DOLE – Manila, Philippines

The Department of Labor and Employment (DOLE) in

the Philippines has issued a reminder to employers about the proper payment of wages for workers during upcoming holidays. DOLE Secretary Bienvenido Laguesma emphasized that October 30, November 1, and November 2 are special non-working holidays, and the “no work, no pay” principle will be in effect.

DOLE has recently released an advisory detailing the wage computation for these special non-working holidays. The payment rules are as follows:

1. “No work, no pay” principle applies if employees do not work on these special days, unless there is a favorable company policy, practice, or collective bargaining agreement in place that grants payment on such days.

2. For work performed during these special days, employees are entitled to an additional 30% of their basic wage for the first eight hours of work (basic wage x 130%).

3. Overtime work, which extends beyond eight hours on a special day, warrants an additional 30% of the hourly rate on that day (hourly rate of the basic wage x 130% x 130% x the number of hours worked).

4. If an employee works on a special day that coincides with their scheduled rest day, the employer is required to pay an additional 50% of the basic wage for the first eight hours of work (basic wage x 150%).

5. Overtime work on a special day that falls on the employee’s rest day should result in workers receiving an additional 30% of their hourly rate on that day (hourly rate of the basic wage x 150% x 130% x the number of hours worked).

Secretary Laguesma emphasized that the “no work, no pay” policy may not be applicable in workplaces with alternative arrangements that still provide compensation to workers on special non-working holidays. He noted that some companies may have existing policies that ensure employees are compensated even if they do not work on these holidays or similar arrangements agreed upon by the employer and employees. It’s essential for both employers and workers to be aware of these regulations and any specific policies or agreements in place at their respective workplaces.

Certainly, here’s some additional information related to the payment of wages for workers on special non-working holidays in the Philippines:

1. Regular vs. Special Non-Working Holidays: It’s important to distinguish between regular holidays and special non-working holidays. Regular holidays, such as New Year’s Day and Christmas Day, have different pay rules, typically entitling employees to a higher premium. Special non-working holidays, as discussed in the original information, have their own set of payment rules.

2. Alternative Work Arrangements: Some companies may have alternative work arrangements for holidays. For instance, employees may be given the option to take the day off with pay or to work and receive the holiday pay. It’s essential for both employers and employees to be aware of these arrangements and any specific policies in place.

3. Collective Bargaining Agreements (CBAs): In unionized workplaces, the terms and conditions related to holiday pay may be specified in collective bargaining agreements. These agreements can override standard labor regulations, so it’s crucial to consult the CBA to understand the precise payment rules.

4. Documentation and Record-Keeping: Employers should maintain accurate records of hours worked, including overtime, during special non-working holidays. This documentation is crucial in ensuring that employees receive the correct compensation as per the labor laws or any applicable company policies.

5. Legal Updates: DOLE Labor laws and regulations can change over time. Employers and employees should stay updated on any changes to labor laws that may affect holiday pay or other employment-related matters.

6. Communication: Employers should communicate holiday pay policies and arrangements clearly to their employees. This can help prevent misunderstandings and disputes.

7. Dispute Resolution: In case of disputes or disagreements regarding holiday pay, employees and employers can seek guidance or resolution through the Department of Labor and Employment ( DOLE ) or other appropriate labor authorities.

It’s crucial for all parties involved to be well-informed about their rights and responsibilities regarding holiday pay, especially during special non-working holidays. Staying informed and adhering to the relevant labor laws and agreements helps ensure that workers are compensated fairly for their work during these times.