How to compute for work rendered on November 13 – 15, 2017
You must have heard by now that the government has declared no work from November 13 to 15, 2017 within Metro Manila and in the provinces of Bulacan and Pampanga. To be specific, these dates have been declared Special Non-Working Days.
What does this mean if your company requires you to come to work on these dates? What will be your equivalent pay?
Considering that these dates are Special Non-Working Days, the computation will be similar to work rendered on a Special Holiday, which include Ninoy Aquino Day (August 21, 2017) and All Saint’s Day (November 1, 2017). In other words, work rendered from November 13 – 15, 2017 will be paid an additional 30% premium on top of your 100% basic pay.
But what will be the specific computation? This depends on several factors, with 2 main ones being if your salary is daily or monthly.
Daily Rate Employees
For daily-rate employees, simply multiple your daily rate by 130%.
If your daily rate is P600 and you came to work the whole day on November 13, you should be paid P600 x 1.3 = P780.
If you worked for less than 8 hours, just multiply your equivalent hourly rate by the number of hours worked and then by 1.3. So if you worked for 4 hours on November 13, you should then be paid P600 / 8 x 4 x 1.3 = P390.
If you worked beyond 8 hours, you multiply the excess hours by 1.3 to get the equivalent special non-working day premium, and then multiply it again by 1.3 since it is overtime. So if you worked for 10 hours on November 13, the excess of 2 hours will be paid P600 / 8 x 2 x 1.3 x 1.3 = P253.50. This will be paid on top of the P780 for the first 8 hours. So for November 13, your total pay will be P780 + P253.50 = P1, 033.50.
Monthly Rate Employees
For monthly-rate employees, the computation is a bit trickier, as it depends if your organization already considers employees as paid on holidays or not.
If monthly-rate employees are already considered as paid on holidays, that means you only need to be paid the additional 30% premium pay for work on special non-working days.
If monthly-rate employees are not yet considered as paid on holidays, then any work rendered on special non-working days will be paid 130% of the daily equivalent rate.
To get the equivalent daily rate depends on your company’s payroll factor of how many paid days there are in a year or in a month. For example, this factor could be 365 days per year, 313 days per year, 261 days per year, or maybe 22 days per month.
John’s monthly salary rate is P15,000.00.
The company’s payroll factor is 313 days per year.
John’s daily rate = P15,000.00 x 12 / 365 = P493.15 per day.
John works 8 hours on a special non-working day.
The company already considers all holidays as being paid.
So John will just be paid the additional premium of 30% of his daily rate, which is P493.15 x 30% = P147.95
So on top of John’s normaly monthly pay of P15,000.00, he will receive an additional P147.95 for working on a special non-working day.
Bob’s monthly salary rate is also P15,000.00.
But his company’s payroll factor is 261 days per year, and they do not consider holidays as already being paid.
Bob also works on the same special non-working day.
Bob’s daily rate is equivalent to P15,000.00 x 12 / 261 = P689.65.
For the special non-working day, Bob will be paid an additional 130% of his daily rate: P689.65 x 130% = P896.55
So on top of Bob’s monthly salary of P15,000.00, he will get an additional P896.55 for working on a special non-working day.
For work beyond 8 hours, the computation will be similar to daily-rate employees. Just get the excess hours, multiply it by your hourly rate, then by 1.3 since it is a special non-working day, and then multiply it again by 1.3 since it is already overtime.
For Example 1, the hourly rate is P493.15 / 8 = P61.64. So the Overtime Pay for November 13 will be 2 hours x P61.64 x 1.3 x 1.3 = P208.34.
For Example 2, the hourly rate = P689.65 / 8 = P86.21. So the Overtime Pay for November 13 will be 2 hours x P86.21 x 1.3 x 1.3 = P291.39
To make this easier for you, make sure that you are using a good Payroll System that can automatically handle for you the computation of pay for Special Non-Working Days such as November 13 – 15, 2017.