Guidelines on the Computation of the Estimated Equivalent Monthly Rates of Monthly-Paid and Daily-Paid Employees
DOLE Advisory No. 001-10 outlines the guidelines for calculating the Estimated Equivalent Monthly Rates (EEMR) for both monthly-paid and daily-paid employees in the Philippines, particularly following the enactment of Republic Act No. 9849, which designates Eidul Adha as a national holiday. For monthly-paid employees, the EEMR is computed using a formula that incorporates a total of 365 days in a year. For daily-paid employees, different formulas apply based on their work patterns, with specific calculations for those who work every day, those who do not work on Sundays or rest days, and those who are not compensated on weekends. The advisory aims to ensure fair entitlements to minimum wages and benefits under current labor laws.
March 5, 2010
DOLE ADVISORY NO. 001-10
GUIDELINES ON THE COMPUTATION OF THE ESTIMATED EQUIVALENT MONTHLY RATES OF MONTHLY-PAID AND DAILY-PAID EMPLOYEES
With the passage of Republic Act No. 9849 (An Act Declaring the Tenth Day of Zhul Hijja, the Twelfth Month of the Islamic Calendar, a National Holiday for the observance of Eidul Adha, further amending for the purpose Section 26, Chapter 7, Book I of Executive Order No. 292, otherwise known as the Administrative Code of 1987, as amended), the suggested formulas in determining the estimated equivalent monthly rates of monthly-paid and daily-paid employees are modified as follows:
For monthly-paid employees:
Factor 365 days in a year is used in determining the equivalent annual and monthly salary of monthly-paid employees. To compute their Estimated Equivalent Monthly Rate (EEMR), the procedure is as follows:
| Applicable Daily Rate x 365 | = | EEMR |
| –––––––––––––––––––––– | ||
| 12 |
| where 365 days/year | = | 298 | ordinary working days | |
| 52 | rest days | |||
| 12 | regular holidays | |||
| 3 | special days | |||
| ––– | ||||
| 365 | Total equivalent no. of days in a year |
For daily-paid employees:
The following factors and formula may be used in computing the EEMR of different groups of daily-paid employees for purposes of entitlement to minimum wages and allied benefits under existing laws. HTDcCE
1. For those who are required to work everyday, including Sundays or rest days, special days, and regular holidays.
| Applicable Daily Rate x 393.50 | = | EEMR |
| –––––––––––––––––––––– | ||
| 12 |
| where 393.50 days/year | = | 298 | ordinary working days | |
| 24 | 12 regular holidays x 200% | |||
| 67.60 | 52 rest days x 130% | |||
| 3.90 | 3 special days x 30% | |||
| ––––– | ||||
| 393.50 | Total equivalent no. of days in | |||
| a year |
2. For those who do not work and are not considered paid on Sundays or rest days.
| Applicable Daily Rate x 313 | = | EEMR |
| –––––––––––––––––––––– | ||
| 12 |
| where 313 days/year | = | 298 | ordinary working days | |
| 12 | regular holidays | |||
| 3 | special days | |||
| ––– | ||||
| 313 | Total equivalent no. of days in | |||
| a year |
3. For those who do not work and are not considered paid on Saturdays and Sundays or rest days.
| Applicable Daily Rate x 261 | = | EEMR |
| –––––––––––––––––––––– | ||
| 12 |
| where 261 days/year | = | 246 | ordinary working days | |
| 12 | regular holidays | |||
| 3 | special days | |||
| ––– | ||||
| 261 | Total equivalent no. of days in a | |||
| year |
Please be guided accordingly.
(SGD.) MARIANITO D. ROQUESecretary