DOLE to Employers: Observe Labor Day Pay Rules

The labor department over the weekend urged employers in the private sector to strictly observe proper payment of wages of their workers on May 1, Labor Day, a regular holiday.

Pursuant to Proclamation No. 269 issued by President Rodrigo Duterte on July 17, 2017, Labor Secretary Silvestre Bello III issued the rules prescribing the proper payment of wages for regular holidays.

The labor department thus mandate the following pay rules to be implemented on May 1:

If the employee did not work, he/she shall be paid 100 percent of his/her salary for that day [(Daily rate + COLA)] x 100%]; while for work done during the regular holiday, he/she shall be paid 200 percent of his/her regular salary for that day for the first eight hours [(Daily rate + COLA) x 200%];

For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x number of hours worked);

For work done 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 [(Daily rate + COLA) x 200%] + [30% (Daily rate x 200%0]; and

For work done 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 (Hourly rate of the basic daily wage x 200% x 130% x 130% number of hours worked). (Paul Ang/DOLE)