DOLE clarifies payment rules for holidays

All Saints' Day (November 1) was declared a special nonworking day by virtue of Proclamation No. 84; October 31 was declared as such under Proclamation No. 265, Series of 2011; while November 7 was declared a regular holiday (Eidul Adha or Feast of Sacrifice) under Proclamation No. 276.

Labor and Employment Secretary Rosalinda D. Baldoz yesterday reiterated to private-sector employers to observe the correct pay rules and core labor standards during these holidays.

For the October 31 and November 1, the correct pay rules to be observed are as follows:

I. If the said days are worked, an employee is entitled to 130 percent of his daily rate for the first eight hours, and to an additional 30 percent of his hourly rate on the said day for work performed in excess of eight hours.

II. If unworked, he is not entitled to any payment, unless there is a favorable company policy, practice, or collective bargaining agreement granting payment for special days even if not worked.

III. Finally, if the day is worked, and it falls on the employee's rest day, the employee is entitled for the first eight hours to 150 percent of his regular daily rate, and for work performed in excess of eight hours, plus 30 percent of his or her hourly rate on the said day.

For November 7, the rules to be observed are as follows:

I. If the holiday falls on an employee's regular workday: If Monday, November 7, 2011 is worked , the employee is entitled to 200 percent of his basic wage on the first eight hours and, for work in excess of the eight hours, to an additional 30 percent of his or her hourly rate on the said day.

But, if unworked, the employee is entitled to 100 percent of the regular daily rate, provided he was present, or was on leave with pay, on the workday immediately preceding the holiday.

II. If the day is the employee's rest day: If November 7 is the employee's rest day and the day is worked, he or she is entitled to 260 percent of his or her daily rate on the first eight hours, plus 30 percent for work in excess of eight hours on the said day. But if unworked, the employee is entitled only to 100 percent of his regular rate, provided he was present, or was on leave with pay, on the workday immediately preceding the holiday.

III. In case the day immediately preceding the holiday is a non-work day in the establishment, or is the scheduled rest day of the employee, the employee shall not be deemed on leave of absence on that day, in which case he or she shall be entitled to the regular holiday pay. (gov.ph)