Question about Salary Computation (monthly rate, daily rate)

[NinjaLooter]

I know that in order to get the daily rate, we get the monthly rate x12 months then divide by 261 working days and that 261 days include the holidays both regular and special non-working ones.

Now my question is can a company just declare a day or days as non-operational so there will be no work but there will also be no pay yet they include it in the 261 working days?

My problem is for example in a hypothetical situation that an employee got a perfect attendance for an entire year with non-operational days, this employee will not reach the gross annual rate.

What are the legalities on this?

[grayfox17]

Now my question is can a company just declare a day or days as non-operational so there will be no work but there will also be no pay yet they include it in the 261 working days?

my take on this is, yes, they can and by right, ganun naman talaga dapat ang setup - no work, no pay - as in literally declared na non-operational at di ka naman pinapasok sa opisina para magtrabaho on those days na declared as NON-working/non-operational. Pag kasi dineclare nga na non-operational AT pinapasok/pinagtrabaho ka pa rin then you are entitled to get paid accordingly. Unless of course, malinaw na nakasaad sa kontrata mo saying otherwise so check that too.

As for the legalities and first-hand confirmation, I suggest you discuss and clarify this directly with your HR for any discrepancies para malinawan ka rin, its possible na baka kasi may minor oversight din sa side ng HR at hindi lang kayo na-orient properly lalong-lalo na dun sa part na kung included ba yung declared non-working/non-operational day/s sa official count ng total working days, on which, I think shouldn't be.

Ewan ko lang if this same thing applies to those working in the BPO...

[Darkshader]

Yup no work no pay. Kung close ang work place, for sure wala ka ring suweldo. Ang kagandahan sa salaried employee fix na suweldo mo, kaso kung kailangan ka mag overtime lugi ka wala kang bayad. Sa company ko walang overtime at 7.5 hrs a day lang kami. Kagandahan lang marami akong PTO every year kasi more than 10 yrs na ako sa job.

[NinjaLooter]

That wasn't my question at all. Of course you shouldn't be paid for the day you didn't go to work. My question is about the computation of the daily rate with regard to the 261 days denominator.

I suggest you discuss and clarify this directly with your HR for any discrepancies para malinawan ka rin, its possible na baka kasi may minor oversight din sa side ng HR at hindi lang kayo na-orient properly lalong-lalo na dun sa part na kung included ba yung declared non-working/non-operational day/s sa official count ng total working days, on which, I think shouldn't be.

Exactly and from my point of view hindi talaga dapat. I'm just looking for a better argument to discuss this with HR though I already asked a friend of mine in the company's analyst. If they include it in the annual count of the total working days, hindi makukuha yung annual rate mo... that is kung wala kang absent o anu man.

[grayfox17]

Just found something online and i don't know if any of these will do you any good but it should atleast get you started...


source

This link basically gives the general gist of the computation pero kasi magkakatalo lang yan kung ALIN ang nirerecognize ng kumpanya mo to be an "official" special-non working ones para sa kanila. Di bale yung regular holidays, eng-eng na yung HR kung pati yun eh magkakamali pa silang mai-compute. Medyo hindi kapani-paniwala pero kasi iba-iba din naman ang mga patakaran ng bawat kumpanya, hindi lahat nag-comply sa standard rules and policies.

Like I said, consult your HR about this - your case may be as obvious as it is pero malay mo baka meron din palang existing factors such as akala mo complete attendance ka nga pero meron pa lang days na hindi ka nakapag login agad sa bundy clock nyo OR at one point nagka-topak ang login system nyo at hindi narecord na pumasok ka pala on that day kaya hindi nasama sa total count ng working days mo for the year, mga ganung bagay ba. As stupid as it may sound pero it does happen and would mean a lot of hassle pagdating ng annual review sa performance mo.

And one more thing, make sure your boss is kept in the loop para aware sya sa disputes na ira-raise mo with HR para may backer/witness ka just in case.

