            = [(P446/8 x 200%) + [10% (426/8 x 200%) x 5 hrs.
                                                            = [(P55.75 x 2.0) + [0.1 (P53.25 x 2.0)] x 5 hours
                                                            = [P111.50 + 10.65] x 5 hours
                                                            = P610.75

                  B.3. For work rendered from 6:01 A.M. to 7:00 A.M. on 20 August 2012, a regular holiday:

                         6:01 A.M. to 7:00 A.M. = [(Hourly rate x holiday pay) x number of hours
                                                           = [P446/8 x 200%] x 1 hour
                                                           = P111.50

       (c) For shift work rendered from 10:00 P.M. of 20 August, a regular holiday to 7:00 A.M.

             of 21 August 2012, a special day:

Answer: For the said work schedule, an employee should be entitled to a total amount of P709.27
(P244.30 + P393.74 + P71.73), derived from the following computations:

                  C.1. For work rendered from 10 P.M. to 12 M.N. of 20 August 2012,
                         a regular holiday:

                         10:00 P.M. to 12:00 M.N. = (Hourly rate x holiday pay) + [night shift pay x hourly

                                                                   x holiday pay)] x number of hours
                                                               = [(P446/8 x 200%) + [10% (426/8 x 200%)] x 2 hrs.
                                                               = [(P55.75 x 2.0) + [0.1 (P53.25 x 2.0)] x 2 hours
                                                               = [P111.50 + 10.65] x 2 hours
                                                               = 244.30

                  C.2. For work rendered from 12:01 A.M. to 6:00 A.M. of August 21, 2012, a special day:

                         12:01 A.M. to 6:00 A.M. = (Hourly rate x night shift pay x premium pay x number

                                                                 of hours work) + COLA (proportionate)
                                                             = P426/8 x 110% x 130% x 5 hours + 12.5
                                                             = P426/8 x 1.1 x 1.3 x 5 hours + P12.50
                                                             = P393.24

                  C.3. For work render from 6:01 A.M. to 7:00 A.M. on August 21, 2012,  a special 
                         day:

                         6:01 A.M. to 7:00 A.M. = (Hourly rate x premium pay x No. of hours)

                                                               + COLA (proportionate)
                                                           = P426/8 x 130% x 1 hour + P2.50
                                                           = P71.73

4. If the employer requires his employee to work in excess of eight (8) hours on 20 August 2012,

    how much should the employer pay his employee?

Answer: The employer should pay the 30% overtime premium pay in addition to the 200% of the

regular wage. Assuming that an employee is working in the National Capital Region, he/she should
be entitled to P138.45 per hour overtime rate for work on a regular holiday.

        Hourly rate x 200% x 130% x number of hours = overtime rate on regular holiday
                                                                            = P426/8 x 200% x 130% x number of hours
                                                                            = 426/8 x 2.0 x 1.3 x 1 hour
                                                                            = P138.45 overtime rate/hour for work on a regular

                                                                               holiday

5. What is the compensation of an employee whose work schedule is from 8:00 A.M. to 5:00 P.M.

    and was required to report for work on 20 August 2012 which is a regular holiday falling on his/her
    scheduled rest day?

Answer: For work rendered on the said work schedule, an employee is entitled to a total amount of P1,147.60.

        8:00 A.M. to 5:00 P.M. = [(P426 + P20.00 COLA) x 200%] + [30% (426 x 200%)]
                                          = [P446 x 2] + [0.3 (852)]
                                          = P892 + 255.60
                                          = P1,147.60

6. If the employer requires his employee to work in excess of eight (8) hours on 20 August 2012, a

    regular holiday falling on his/her scheduled rest day, how much should the employer pay his
    employee?

Answer: The employer should pay the 30% overtime pay in addition to the 260% premium pay of

his/her regular wage. Thus, an employee should be entitled to P179.99 per hour overtime rate for
work in excess of eight (8) hours on a regular holiday falling on the employee’s scheduled rest day.

        Hourly rate x 130% x 260% x number of hours = overtime rate on a regular holiday falling on

                                                                                the employee’s scheduled rest day
                                                                            = P426/8 x 130% x 260% x number of hours
                                                                            = 426/8 x 1.3 x 2.6 x 1 hour
                                                                            = P179.99 overtime rate/hour for work on regular

                                                                               holiday falling on a rest day


21 August 2012, Ninoy Aquino Day, a Special Day pursuant to
Proclamation No. 295



1. What is Proclamation No. 295?

Answer: Proclamation No. 295 was issued by President Benigno S. Aquino III on 24 November

2011 declaring 21 August 2012 as a special day.

