DOLE to employers: Observe pay rules for Chinese New Year

The Department of Labor and Employment (DOLE) has reminded employers to follow pay rules for January 25, the Chinese New Year —a special non-working day.

"Workers who will report to work on January 25 which is observed as Chinese New Year will get full pay plus 30% of their basic pay," DOLE said.

In its Labor Advisory No. 2 issued on January 20, DOLE reminded employers that employees who will work on Chinese New Year shall be paid an additional 30% of their basic wage in the first eight hours of duty.

"Their basic wage shall be multiplied by 130% plus COLA (cost of living allowance)," the Labor department said.

No work, no pay

The Labor advisory further noted that if the employee did not work, the “no work, no pay” principle shall apply "unless there is a favorable company policy, practice or a collective bargaining agreement (CBA) granting payment on a special day."

"If they work in excess of eight hours, they will be paid an additional 30% on their hourly rate," DOLE said.

For work done during a special day that also falls on the workers’ rest day, the Labor department said employees shall be paid an additional 50%  of their basic wage on the first eight hours of work, and if done in excess of eight hours (overtime work), they shall be paid an additional 30% of their hourly rate.

"The computation will be ‘hourly rate of the basic wage x 150% x 130% x number of hours work.’"

The pay rules for January 25 special non-working day is pursuant to Proclamation No. 855 issued by President Rodrigo Duterte, DOLE said. — MDM, GMA News