GMA News Online
Economy
»
Companies

DOLE issues pay rules for holiday season

December 19, 2012 7:34am
The Department of Labor and Employment on Tuesday reminded employers to observe the pay rules as well as occupational safety standards for the Christmas and New Year holidays.

DOLE Secretary Rosalinda Baldoz said President Benigno Aquino III tasked her department to promulgate the implementing guidelines for these holidays.

“In the interest of workers’ welfare and protection, I urge you to pursue labor standards-based excellence by observing the pay rules and other core labor and occupational safety and health standards on 24, 25, 30, and 31 December 2012 and 1 January 2013," Baldoz said.

Baldoz cited Proclamation No. 295 that President Benigno Aquino III signed on Nov. 24, 2011, covering Dec. 24, 25, 30 and 31, and Jan. 1, 2013.

Under the proclamation, Christmas Day on December 25 (Tuesday) and Rizal Day on December 30 (Sunday) are regular holidays, while December 31 (Monday), the last day of the year, is a special non-working day.

She also cited Proclamation No. 361 signed by Aquino last March 29 declaring Monday, Dec. 24, as a special non-working day throughout the country.

Also, she cited Proclamation, No. 459 saying New Year’s Day on January 1, 2013 (Tuesday) is also a regular holiday nationwide.

Pay rules for Dec 25, 30; Jan 1

Based on Baldoz’s Labor Advisory No. 5 issued last December 4, the following pay rules shall apply for the regular holidays on Dec. 25 and 30:

- If the employee did not work, he or she shall be paid 100 percent of his or her salary for that day ([Daily Rate + COLA] x 100 percent);

- If the employee worked, he or she shall be paid 200 percent of his or her regular salary for that day for the first eight (8) hours ([Daily Rate + COLA] x 200 percent);

- If the employee worked in excess of 8 hours (overtime work), he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 200 percent x 130 percent x number of hours worked);

- If the employee worked during a regular holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her daily rate of 200 percent [(daily rate + COLA) x 200 percent] + [30 percent (daily rate x 200 percent)];

- If the employee worked in excess of 8 hours (overtime work) during a regular holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked).

The same regular holiday pay rules shall apply for January 1, 2013, the DOLE said.

Dec. 24, 31 rules

- 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;

- If the employee worked, he or she shall be paid an additional 30 percent of his or her daily rate on the first eight hours of work [(daily rate x 130 percent) + COLA];

- If the employee worked in excess of 8 hours (overtime work), he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 130 percent x 130 percent x number of hours worked);

- If the employee worked during a special day that also falls on his or her rest day, he or she shall be paid an additional 50 percent of his or her daily rate on the first 8 hours of work [(daily rate x 150 percent) + COLA];

- If the employee worked in excess of 8 hours (overtime work) during a special day that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 150 percent x 130 percent x number of hours worked).

— LBG, GMA News
Go to comments



We welcome healthy discussions and friendly debate! Please click Flag to alert us of a comment that may be abusive or threatening. Read our full comment policy here.
Comments Powered by Disqus