SPECIAL LAWS

ATTY. JIMMY I. PERU, JD, MBM, MICB, CPA

LABOR LAWS

HOLIDAY PAY

Holiday Pay refers to the payment of the regular daily wage for any unworked regular holiday.

Holiday pay does not apply to employees of retail and service establishments regularly employing less than 10
workers. (9 employees and below)

Reason: To prevent diminution of the monthly income of the workers on account of work interruptions. In
other words, although the worker is forced to take a rest, he earns what he should earn, that is, his holiday pay.

List of Regular Holidays E.O. 292 as amended by R. A. 9492

1. New Year’s Day – January 1
2. Maundy Thursday – movable date
3. Good Friday – movable date
4. Araw ng Kagitingan – Monday nearest April 9
5. Labor Day – Monday nearest May 1
6. Independence Day – Monday nearest June 12
7. National Heroes Day – Last Monday of August
8. Bonifacio Day – Monday nearest November 30
9. Christmas Day – December 25
10. Rizal Day – Monday nearest December 30
11. Eid’l Fitr – movable date
12. Eid’l Adha – movable date (E.O. 292 as amended).

Formula to Compute Wages on Holidays (Labor Advisory No. 10, (2017)

1. For Regular Holidays, the following rules shall apply:
a. During employee’s regular workday
i. If unworked – (Daily rate + Cost of Living Allowance) x 100%
800 x (100%) 1 = 800
ii. If worked:
1) 1st 8hrs. – (Daily rate + COLA) x 200%
450+50 x 200% = 1000
8 hours – daily rate + cola (100%) 100% Holiday pay 500
8 hours – premium (100%) 100% Premium 500
1000

2) Excess of 8hrs. – (Hourly rate of the basic daily wage x 200% x 130% x number of hours
worked)
500/8 x 200% x 130% x 2 hours = 325

8 hours – daily rate + cola (100%) 100% Holiday pay 500

8 hours – premium (100%) 100% Premium 500
1000
2 hours OT
Basic (500/8) x 2 hours 100% 125
HP (500/8) x 2 hours 100% 125
Premium (500/8 x 2 hours x 200%) x 30% 30% 75 325
1,325

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 3) Excess of 8hrs. – (Hourly rate of the basic daily wage x 200% x 130% x number of hours
worked)

Premium = 500/8 x 200% x 30% x 2 hours = 75

Basic pay = 500/8 x 200% x ___ x 2 hours = 250

Regular Premium = 500/8 x 100% x 25% x 2 hours = 31.25

b. During employee’s rest day

i. If unworked – (Daily rate + COLA) x 100%
ii. If worked:
1) 1st 8hrs. – (Daily rate + COLA) x 200%) + (100%+30% (Daily rate x 200%))

(450 +50 x200%) + (130% x(450x200%)

1000 + 1170
2170

8 hours - unworked Cola included Holiday pay 500

8 hours – worked Cola included Premium 500
Premium (450x2) Cola is not Add premium 1170
*130% included
2170
Monday = rest day
Monday = holiday

8 hours – daily rate + cola (100%) 100% Holiday pay 500

8 hours – premium (100%) 100% Premium 500
1000

2) Excess of 8hrs. – (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of
hours worked)

2. For declared special days such as Special Non-Working Day, Special Public Holiday, Special National
Holiday, and nationwide special days, the following rules shall apply:
a. If unworked – No pay unless there is a favorable company policy, practice or collective bargaining
agreement (CBA) granting payment of wages on special days even if unworked
b. If worked
i. 1st 8 hrs. – (Daily rate x 130%) + COLA

8 hours – daily rate (100%) 450 x 1.00% 450

8 hours – premium (30%) 450 x .30% 135
Cola 50 x 1.00% 50
635
ii. Excess of 8 hrs. – (Hourly rate of the basic daily wage x 130% x number of hours worked)
8 hours – daily rate (100%) 450 x 1.00% 450
8 hours – premium (30%) 450 x .30% 135
Cola 50 x 1.00% 50
635
2 hours OT
(450/8) x 2 hours 56.25x2hours x 1.00% 112.50
Premium 450/8 x 2 hours x 30% 450/8 x 2 hours x .30% 33.75 146.25

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 c. Falling on the employee’s rest day and if worked
i. 1st 8 hrs. – (Daily rate x 150%)+ COLA
ii. Excess of 8 hrs. (Hourly rate of the basic wage x 150% x 130% x number of hour worked)

