Rules on payment of wages for August holidays out

The DOLE enumerated the following pay rules for the special non-working day on Aug. 21.(File photo: Joshua Rodriguez/Unsplash)

MANILA – The Department of Labor and Employment (DOLE) on Tuesday reminded employers and workers in the private sector to observe the rules on the payment of wages on Aug. 21 (Ninoy Aquino Day) and Aug. 28 (National Heroes Day).

Labor Advisory No. 17, Series of 2023, signed by Secretary Bienvenido Laguesma on Tuesday, stipulated the proper computation of workers’ wages for these holidays.

The DOLE enumerated the following pay rules for the special non-working day on Aug. 21.

–For employees who rendered work, shall be paid an additional 30 percent of their basic wage on the first eight hours of work, while those who rendered overtime work shall be paid an additional 30 percent of their hourly rate.

–Employees who worked on a special day that also falls on their rest day shall be paid an additional 50 percent of their basic wage on the first eight hours of work; while those who rendered overtime work shall be paid an additional 30 percent of their hourly rate.

It noted that the “no work, no pay” principle shall apply to workers who did not report for work, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.

Meanwhile, the agency said employees who rendered work during the regular holiday on Aug. 28 are entitled to 200 percent of their wage for the first eight hours.

Employees who rendered overtime work shall be paid an additional 30 percent of the hourly rate. The computation is an hourly rate of the basic wage x 200 percent x 130 percent x the number of hours worked.

The advisory also stated that employees who worked on the said regular holiday that also falls on their rest day shall be paid an additional 30 percent of the basic wage of 200 percent; while those who rendered overtime work shall be paid an additional 30 percent of the hourly rate.

If the employees did not report for work, they shall be paid 100 percent of their wage for that day, provided they worked or were on leave of absence with pay on the day immediately preceding the regular holiday.

Meanwhile, the DOLE added that when the day immediately preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the employees, workers shall be entitled to holiday pay if they worked or were on leave of absence with pay on the day immediately preceding the non-working day or rest day.

The issuance of the labor advisory is pursuant to Proclamation No. 42, Series of 2022, as amended by Proclamation No. 90, Series of 2022, which declares the regular and special (non-working) days for 2023.