DOLE issues holiday pay guidelines

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Monday, 28 December 2015 - Last Updated on February 6, 2017

The Department of Labor and Employment (DOLE) has reminded private sector employers to observe the proper pay rules, as well as occupational safety standards, for the Christmas and New Year holidays.

In a statement, Secretary Rosalinda Dimapilis-Baldoz  said, “I urge you to share your blessings and joy of the season and, in the interest of our workers’ welfare and protection, pay them correctly during the holidays. Voluntary compliance with labor laws by observing the pay rules and other core labor and occupational safety and health standards during the holidays is good for business.”

Baldoz cited Proclamation Nos. 831, Series of 2014 and 1105, Series of 2015 that President Benigno S. Aquino III signed on July 17, 2014 and August 20, 2015, respectively, covering the regular holidays on December 25 and 30, 2015, and January 1, 2016 and special non-working days on December 24 and 31, 2015, respectively.

The following pay rules shall apply for the regular holidays on December 25 and 30 2015 and January 1, 2016:

  • If the employee did not work, he or she shall be paid 100 percent of his or her salary for that day ([Daily Rate + COLA] x 100 percent);
  • If the employee worked, he or she shall be paid 200 percent of his or her regular salary for that day for the first eight (8) hours ([Daily Rate + COLA] x 200 percent);
  • If the employee worked in excess of 8 hours (overtime work), he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 200 percent x 130 percent x number of hours worked);
  • If the employee worked during a regular holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her daily rate of 200 percent [(daily rate + COLA) x 200 percent] + [30 percent (daily rate x 200 percent)];
  • If the employee worked in excess of 8 hours (overtime work) during a regular holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked).

The following pay rules that shall apply on 24 and 31 December 2015, all special non-working days:

  • If the employee did not work, the “no-work, no-pay” principle shall apply, unless there is a favourable company policy, practice, or collective bargaining agreement (CBA) granting payment on these special days;
  • If the employee worked, he or she shall be paid an additional 30 percent of his or her daily rate on the first eight hours of work [(daily rate x 130 percent) + COLA];

If the employee worked in excess of eight hours (overtime work) during a holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked).

Maui Hermitanio (92 Posts)


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