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DOLE: Firms must follow rules on holiday pay

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The Department of Labor and Employment (DOLE) reminded private companies of the proper payment of wages on August 21, Ninoy Aquino Day, and August 28, National Heroes Day.

Labor Secretary Bienvenido  Laguesma issued Labor Advisory No. 17, Series of 2023 on August 10 which stipulates the proper computation of workers’ wages for the declared special (non-working) day on August 21 and regular holiday on August 28.

The advisory prescribes the following pay rules for the special (non-working) days.

For employees who did not report for 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.

Employees who rendered work shall be paid an additional 30 percent of their basic wage on the first eight hours of work, while those who rendered overtime work shall be paid an additional 30 percent of their hourly rate on the said day.

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Employees who worked on a special day that also falls on their rest day shall be paid an additional 50 percent of their basic wage on the first eight hours of work; while those who rendered overtime work shall be paid an additional 30 percent of their hourly rate on the said day.

Meanwhile, the advisory prescribes that employees who rendered work during the regular holiday on August 28, National Heroes Day are entitled to 200 percent of their wage for the first eight hours.

If the employees did not report for work, they shall be paid 100
percent of their wage for that day, provided they worked or were on leave of absence with pay on the day immediately preceding the regular holiday.

When the day immediately preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the
employees, they shall be entitled to holiday pay if they worked or were on leave of absence with pay on the day immediately preceding the
non-working day or rest day.

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