Proper pay rules on holidays August 20, 21, and 27: DOLE urges private employers to observe the rules

(DOLE logo taken from: http://www.dole.gov.ph)

While August 20 and 27 are regular holidays, August 21 is a special non-working day. Department of Labor and Employment (DOLE) Secretary Baldoz urges the private sectors to comply pay rules for workers on the said proclaimed holidays.

The following are proper computation of holiday pay according to DOLE pursuant to the Labor Advisory No. 2:

Computation for Regular holidays: August 20 and 27

(Editor’s Note: For more accurate reference for the proper computation for regular and special holiday pays, refer to footnotes for DOLE advisory on proper pay rules for August holidays published on the Official Gazette.)

1.  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%]

2.  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 200%]

3.  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% x 130% x Number of Hours Worked)

4.  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%) + 30% (Daily Rate x 200%)]

5.  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% x 130% x 130% x Number of Hours Worked)

Computation for Special (Non-Working), August 21, 2012

1.  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;
2.  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%)

3.  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% x Number of Hours Worked)

4.  If the employee worked during the special day that also fall 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%)

5.  In excess of eight hours, he/she shall be entitled to an additional 30 percent of his/her hourly rate on such special day.

(Hourly Rate x 130% x 150% x Number of Hours Worked)

According to DOLE the prevailing minimum wage (Daily Rate) in National Capital Region is PhP446.

You may refer the proceeding table for the summary of daily minimum wage rates in the country:

SUMMARY OF CURRENT REGIONAL DAILY MINIMUM WAGE RATES Non-Agriculture, Agriculture As of July 2012 (In pesos) REGION WO No./ DATE OF EFFECTIVITY NON- AGRICULTURE AGRICULTURE Plantation Non-Plantation NCR a/ WO 17/June 3, 2012 P 409.00 – 446.00 P 409.00 P 409.00 CAR b/ WO 15/June 18, 2012 263.00 – 280.00 246.00 – 262.00 246.00 – 262.00 I c/ WO 15/July 25, 2012 233.00 – 253.00 233.00 205.00 II d/ WO 15/May 16, 2012 247.00 – 255.00 235.00 – 243.00 235.00 – 243.00 III e/ WO 16/June 24, 2011 279.00 – 330.00 264.00 – 300.00 244.00 – 284.00 IV-A f/ WO 15/May 15, 2012 255.00 – 349.50 251.00 – 324.50 231.00 – 304.50 IV-B g/ WO 05/Nov. 11, 2010 252.00 – 264.00 210.00 – 219.00 190.00 – 199.00 V h/ WO 15/ April 7, 2012 228.00 – 252.00 228.00 228.00 VI i/ WO 20/ May 31, 2012 235.00 – 277.00 245.00 235.00 VII j/ WO16/Sept 22, 2011 260.00 – 305.00 240.00 – 287.00 240.00 – 287.00 VIII k/ WO 16/June 1, 2011 253.00 228.00-234.00 213.50 IX l/ WO 17/ Nov. 25, 2011 267.00 242.00 222.00 X m/ WO 16/July 24, 2011 271.00 – 286.00 259.00 – 274.00 259.00 – 274.00 XI n/ WO 17/Jan. 1, 2012 301.00 291.00 291.00 XII o/ WO 17/April 18, 2012 270.00 248.00 243.00 XIII p/ WO 11/November 11, 2011 258.00 248.00 228.00 ARMM q/ WO 13/ September 2, 2011 232.00 232.00 232.00

a/  Provides integration of the P22 COLA and grants P30 COLA (P20 upon effectivity and P10 on November 1, 2012. b/  Granted P8.00 wage increase. c/  Granted P5.00-P8.00 wage increase. d/  Granted P 10.00 wage increase.Integrated to P15 COLA under W.O. No. RBII-10 into the basic pay. e/  Granted additional P 14 COLA, the P4 under W.O. 15 will be integrated into the basic wage on January 1, 2012 f/  Granted P2-90 wage increase for 5 years (for workers receiving below (P255); P12.50 Conditional Temporary Productivity Allowance (for workers receiving above P255) g/  Granted P 12 wage increase h/  Granted P3.00 – P23.00 per day wage increase due to simplification. i/   Granted P12.00 wage increase j/   Granted P20.00 wage increase k/  Granted P15 COLA to be given in 2 tranches: P10 on Jun 1 & P5 on Sept. 1, 2011; integrated into the basic pay the P8 COLA under W.O.14 l/   Granted P 12 wage increase. m/ Integrated the P17 COLA effective for 6 months; to be integrated into the basic wage thereafter. n/  Granted P15 COLA; P5 effective Jan. 1, 2012 and P10 effective May 1, 2012 o/  Integration of the P15 COLA under W.O.No. 16, Granted P10 COLA for Non-Agri.; P8 COLA (upon effectivity) for Agriculture sector and additional P4 (Plantation) & P6 COLA (for Non-Plantation) effective Dec. 1, 2012; P6 COLA upon effectivity for retail/service establishments & additional P4 (for Retail/Service w/more than 10 workers) & P6 (for R/S w/ not more than 10 workers) effective Dec 1, 2012. p/  Granted P11 wage increase and P4 COLA q/  Granted P10.00 COLA.Source: National Wages and Productivity Commission Updated:30 July 2012

Source: DOLE

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