3. For those declared as special working holidays, the following rules shall apply:
a. For work performed, an employee is entitled only to his basic rate.
b. No premium pay is required since work performed on said days is considered work on ordinary days

List of Special Days

1. National
a. All Saint’s Day – November 1

November 2 = All Soul’s Day is not a special day

Nov. 1 Nov. 2
Unworked 0 0
Worked 500 x 1.30% = 650 500 x 1.00% = 500

b. Last Day of the Year – December 31

c. Ninoy Aquino Day – Monday nearest August 21 (R.A. No. 9492, July 25, 2007)
d. Immaculate Conception – December 8

INC – July 27 or 28 – pending bill

e. Other days declared by law

2. Local

Those declared by law or ordinance (e.g. Makati Day for Makati City only)

Note: Holidays, except those which are religious in nature, are moved to the nearest Monday, unless
otherwise modified by law, order or proclamation (R.A. No. 9492 or the Holiday Economics Law).

Regular Holiday v. Special Holiday

Regular Holiday Special Holiday

Compensable even if unworked subject to No work, no pay
certain conditions
Limited to the 13 enumerated by the Labor Not exclusive since a law or ordinance may
Code and special laws provide for other special holidays.
Rate is 200% of the regular rate if worked Rate is 130% of the regular wage if worked.

Unworked = 100% Unworked = 0%

Worked = 100% Worked = 100%
Total 200% Premium = 30%
Total 130%

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Double Holiday Pay (i.e. Araw ng Kagitingan and Good Friday fails on the same day)

1. Two hundred percent (200%) of the basic wage

a. Entitled even if said holiday is unworked
b. To give employee only 100% would reduce the number of holidays
Araw ng kagitingan Good Friday Araw ng kagitingan and
Good Friday
Unworked 100% 100% 100%+100%

2. Three hundred percent (300%) if he worked on 2 regular holidays falling on the same day (Manual on
Labor Standards, 2004). 390% if he reported for work on a double holiday which is also his rest day, where
he is now entitled to an additional 30% based on the rate of 300% for that day

Araw ng kagitingan Good Friday Araw ng kagitingan and

Good Friday
Holiday Pay 100% 100% 100%+100%
Worked 100% 100% 100%
200% 200% 300%

Rest day on double holiday

Araw ng kagitingan Good Friday Araw ng kagitingan and

Good Friday
Holiday Pay 100% 100% 100%+100%
Worked 100% 100% 100%
Rest day Premium 30% 30% 90%
230% 230% 390%

Single Holiday Rule

Provided that the employee:
1. Worked;
2. Was on leave with pay; or
3. Was on authorized absence on the day prior to the regular holiday.

Note: Employees who are on leave of absence without pay on the day immediately preceding a regular
holiday may not be paid the required holiday pay if they do not work on such regular holiday (2019 Handbook
on Workers’ Statutory Monetary Benefits, p. 14).

Where the day immediately preceding the holiday is a non-work day in the establishment or the scheduled rest
day of the employee, he / she shall not be deemed to be on leave of absence on that day, in which case he / she
shall be entitled to the holiday pay if he / she worked on the day immediately preceding the non-work day or rest
day (2019 Handbook on Workers’ Statutory Monetary Benefits, p. 15).

Wednesday Thursday Friday Entitled to holiday

pay?
Present Rest Day Regular Holiday Yes
Absent with Pay Rest Day Regular Holiday Yes
Absent without
Rest Day Regular Holiday No
Pay
Present Special Day Regular Holiday Yes
Absent with Pay Special Day Regular Holiday Yes
Absent without
Special Day Regular Holiday No
Pay

Effects of Business Closure on Holiday Pay

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If regular holiday occurs during:
1. Temporary or periodic shutdown and temporary cessation of work of an establishment – the regular
holidays falling within the period shall be compensated.
2. Cessation of operation of an enterprise due to business reverses as authorized by the Secretary of Labor –
the regular holiday may not be paid by the employer (IRR of LABOR CODE, Book 111, Rule 1V, Sec. 7).

Successive Regular Holidays

To be entitled to holiday pay in case of two (2) successive holidays, the employee must:
1. Be present on the day immediately preceding the first holiday; or
2. Be on leave with pay (2019 Handbook on Worker’s Statutory Monetary Benefits, p. 15).

