DOLE issues advisory on holiday payout

The Department of Labor and Employment has issued a Labor Advisory on the payment of wages for the remaining regular non-working and regular holidays for 2018.

Pursuant to Proclamation 269 that the president has signed on July 17, 2017 and Republic Act 10966 signed on December 28, 2017, the following rules for pay on special non-working days (December 24 and 31) shall apply:

If the employee does not report for work, the ‘no work, no pay’ principle shall apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day;

For work done on these days, an employee shall be paid an additional 30 percent of his/her basic wage on the first eight hours, or [(Basic Wage x 130 percent) + COLA];

For work done in excess of eight hours (overtime), employee shall be paid an additional 30 percent of his/her hourly rate, or [(Hourly Rate of the basic wage x 130 percent x 130 percent x number of hours worked);

For work done during these days that also fall on employee’s rest day, he/she shall be paid an additional 50 percent of his/ her basic wage on the first eight hours, or [(Basic wage x 150 percent) + COLA];

While for work done in excess of eight hours (overtime), an employee shall be paid an additional 30 percent of his/her hourly rate, or [(Hourly Rate of the basic wage x 150 percent x 130 percent x number of hours worked).

For regular holidays on December 25 and 30, the following rules for pay shall apply:

If the employee, does not report for work during these days, he/she shall still be paid 100 percent of his/her wage for that day, or (Basic wage + COLA) x 100 percent).

For work done in excess of eight hours (overtime), an additional 30 percent of the employee’s hourly rate, or (Hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked);

For work done during these days shall be paid 200 percent of an employee’s wage for the first eight hours or (Basic wage + COLA) x 200 percent];

For work done during these days that also fall on employee’s rest day shall be paid an additional 30 percent of his/her basic wage of 200 percent, or [(Basic wage + COLA) x 200 percent] + [30 percent (Basic wage x 200 percent)];

For work done in excess of eight hours (overtime), an additional 30 percent of the employee’s hourly rate, or (Hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked).