[2] Statutory Monetary Benefits - Holiday Pay, Premium Pay, Overtime Pay

From St. Ven's notes

Holiday Pay

Payment of the regular daily wage for any unworked regular holiday

Holiday Pay’s Coverage

Applies to all employees, except:

• Government employees

• Retail and service establishments employing less than 10 workers

• Kasambahay

• Managerial employees who follow all criteria:

  • Primary duty is to manage the establishment

  • Direct the work of two or more employees

  • Have the authority to hire or fire; suggestion towards the career status of employees have particular weight

• Officers or members of a managerial staff if they perform the following:

  • Perform work directly related to management policies of employer

  • Exercise discretion and independent judgement

  • Assist a proprietor or managerial employee in the management of establishment, work along technical lines that require training, experience, or knowledge, and execute special assignments/tasks

  • Do not devote more than 20% of hours worked in a workweek towards aforementioned activities

• Field personnel whose time and performance is unsupervised by the employer

Regular Holidays

Holidays mandated by law

Holiday Pay Rates

• Entitled to 100% of minimum wage even if unworked

• Worked performed = 200%

• Holiday falling on rest day = 260% (30% from holiday, 30% from the rest day)

• Two regular holidays (unworked) = 200%

• Two regular holidays (worked) = 300%

• Two regular holidays falling on the rest day (worked) = 390% (30% from each holiday, 30% from rest day)

• When regular holiday falls on a Sunday, the following Monday is not considered a holiday, unless it is declared a special day

Absences

• Employees on leave of absence with pay on workday before the regular holiday is entitled to holiday

• Employees on leave of absence without pay on workday before regular holiday may not be paid holiday pay unless they work on that day

• If non-work day or rest day precedes holiday

  • Employee is entitled to holiday pay provided that they worked on the day before the non-working day or rest day

Successive Regular Holidays

• If absent the day before the first holiday → not entitled for two holiday pays

• If absent employee works during the first holiday → entitled to holiday pay for second holiday

Temporary or Periodic Shutdown of Work

Regular holidays falling within temporary cessation of work (e.g., yearly inventory or maintenance) will be compensated

Holiday Pay of Certain Employees

• Employee paid via piece-rate basis

• Seasonal workers

• Workers who do not have regular working days

Employee Paid via Piece-Rate Basis

HOLIDAY PAY OF CERTAIN EMPLOYEES

• Holiday pay is at least equal to average daily earning for the past 7 workdays before the holiday

• Provided that the holiday pay is not less than the applicable statutory minimum wage rate

Seasonal Workers

HOLIDAY PAY OF CERTAIN EMPLOYEES

Not paid holiday pay during off-season

Workers who do not have regular working days

HOLIDAY PAY OF CERTAIN EMPLOYEES

Entitled to holiday pay

Premium Pay

Additional compensation for work performed within 8 hours on rest days and special days

Premium Pay’s Coverage

• All employees, except:

  • Government employees

  • Managerial employees (as mentioned in holiday pay)

  • Officers or members of a managerial staff (as mentioned in holiday pay)

  • Kasambahay

  • Workers paid by results

    • Paid on piece rate, takay, pakyaw, or task basis

    • Other non-time work

  • Field personnel (as mentioned in holiday pay)

• Note: retail and service establishments with less than 10 workers are not exempted

Special (Working) Days

• Employee is entitled to only their minimum wage

• No premium pay since work is considered ordinary workday

Premium Pay Rates

• “No work, no pay“ applies during special days

• Workers not required to work on special days are not entitled to any compensation

  • Work performed on special days merits additional compensation of at least 30% of basic wage (130%)

  • Work performed on rest day, which is also special day = 150%

  • Work on a regular holiday falling on rest day = 260%

Overtime Pay

Additional compensation for work performed beyond 8 hours a day

Overtime Pay’s Coverage

Same as those covered in Premium Pay

Overtime on Ordinary Working Days

OVERTIME PAY RATES

Hourly rate * 125% * Number of hours OT work

Overtime on Scheduled Rest Day or Special Day

OVERTIME PAY RATES

Hourly rate * 130% * Number of hours OT work

Overtime on Special Day Falling on Rest Day

OVERTIME PAY RATES

Hourly rate * 150% * 130% * Number of hours OT work

Overtime on Regular Holiday (Overtime Pay Rates)

OVERTIME PAY RATES

Hourly rate * 200% * 130% * Number of hours OT work

Overtime on Regular Holiday Falling on Rest Day (Overtime Pay Rates)

OVERTIME PAY RATES

Hourly rate * 260% * 130% * Number of hours OT work

Stipulated Overtime Rates

Premium pay for work on rest days, special days, or regular holidays is included as part of regular rate in the computation of OT