Note: Otherwise, he must work on the 1 st holiday to be entitled to holiday pay on the 2 nd regular holiday (IRR of
LABOR CODE, Book 111, Rule 1V, Sec. 10).

Successive Holiday Rule

Wednesday Maundy Thursday Good Friday Entitled to holiday

pay
Not worked Not worked
Present Yes – Both
100% 100%
worked worked
Present hp = 100% hp=100% Yes – Both
worked=100% worked = 100%
Absent with pay Not worked Not worked Yes – Both
Absent without pay Not worked Not worked No- Both
Worked
Not worked
Yes – But Only to the
Absent without pay
HP = 0 Holiday Pay on Friday
Hp =100%
Worked =100%
Worked Worked
Yes – But Only to the
Absent without pay
HP = 0 Hp = 100% Holiday Pay on Friday
Worked =100% Worked = 100%

SERVICE INCENTIVE LEAVE

SERVICE INCENTIVE VACATION LEAVE SICK LEAVE

LEAVE
GOVERNMENT - 15 DAYS / ANNUM 15 DAYS / ANNUM
PRIVATE 5 DAYS - -

VACATION SICK LEAVE VACATION LEAVE SICK LEAVE

LEAVE
GOVERNMENT - 15 DAYS / ANNUM 15 DAYS / ANNUM
PRIVATE 5 DAYS 5 DAYS - -
DE MINIMIS 10 DAYS NOT TAXABLE ALL NOT TAXABLE ALL NOT TAXABLE
(MONETIZED) TAXABLE

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Service Incentive Leave (SIL) is a five-day leave with pay for every employee who has rendered at least one (1)
year of service.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
X X X X X X X X X X X 5

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB
X X LEAVE X X X X LEAVE X X X X X 5

One Year of Service shall mean service for not less than twelve (12) months, whether continuous or broken,
reckoned from the date the employee started working including authorized absences and paid regular holidays
unless the number of working days in the establishment, as a matter of practice or policy or as provided in the
employment contract, is less than 12 months (IRR of Labor Code, Book 111, Rule V, Sec. 3).

Purpose: To serve as a motivation for the employee to stay longer with the employer (JPL Marketing Promotions
v. CA, G.R. No. 151966, July 8, 2005).

Note: Part-time Workers are entitled to SIL. The reason is that provisions of Art. 95 of the Labor Code and its
implementing rules speak of the number of months in a year for entitlement to said benefit. Consequently, part-
time employees are also entitled

NIGHT – SHIFT DIFFERENTIAL

It is an additional compensation of not less than 10% of an employee’s regular wage for every hour of work done
between 10:00 PM and 6:00 AM, whether or not such period is part of the worker’s regular shift.

General Rule: All employees are entitled to NSD

8 am – 5 pm = 9 hours – 1 hour mealtime = 8 hours

8 am – 6 pm = 10 hours – 1 hour mealtime = 9 hours…..8 hrs + 1 hr overtime

8 am – 10 pm = 14 hours – 1 hour mealtime = 13 hours…..8 hrs + 5 hrs overtime

8 am – 12 pm = 16 hours – 1 hour mealtime = 15 hours…..8 hrs + 7 hrs overtime, (2 hrs with NSD)

Exceptions:
1. Those provided in Art. 82 of the Labor Code; and
2. Employees of retail and service establishments regularly employing not more than 5 workers
Note: The COLA shall not be included in the computation of night shift pay 2019 Handbook on Workers’ Statutory
Monetary Benefits, p. 23).

NSD in Overtime Work

If work done between 10PM and 6 AM is overtime work, then the 10% night shift differential should be based on
the overtime rate.

Reason: NSD pay is given as a premium for working at a time when the employee is supposed to sleep and rest in
accordance with the law of nature.

NSD not Waivable

Additional compensation for nighttime work is founded on public policy. Thus, NSD is not waivable except for
higher and bigger benefits.

