DOLE Chief Reiterates Pay Rules For August 2013 Holidays

Labor and Employment Secretary Rosalinda Dimapilis-Baldoz has issued Labor Advisory No. 03, Series of 2013, providing guidelines on the correct payment of wages of private sector workers for work done during Eid’l Fitr, Ninoy Aquino Day, and National Heroes Day.

Holiday pay rules (Source: DOLE)

"Proper observance of the pay rules on regular holidays and special non-working days will lead to more productive and competent employees. Voluntary compliance with labor laws, including correct wages, is good for business," Baldoz said, as she urged private sector employers to comply with the holiday pay rules.

Both Eid’l Fitr on August 9 and National He on August 26 are regular holidays, hence, the following pay rules apply:

1. If the employee did not work; he or she shall be paid 100 percent of his or her salary for that day [(Daily Rate + Cost of Living Allowance) x 100%];

2. For work done during the regular holiday, the employees shall be paid 200 percent of his or her regular salary for that day for the first eight hours

[(Daily Rate + Cost of Living Allowance) x 200%];

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

4. For work done during a regular holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his her daily rate of 200 percent [(Daily Rate + Cost of Living Allowance) x 200%] + [30% (Daily Rate x 200%)]; and

5. For work done in excess of eight hours (overtime work) during a holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked).

The labor chief said, however, that a different set of pay rules apply for Ninoy Aquino Day on August 21, being a special non-working day. These are the following:

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

2. For work done during this special non-working day, he or she shall be paid an additional 30 percent of his or her daily rate on the first eight hours of work [(Daily Rate x 130%)+ Cost of Living Allowance] ;

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

4. For work done during the special day that also falls on his or her rest day, he or she shall be paid an additional 50 percent of his or her daily rate on the first eight hours of work [(Daily Rate x 150%) + Cost of Living Allowance]; and

5. For work done in excess of eight hours (overtime work) during a special day that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 150% x 130% x number of hours worked).