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Friday, March 29, 2024

DOLE: Give right holiday pay to workers

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With the long weekend on hand, the Department of Labor and Employment (DOLE) reminded private employers to comply with their legal obligation in paying their workers properly, taking into consideration the extra remunerations prescribed by law.

In an advisory, Labor Secretary Bienvenido Laguesma specified the proper computation of workers’ wages for the declared special (non-working) days on October 31 and November 1, special (working) day on November 2, and the regular holiday on November 30.

Proclamation No. 79 declares October 31 as a special non-working day. day, while Proclamation No. 1236 also declares November 1 as a special (non-working) day for the commemoration of All Saints’ Day, November 2 as a special (working) day for All Soul’s Day, and November 30 as a regular holiday for Bonifacio Day.

The advisory prescribes that for the special (non-working) days on October 31 and November 1, the following pay rules shall apply:

DOLE clarified that if the employee did not work, the “no work, no pay” principle will apply, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.

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For work done during the special das the workers should be paid an additional 30 percent of over the basic wage on the first eight hours of work (basic wage x 130 percent).

For work done in excess of eight hours (overtime work), the employee gets

an additional 30 percent of his hourly rate on the said day (hourly rate of the basic wage x 130 percent x 13o percent x the number of hours worked).

If an employee worked on a special day that also falls on his day off day, he shall be paid an additional 50 percent of his/her basic wage on the first eight hours of work (basic wage x 150%).

For overtime work on a special day that also falls on the employee’s day off, day, he shall be paid an additional 30 percent of his/her hourly rate on the said day (hourly rate of the basic wage x 150 percent x 130 percent x number of hours worked).

While for the declared special (working) day on November 2, the labor advisory states that should a worker report for duty, the employee is entitled to receive only his/her daily wage and no premium pay is required since it is considered an ordinary working day.

On the other hand, the following computation is required to be paid for workers who will perform their jobs during the regular holiday on November 30:

If the employee did not work, he/she shall be paid 100 percent of his/her wage for that day, provided he/she worked or was on leave of absence with pay on the day immediately preceding the regular holiday. The computation is basic wage x 100 percent.

Where the day immediately preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the employee, he/she shall be entitled to holiday pay if he/she worked or was on leave of absence with pay on the day immediately preceding the non-working day or rest day.

Meanwhile, for work done during the regular holiday, the employee shall be paid 200 percent of his/her wage for the first eight hours (basic wage x 200 percent).

For overtime work, he/she shall be paid an additional 30 percent of his/her hourly rate (hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked).

If an employee worked on a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her basic wage of 200 percent or (basic wage x 200 percent x 130 percent).

For overtime work on a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on the said day (hourly rate of the basic wage x 200 percent x 130 percent x 130 percent x number of hours worked).

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