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Sample Illustrations
1. Without Overtime
{(10% x regular wage per hour) x no. of hours of work performed between 10PM – 6AM}
Given 1. A:
Daily Wage P 800
Work Schedule 6:00 PM – 2:00 AM

24 HOURS A DAY
SHIFT 1 = 8AM TO 4PM
SHIFT 2 = 4PM TO 12 AM 4PM TO 5AM WITH OT
SHIFT 3 = 12 AM TO 8 AM

Computation:
Step 1: Get the regular wage per hour Daily Wage divided by number of hours worked P800 / 8 hours =
P100
Step 2: Compute the NSD
Formula: (10% x regular wage per hour) x hours of work performed between 10 PM – 6AM (10% x P100) x
4 hours = P 40
Step 3: Compute the total wage earned
Daily Wage P800
Add: NSD Pay (4 hours x P10) (10PM TO 2AM) 800/8 hours *10% * 4hours P 40
Total Wage Earned P 840

Given 1.B:
Minimum Wage P 537
Work Schedule 6:00 PM – 2:00 AM

Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA
P 537 – 10 = P 527
Step 2: Get the regular wage per hour
Daily Wage divided by number of hours worked
P527 / 8 hours = P 65.875
Step 3: Compute the NSD
Formula: (10% x regular wage per hour) x no hour of work performed between 10PM – 6AM (10% x P
65.875) x 4 hours = P26.35
Step 4: Compute the total wage earned
Minimum Wage P 537
Add: NSD Pay (4 hours x P 26.35
P6.5875)
Total Wage Earned P 563.35
(2019 Handbook on Workers’ Statutory Monetary Benefits, pp. 23-24).

2. With Overtime
[(10% OT wage per hour) x no. of hours of performed between 10PM -6AM]

Given 2A:
Daily Wage P 800
Work Schedule 8:00 AM – 5:00 PM
Overtime 5:00 PM – 12:00 MN

Computation:
Step 1: Get regular wage per hour
Daily Wage divided by number of hours worked
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 P 800 / 8 hrs. = P 100

Step 2: Compute the OT Pay between 5:00 PM – 12:00 MN

[(25% x regular wage per hour) + regular wage per hour] x no. of OT hours]
(25% x P 100) + 100 P 125
X no. of OT hours (5:00 PM – 12:00 MN 7 hours
OT Premium Pay P 875

Step 3: Compute the NSD

[(10% OT wage per hour) x no. of hours of work performed between 10 pm – 6am]
(10% x P 125) x 2 hours = P 25

Step 4: Compute the total wage earned

8AM – 5PM (8 hours x P 100) P 800
ADD: 5PM – 12 MN (7 hours x P125) P 875
ADD: NSD Pay (2 hours x P 12.50) P 25
Total wage Earned P 1,700

8AM – 5PM (8 hours x P 100) Daily wage P 800

ADD: 5PM – 12 MN (7 hours x Regular 800/8hours *7 700
P125)
Overtime 800/8hours *.25*7 175
ADD: NSD Pay (2 hours x P 12.50) NSD (800/8hours*1.25)*10%*2hour P 25
s
Total wage Earned P 1,700

Given 2. B:
Minimum Wage P 537
Work Schedule 8:00 AM – 5:00 PM
Overtime 5:00 PM – 12:00 MN

Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA
P 537 – 10 = P 527
Step 2: Get regular wage per hour
Daily Wage divided by number of hours worked
P 527 / 8 hrs = P 65.875
Step 3: Compute the OT Pay between 5:00 PM – 12:00 MN
[(25% x regular wage per hour) + regular wage per hour] x no. of OT hours]
25% x P 65.875) + P 65.875 P 82.344
X no. of OT hours (5PM – 12 7 hours
MN)
OT Premium Pay P 576.41
Step 4: Compute the NSD
[(10% x OT wage per hour) x no. of hours of work performed between 10 pm – 6am]
(10% x P 82.344) x 2 hours = P 16.47
Step 5: Compute the total wage earned
8AM – 5PM (8 hours x P 100) P 537
ADD: 5PM – 12 MN (7 hours x P 125) P 576.41
ADD: NSD Pay (2 hours x P 12.50) P 16.47
Total Wage Earned P 1,129.88
(2019 Handbook on Workers’ Statutory Monetary Benefits, pp. 23 -24)

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Night Shift Differential v. Overtime Pay

NSD Overtime Pay

As to nature
Payment for work done during the night Payment for the excess of the regular 8 –
(10:00 pm – 6:00 am) hour work
As to premium
10% of basic wage 25% or 30% of basic wage
(LABOR CODE, Art. 66 & 87).

Note: The receipt of overtime pay will not preclude payment of night shift differential pay (NARIC v. NARIC
Workers Union, G. R. No. L – 12075, May 29, 1959).

