DOLE Issues Pay Rules for Regular and Special Non-Working Holidays in 2017

The Department of Labor and Employment (DOLE) issued Labor Advisory No. 13, or the Payment of Wages for the Regular Holidays and Special Non-Working days for 2017.

“Non-payment of holiday pay is one of the most common concerns brought by workers to the Department. If employers will follow prescribed guidelines and observe fair labor practices, then workers will have no reason to complain because their rights at work are respected,” said Labor and Employment Secretary Silvestre H. Bello III.

He added that the issuance of Labor Advisory No. 13 is pursuant to Proclamation No. 50 issued by President Rodrigo R. Duterte on 16 August 2016.

The DOLE mandates the following pay rules be implemented for 2017 regular holidays on 1 January; 9, 13, and 14 April; 1 May; 12 June; 28 August; 30 November; 25 and 30 December; and for the observance of Eid’l Fitr and Eid’l Adha.

• If an employee did not work, he/she shall be paid 100 percent of his/her salary for that day. The COLA is included in the computation of holiday pay. Sample computation: [(Daily rate + COLA) x 100 percent];

• If an employee worked, he/she shall be paid 200 percent of his/her regular salary for that day for the first eight hours. The COLA is also included in the computation of holiday pay. Sample computation: [(Daily rate + COLA) x 200 percent].

• If an employee worked in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day. Sample computation: [Hourly rate of the basic daily wage x 200 percent x 130 percent x number of hours worked];

• If an employee worked during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her daily rate of 200 percent. Sample computation: [(Daily rate + COLA) x 200 percent] + (30 percent [Daily rate x 200 percent)]; and

• If an employee worked 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 percent of his/her hourly rate on said day. Sample computation: (Hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked).

Under the DOLE pay rules, the following shall apply on special non-working holidays on 28 January, 25 February, 15 April, 21 August, 31 October, 1 November, and 31 December.

The pay rules mandate that 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 day.

• For work done during the special day, the workers shall be paid an additional 30 percent of their daily rate on the first eight hours of work. The ‘Daily rate x 130 percent plus COLA’ scheme will be observed.
• For work done in excess of eight hours (overtime work), the workers will be paid an additional 30 percent of their hourly rate on said day. The computation will be: hourly rate of the basic daily wage x 130 percent x 130 percent x number of hours worked.
• For work done during a special day that also falls on the workers’ rest day, they shall be paid an additional 50 percent of their daily rate on the first eight hours of work, thus, the ‘Daily rate x 150 percent + COLA’ computation will apply.
• For work done in excess of eight hours (overtime work) during a special day that also falls on the workers’ rest day, they shall be paid an additional 30 percent of their hourly rate on said day, or a computation of ‘hourly rate of the basic daily wage x 150 percent x 130 percent x number of hours worked. (DOLE)