DOLE reminds employers of proper pay rules on August holidays

The Department of Labor and Employment (DOLE) has reminded employers in the private sector to strictly follow the holiday pay rules for Monday (August 21), a special non-working holiday and on August 28, a regular holiday.

Pursuant to Proclamation No. 50 issued last year, the labor department issued the rules prescribing the proper payment of wages for special non-working holidays and regular holidays.

DOLE mandates the following pay rules to be implemented for August 21, 2017, Ninoy Aquino Day:

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

For work done during a special day, he/she shall be paid an additional 30% of his/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% 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 a special day that also falls on his/her rest day, he/she shall be paid an additional 50% 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/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 150% x 130% x number of hours worked).

Meanwhile, on August 28, 2017, a special non-working holiday for the commemoration of National Heroes Day, these pay rules shall apply:

If the employee did not work, he/she shall be paid 100% of his/her salary for that day [(Daily rate + COLA)] x 100%];

For work done during the regular holiday, he/she shall be paid 200% 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% 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/her rest day, he/she shall be paid an additional 30% of his/her daily rate of 200% [(Daily rate + COLA) x 200%] + [30% (Daily rate x 200%]; and

For work done in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% number of hours worked).

Source: Department Of Labor and Employment Republic of Philippines

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