OVERTIME WORK

Overtime Pay is an additional compensation for work performed beyond 8 hours within the worker’s 24 – hour
workday regardless whether the work covers 2 calendar days.

Reason: The employee is given OT pay because he is made to work longer than what is commensurate with his
agreed compensation for the statutory fixed or voluntarily agreed hours of labor he is supposed to do (PNB v
PEMA, G. R. No. L-30279, July 30, 19852).

Overtime Pay v. Premium Pay

Overtime Pay Premium Pay

Additional compensation for work Additional compensation required by law for
performed beyond 8 hours a day. work performed within 8 hours on non-
working days such as rest days, and regular
Every employee who is entitled to premium and special holidays.
pay is likewise entitled to the benefit of
overtime pay.
25% 30%

Basis for Computation of Overtime Pay

Regular basic wage includes cash wage only, without any deduction on account of facilities provided by the
employer.

Note: The Cost-of-Living Allowance (COLA) shall not be included in the computation of overtime pay (2019
Handbook on Workers’ Statutory Monetary Benefits, p. 20).

Rates
1. Overtime Work on Regular Work Day
The employee is paid for the overtime work an additional compensation equivalent to his regular wage
plus at least 25% thereof (LABOR CODE, Art. 87).
2. Overtime Work on Special Holiday or Rest Day
Overtime work performed on a special holiday or rest day not falling on a regular holiday shall be paid an
additional compensation equivalent to the rate of the first 8 hours on that day plus at least 30% thereof.

Employee and Employer may stipulate in their CBA the payment for overtime work at rates higher than
those provided by law.

Conditions to be entitled to Overtime Pay

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 1. Entitlement to overtime pay must first be established by sufficient proof;
2. Said overtime work was actually performed.

Chinese Overtime against Public Policy

Chinese overtime is a system of overtime payment in which salaried employee’s regular rate is calculated by
dividing his salary by the total number of hours he worked. Thus, the greater number of hours, the lower rate of
pay per hour (CCHI, Labor law Course, 303) unduly reducing the take home pay of the employee. This economic
practice is prohibited by law

800/8 hours = 100 *.25 = 25 pesos per hour

800/12 hours = 66.66 *.25 = 16 pesos per hour

Sample Illustrations
1. Regular Workdays
[Regular basic wage + 25% of regular basic wage]

Given 1. A:
Daily Wage P 800
Work Schedule 8:00 AM – 5:00 PM
(inclusive of I hour meal
break)
OT 5:00 PM – 10:00 PM
Computation:
Step 1: Get regular wage per hour
Daily Wage divided by number of hours worked P 800 /
8 hours = P 100
Step 2: Compute the OT Pay between 5:00 pm – 10:00 pm
[(25% x regular wage per hour) + (regular wage per hour) x no. of OT hours]
(25% x P 100) + P 100 P 125
X no. of OT hours (5PM – 5 hours
10PM)
OT Premium Pay P 625
Step 3: Compute the total wage earned
8AM – 5PM (8 hours x P 100) P 800
ADD: 5PM – 10PM (5 hours x P 625
P 125)
Total Wage Earned P 1,425

Given 1. B:
Minimum Wage P 537
Work Schedule 8:00 AM – 5:00 PM
(inclusive of I hour meal
break)
OT 5:00 PM – 10:00 PM
Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA; P 537 – P 10 = P 527
Step 2: Get regular wage per hour
Daily Wage divided by number of hours worked
P 527 / 8 hours = P 65.875
Step 3: Compute the OT Pay between 5:00 PM – 10:00 PM
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 [(25% x regular wage per hour) + (regular wage per
hour) x no. of OT hours]
(25% x P 65.875) + P 65.875 P 82.34
X no. of OT hours (5PM – 10PM) 5 hours
OT Premium Pay P 411.72
Step 4: Compute the total wage earned
Minimum Wage (8AM – 5PM) P 537
ADD: 5PM – 10 PM (5 hours x P P 411.72
82.34)
Total Wage Earned P 948.72

