Monday, October 22, 2012

Payment of Wages for the Regular Holidays October and November 2012


Department of Labor and Employment (DOLE) issued an advisory regarding rules on payment of wages applicable for Holidays and non-working days on October 26, November 1,2 and 30, 2012.

So if you are an employee, check the following pay rules on those holidays based on the Labor Advisory No. 3 by DOLE:

Payment of Wages for the Regular Holidays on October 26 and November 30, 2012 and Special (Non-working) Days on November 1 and 2, 2012

1. Regular Holidays: October 26 and November 30, 2012

1.1 If the employee did not work, he/she shall be paid 100% of his/her salary for that day [Daily Rate + COLA] x 100%;

1.2 If the employee worked, he/she shall be paid 200% of his/her regular salary for that day for the first eight hours [Daily Rate + COLA] x 200%;

1.3 If the employee worked in excess of eight hours (overtime work) he/she shall be paid an additional 30% of his/her hourly rate on said day [Hourly Rate x 200% x130% x Number of hours worked];

1.4 If the employee worked during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her daily rate of 200% [(Daily Rate + COLA) x 200%] + [30% Daily Rate x 200%; and

1.5 If the employee worked in excess of eight hours (overtime work) during a regular holiday 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 x 200% x 130% x Number of hours worked).

2. Special (Non-working) Days: November 1 and 2, 2012

2.1 If the employee did not work, the “no work, no pay” principle shall apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day;

2.2 If the employee worked, he/she shall be paid an additional 30% of hi/her daily rate on the first eight hours of work (Daily Rate 130%);

2.3 If the employee worked in excess of eight hours (overtime work) he/she shall be paid an additional 30% of his/her hourly rate on said day (Hourly Rate x 130% x 130 % x Number of hours worked);

2.4 If the employee worked during a special day that also falls on his/her rest day, he/she shall be paid an additional 50% of his/her daily rate on the first eight hours of work (Daily Rate x 150%); and

2.5 If the employee worked in excess of eight hours (overtime work) during a special 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 x 150% x 130% x Number of hours worked).

Source: DOLE