And just for reference, i'll just leave this here na lang din (di kasama dyan yung APEC so you might want to clarify that too with them):

[DarkRushBeat]

Ako, talagang no work no pay.....Homebased worker ako e....Kaya i can't afford not to be absent....Works for me then....But there are some cases where i have to miss work like last March 2015 na naconfine anak ko for a few days, my client himself asked my company to ensure i get a full day pay on those said dates...

[deathzero23]

Is it true that Only In The Philippines is the country have the most holidays on earth?
Or is it just an overhyped issue by the business sector?

[Darkshader]

Iyong company ko meron lang 8 holidays a year. All the rest may pasok na kahit pa sa ibang company eh pumatak na holiday iyon. Regular pay parin ang bayad sa amin.

Yup kausapin mo ang HR ninyo. Bakit pala kulang kayo ng work days?

[grayfox17]

Is it true that Only In The Philippines is the country have the most holidays on earth?
Or is it just an overhyped issue by the business sector?

a quick google search can find this:

[SirZap]

I know that in order to get the daily rate, we get the monthly rate x12 months then divide by 261 working days and that 261 days include the holidays both regular and special non-working ones.

Now my question is can a company just declare a day or days as non-operational so there will be no work but there will also be no pay yet they include it in the 261 working days?

My problem is for example in a hypothetical situation that an employee got a perfect attendance for an entire year with non-operational days, this employee will not reach the gross annual rate.

What are the legalities on this?

lets base my answer on this link:

http://www.chanrobles.com/legal4labor3.htm
a regular employee is entitled to paid holiday.

so if the employee was on probation for 6 months, then those holidays to falls on the probation period shall not be paid.
he shall fall short on his annual rate.

now your main question is that: "can a company just declare a day or days as non-operational so there will be no work but there will also be no pay"? this is regardless if there are holidays or not.

the answer is no. so what is the legal basis? the action of the company in your question falls on suspension of worker.

http://www.manilatimes.net/worker-under ... pay/76576/
http://www.dole.gov.ph/labor_codes/view/7
http://www.laborlaw.ph/tag/work-suspension/

the worker can not be suspended without pay on a whim.

to summarize work suspension, let me give you an example: your company losses the account you are working with which leaves you nothing to do. if the company is still capable to pay you even you're doing nothing then they should keep you on the payroll until they find another job to transfer you within the company.

hope this helps.

===== and because of this question I was forced to review my labor code
and that example of being paid while doing nothing reminds me of your favorite movie office space

[deathzero23]

Hahaha 18 holidays pala sa atin. My goodness. Kaya pala.

How about taxes? Is it the company's responsibility to educate their employees on how taxes are being deducted?
Like there's a na by the end of the year sobrang laki ng withholding tax na kinakaltas sa isang employee.

Example 25,000k gross salary tapos nakaltasan siya ng 7k withholding tax
Pero yung monthly nya na kinakaltas sa kanya nasa 2.5k at most.
Syempre ayaw naman natin na may dubious na ginagawa yung treasury or accounting dept ng company.
Kelangan lang ng proper justification why the company decided to go on that tax deduction method.

Is there such deduction method na unti-unti lang ang kaltasan from January to November tapos yung projected na kulang to meet BIR's target babawiin sa December? Minsan naman may sumosobrang tax deduction ibabalik via tax refund. Eh may formula na yun di ba? How come may sumasablay?

[NinjaLooter]

My quetion is really with regard to the 261 working day denominator on how to compute the daily rate. If a company declared for example one week in December (outside of the holidays) to be non-operational for every employee and that they will not be paid for it which is understandable because hey... no work no pay... but to still include that 7 days in the 261 working day denominator, I don't think it's right thus my question.

261 working days include the holidays.

Let's say the monthly rate is 30000. Annual rate would be 360000.

