DOLE reminds employers to follow higher pay rules on Chinese New Year

MANILA, Philippines — The Department of Labor and Employment reminded employers to properly pay their workers who will be on duty during the Chinese New Year 2020 celebration on Saturday.

"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 a special day," reads Labor Advisory 2, issued by Secretary Silvestre Bello on Monday and released Thursday.

Employees who will report to their regular shift which falls on Chinese New Year will get full pay for the first eight hours of work and an additional 30% of their basic pay, on top of cost-of-living adjustment or allowance (COLA).

If the worker renders overtime hours, an extra 30% of their basic pay will apply.

Meanwhile, employees who report to work during on the special non-working holiday during their rest day will receive full pay for the first eight hours of work and an additional 50% of their basic pay, plus COLA. The overtime rate remains at 30% of their basic pay.

The observation of Chinese New Year on January 25 will mark the first special non-working holiday this year, based on Proclamation 845 issued by President Rodrigo Duterte in November 2019.

“Chinese nationals all over the world will celebrate Spring Festival, popularly known as the Chinese New Year, which is one of the most revered and festive events celebrated not only in China, but also in the Philippines, and such date may be declared as a special (non-working) day without detriment to public interest," reads the proclamation.

Here’s how employees can compute their earnings on Saturday

Special non-working holiday rate for the first eight hours:

• [(Basic wage x 130%) + COLA]

Special non-working holiday rate for an excess of eight hours:

• (Hourly rate of the basic wage x 130% x 130% x number of hours worked)

Rest day AND special non-working holiday rate for the first eight hours:

• [(Basic wage x 150%) + COLA]

Rest day AND special non-working holiday rate for an excess of eight hours:

• (Hourly rate of the basic wage x 150% x 130% x number of hours worked)

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