2. Legal or Regular Holidays

[Holiday wage rate (200%) + 30% of holiday rate]
Given 2. A:
Daily Wage P 800
Work Schedule 8:00 AM – 5:00 PM (inclusive
of 1 hour meal break)
OT 5:00 PM – 10:00 PM June 12
(Independence Day)
Computation:
Step 1: Get hourly wage rate
Daily Basic Wage divided by number of hours worked multiplied by regular holiday wage rate (P800 / 8
hours) x 200% = P 200
Step 2: Compute wage between 8:00 AM – 5:00 PM using
holiday wage rate (8 hours x P200 = P 1,600
Step 3: Compute OT Premium Pay between 5:00pm – 10:00 pm
[(30% x Wage per hour) + Wage per hour] x no. of OT hours
(30% x P 200) + P200 P 260
X no. of OT hours (5PM – 10PM) 5 hours
OT Premium Pay P 1,300
Step 4: Compute the total wage earned
8AM – 5PM (8 hours x P 200) P 1,600
ADD: 5PM – 10 PM (5 hours x P P 1,300
260)
Total Wage Earned P 2,900

Given 2. B:
Minimum Wage P 537
Work Schedule 8:00 AM – 5:00 PM (inclusive
of one hour meal break)
OT 5:00 PM – 10:00 PM June 12
(Independence Day)
Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA; P 537 – P 10 = P 527
Step 2: Get hourly wage rate. Daily Basic Wage divided by
number of hours worked multiplied by regular holiday
wage rate (P 527 / 8 hours) x 200% = P 131.75
Step 3: Compute wage between 8:00am – 5:00 pm using
holiday wage rate 8 hours x P131.75 = P 1,054
Step 4: Compute OT Premium Pay between 5:00 pm–10:00 pm
[(30% x Wage per hour) + Wage per hour] x no. of OT hours
(30% x P131.75) + P 131.75 P 171.28
X no. of OT hours (5PM – 10PM 5 hours
OT Premium Pay P 856.4

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Step 5: Compute the total wage earned
8AM – 5PM (8 hours x P 131.75 P 1,054
ADD: 5PM – 10PM (5 hours x P 856.4
171.28
Total Wage Earned P 1,910.4
3. Rest Days or Special Holidays
[Rest day or special holiday wage rate (130%) + 30% of rest day or special holiday wage rate]
Given 3. A:
Daily Wage P 800
Work Schedule 8:00 AM – 5:00 PM
(inclusive of one hour
meal break)
OT 5:00 PM – 10:00 PM June
24 (Manila Day – Special
Holiday)
Computation:
Step 1: Get hourly wage rate
Daily Basic Wage divided by number of hours worked
multiplied by special holiday wage rate.
(P 800/8 hours) x 130% = P 130
Step 2: Compute wage between 8:00 am – 5:00 pm using
special holiday wage rate
8 hours x P 130 – P 1,040
Step 3: Compute OT Premium Pay between 5:00 pm–10:00 pm
[(30% x holiday wage per hour) + holiday wage per
hour] x no. of OT hours
(30% x P 130) + P 130 P 169
X no. of OT hours (5PM – 10PM) 5 hours
OT Premium Pay P 845
Step 4: Compute the total wage earned
8AM – 5PM (8 hours x P 130) P 1,040
ADD: 5PM – 10PM P 845
Total Wage Earned P 1,885

Given No. 3. B:
Minimum Wage P 537
Work Schedule 8:00 AM – 5:00 PM (inclusive
of 1 hour meal break)
OT 5:00 PM – 10 PM June 24
(Manila Day – Special
Holiday)
Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA
P 537 – P 10 = P 527
Step 2: Get hourly wage rate
Daily Basic Wage divided by number of hours worked
multiplied by special holiday wage rate.
(P527/8 hours) x 130% = P 85.64
Step 3: Compute wage between 8:00 am – 5:00 pm using
special holiday wage rate
8 hours x P 85.64 = P 685.1
Step 4: Compute OT Premium Pay between 5:00 pm–10:00 pm
[(30% x holiday wage per hour) + holiday wage per hour] x no. of OT hours
(30% x P 85.64) + P 85.64 P 111.33
X no. of OT hours (5PM – 10PM) 5 hours
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 OT Premium Pay P 556.66
Step 5: Compute the total wage earned
8AM – 5PM (8 hours x P 85.64) P 685.10
ADD: 5PM – 10PM (5 hours x P P 556.66
111.33)
Total Wage Earned P 1,241.75
(2019 Handbook on Workers’ Statutory Monetary Benefits, p. 21)