2. If an employee does not report for work on 21 August 2012, is he or she entitled to be paid

    his/her daily wage?

Answer: In the case of a daily-paid employee, the principle of “no work, no pay” applies. If the

employee does not report for work, the same is not entitled to his/her daily wage. However, an
employee can be covered by a favorable company policy and practice, or by collective bargaining
agreement (CBA) granting payment of wages during special days.

For a monthly-paid employee, no deduction should be made as he/she is considered paid all the

days of the year using factor 365 days a year. In case he/she rendered work on that day, he/she
is only entitled to additional premium pay of 30%.

3. For work on a special day, such as 21 August 2012, Ninoy Aquino Day, how is the premium

    pay computed when an employee is suffered or required to work on such day?

Answer: An additional 30% premium pay is added to the employee’s basic pay, which is

computed as follows:

       (a) For normal 8-hour work, usually rendered from 8:00 A.M. to 5:00 P.M. (with one (1)

            hour non-compensable meal break) an employee should be entitled to a total amount
            of P573.80:

            (Sample computation using NCR minimum wage rate of P426 + 20.00 COLA):

             Applicable daily rate = (Basic Pay x 130%) + COLA, if applicable
                                           = (P426 x 1.3) + P20
                                           = P553.80 + P20
                                           = P573.80

       (b) For shift work rendered from 10:00 P.M. of 20 August 2012, a regular holiday, to 7:00 A.M.

            of 21 August 2012, a special day:

Answer: For the said work schedule, an employee should be entitled to a total amount of P709.27

(P244.30 + P393.24 + P71.73), derived from the following computations:

                  B.1. For work rendered from 10:00 P.M. to 12:00 M.N. of 20 August 2012, a regular
                         holiday:

                         10:00 P.M. to 12:00 M.N. = [Hourly rate x 200% + night shift (hourly rate x 200%)]

                                                                   x 2 hours
                                                                  [(P446/8 x 200%) + (10% (426/8 x 200%)] x 2 hrs
                                                               = [(P55.75 x 2.0) + (0.1 (P53.25 x 2.0)] x 2 hours
                                                               = [P111.50 + 10.65] x 2 hours
                                                               = P244.30

                   B.2. For work rendered from 12:01 A.M. to 6:00 A.M. of 21 August 2012, a special day:

                          12:01 A.M. to 6:00 A.M. = (Hourly rate x night shift pay x premium pay

                                                              x number of hours) + COLA (proportionate)
                                                          = (P426/8 x 1.1 x 1.3 x 5 hours) + P12.5
                                                          = P393.24

                   B.3. For work rendered from 6:00 A.M. to 7:00 A.M. of 21 August 2012, a special day:

                          6:01 A.M. to 7:00 A.M. = (Hourly rate x premium pay x number of hours)

                                                                + COLA (proportionate)
                                                            = P426/8 x 130% x 1 hour + 2.5
                                                            = P71.73

        (c) For shift work rendered from 10:00 P.M. of 21 August 2012, a special day to 7:00 A.M. of 22

             August 2012, an ordinary day:

Answer: For the said work schedule, an employee should be entitled to a total amount of P518.43 

(P152.30 + P292.88 + P53.25 + P20.00 COLA), derived from the following computations:

                   C.1. For work rendered from 10:00 P.M. to 12:00 M.N. of 21 August 2012, a special day:

                          10:00 P.M. to 12:00 M.N. = Hourly rate x night shift pay x premium pay

                                                                   x number of hours
                                                                = P426/8 x 110% x 130% x 2 hours
                                                                = P426/8 x 1.1 x 1.3 x 2 hours
                                                                = P152.30

                   C.2. For work rendered from 12:01 A.M. to 6:00 A.M. of 22 August 2012, an ordinary day:
 
                          12:01 A.M. to 6:00 A.M. = Hourly rate x night shift pay x number of hours
                                                              = P426/8 x 110% x 5 hours
                                                              = P426/8 x 1.1 x 5 hours
                                                              = P292.88

                   C.3. For work rendered from 6:01 A.M to 7:00 A.M. of 22 August 2012, an ordinary day:

                          6:00 A.M. to 7:00 A.M. = P426/8 x 1 hour
                                                            = P53.25

4. What is the compensation of an employee whose work schedule is from 8:00 A.M. to 5:00 P.M.

    and was required to report for work on 21 August 2012, which is a special day falling on his/her
    scheduled rest day?

Answer: For work rendered on the said work schedule, an employee is entitled to a total amount

of P659.00.

        8:00 A.M. to 5:00 P.M. = (Daily rate x premium pay) + COLA
                                          = (P426 x 150%) + P20.00 COLA
                                          = (P426 x 1.5) + P20.00 COLA
                                          = P639.00 + P20.00 COLA
                                          = P659.00

5. If the employer requires his employee to work in excess of 8 hours on 21 August 2012, how

    much should the employer pay his employee?

Answer: The employer should pay the 30% overtime pay in addition to the 30% premium pay of

his/her regular wage. Thus, an employee should be entitled to P90.00 per hour overtime rate for
work rendered in excess of eight (8) hours on special day.

       Hourly rate x 130% x 130% x number of hours = overtime rate on special day
                                                                           = P426/8 x 130% x 130% x number of hours
                                                                           = 426/8 x 1.3 x 1.3 x 1 hour
                                                                           = P90.00 overtime rate/hour for work on special day


6. If the employer requires his employee to work in excess of eight (8) hours on 21 August 2012, a

    special day falling on his/her scheduled rest day, how much should the employer pay his employee?

Answer: The employer should pay the 30% overtime pay in addition to the 50% premium pay of his/her

regular wage. Thus, an employee should be entitled to P103.84 per hour overtime rate for work in
excess of eight (8) hours on a special day falling on the employee’s scheduled rest day.

        Hourly rate x 130% x 150% x number of hours = overtime rate on special day falling on

                                                                               the employee’s scheduled rest day
                                                                           = P426/8 x 130% x 150% x number of hours
                                                                           = 426/8 x 1.3 x 1.5 x 1 hour
                                                                           = P103.84 overtime rate/hour for work on

                                                                              special day falling on a rest day

7. Who are covered by the premium pay?

Answer: The premium pay benefit applies to all employees, except managerial employees, officers

or members of a managerial staff, house helpers, workers who are paid by results, and field personnel.


27 August 2012, National Heroes’ Day, a Regular Holiday pursuant to
Proclamation No. 295


1. How is the holiday pay computed when an employee is suffered or required to work during

    a regular holiday, such as 27 August 2012, National Heroes’ Day?

Answer: An additional 100% holiday pay is added to the employee’s minimum wage (Basic wage

+ COLA) or a total of 200% which is computed as follows:

        (a) For normal 8-hour work, usually rendered from 8:00 A.M. to 5:00 P.M., (with one hour

             non-compensable meal break) an employee should be entitled to a total amount of P892.00:

             Sample Computation (Using NCR minimum wage rate of P426 + P20 COLA): This formula can

             also be applied to all regions using their applicable daily rates.

                     Applicable daily rate = (Basic wage + COLA) x 200%
                                                   = (P426 + P20 COLA) x 200%
                                                   = P446 x 2
                                                   = P892.00

        (b) For shift work rendered from 10:00 P.M. of 26 August, rest day, to 7:00 A.M. of

             27 August 2012, a regular holiday:

Answer: For the said work schedule, an employee should be entitled to a total amount of P927.50

(P157.30 + P626.75 + P143.45), derived from the following computations:

                   B.1. For work rendered from 10 PM to 12:00 M.N. of 26 August 2012, rest day (Sunday)

                          10:00 P.M. to 12:00 M.N. = (Hourly rate ÷ 8 hours x night shift pay x premium pay

                                                                    x number of hours) + COLA (proportionate)
                                                                = P426/8 x 110% x 130% x 2 hours + P5.00 COLA
                                                                = P157.30
  
                   B.2. For work rendered from 12:01 A.M. to 6:00 A.M. of 27 August 2012, a regular holiday
                          falling on a rest day:

                          2:01 A.M. to 6:00 A.M. = (Hourly rate x holiday pay) + [night shift pay x (hourly rate

                                                                 / premium pay x number of hours
                                                             = [(P446/8 x 200%) + [10% (426/8 x 260%)] x 5 hrs.
                                                             = [(P55.75 x 2.0) + [0.1 (P53.25 x 2.6)] x 5 hours
                                                             = [P111.50 + 13.85] x 5 hours
                                                             = P626.75


                   B.3. For work render from 6:01 A.M. to 7:00 A.M. on 27 August 2012, a regular holiday
                          falling on a rest day:

                          6:01 A.M. to 7:00 A.M. = [(Hourly rate x holiday pay + premium pay (hourly rate

                                                                 x holiday pay) x number of hours
                                                             = [P446/8 x 200%] + [30% (426/8 x 200%)] x 1 hour
                                                             = P111.50 + P31.95 x 1 hour
                                                             = P143.45

        (c) For shift work rendered from 10:00 P.M. of 27 August, a regular holiday, to 7:00 A.M. of 28

             August 2012, an ordinary working day:

Answer: For the said work schedule, an employee should be entitled to a total amount of P605.42

(P244.30 + P305.37 + P55.75), derived from the following computations:

                   C.1. For work rendered from 10:00 PM to 12:00 M.N. of August 27, 2012, a regular
                          holiday:

                          10:00 P.M. to 12:00 M.N. = (Hourly rate x holiday pay) + [night shift pay x daily

                                                                    rate ÷ 8 hours x holiday pay)] x number of hours
                                                                = [(P446/8 x 200%) + [10% (426/8 x 200%)] x 2 hrs.
                                                                = [(P55.75 x 2.0) + [0.1 (P53.25 x 2.0)] x 2 hours
                                                                = [P111.50 + 10.65] x 2 hours
                                                                = 244.30

                   C.2. For work rendered from 12:01 A.M. to 6:00 A.M. of 28 August 2012, an ordinary
                          working day:

                          12:01 A.M. to 6:00 A.M. = Daily rate x night shift pay x number of hours work
                                                                 + COLA (proportionate)
                                                              = P426/8 x 110% x 5 hours + 12.5
                                                              = (P426/8 x 1.1 x 5 hours) + 12.5
                                                              = P305.37

                   C.3. For work rendered from 6:01 A.M. to 7:00 A.M. on 28 August 2012, an ordinary day:

                          6:01 A.M. to 7:00 A.M. = (Hourly rate x number of hours) + COLA (proportionate)
                                                            = P426/8 x 1 hour + P2.50
                                                            = P55.75


2. If the employer requires his employee to work in excess of eight (8) hours on 27 August 2012, how

    much should the employer pay his employee?

Answer: The employer should pay the 30% overtime premium pay in addition to the 200% of the

regular wage. Assuming that an employee is working in the National Capital Region, he/she should <
be entitled to P138.45 per hour overtime rate for work on a regular holiday.

        Hourly rate x 200% x 130% x number of hours = overtime rate on regular holiday
                                                                            = P426/8 x 200% x 130% x number of hours
                                                                            = P426/8 x 2.0 x 1.3 x 1 hour
                                                                            = P138.45 overtime rate/hour for work on a regular

                                                                               holiday

3. What is the compensation of an employee whose work schedule is from 8:00 A.M. to 5:00 P.M. and

    was required to report for work on 27 August 2012, which is a regular holiday falling on his/her
    scheduled rest day?

Answer: For work rendered on the said work schedule, an employee is entitled to a total amount of

P1,147.60.

        8:00 A.M. to 5:00 P.M. = [(P426 + P20.00 COLA) x 200%] + [30% (426 x 200%)]
                                          = [P446 x 2] + [0.3 (852)]
                                          = P892 + 255.60
                                          = P1,147.60


4. If the employer requires his employee to work in excess of eight (8) hours on 27 August 2012,

    a regular holiday falling on his/her scheduled rest day, how much should the employer pay his
    employee?

Answer: The employer should pay the 30% overtime pay in addition to the 260% premium pay of

his/her regular wage. Thus, an employee should be entitled to P179.99 per hour overtime rate for
work in excess of eight (8) hours on a regular holiday falling on the employee’s scheduled rest day.

        Hourly rate x 130% x 260% x number of hours = overtime rate on a regular holiday falling on the

                                                                               employee’s scheduled rest day
                                                                            = P426/8 x 130% x 260% x number of hours
                                                                            = 426/8 x 1.3 x 2.6 x 1 hour
                                                                            = P179.99 overtime rate/hour for work on regular

                                                                               holiday falling on a rest day

5. Who are covered by the holiday pay rule?

Answer: The holiday pay benefit applies to all employees, except managerial employees, officers

or members of a managerial staff, house helpers, workers who are paid by results, fieldpersonnel
and those of retail and service establishments regularly employing less than ten (10) workers.

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[Print]
2012-08-22
Dir. Cyril L. Ticao
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