Holiday pay rules out

DOLE PR

The labor department reminded private sector employers to properly pay their workers who will report for work during the December holidays.

To guide employers, Labor Secretary Silvestre Bello III issued Labor Advisory No. 12, series of 2019, which prescribes the proper payment of wages for the special non-working days on December 8, 24, and 31; and for the regular holidays on December 25 and 30.

The advisory is pursuant to Proclamation No. 555 signed by President Rodrigo Duterte on August 15, 2018.

For the special non-working days on December 8 (Feast of the Immaculate Conception), December 24 (Additional Special Non-Working Day), and December 31 (Last Day of the Year), the following pay rules shall apply:

If the employee did not work, the “no work, no pay” principle shall apply, unless there is a company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.

For work done during the special day, he/she shall be paid an additional 30 percent of his/her basic wage on the first eight hours of work [(basic wage x 130%) + COLA].

For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on the said day [hourly rate of the basic wage x 130% x 130% x number of hours worked].

If an employee works on a special day that also falls on his/her rest day, he/she shall be paid an additional 50 percent of his/her basic wage on the first eight hours of work [(basic wage x 150%) + COLA].

For overtime work on a special day that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on the said day [Hourly rate of the basic wage x 150% x 130% x number of hours worked].

Meanwhile, for work done during the regular holiday on December 25 (Christmas Day) and December 30 (Rizal Day), the employee shall be paid 200 percent of his/her wage for the first eight hours [(basic wage + COLA) x 200%].

If the employee did not work, he/she shall be paid 100 percent of his/her wage for that day [(Basic wage + COLA) x 100%].

For overtime work (work done in excess of eight hours), he/she shall be paid an additional 30 percent of his/her hourly rate on said day [Hourly rate of the basic wage x 200% x 130% x number of hours worked].

If an employee works on a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her basic wage of 200% [(basic wage + COLA) x 200%] + [30% (basic wage x 200%)].

For overtime work on a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on the said day [Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked].

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