PREMIUM PAYMENTS (HOLIDAY PAY) FOR WORKERS

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PREMIUM PAYMENTS (HOLIDAY PAY) FOR WORKERS WHO REPORT FOR DUTY ON REGULAR AND SPECIAL HOLIDAYS

PREMIUM PAYMENTS (HOLIDAY PAY) FOR WORKERS WHO REPORT FOR DUTY ON REGULAR AND SPECIAL HOLIDAYS

PREMIUM PAYMENTS (HOLIDAY PAY)

It’s the time of the year where holidays are a plenty and where millions spend valuable time with their loved ones. However, many businesses do not stop on holidays and some workers are required by their employers to go on duties. In return, workers who are required to report for work on holidays are given additional pay in accordance with labor laws.

PREMIUM PAYMENTS FOR WORKERS WHO REPORT ON A REGULAR HOLIDAY

Workers who report for work during an official regular holiday are entitled to “double pay” or 200% of their daily wage.

Illustration:

Let’s say the employee’s hourly rate is Php 62.75 an hour and is working eight (8) hours a day.

To determine the premium payment for the employee, multiply the hourly rate to two (2) [200%] and then multiply by eight (8)

Php 62.75 x 2 x 8 = Php 1,004.00

Thus, if the employee above, reports on an official regular holiday she will be paid Php 1,004.00 plus Php 10.00 cost of living allowance (COLA) for a total of Php 1,014.00.

However, please note if the above employee opts not to work on an official regular holiday she/he  will still get paid her regular daily wage.

PREMIUM PAYMENTS FOR WORKERS WHO REPORT ON A HOLIDAY AND AT THE SAME TIME, REST DAY

Workers who report for work during an official regular holiday are entitled to 260% of their daily wage.

Illustration:

If the employee’s hourly rate is Php 62.75 an hour and is working eight (8) hours a day.

To determine the premium payment for the employee, multiply the hourly rate to 2.6 (260%) and then multiply by eight (8).

Php 62.75 x 2.6 x 8 = Php 1,004.00

Thus, if the employee above, reports on an official regular holiday she/he will be paid Php 1,305.20 plus Php 10.00 cost of living allowance (COLA) for a total of Php 1,315.20.

PREMIUM PAYMENTS FOR WORKERS WHO REPORT ON A DOUBLE HOLIDAY

This usually happens when a local holiday coincides with a regular holiday.

Workers who report for work during an official double regular holiday are entitled to 300% of their daily wage.

Illustration:

If the employee’s hourly rate is Php 62.75 an hour and is working eight (8) hours a day.

To determine the premium payment for the employee, multiply the hourly rate to 3 (300%) and then multiply by eight (8).

Php 62.75 x 3 x 8 = Php 1,506.00

Thus, if the employee above, reports on an official regular holiday she/he will be paid Php 1,506.00 plus Php 10.00 cost of living allowance (COLA) for a total of Php 1,516.00.

PREMIUM PAYMENTS FOR WORKERS WHO REPORT ON A DOUBLE HOLIDAY AND AT THE SAME TIME, REST DAY

Workers who report for work during an official double regular holiday and at the same time, their rest days are entitled to 300% of their daily wage as premium payment and 130% for the rest day.

Illustration:

If the employee’s hourly rate is Php 62.75 an hour and is working eight (8) hours a day.

To determine the premium payment for the employee, multiply the hourly rate to 3 (300%) and then multiply by eight (8).

Php 62.75 x 3 x 8 = Php 1,506.00

For the rest day, multiply the hourly rate to 1.30 (130%) and then multiply by eight (8)

Php 62.75 x 1.3 x 8 = Php 652.50 (rounded off)

Thus, if the employee above, reports on an official double regular holiday and rest day she/he will be paid Php 2,158.50 plus Php 10.00 cost of living allowance (COLA) for a total of Php 2,168.50.

FOR WORKERS WHO REPORT ON A SPECIAL HOLIDAY

Workers who report for work during a special holiday are entitled to 130% of their daily wage.

Illustration:

Let’s say the employee’s hourly rate is Php 62.75 an hour and is working eight (8) hours a day.

To determine the premium payment for the employee, multiply the hourly rate to two (1.3) [130%] and then multiply by eight (8)

Php 62.75 x 1.3 x 8 = Php 652.50 (rounded off)

Written by : Atty. Jon Dominic Peñaranda

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