DOLE reminds employers of holiday pay rules for December

Employees who have to work during national holidays at the end of the year need to be paid fully, says the governmental department.
By: | December 19, 2023
Topics: Compensation and Benefits | Compliance | News | Philippines

In preparation for the upcoming December regular and non-working holidays, the Department of Labour and Employment (DOLE) of the Philippines has issued a reminder to all private sector employees to ensure the proper payment of wages in accordance with the guidelines set out in Labour Advisory No. 26, series of 2023.

According to the advisory, Christmas Day (December 25) and Rizal Day (December 30) are classified as regular holidays, while December 31 is designated as a special non-working day under Proclamation No. 90.

For employees who do not work on these specified days, they are entitled to receive 100% of their salary. In the case of work performed during a regular holiday, employees are eligible for a 200% payment of their regular salary for the first eight hours of work.

Similarly, for work carried out during the regular non-working holiday, employees are entitled to an additional 30% of the basic wage for the initial eight hours of work. Overtime work on these days warrants an extra 30% of the hourly rate. If employees work on a regular holiday that coincides with their rest day, they are entitled to an extra 30% of their basic wage for the first eight hours worked, with an additional 30% of their hourly rate for overtime work.

On December 31, a “no work, no pay” policy will be implemented, unless there is a favourable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day, reported Manila Bulletin.

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For work done during the special non-working holiday, employees are entitled to an additional 30% of their basic wage for the first eight hours of work, with an extra 30% of the hourly rate for overtime work. If employees work on a special non-working holiday that coincides with their rest day, they are entitled to an additional 50% of their basic wage for the initial eight hours of work, and an extra 30% of their hourly rate for overtime work on the said day.