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Labor reminds employers on holiday pay

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The Labor department has reminded private-sector employers to properly pay their workers who will report for work on Dec. 30, Rizal Day, a regular holiday, and Dec. 31, a special non-working day.

The department issued Advisory 32-2020, which says if the employees did not work, they should be paid 100- percent of their salary for the days indicated, while for work done during the regular holiday the employees should be paid 200 percent of their regular salary for the first eight hours.

For overtime work, or work done over eight hours, they should be paid an additional 30 percent of their hourly rate.

If employees work on a regular holiday that also falls on their rest day, they should be paid an additional 30 percent of their hourly rate of 200 percent.

For overtime work on a regular holiday that also falls on their rest day, they should be paid an additional 30 percent of their hourly rate.

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However, in line with the existence of a national emergency due to the COVID-19 crisis, the department says, the establishments that have closed or ceased operations during the community quarantine period are exempted from the payment of the prescribed holiday pay on Dec. 30 under the advisory.

In the same advisory, the department also prescribed the pay rules for Dec. 31, 2020, a special non-working holiday. These are the following:

For employees who did not work, the “no work, no pay” policy will apply unless there is another company policy, practice, or collective bargaining agreement granting payment on special days.

For work done during the special non-working holiday, the employees should be paid an additional 30 percent of their basic wage on the first eight hours of work.

For work done over eight hours or overtime work, the employees should be paid an additional 30 percent of their hourly rate.

If the employees work on a special holiday that also fall on their rest day, they should be paid an additional 50 percent of their basic wage on the first eight hours of work.

For overtime work on a special holiday that also falls on their rest day, they should be paid an additional 30 percent of their hourly rate.

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