4. Schedule Rest Day which is also a Special Holiday

(Rest day & special holiday wage rate (150%) + 30% of rest day & special holiday wage rate
Given 4. A:
Daily Wage P 800
Work Schedule 8:00 AM – 5:00 PM (inclusive
of 1 hour meal break)
OT 5:00 PM – 10:00 PM June 6
(Araw ng Caloocan – special
holiday coinciding w/
employee’s scheduled rest
day)

Computation:
Step 1: Get hourly wage rate
Daily Basic Wage divided by number of hours worked multiplied by rest day & special holiday wage rate.
(P 800 / 8 hours) x 150% = P 150
Step 2: Compute wage between 8:00 am – 5:00 pm using special holiday wage rate
8 hours x P 150 = P 1,200
Step 3: Compute OT Premium Pay between 5:00 pm–10:00 pm.
[(30% x holiday wage per hour) + holiday wage per hour] x no. of OT hours
(30% x P 150) + P 150 P 195
X no. of OT hours (5PM – 10PM) 5 hours
OT Premium Pay P 975
Step 4: Compute the total wage earned
8AM – 5PM (8 hours x P 150 P 1,200
ADD: 5PM – 10PM (5 hours x P 975
195)
Total Wage Earned P 2,175

Given 4. B:
Minimum Wage P 537
Work schedule 8:00 AM – 5:00 PM (inclusive
of 1 hour meal break)
OT 5:00 PM – 10:00 PM June 6
(Araw ng Caloocan – special
holiday coinciding w/
employee’s scheduled rest
day)

Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA
P 537 – P 10 = P 527
Step 2: Get hourly wage rate
Daily Basic wage divided by number of hours worked multiplied by rest day & special holiday wage rate
(P 527 / 8 hours) x 150% = P 98.81
Step 3: Compute wage between 8:00 am – 5:00 pm using
special holiday wage rate
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 8 hours x P 98.81 = P 790.50
Step 4: Compute OT Premium Pay between 5:00 pm–10:00 pm
[(30% x holiday wage per hour) + holiday wage per hour] x no. of OT hours
(30% x P 98.81) + P 98.81 P 128.45
X no. of OT hours (5 pm – 10 5 hours
pm)
OT Premium Pay P 742.27
Step 5: Compute the total wage earned
8 AM – 5 PM (8 hours x P P 790.50
98.81)
ADD: 5PM – 10PM (5 hours x P P 642.27
128.45
Total Wage earned P 1,432.77
(2019 Handbook on Workers’ Statutory Monetary Benefits, p. 21).

5. Scheduled Rest Day which is Also a Legal or Regular Holiday

[Rest day & legal holiday wage rate + 30% of rest day & legal holiday wage rate (260%)]

Given 5. A:
Daily Wage P 800
Wage Schedule 8:00 AM – 5:00 PM (inclusive
of 1 hour meal break)
OT 5:00 PM – 10:00 PM May 1
(Labor Day – legal holiday
coinciding w/ employee’s
scheduled rest day

Computation:
Step 1: Get hourly wage rate
Daily Basic Wage divided by number of hours worked multiplied by rest day & legal holiday wage rate.
(P 800 / 8 hours) x 260% = P 260
Step 2: Compute wage between 8:00 am – 5:00 pm using
holiday wage rate.
8 hours x P 260 = P 2,080
Step 3: Compute OT Premium Pay between 5:00 pm–10:00 pm
[(30% x holiday wage per hour) + holiday wage per hour] x no. of OT hours
(30% P 260) + P 260 P 338
X no. of OT hours (5PM – 5 hours
10PM)
OT Premium Pay P 1,690
Step 4: Compute the total wage earned
8AM – 5PM (8 hours x P 260) P 2,080
5PM – 10PM (5 hours x P 338) P 1,690
Total Wage Earned P 3,770

Given 5. B:
Minimum Wage P 537
Work Schedule 8:00 AM – 5:00 PM
(inclusive of 1 hour meal
break)
OT 5:00 PM – 10:00 PM May 1
(Labor Day – legal holiday
coinciding w/ employee’s
scheduled rest day)

