Employers urged to comply with holiday pay rules ahead of Araw ng Kagitingan, Eid’l Fitr

MANILA, Philippines — The attached agency of the Department of Labor and Employment (DOLE) sent a reminder to employers about holiday pay regulations ahead of the upcoming Araw ng Kagitingan and Eid'l Fitr.

In a statement posted on Facebook, DOLE's National Wages and Productivity Commission (NWPC) clarified that employees must report to work or be on paid leave to receive full holiday pay.

“Upang ang empleyado ay makatanggap ng 100% ng kaniyang arawang sahod (basic wage x 100%) sa araw na ito, siya ay dapat pumasok o naka-paid leave sa huling araw ng trabaho bago ang nakatakdang regular holiday,” NWPC's statement read.

(To receive 100% of his daily wage (basic wage x 100%) on this day, the employee must either report to work or be on paid leave on the last working day before the scheduled regular holiday.)

Next week, the country will observe two consecutive holidays: Araw ng Kagitingan on April 9 and Eid'l Fitr on April 10, as declared by Malacañang on Thursday.

This means two consecutive days of "double-pay".

NWPC's statement followed the announcement of Eid'l Fitr as a regular holiday.

For work performed on a regular holiday, the employer must compensate the employee with a total of 200% of their daily wage for the first eight hours (Basic wage x 200%).

If the employee works beyond eight hours, the employer should provide an additional 30% of the hourly rate for each hour worked beyond eight hours on that day (Hourly rate of the basic wage x 200% x 130% x number of hours worked).

If the work is done on a regular holiday that coincides with the employee's rest day, the employer must give the employee an extra 30% of the basic wage of 200% (Basic wage x 200% x 130%).

Meanwhile, if the employee works more than eight hours on a regular holiday that also falls on their rest day, the employer should pay an additional 30% of the hourly rate for each hour worked beyond eight hours on that day (Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked).

Article 94 of the Labor Code guarantees the right to holiday pay by workers who work during regular holidays.

Paragraph B of the said provision mandates the “double pay” of an employee working on a regular holiday. — with reports from the Freeman