The Department of Labor and Employment (DOLE) has issued pay rules for employees in the private sector who will report to work on New Year's Day, January 1, 2021.
The prescribed pay rules for January 1, a regular holiday, was explained in Labor Advisory No. 34, series of 2020, signed by DOLE Secretary Silvestre Bello III.
If the employee did not work, he/she shall be paid 100 percent of his/her salary for that day .
For work done during the regular holiday, the employee shall be paid a total of 200 percent of his/her wage for that day for the first eight hours .
For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day (hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked).
For work done during a regular holiday that also falls on his/her rest day, the worker shall be paid an additional 30 percent of his/her basic wage of 200 percent + .
Lastly, for work done in excess of eight hours (overtime work), during a regular holiday that also falls on his/her rest day, the worker shall be paid an additional 30 percent of his/her hourly rate on said day (hourly rate of the basic wage x 200 percent x 130 percent x 130 percent x number of hours worked).
Bello, however said, in view of the existence of a national emergency due to the coronavirus pandemic, establishments that have closed or ceased operations during the community quarantine are exempted from the payment of the holiday pay for January 1, 2021.Â