Computation:
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Step1: Deduct the COLA
Minimum Wage minus COLA
P 537 – P 10 = P 527
Step 2: Get hourly wage rate
Daily Basic Wage divided by number of hours worked multiplied by rest day & legal holiday wage rate.
(P 527 / 8 hours) x 260% = P 171.28
Step 3: Compute wage between 8:00 am – 5:00 pm using
holiday wage rate.
8 hours x P 171.28 = P 1,370.2
Step 4: Compute OT Premium Pay between 5:00 PM – 10:00 PM
(30% x P 171.28) + P 171.28 P 222.66
X no. of OT hours (% PM – 10 5 hours
PM)
OT Premium Pay P 1,113.32
[(30% x holiday wage per hour) + holiday wage per hour] x no. of OT hours
Step 5: Compute the total wage earned
8Am – 5PM (8 hours x P P 1,370.20
171.28
5 PM – 10 PM (5 hours x P P 1,113.32
222.66)
Total Wage Earned P 2,483.52
(2019 Handbook on Workers’ Statutory Monetary Benefits, p. 21)

6. Double Holiday
[Double holiday wage rate (300%) + 30% of Double holiday wage rate]

Note: If the employee reported for work during double regular holiday, he is entitled to at least 300% of his daily
rate which is the total of 200% holiday pay plus 100% of the daily rate [Manual on Labor Standards, (2004)]

Given 6. A:
Daily Wage P 800
Work Schedule 8:00 AM – 5:00 PM
(inclusive of 1 hour meal
break)
OT 5:00 PM – 10:00 PM April 9
(Araw ng Kagitingan & at
the same time Good
Friday).

Computation:
Step 1: Get hourly wage rate.
Daily Basic Wage divided by number of hours worked multiplied by rest day & legal holiday wage rate.
(P 800 / 8 hours) x 300% = P 300
Step 2: Compute between 8:00 am – 5:00 pm using special
holiday wage rate.
8 hours x P 300 = P 2,400
Step 3: Compute OT Premium Pay between 5:00 pm–10:00 pm.
[(30% x double holiday wage per hour) + double holiday wage per hour] x no. of OT hours
(30% x P 300) + P 300 P 390
X no. of OT hours (5PM – 10 5 hours
PM)
OT Premium Pay P 1,950
Step 4: Compute the total wage earned
8 AM – 5 PM (8 hours x P 300) P 2,400
ADD: 5PM – 10PM (5 hours x P P 1,950
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 390)
Total Wage Earned P 4,350

Given 6. B:
Minimum Wage P P 537
Work Schedule 8:00 AM – 5:00 PM
(inclusive of 1 hour meal
break)
OT 5:00 PM – 1-:00 PM April 9
(Araw ng Kagitingan & at
the same time Good
Friday)

Computation:
Step 1: Deduct the COLA
Minimum Wage minus COLA
P 537 – P 10 = P 527
Step 2: Get hourly wage rate.
Daily Basic Aage divided by number of hours worked multiplied by rest day & legal holidays wage rate.
(P527 / 8 hours) x 300% = P 197.63
Step 3: Compute wage between 8:00 am – 5:00 pm using special
holiday wage rate.
8 hours x P 197.63 = P 1,581
Step 4: Compute OT Premium Pay between 5:00 pm–10:00 pm.
[(30% x double holiday wage per hour) + double holiday wage per hour] x no. of OT hours
(30% x P 197.63) + P 197.63 P 256.92
X no. of OT hours (5PM – 10 5 hours
PM)
OT Premium Pay P
1,284.60
Step 5: Compute the total wage earned
8 AM – 5 PM (8 hours x P P 1,581
197.63
ADD: 5PM – 10PM P
1,284.92
Total Wage Earned P
2,865.60
(2019 Handbook on Workers’ Statutory Monetary Benefits, p. 21)

UNDERTIME NOT OFFSET BY OVERTIME

Offsetting of undertime work by overtime work whether on the same or any other day is prohibited by law
(LABOR CODE, Art. 88).
Permission given to the employee to go on leave on some other day of the week shall not exempt the employer
from paying the additional compensation (LABOR CODE, Art. 88).

Reason: The undertime hours represent only the employee’s hourly rate of pay while the overtime hours reflect
both the employee’s hourly rate of pay and the appropriate overtime premium such that not being of equal
value, offsetting the undertime hours against the overtime hours would result in undue deprivation of the
employee’s overtime premium

Undertime Off set Overtime

Daily wage 800 800 800
Late of 1 hour (100) (100) (100)
Overtime 1 hour 100 125
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 Net 700 800 825

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