2016 Handbook on Statutory Monetary Benefits

Monthly-paid employees are those who are paid every day of the month, including unworked rest days, special days, and regular holidays.

Daily-paid employees are those who are paid on the days they actually worked and on unworked regular holidays.

MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular
or special days, although he does not regularly work on these days.

DAILY PAID EMPLOYEE refers to one who is paid his wage or salary only on the days he actually worked, except in cases of regular
holidays wherein he is paid his wage or salary even if he does not work during those days, provided that he is present or on leave of absence
with pay on the working day immediately preceding the regular holiday.

As distinguished from monthly-paid employees who are assured of being paid for every day of the month, the provision of the Labor Code on
holiday pay is principally intended to benefit a daily-paid employee who is normally bound by the principle of “no work no pay”. Before the
advent of the Labor Code, they are not paid for unworked regular holidays.

EEMR Computation
The provide for the following computations as guide to assist employers and HR practitioners:
For Monthly-Paid Employees

Daily-Paid Employees
Computation of Wages

The salaries and wages of your employees depend on whether you pay them on a monthly or
daily basis.

Monthly-paid employees are those whom you pay every day of the month, including unworked
rest days, special days and regular holidays.

Daily-paid employees are those whom you pay for days actually worked and on unworked
regular holidays.

The EMR (equivalent monthly rate) of your employees is computed as follows:

Monthly Paid Employees

The formula for the EMR of monthly paid employees is:

EMR = (Applicable Daily Rate x 365)/12

The factor of 365 days consists of: 302 ordinary working days, 51 rest days, 10 regular holidays,
and 2 special days.

Daily-paid employees:

The EMR of daily-paid employees depends on whether they are required to work on rest days
and holidays.

The EMR of employees who are required to work every day including Sundays or rest days,
special days and regular holidays is:

EMR = (Applicable Daily Rate x 391.50)/12

The factor of 391.5 days consists of: 302 ordinary working days, 20.60 (9 regular holidays x
200% plus one regular holiday/Sunday*260%), 66.3 (51 rest days x 130%), 2.6 (2 special days
x 130%).

The EMR of employees who do not work and are not considered paid on Sundays or rest
days is:

EMR = (Applicable Daily Rate x 314)/12

The factor of 314 days consists of: 302 ordinary working days, 10 regular holidays, 2 special
days (if actually worked, equivalent to 2.6 days).

The EMR of employees who do not work and are not considered paid on Saturdays and
Sundays or rest days

EMR = (Applicable Daily Rate x 262)/12

The factor of 262 days consists of: 250 ordinary working days, 10 regular holidays, 2 special
days (if actually worked, equivalent to 2.6 days). Factor of 260 maybe used if the 2 special days
are not worked and are not considered paid.