Department of Labor and Employment (DOLE) Secretary Silvestre Bello III reminded employers in the private sector to fulfil their legal obligation in giving proper wages to their workers for the declared holidays in the month of November.
Bello made this reminder amid the economic struggles in the country due to COVID-19 pandemic as a result of lockdown measures.
While the department sympathizes with the small and medium private companies, Bello said proper payment should be provided to the workers, during regular working days or on declared holidays.
As per the Labor Advisory No. 19, series of 2021 issued by Acting Secretary Ana Dione, it stated the proper computation of workers’ wages for the declared special non-working holiday on Nov. 1, 2021, special working holiday on Nov. 2, and for the regular holiday on Nov. 30, 2021.
President Duterte has issued Proclamation No. 1107, which declares Nov. 1 as a special non-working holiday for the commemoration of the All Saints Day, Nov. 2 – a special working holiday – for the All Soul’s Day, and a regular holiday on Nov. 30 for Andres Bonifacio Day.
The advisory recommends that for the special non-working day on Nov. 1 the following pay rules shall apply, including the “no work, no pay” rule if a worker did not work, unless there is a company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.
For work done during the special day, an employee shall be paid an additional 30 percent of the basic wage on the first eight hours of work computed as basic wage multiplied to 130 percent plus the Cost-Of-Living-Adjustment or COLA.
Also for the work completed for more than eight hours – also called as overtime – employees shall be paid an additional 30 percent of hourly rate on the said day, or an hourly rate of the basic wage multiplied to 130 percent, multiplied to 130 percent, and multiplied to the number of hours worked.
If an employee works on a special day that also falls on the rest day, a worker shall be paid an additional 50 percent of the basic wage on the first eight hours of work or the basic wage multiplied to 150 percent plus COLA.
The overtime work on a special day that also falls on the rest day, an employee shall be paid an additional 30 percent of the hourly rate on the said day – or hourly rate of the basic wage multiplied to 150 percent, multiplied to 130 percent, and multiplied to the number of hours worked.
As for the declared special working holiday on Nov. 2, the department advisory states that should a worker report for duty, the employee is entitled to receive only the daily wage and no premium is required since it is considered an ordinary working day.
On the other hand, the following premium pay computation is required to be paid for the worker who will perform their respective works during the Regular holiday on Nov. 30.
If the employee did not work, employers shall pay 100 percent of the worker’s salary for days indicated, or the basic wage plus COLA multiplied to 100percent, while for work done during the regular holiday, the employee shall be paid 200 percent the regular salary for the first eight hour, or the basic wage plus COLA multiplied to 200 percent.
In terms of the OT work (work done more than eight hours), a worker shall be paid an additional 30 percent of the hourly rate, or the hourly rate of the basic wage plus 200 percent multiplied to 130 percent, and multiplied to the number of hours worked.
If an employee works on a regular holiday that also falls on the rest day, a worker shall be paid an additional 30 percent of the basic wage of 200 percent, or the basic wage plus COLA multiplied to 200 percent plus 30 percent (basic wage multiplied to 200percent).
For overtime work on a regular holiday that also falls on the rest day, an employee shall be paid an additional 30 percent of the hourly rate on the said day (hourly rate of the basic wage multiplied to 200 percent, multiplied to 130 percent, multiplied to 130 percent, and multiplied to the number of hours worked.
As for the private companies that have totally closed or ceased operation during the community quarantine period, these establishments are exempted from paying their workers the holiday pay on Nov. 30.