DOLE to employers: Pay workers addl wages on Feb. 1, Feb. 25

THE Department of Labor and Employment (DOLE) on Sunday reminded employers that employees who will work on the special non-working days on February 1 (Chinese New Year) and February 25 (Edsa People Power Revolution Anniversary) are entitled to additional wages.

This was emphasized by Labor Secretary Silvestre H. Bello III in a statement after issuing Labor Advisory 3 (series of 2022) to guide employers and employees alike on the proper computation of premium pay for the said special nonworking days.

February 1 and February 25 are declared Special (Non-working) Days under Presidential Proclamation 1236 issued by President Rodrigo Duterte on October 29, 2021.

According to Bello, premium pay refers to the additional compensation for work performed within eight hours on non-workdays, such as special days.

Under the Labor Advisory, employees who will report for work on the said days shall be paid an additional 30 percent of their basic wage on the first eight hours of work. The computation is [(Basic wage x 130 percent) plus cost of living allowance, or COLA].

Meanwhile, employees who will render overtime work shall be paid an additional 30 percent of their hourly rate on the said day. Their compensation is computed as follows: Hourly rate of the basic wage x 130 percent x 130 percent x number of hours worked.

The Labor Advisory also states that those who will render work on a special day that also falls on their rest day shall be paid an additional 50 percent of their basic wage on the first eight hours of work. The computation is [(Basic wage x 150 percent) plus COLA].

The DOLE said employees who will work overtime during a special day that also falls on their rest day shall be paid an additional 30 percent of their hourly rate on the said day, saying this is computed as the hourly rate of the basic wage x 150 percent x 130 percent x number of hours worked.

However, for employees who did not work, the DOLE said the “no work, no pay” principle shall apply unless there is a favorable company policy, practice, or collective bargaining agreement granting payment on a special day.