How to Compute Holiday and Special Non-Working Day Pay in the Philippines

How to Compute Holiday and Special Non-Working Holiday Pay in the Philippines

Long streaks of holidays and non-working days lie ahead, and for most of us in HR, this means one thing: special pay computations. While some employees are taking their much anticipated breaks, a lot of people will work as usual. Some will even render overtime hours for additional income.

To field atypical questions and preempt unnecessary disputes, we’ll have to be ready. It’s time to revisit the formulas for calculating wages and salaries earned during holidays and special non-working days.

Here’s a quick list* of the upcoming holidays and special non-working days and of their corresponding pay formulas. You can save this page for future reference, or, to set proper salary expectations, share it to the whole team.

Regular/Legal Holidays (2017)

Dates

• November 30, Thursday (Bonifacio Day)
• December 25, Monday (Christmas Day)
• December 30, Saturday (Rizal Day)

Pay formula for employees who…

• Did not go to work

Basic wage/Daily rate + Cost of Living Allowance (COLA)

• Worked 8 hours

(Daily rate + COLA) x 2

• Worked overtime (i.e. more than 8 hours)

[(Basic wage + COLA) x 2] + (Basic hourly rate x Number of excess hours x 2.6)

• Worked 8 hours on a rest day (regular/legal holiday and rest day at the same time)

[(Basic wage + COLA) x 2] + [(Basic wage x 2) x .30]

• Worked overtime on a rest day (regular/legal holiday and rest day at the same time)

[(Basic wage + COLA x 2] + [(Basic wage x 2) x .30] + [(Basic hourly rate x 2.6) x Number of excess hours x 1.3]

Special Non-Working Days (2017)

Dates

• October 31, Tuesday (Additional Special Non-Working Day)
• November 1, Wednesday (All Saints Day)
• November 13 to 15, Monday to Wednesday (Special Non-Working Days due to the 31st Association of Southeast Asian Nation (ASEAN) Summit)
• December 31, Sunday (Last Day of the Year)

Pay formula for employees who…

• Did not go to work

No work no pay, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.

• Worked 8 hours

[(Daily rate x 1.3) + COLA]

• Worked overtime (i.e. more than 8 hours)

[(Daily rate x 1.3) + COLA] + (Daily rate x 1.69 x Number of excess hours)

• Worked 8 hours on a rest day (special non-working day and rest day at the same time)

[(Daily rate x 1.5) + COLA]

• Worked overtime on a rest day (special non-working day and rest day at the same time)

[(Daily rate x 1.5) + COLA] + (Basic hourly rate x 1.95 x Number of excess hours)

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*This list was put together with the help of these documents.

• Proclamation No. 50, series of 2016 (Proclamation Declaring the Regular Holidays and Special Non-Working Days for the Year 2017)
• Labor Advisory No. 13, series of 2016 (Payment of Wages for the Regular Holidays and Special Non-Working Days for the Year 2017)
• Proclamation No. 332, series of 2017 (Proclamation Declaring 13 – 15 November 2017 as Special Non-Working Days in the National Capital Region (NCR), Province of Bulacan, and Province of Pampanga)