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SALARIES / DEC. 27, 2012
version 21, draft 21

Baldoz issues Labor Advisory on Proper Pay Rules for August Holidays

baldoz secretary

2012-08-16

Labor and Employment Secretary Rosalinda Dimapilis-Baldoz yesterday urged private sector employers to observe the proper pay rules for their workers on Monday, 20 August; Tuesday, 21 August; and Monday, 27 August 2012, these being proclaimed holidays.

20 August is a regular holiday in view of the celebration of Eid’l Fitr, or Feast of Ramadan, while 21 August is a special non-working day it being Ninoy Aquino Day. 27 August is a regular holiday in commemoration of National Heroes Day.

The said dates are declared holidays pursuant to Proclamation Nos. 295 and 495 issued by President Benigno S. Aquino III on 24 November 2011 and 13 August 2012, respectively.

"I urge our private sector employers to comply with the Labor Advisory on the payment of correct wages and benefits on these holidays. We owe it to our workers, who will be required to report for work and, therefore, must receive the correct wages and benefits," said Baldoz, who had also directed concerned officials of the DOLE, including the Bureau of Working Condition and the DOLE regional offices to widely disseminate the correct information on the computation of holiday pay to all workers in the private sector using all available media.

For these holidays, Baldoz has issued Labor Advisory No. 2, Series of 2012, titled, "On the Payment of Wages on Tuesday, 21 August 2012, Special (Non-Working) Day, and on Monday, 20 and 27, 2012 Regular Holiday, Pursuant to Proclamation No. 295" and a Question and Answer periodical that provides clear explanation, with illustrative examples of computation, to facilitate proper wage payments for those dates. Both the Advisory and the Q&A are uploaded in the DOLE website, http://www.dole.gov.ph.

Pursuant to the Labor Advisory No. 2, employers should abide by the following guidelines on holiday pay:

1. Regular Holidays, Monday, 20 and 27 August
• If the employee did not render work during the regular holiday, he/she shall be entitled to 100 percent of his/her salary for that day [(Daily Rate + COLA) x 100%];
• If the employee reported for work on such day, he/she shall be entitled to 200 percent of his/her regular salary for that day for the first eight (8) hours [(Daily Rate + COLA) x 200%];
• For overtime work rendered during this regular holiday, he/she shall be entitled to an additional 30 percent of his/her hourly rate on said day (Hourly Rate x 200% x 130% x Number of Hours Worked);
• If the employee worked during a regular holiday that also falls on his/her rest day, he/she shall be entitled to an additional 30 percent of his/her daily rate of 200 percent [(Daily Rate + COLA x 200%) + 30% (Daily Rate x 200%)]; and
• For overtime work rendered during the regular holiday that falls on his/her rest day, he/she shall be entitled to an additional 30 percent of his/her hourly rate on said day (Hourly Rate x 200% x 130% x 130% x Number of Hours Worked).

2. Special (Non-Working), Tuesday, 21 August 2012
• If the day is unworked, 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;
• If worked, the employee shall be entitled to an additional 30 percent of his/her daily rate on the first eight hours of work (Daily rate x 130%);
• If the employee worked during a special day, he/she shall be entitled to an additional 30 percent of his/her hourly rate on such special day (Hourly rate x 130% x Number of Hours Worked);
• If the employee worked during the special day that also fall on his/her rest day, he/she shall be entitled to an additional 50 percent of his/her daily rate on first eight (8) hours of work (Daily Rate x 150%); and
• In excess of eight hours, he/she shall be entitled to an additional 30 percent of his/her hourly rate on such special day (Hourly Rate x 130% x 150% x Number of Hours Worked).

 


 

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