The Department of Labor and Employment (DOLE) has reminded employers of the proper payment of wages for the non-working holidays of August 21 (Ninoy Aquino Day) and August 28 (National Heroes Day).
Labor Advisory No. 17, Series of 2023, prescribes the following pay rules for the special (non-working) day on August 21:
- For employees who did not report for 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;
- 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 on the said day; and
- Employees who worked on a special day that also fell 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 on the said day.
For August 28, which was declared a regular holiday, these pay rules must be followed:
- Employees who render work are entitled to 200 percent of their wage for the first eight hours.
- 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.
- When the day immediately preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the employees, they 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.
- Employees who render 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.
- 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 on the said day.