Daily rate = (monthly rate x 12 months) / 261 working days

Daily rate = 1,379.31

Now company decides that within that 261 working days, 7 will be non-operational (outside of holidays) which means 7 will not be paid. If we follow the daily rate, an employee who without any absences, will have the following annual rate:

Annual = daily rate x (261 - 7 days)

Annual = 350344.74

That is almost 10K out of the the supposed annual rate that you are supposed to get. Now imagine this being applied to let's say 400 employees. That's 4 million per year if every employee does not have any absences.

And yeah, Office Space rules!

[SirZap]

My quetion is really with regard to the 261 working day denominator on how to compute the daily rate. If a company declared for example one week in December (outside of the holidays) to be non-operational for every employee and that they will not be paid for it which is understandable because hey... no work no pay... but to still include that 7 days in the 261 working day denominator, I don't think it's right thus my question.

261 working days include the holidays.

Let's say the monthly rate is 30000. Annual rate would be 360000.

Daily rate = (monthly rate x 12 months) / 261 working days

Daily rate = 1,379.31

Now company decides that within that 261 working days, 7 will be non-operational (outside of holidays) which means 7 will not be paid. If we follow the daily rate, an employee who without any absences, will have the following annual rate:

Annual = daily rate x (261 - 7 days)

Annual = 350344.74

That is almost 10K out of the the supposed annual rate that you are supposed to get. Now imagine this being applied to let's say 400 employees. That's 4 million per year if every employee does not have any absences.

And yeah, Office Space rules!

basta yung answer ko based on law. declaring non-operational days for non-holidays is not allowed, because that would fall on suspension of work. and suspension of wok can only be allowed something related to operational loss or bankruptcy.

[SirZap]

Hahaha 18 holidays pala sa atin. My goodness. Kaya pala.

How about taxes? Is it the company's responsibility to educate their employees on how taxes are being deducted?
Like there's a na by the end of the year sobrang laki ng withholding tax na kinakaltas sa isang employee.

Example 25,000k gross salary tapos nakaltasan siya ng 7k withholding tax
Pero yung monthly nya na kinakaltas sa kanya nasa 2.5k at most.
Syempre ayaw naman natin na may dubious na ginagawa yung treasury or accounting dept ng company.
Kelangan lang ng proper justification why the company decided to go on that tax deduction method.

Is there such deduction method na unti-unti lang ang kaltasan from January to November tapos yung projected na kulang to meet BIR's target babawiin sa December? Minsan naman may sumosobrang tax deduction ibabalik via tax refund. Eh may formula na yun di ba? How come may sumasablay?

off topic pero sagutin pa rin natin:

1. "Is it the company's responsibility to educate their employees on how taxes are being deducted?"
No. But it is the responsibility of the company to deduct taxes properly.

2. "by the end of the year sobrang laki ng withholding tax na kinakaltas sa isang employee."

there many tax tables daily, weekly, semi-monthly and monthly like on this link:
http://birtaxtable.com/wp-content/uploa ... -Table.jpg
that is aside from annual

so with your concern. just remember that the higher your income the higher the tax rate.

one answer is that (syempre) they will deduct taxes from your december and 13th month.
sa unang tingin natural na dodoble tax mo. pero dapat ibang tax table yug 13th month and bonuses.
also may exemption sya 30k pero last year or so tinaas na yata ng 80k.
so malamang yung iba buong makukuha mo sa december yung na-tax as 1, pero dapat kasi magkahiwalay

another possibility nasa next concern mo rin......

3. "Is there such deduction method na unti-unti lang ang kaltasan from January to November tapos yung projected na kulang to meet BIR's target babawiin sa December? "

continuing from your second concern...
pwede in-add nga yung difference ng annual tax dun sa monthly mo sa december
what does that mean? supposedly each and every month you get the same tax
na dapat kapag tintotal mo yung tax mo monthly for the year dapat the same as annual pero hindi ganoon
kasi hindi sya proportionately accurate.

just compute your annual tax and semi-monthly tax.
multiply mo yung tax mo sa semi-monthly ng 24. tingan mo yung difference.
mas maganda ipakita mo yung solution mo dito para malamn natin kung anong tama at mali.


subukan mo compare yung annual tax mo,
sa daily tax mo then times 261.
ganun din sa weekly tax times 52, plus 1 daily tax.
pati na rin samonthly tax times 12.
makita mo difference.

wala pa dyan yung bonuses. huwag mo munang isama.

