Employees in the private sector who will report for work on the declared holidays this month are entitled to higher pay, the Labor department said Thursday.
In an advisory signed by Labor Secretary Silvestre Bello III, there are three special non-working holidays and two regular holidays in December. The special holidays are the Feast of the Immaculate Conception of Mary (Dec. 8), Christmas Eve and New Year’s Eve, while the regular holidays are Christmas Day and Rizal Day (Dec. 30).
Bello reminded employers to pay the proper wages on those holidays.
The prescribed pay rules for Dec. 8, 24 and 31, 2020, (special non-working holidays) 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 will be paid an additional 30 percent of their basic wages on the first eight hours of work [(basic wage x 130 percent) + COLA].
For work done over eight hours (overtime work), the employees will be paid an additional 30 percent of their hourly rate on the that day [hourly rate of the basic wage x 130 percent x 130 percent x number of hours worked].
If the employees work on a special holiday that also falls on their rest day, they will be paid an additional 50 percent of their basic wage on the first eight hours of work [(basic wage x 150 percent) + COLA].
For overtime work on a special holiday that also falls on their rest day, they will be paid an additional 30 percent of their hourly rate on the that day [Hourly rate of the basic wage x 150 percent x 130 percent x number of hours worked].
For Dec. 25 and 30, which are regular holidays, the following rules apply:
If the employees did not work, they shall be paid 100% of their salary for days indicated [(basic wage + COLA) x 100%], while for work done during the regular holiday, the employees shall be paid 200% of their regular salary for the first eight hours [(basic wage + COLA) x 200%].
For overtime work (work done over eight hours), employees will be paid an additional 30 percent of their hourly rate [Hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked].
If the employees work on a regular holiday that also falls on their rest day, they will be paid an additional 30 percent of their hourly rate of 200 percent [(basic wage + COLA) x 200 percent] + 30 percent (basic wage x 200%)].
For overtime work on a regular holiday that also falls on their rest day, they will be paid an additional 30 percent of their hourly rate on that day [Hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked].
However, in line with the existence of a national emergency due to the COVID-19 crisis, establishments that have closed or ceased operations during the community quarantine period are exempted from the payment of the prescribed holiday pay on Dec. 25 and 30, 2020, under the advisory.