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DOLE issues guide for 2018 holiday pay

CEBU, Philippines - The Department of Labor and Employment (DOLE) issued the other day a labor advisory prescribing the appropriate computation for the 2018 holiday pay rules.

This is pursuant to Presidential Proclamation No. 269, series of 2017 declaring regular holidays and special non-working holidays for 2018.

Labor Advisory No. 10, series 2017 on “Payment of Wages for the Regular Holidays and Special (Non-Working) Holidays for the Year 2018,” DOLE said will guide private sector employers on the list of holidays next year and how wages are computed if their workers opt to report for work on such days.

Regular holidays are New Year’s Day (January 1), Maundy Thursday (March 29), Good Friday (March 30), Araw ng Kagitingan (April 9), Labor Day (May 1), Independence Day (June 12), National Heroes Day (August 27), Bonifacio Day (November 30), Christmas Day (December 25), and Rizal Day (December 30).   Also included are the observance of Eid al-Fitr and Eid al-Adha, the proclamations of which will be issued after the approximate dates of the Islamic Holidays have been determined in accordance with the Islamic calendar or the lunar calendar, or upon Islamic astronomical calculations.

In a press statement, DOLE said that for these holidays, work done during these days shall be paid 200 percent of an employee’s regular pay for the first eight hours or [(Daily Rate + COLA) x 200 percent]; while work done in excess of eight hours (overtime), shall be paid an additional 30 percent of the employee’s hourly rate or [(Hourly Rate of the basic daily wage x 200 percent x 130 percent x number of hours worked)].

Meanwhile, work done during these days that also fall on employee’s rest day shall be paid an additional 30 percent of his/her daily rate of 200 percent or [(Daily Rate + COLA) x 200 percent] + [30 percent (Daily rate x 200 percent)]; while for work done in excess of eight hours (overtime), shall be paid an additional 30 percent of his/her hourly rate, or [(Hourly Rate of the basic daily wage x 200 percent x 130 percent x number of hours worked)].

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However, if the employee did not report to work during these days, he/she shall still be paid 100 percent of his/her salary for that day or [(Daily Rate + COLA) x 100 percent].

The special (non-working days), on the other hand, are Chinese New Year (February 16), EDSA Revolution Anniversary (February 25), Black Saturday (March 31), Ninoy Aquino Day (August 21), and All Saints Day (November 1). December 31, December 24, and November 2 are additional special non-working days.

The pay rules for these holidays provide that for work done on these days, an employee shall be paid an additional 30 percent of his daily rate on the first eight hours or [(Daily Rate x 130 percent) + COLA]; while for work done in excess of eight hours (overtime), employees shall be paid an additional 30 percent of their hourly rate or [(Hourly Rate of the basic daily wage x 130 percent x 130 percent x number of hours worked)].

For work done during these days that also fall on employee’s rest day, he/she shall be paid an additional 50 percent of his/her daily rate on the first eight hours, or [(Daily Rate x 150 percent) + COLA]; while for work done in excess of eight hours (overtime), he/she shall be paid an additional 30 percent of his hourly rate, or [(Hourly Rate of the basic daily wage x 150 percent x 130 percent x number of hours worked)].

But if the employee does not report for work on special non-working days, the ‘no work, no pay’ principle shall apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on special holidays. (FREEMAN)

 

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