Posts

Showing posts with the label payroll computation

Regular Holiday and Special Non-working Day

Image
One of the many things that confuse a lot of people is the difference between a regular holiday and a special non-working day. While both are non-working days, there are differences in how they are handled. How Did the Holidays Come To Be? The initial list of the regular holidays (and two special non-working days) came about with the implementation of the Administrative Code of the Philippines by then President Cory Aquino. It was in the same code that the term "regular holiday" was made to mean the 10 (later became 12 by virtue of the RA 9492 and RA 9849) "legal holidays", while "special (non-working) days" were to mean the additional two special holidays. This was also reiterated in  Section 3 of the Omnibus Rules to Implement the Labor Code . What is a Regular Holiday? Currently, we have 12 regular holidays: New Year's Day - January 1 Araw ng Kagitingan (Day of Valor) - April 9 Maundy Thursday - Movable Date Good Friday - Movable Date Labor Day - M...

Monthly Paid vs Daily Paid - I'm Confused!

Image
Believe it or not, one of the most confusing part of payroll processing is determining the difference between monthly paid and daily paid employees. If it is your first time to process payroll, then the following might be useful to you. What does "Monthly Paid" Mean? First thing's first. Monthly paid  is different from Monthly Rate.  An employee can have a monthly rate of Php 15,000.00 but still be considered as daily paid. In the same manner, a person with a daily rate of Php 537.00 can be a monthly-paid employee. According to the 2018 Edition of the Handbook on Workers' Statutory Monetary Benefits, Monthly-paid employees are those that use "365" as the factor for determining the daily rate or the monthly rate. This means that the person is paid for every single day of the year, including rest days and special non-working holidays regardless whether the latter two are worked or un-worked. Let's say a monthly-paid employee is earning Php 25,000....