DOLE to Employers: Follow Pay Rules for Chinese New Year

Department of Labor and Employment (DOLE) Secretary Silvestre H. Bello III yesterday urged employers in the private sector to follow the pay rules for January 28, 2017, the Chinese New Year, which Malacañang had declared as a special (non-working) day.

On August 16, 2016, President Rodrigo R. Duterte declared January 28, Chinese New Year, as a special (non-working) day Under Proclamation No. 50, Series of 2016, “Declaring the Regular Holidays, Special (Non-Working Days, and Special Holiday (For All Schools) for the Year 2017”.

“As we celebrate the onset of the Chinese New Year, we must also observe the proper pay rules for our workers in the private sector,” said Bello.

“Promoting workers’ welfare and protection by observing the proper pay rules and other core labor standards will encourage productive and efficient workers. Compliance is good for business. It is good for the workers. It is good for all,” he added.

The proper pay rules to be observed for the special (non-working) day are as follows:

1. 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 a special day.

2. If the employee worked, he/she shall be paid an additional 30 percent of his/her daily rate on the first eight hours of work.Computation: [(Daily rate x 130%) + COLA].

3. If the 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. Computation: (Hourly rate of the basic daily wage x 130% x 130% x number of hours worked).

4. If the employee worked during a special day that also falls on his/her rest day, he/she shall be paid an additional fifty percent of his/her daily rate on the first eight hours of work. Computation: [(Daily rate x 150%) + COLA].

5. If the employee worked 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 percent of his/her hourly rate on said day.

Computation: (Hourly rate of the basic daily wage x 150% x 130% x number of hours worked). (DOLE)