Labor office issues pay rules holidays

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Friday, August 24, 2012


CITY OF SAN FERNANDO -- Labor Secretary Rosalinda Dimapilis-Baldoz urged private sector employers on Friday to observe the proper pay rules for their workers regarding this month’s holidays.

In a statement furnished to Sun.Star Pampanga, Department of Labor and Employment (Dole) regional labor communications officer Jerry Borja said Baldoz cited Monday, August 20; Tuesday, August 21; and Monday, August 27 2012, as the proclaimed holidays.

August 20 is a regular holiday in view of the celebration of Eid’l Fitr, or Feast of Ramadan, while August 21 is a special non-working day, it being “Ninoy Aquino Day.” August 27, meanwhile, is a regular holiday in commemoration of National Heroes Day.

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The said dates are holidays pursuant to Proclamation 295 and 495 issued by President Benigno Aquino III on November 24, 2011 and August 13, 2012, respectively.

Baldoz has issued Labor Advisory 2, Series of 2012, "On the Payment of Wages on Tuesday, 21 August 2012, Special (Non-Working) Day, and on Monday, 20 and 27, 2012 Regular Holiday, Pursuant to Proclamation 295" and a Question and Answer periodical that provides clear explanation, with illustrative examples of computation, to facilitate proper wage payments for those dates. Both the advisory and the Q&A are in Dole’s website at http://www.dole.gov.ph.

The advisory stipulates that employers should abide by the guidelines on holiday pay like for regular holidays [Monday, 20 and 27 August] such that “if the employee did not render work during the regular holiday, he/she shall be entitled to 100 percent of his/her salary for that day [(Daily Rate + Cola) x 100 percent];” or “If the employee reported for work on such day, he/she shall be entitled to 200 percent of his/her regular salary for that day for the first eight (8) hours [(Daily Rate + Cola) x 200percent];” and “for overtime work rendered during this regular holiday, he/she shall be entitled to an additional 30 percent of his/her hourly rate on said day (Hourly Rate x 200 percent x 130 percent x Number of Hours Worked).”

It also notes that “if the employee worked during a regular holiday that also falls on his/her rest day, he/she shall be entitled to an additional 30 percent of his/her daily rate of 200 percent [(Daily Rate + Cola x 200 percent) + 30 percent (Daily Rate x 200 percent)]; and for overtime work rendered during the regular holiday that falls on his/her rest day, he/she shall be entitled to an additional 30 percent of his/her hourly rate on said day (Hourly Rate x 200 percent x 130 percent x 130percent x Number of Hours Worked).

As to August 21, which is a special non-working holiday, the advisory states that if the day is unworked, 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 worked, the employee shall be entitled to an additional 30 percent of his/her daily rate on the first eight hours of work (Daily rate x 130 percent); or if the employee worked during a special day, he/she shall be entitled to an additional 30 percent of his/her hourly rate on such special day (Hourly rate x 130 percent x Number of Hours Worked).

If the employee worked during the special day that also falls on his/her rest day, he/she shall be entitled to an additional 50 percent of his/her daily rate on first eight (8) hours of work (Daily Rate x 150 percent).

Baldoz’s advisory stressed that “in excess of eight hours, the worker shall be entitled to an additional 30 percent of his/her hourly rate on such special day (Hourly Rate x 130 percent x 150 percent x Number of Hours Worked).

"I urge our private sector employers to comply with the labor advisory on the payment of correct wages and benefits on these holidays. We owe it to our workers, who will be required to report for work and, therefore, must receive the correct wages and benefits," said Baldoz.

She also directed concerned officials of the Dole, including the Bureau of Working Condition and the Dole regional offices to widely disseminate the correct information on the computation of holiday pay of all workers in the private sector.

Published in the Sun.Star Pampanga newspaper on August 25, 2012.

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