Observe holiday pay, employers told

MANILA — The labor department called on employers and business owners to observe the proper pay rules during the special non-working and regular holidays in August. 

Labor Secretary Silvestre Bello III said despite the imposition of community quarantines across the country, private companies that require their workers to report for work are obliged to observe the proper payment of wages during the holidays under the Labor Code.

Bello issued Labor Advisory No. 15, series of 2021 for proper payment of wages on August 21, 2021, declared a special non-working holiday under Proclamation No. 1107; and on August 30, 2021, National Heroes Day, a regular holiday. 

Bello said for August 21, Ninoy Aquino Day, the following pay rules shall apply:

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

For work done during the special day, employees shall be paid an additional 30 percent of their basic wage on the first eight hours of work [(basic wage x 130%) + COLA].

For work done in excess of eight hours (overtime work), employees shall be paid an additional 30 percent of their hourly rate on the said day [hourly rate of the basic wage x 130% x 130% x number of hours worked].

For employees who work on a special holiday that falls on his/her rest day, he/she shall be paid an additional 50 percent of his/her basic wage on the first eight hours of work [(basic wage x 150%) + COLA].

For overtime work on a special day that also falls on their rest day, employees shall be paid an additional 30 percent of their hourly rate on the said day [Hourly rate of the basic wage x 150% x 130% x number of hours worked].

Further, the said labor advisory also prescribes the following pay rules for the regular holiday on August 30 (National Heroes Day):

Employees who did not work shall be paid 100% of their wage for that day [(basic wage + COLA) x 100%], while for work done by employees during the regular holiday, they shall be paid 200% of their wage for the first eight hours [(basic wage + COLA) x 200%].

For overtime work (work done in excess of eight hours), employees shall be paid an additional 30% of their hourly rate [Hourly rate of the basic wage x 200% x 130% x number of hours worked].

On the other hand, employees who work on a regular holiday that falls on their rest day shall be paid an additional 30% of their basic wage of 200% or [(basic wage + COLA) x 200%] + [30% (basic wage x 200%)].

Employees who render overtime on a regular holiday that falls on their rest day shall be paid an additional 30% of their hourly rate on said day [Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked]. (DOLE)