Pay the right holiday rate, Philippine firms told

The labour and employment department is issuing payment guidelines for employers for two public holidays in February

Pay the right holiday rate, Philippine firms told

Philippine employers must follow the pay rules for the holidays falling on 16 and 25 February – Chinese New Year and the 32nd anniversary of the Edsa People Power Revolution, respectively.

Labour Secretary Silvestre Bello III said his department had issued a labour advisory describing the proper payment of wages for the special non-working holidays.

The advisory outlines the following guidelines:

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

- For work done during the special day, the workers shall be paid an additional 30% of their daily rate on the first eight hours of work. The “daily rate x 130% plus COLA” scheme will be observed.

- For work done in excess of eight hours (overtime work), the workers will be paid an additional 30% of their hourly rate.

- For work done during a special day that also falls on the workers’ rest day, they shall be paid an additional 50% of their daily rate on the first eight hours of work, thus, the “daily rate x 150% + COLA” computation will apply.

- For work done in excess of eight hours (overtime work) during a special day that also falls on the workers’ rest day, they shall be paid an additional 30% of their hourly rate.


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