Dole 7 reminds employers of rules on holiday pay

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EMPLOYERS in the private sector are reminded about the computation of their workers' salaries during the upcoming holidays.

Based on Labor Advisory 7, Series of 2023, Thursday, April 6, 2023; Friday, April 7; and Monday, April 10, are regular holidays.

April 6 is Maundy Thursday, April 7 is Good Friday and April 10 is Araw ng Kagitingan (Day of Valor).

April 8, or Black Saturday, is a special (non-working) day.

Article 94 of the Labor Code provides that "every worker shall be paid his regular daily wage during regular holidays and that the employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate."

"If work is done during the regular holiday of which it is also the employees' rest day, the employer shall pay the employees an additional 30 percent of the basic wage of 200 percent," according to the statement issued by the Department of Labor and Employment (Dole) 7. "For work done in excess of eight hours or overtime work during a regular holiday that also falls on the employees' rest day, the employer shall pay the employees an additional 30 percent of the hourly rate on said day."

On the matter of a special (non-working) holiday, the "no work, no pay" rule shall apply, unless the company has a policy that grants pay on that day.

An employee who reports to work will be paid his basic wage plus an additional 30 percent of the basic wage. In times of excess or overtime, the employer shall pay the worker an additional 30 percent based on the hourly rate.

If the employee reports to work on that day and it falls on his rest day, he is granted an additional 50 percent of the basic wage for an eight-hour duty.

For excess hours of the regular eight-hour duty on that day, the employer shall pay the employees an additional 30 percent of the hourly rate on said day.

The country usually celebrates Araw ng Kagitingan on April 9, but since it falls on a Sunday this year, MalacaƱang moved the regular holiday to April 10.

"We urge all employers to be conscious of these pay rules and make it a habit to orient their respective employees on these rules to help them acquire a common understanding regarding these rules of payment and computations," said Dole 7 Director Lilia Estillore in a statement.

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