Guidelines on the Computation of the Estimated Equivalent Monthly Rates of Monthly-Paid and Daily-Paid Employees

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