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Pay rules for December 2012 declared holidays

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(Image credit: noypistuff.blogspot.com)

President Aquino declared Philippine holidays through Proclamations Nos. 361 and 295 signed on March 29, 2012 and on November 24, 2011, respectively.

December 24, 2012, Monday was declared special non-working day throughout the country by virtue of Proclamation No. 361.  Then, December 25, Tuesday is a regular holiday through Proclamation 295.

December 30, 2012, Sunday (Rizal’s Day) is a regular holiday. Moreover, December 31 (last day of the year), Monday was declared special non-working day.

Private employers shall observe guidelines on proper pay rules as amended in relation to these declared holidays especially if these holidays are worked and have rendered overtime by their employees.

Please refer to the text below copied from the official website of the Department of Labor and Employment, or you may click this link to download: Labor Advisory No_ 05-12: Payment of Wages for the Special (Non-Working) Days on December 24 and 31, 2012 and Regular Holidays on December 25 and 30, 2012.

MEMORANDUM CIRCULAR NO. 01

Pursuant to the provisions of the Labor Code, as amended in relation to the observance of declared holidays and in response to the queries received every time a Presidential Proclamation or a law is enacted by Congress which declares certain days either as a regular holiday, a special day or a special working holiday, the following guidelines shall be observed by all employers in the private sector:

  1. For regular holidays as provided for under EO 203 (incorporated in EO 292) as amended by RA 9177:
    New Year’s Day
    -
    January 1
    Maundy Thursday
    -
    Movable Date
    Good Friday - Movable Date
    Araw ng Kagitingan - April 9
    Labor Day - May 1
    Independence Day - June 12
    National Heroes Day - Last Sunday of August
    Bonifacio Day - November 30
    Eidul Fitr - Movable Date
    Christmas Day - December 25
    Rizal Day - December 30

    the following rules shall apply:

    1. If it is an employee’s regular workday
      • If unworked – 100%
      • If worked
        • 1st 8 hours – 200%
        • excess of 8 hours – plus 30% of hourly rate on said day
    2. If it is an employee’s rest day
      • If unworked – 100%
      • If worked
        • 1st 8 hours – plus 30% of 200%
        • excess of 8 hours – plus 30% of hourly rate on said day
  2. For declared special days such as Special Non-Working Day, Special Public Holiday, Special National Holiday, in addition to the two (2) nationwide special days (November 1, All Saints Day and December 31, Last Day of the Year) listed under EO 203, as amended, the following rules shall apply:
    1. If unworked
      • No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked.
    2. If worked
      • 1st 8 hours – plus 30% of the daily rate of 100%
      • excess of 8 hours – plus 30% of hourly rate on said day
    3. Falling on the employee’s rest day and if worked
      • 1st 8 hours – plus 50% of the daily rate of 100%
      • excess of 8 hours – plus 30% of hourly rate on said day
  3. For those declared as special working holidays, the following rules shall apply:
    For work performed, an employee is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days.

(Source: dole.gov.ph)

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