MANILA, Philippines - Labor and Employment Secretary Rosalinda Baldoz reminded companies to pay their employees who report for work on holidays to observe pay rules for October 15 and October 28.
In a statement, Baldoz said pay rules for regular holidays such us on October 15 for Eidul Adha or the Feast of Sacrifice requires employers to give employees 200 percent of their daily rate.
She said special non-working holidays such as on October 28 giving way to the barangay elections demand that employees reporting for work be given an additional 30 percent of their daily rate.
"The proper observance of the pay rules on regular holidays and special non-working days is a decent work standard that encourages productive and proficient workers," Baldoz said.
The labor official added that the scheme not only recognizes the service rendered by employees but also makes businesses more competitive.
"Voluntary compliance with labor laws, including correct wage payment during holidays, denotes workplace excellence and redounds to the competitiveness of business and the country’s industries," she said.
Pay rules for regular holiday October 15:
- If the employee did not work; he or she shall be paid 100 percent of his or her salary for that day [(Daily Rate + Cost of Living Allowance) x 100%];
- For work done during the regular holiday, the employees shall be paid 200 percent of his/her regular salary for that day for the first eight hours [(Daily Rate + COLA) x 200%];
- For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day [(Hourly rate of the basic daily wage x 200% x 130% x number of hours worked];
- For work done during a regular holiday that also falls on his or her rest day, he/she shall be paid an additional 30 percent of his her daily rate of 200 percent [(Daily Rate + COLA) x 200%] + [30% (Daily Rate x 200%)]; and
- For work done in excess of eight hours (overtime work) during a holiday that also falls on his or her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked).
Pay rules for special non-working holiday October 28:
- If the employee did not 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 this special non-working day;
- For work done during this special non-working day, he/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%)+ COLA];
- For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day (Hourly rate of the basic daily wage x 130% x 130% x number of hours worked);
- For work done during the special day that also falls on his or her rest day, he/she shall be paid an additional 50 percent of his/her daily rate on the first eight hours of work [(Daily Rate x 150%) + COLA]; and,
- For work done in excess of eight hours (overtime work) during a special day that also falls on his or her rest day, he/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 150% x 130% x number of hours worked).