DOLE issues pay rules for 2018 holidays

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Pursuant to Presidential Proclamation No. 269, s. 2017 declaring the regular holidays and special non-working holidays for 2018, the Department of Labor and Employment issued yesterday a labor advisory prescribing the appropriate computation of holiday pay.

Labor Advisory No. 10, s. 2017 on “Payment of Wages for the Regular Holidays and Special (Non-Working) Holidays for the Year 2018,” will guide private sector employers on the list of holidays for 2018 and how wages are computed if their workers opted to report for work on such days.

Regular holidays are New Year’s Day (January 1), Maundy Thursday (March 29), Good Friday (March 30), Araw ng Kagitingan (April 9), Labor Day (May 1), Independence Day (June 12), National Heroes Day (August 27), Bonifacio Day (November 30), Christmas Day (December 25), and Rizal Day (December 30).

Also included are the observance of Eidul Fitr and Eidul Adha, the proclamations of which will be issued after the approximate dates of the Islamic Holidays have been determined in accordance with the Islamic calendar or the lunar calendar, or upon Islamic astronomical calculations.

For these holidays, work done during these days shall be paid 200% of an employee’s regular pay for the first eight hours or [(Daily Rate +COLA) x 200%]; while work done in excess of eight hours (overtime), shall be paid an additional 30% of the employee’s hourly rate or [(Hourly Rate of the basic daily wage x 200% x 130% x number of hours worked)].

Meanwhile, work done during these days that also falls on employee’s rest day shall be paid an additional 30% of his/her daily rate of 200% or [(Daily Rate + COLA) x 200%] + [30% (Daily rate x 200%)]; while for work done in excess of eight hours (overtime), shall be paid an additional 30% of his/her hourly rate, or [(Hourly Rate of the basic daily wage x 200% x 130% x 130% x number of hours worked)].

However, if the employee did not report to work during these days, he/she shall still be paid 100% of his/her salary for that day or [(Daily Rate + COLA) x 100%].

The special (non-working days), on the other hand, are Chinese New Year (February 16), EDSA Revolution Anniversary (February 25), Black Saturday (March 31), Ninoy Aquino Day (August 21), and All Saints Day (November 1). December 31, December 24 and November 2 are additional special non-working days.

The pay rules for these holidays provide that for work done, an employee shall be paid an additional 30% of his daily rate on the first eight hours or [(Daily Rate x 130%) + COLA]; while for work done in excess of eight hours (overtime), he/she shall be paid an additional 30% of his hourly rate or [(Hourly Rate of the basic daily wage x 130% x 130% x number of hours worked)].

For work done during these days that also fall on employee’s rest day, he/she shall be paid an additional 50% of his/her daily rate on the first eight hours, or [(Daily Rate x 150%) + COLA]; while for work done in excess of eight hours (overtime), he/she shall be paid an additional 30% of his hourly rate, or [(Hourly Rate of the basic daily wage x 150% x 130% x number of hours worked)].

But 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 special holidays. (DOLE-PR)

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