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DOLE reminds employers of pay rules for holidays in August


The Department of Labor and Employment (DOLE) on Wednesday reminded private employers to observe special pay rules for employees who work during the holidays this August.

Proclamation No. 555 declared August 12 and 26 as regular holidays in observance of Eid’l Adha and National Heroes Day. Ninoy Aquino Day on August 21, on the other hand, was declared a special non-working holiday.

In an advisory, Labor Secretary Silvestre Bello III prescribed the proper wages for those holidays.

Employers are advised to use the following formula in computing wages for the regular holidays on August 12 and 26:

Employees who did not work on said holidays shall be paid 100 percent of their salary ([Basic wage + COLA] x 100 percent)], while those who worked shall be paid 200 percent of their regular salary for the first eight hours ([Basic wage + COLA] x 200 percent).

Employees who work overtime (work done in excess of eight hours) shall be paid an additional 30 percent of their hourly rate (hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked).

Employees who worked on a regular holiday that also fell on their rest day shall be paid an additional 30 percent of their basic wage of 200 percent [(Basic wage + COLA) x 200 percent] + [30 percent (Basic wage x 200 percent)].

Employees who rendered overtime work on a regular holiday that also fell on their rest day shall be paid an additional 30 percent of their hourly rate on said day (hourly rate of the basic wage x 200 percent x 130 percent x 130 percent x number of hours worked).

For the special non-working holiday on August 21, Bello laid out the following pay rules:

If the employee did not work, the “no work, no pay” policy shall apply unless there is another company policy, practice, or collective bargaining agreement (CBA) granting payment on special days.

For work done during the special non-working holiday, an employee shall be paid an additional 30% of the daily rate on the first eight hours of work [(basic wage x 130%) + COLA].

For work done in excess of eight hours (overtime work), the employee shall be paid an additional 30% of the hourly rate on the said day [hourly rate of the basic daily wage x 130% x 130% x number of hours worked].

Employees who work on a special holiday that also falls on their rest day shall be paid an additional 50% of their daily rate on the first eight hours of work [(basic wage x 150%) + COLA].

For overtime work on a special holiday that also falls on their rest day, they shall be paid an additional 30% of their hourly rate [Hourly rate of the basic wage x 150% x 130% x number of hours worked]. —Margaret Claire Layug/VDS, GMA News

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