4. Minsan naman may sumosobrang tax deduction ibabalik via tax refund. Eh may formula na yun di ba? How come may sumasablay?

yes it does lalo na kung nag-start ka late sa company. syempre i-compute lang nila yung stay mo sa company.
just to give you a rough estimate. sa example mo 25k. lets say nag-start ka sa new company july 1.
yung annual mo dapat is 300k. so 25k nga monthly ang bracket. let say nasa 3rd bracket yan.
pero dahil half a year ka lang by december 31 sa 150k tax bracket. nasa 2nd bracket ka lang dapat.
kumbaga napapatawan ka ng 3rd bracket monthly pero overall 2nd bracket lang dapat , so may tax refund ka.

yung sumasablay...its hindi alam nung payroll kung kelan magpapataw ng annual at monthly,
or yung system hindi na-consider nung gumawa,
or again may daya na hinahayaan nilang higher tax bracket para mas konti ibigay sa iyo

I hope this helps.

[NinjaLooter]

basta yung answer ko based on law. declaring non-operational days for non-holidays is not allowed, because that would fall on suspension of work. and suspension of wok can only be allowed something related to operational loss or bankruptcy.

Yun. Sorry, I didn't get this on your first post. This is exactly what I have in mind. I'll be using your post as reference. Thanks.

[Darkshader]

Jsnepo kung may pasok dapat kayo tapos nag declare sila na sarado ang company sempre may bayad kayo. For example may bagyo at dahil may flood sempre walang pasok then dapat may bayad iyon. Depende din kung anong klase ng work iyong pinasukan mo. Kung restaurant iyan, pag slow ang business puwede sila mag cut down ng hours kahit full time ka pa.

[deathzero23]

kaya pala malaki yung kaltas ng tax ko noong 15th December.. Pinasok yung Unused Sick Leave. which 14 leaves.
I'm not fully aware na taxable siya.

since 2010 to 2014, separate pay slip yung monetized unused leaves at the end of the year.
then nag-research ako and i found this:
http://taxacctgcenter.org/tax-exempt-de ... employees/
http://dacpa.ph/?p=163
^as of 2015

not exceeding 10 unused leaves ang tax-exempted. di ko ma-gets yung logic.
anong meron sa less than 10 sa more than 10 at ginawa pang taxable?
tapos may "gray area" ruling ng BIR. Hindi naman enumerated "sick Leave". Is BIR pertaining Vacation Leave "generic"?
buti pa government employee klarong-klaro "vacation" and "sick leave". Pag sa private di clear.

Hindi ba pwede nila gamiting logic para di na taxable yung unused sick leave (no matter how many it is) yung "being a healthy employee for whole year, all monetized unused SLs is entire yours tax-free"? Since "Sick" is considered under "Benefits". I don't know, pero in a way form of incentive na rin for being healthy worker di ba? Kainis talaga itong BIR... lahat ng pwedeng kunan ng tax, kukunan.

Buti pa sa Malaysia, masarap magshopping kasi 6% lang pala tax doon.

Yang mga ginagawang changes ng BIR dapat bino-broadcast in public yan, spend ads ba di yung umaasa sa mga news network.
Di yung bibiglain nila yung tao. The public have rights to be informed di ba? Especially usapang pera yan eh.
Sana pala binawasan ko na lang SL hanggang sa non-taxable bracket. Sayang din. Pera din yun naging bato pa (napunta sa corrupt).

[SirZap]

^^ medyo nalilito ako dun sa excess ng 10 unused leaves ay magiging taxable.

you may ask your payroll or HR kung anong batas ginamit.