Published 4 January 2019, The Daily Tribune
Christmas holidays are about to end. And yet this early, most, if not all of us, look forward to holidays this 2019.
Evidently, holidays are eagerly awaited because these are normally rest days, where employees do not report to work, but are, nevertheless, paid. But how about those who opted to work on these days? How are they compensated?
As we chart out our year ahead, it pays to know our monetary benefits for work done during holidays. Essentially, there are two “kinds” of holidays in the Philippines – regular and special non-working days, which are obviously subject to different rules on compensation payment.
Regular holidays are days of observance that recur every year, as prescribed by a Presidential Proclamation or a law enacted by Congress. Special non-working holidays, on the other, are generally declared through Executive Orders passed by the President, or even by Congress.
Pursuant to Presidential Proclamation No. 555 issued on 15 August 2018, the regular holidays for 2019 are the following: New Year’s Day (January 1), Araw ng Kagitingan (April 9), Maundy Thursday (April 18), Good Friday (April 19), Labor Day (May 1), Independence Day (June 12), National Heroes Day (August 26), Bonifacio Day (November 30), Christmas Day (December 25), and Rizal Day (December 30). Also included are the observance of Eidul Fitr and Eidul Adha, the proclamations of which shall be issued after the approximate dates of the Islamic holidays have been determined in accordance with the Islamic calendar or the lunar calendar, or upon Islamic astronomical calculations.
The special (non-working days), on the other hand, are: Chinese New Year (February 05), EDSA People Power Revolution Anniversary (February 25), Black Saturday (April 20), Ninoy Aquino Day (August 21), All Saints’ Day (November 01), Feast of the Immaculate Conception of Mary (December 08) and Last Day of the Year (December 31). November 2 and December 24 were likewise declared as additional special non-working days.
Pursuant to the above Presidential Proclamation, the Department of Labor and Employment (DOLE) issued DOLE Labor Advisory No. 15, series of 2018, prescribing the computation guidelines on the payment of wages for the regular holidays and special non-working days for the year 2019.
For work performed or not performed on regular holidays, the simplified rules are the following:
- If the employee did not work, he/she shall be paid 100 percent (100%) of his/her salary for that day [(Basic wage + COLA) x 100%];
- If the employee works during the regular holiday, the employee shall be paid 200 percent (200%) of his/her regular salary for that day for the first eight (8) hours [(Basic wage + COLA) x 200%];
- If the employee works more than 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% x 130% x number of hours worked];
- If the employee works on his/her rest day, he/she shall be paid an additional 30 percent of his/her daily rate of 200 percent [(Basic wage + COLA) x 200%] + [30% (Basic wage x 200%)]; and
- If the employee works more than eight hours (overtime work) during a regular holiday that also falls on his/her rest day, 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% x 130% x 130% x number of hours worked].
For work performed or not performed on special non-working holidays, the rules are the following:
- If the employee did not work, the “no work, no pay” principle applies, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked;
- If the employee works during the Special Non-Working Day, the employee shall be paid 100 percent of his/her regular salary plus 30 percent of the daily rate for the first eight hours [(Basic wage x 130%) + COLA];
- If the employee works more than 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 130% x 130% x number of hours worked);
- If the work done during the special non-working day falls on the employee’s rest day, he/she shall be paid an additional 50 percent of his/her daily rate for the first eight hours [(Basic wage x 150%) + COLA]; and
- If the employee works more than eight hours (overtime work) during a special non-working day that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly rate of the basic wage x 150% x 130% x number of hours worked).
May the foregoing help employers and employees alike for the year 2019. And may this year be a more productive and fruitful year to everyone!
