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Higher pay for workers for December holidays

Employees in the private sector who will report to work on the declared holidays this month are entitled to receive higher pay, the labor department said on Thursday.

In Labor Advisory No. 32, series of 2020 signed by Secretary Silvestre Bello III, there are three special non-working holidays and two regular holidays in December. The special holidays are the Feast of the Immaculate Conception of Mary (December 8) Christmas Eve and New Year’s Eve, while the regular holidays are Christmas Day and Rizal Day (December 30).

Bello reminded employers to observe the proper payment of wages on said holidays.

The prescribed pay rules for December 8, 24, and 31, 2020, (special non-working holidays) are the following:

For employees who did not work, the “no work, no pay” policy shall apply unless there is another company policy, practice, or collective bargaining agreement (CBA) granting payment on special days.

For work done during the special non-working holiday, the employees shall be paid an additional 30% of their basic wage on the first eight hours of work [(basic wage x 130%) + COLA].

For work done over eight hours (overtime work), the employees shall be paid an additional 30% of their hourly rate on the said day [hourly rate of the basic wage x 130% x 130% x number of hours worked].

If the employees work on a special holiday that also falls on their rest day, they shall be paid an additional 50 percent of their basic wage on the first eight hours of work [(basic wage x 150%) + COLA].

For overtime work on a special holiday that also falls on their rest day, they shall be paid an additional 30 percent of their hourly rate on the said day [Hourly rate of the basic wage x 150% x 130% x number of hours worked].

For December 25 and 30, which are regular holidays, the following rules shall apply:

If the employees did not work, they shall be paid 100% of their salary for days indicated [(basic wage + COLA) x 100%], while for work done during the regular holiday, the employees shall be paid 200% of their regular salary for the first eight hours [(basic wage + COLA) x 200%].

For overtime work (work done over eight hours), they shall be paid an additional 30% of their hourly rate [Hourly rate of the basic wage x 200% x 130% x number of hours worked].

If employees work on a regular holiday that also falls on their rest day, they shall be paid an additional 30 percent of their hourly rate of 200 percent [(basic wage + COLA) x 200%] + [30% (basic wage x 200%)].

For overtime work on a regular holiday that also falls on their rest day, they shall be paid an additional 30 percent of their hourly rate on the said day [Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked].

However, in line with the existence of a national emergency due to the COVID-19 crisis, establishments that have closed or ceased operations during the community quarantine period are exempted from the payment of the prescribed holiday pay on December 25 and 30, 2020 under the said advisory. ### (Paul Ang, Information and Publication Service, Department of Labor and Employment)

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