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DOLE: employers should observe correct holiday pay rules

Cebu City, Philippines. June 12, Independence Day, is a regular holiday and employers are to follow the guidelines on the prescribed payment of wages, the Department of Labor and Employment (DOLE-7) said in a statement. 

According to DOLE-7 Regional Director Elias A. Cayanong, employers should be familiar with the computation of wages on a regular holiday, which completely varies from the computation on normal working days. 

The Department’s Labor Advisory No. 7 Series of 2017 provides for the rules for pay on regular holidays, which shall apply on June 12 pursuant to Proclamation No. 50 issued by President Rodrigo R. Duterte on 16 August 2016. 

“If the employee did not work, he or she shall be paid 100% of his or her salary for that day. For work done during the regular holiday, the employee shall be paid 200% of his or her regular salary for that day for the first eight hours,” said Cayanong. 

For work done in excess of 8 hours or overtime work, the worker shall be paid an additional 30 percent of his or her hourly rate on said day. 

The DOLE-7 Head however clarified that the employee is entitled to at least 100 percent of his or her minimum wage rate even if he or she did not report to work, provided he or she is present or is on leave of absence with pay on the work day immediately preceding the holiday. 

Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they do not work on such regular holiday. 

“If the day immediately preceding the holiday is a non-work day in the establishment or the scheduled rest day of the employee, he or she should not be considered absent, in which case he or she shall be entitled to the holiday pay if he or she worked on the day immediately preceding the nonwork day or rest day,” he added. 

Employers, he said further, should also be extra cautious in their computation if they ask their employees to render work on a regular holiday, which also falls on their rest day. The computation, he said, will now be guided by another formula 

In such case, he explained, workers are to be paid an additional 30 percent of their daily rate of 200 percent. 

For work done in excess of 8 hours during a regular holiday that also falls on the worker’s rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day. 

Holiday Pay refers to the payment of the regular daily wage for any unworked regular holiday.

 

  

End//LSenarlo-Taniza 

For more information on this report, you may contact LuchelSenarlo-Taniza, Regional Labor Communication Officer at telefax number (032) 266-2792 or you may send an email at dole_centralvisayas@yahoo.com

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2017-06-08
LILIA A. ESTILLORE
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