Private sector employers were reminded by the Department of Labor and Employment (DOLE) on Saturday to follow the prescribed wage computation guidelines for two upcoming holidays in August—Ninoy Aquino Day on August 21 and National Heroes Day on August 31.
The labor department detailed the statutory compensation guidelines for regular holidays under Labor Advisory No. 31. Personnel rendering service on National Heroes Day, a regular holiday, are entitled to 200% of their standard basic daily wage.
Employees who do not work on a regular holiday will still receive 100% of their daily wage, provided they worked or were on approved paid leave on the workday immediately preceding the holiday.
If the day directly preceding the holiday is an official non-working day or the worker’s scheduled rest day, the employee remains eligible for full holiday pay if they reported to work or were on paid leave on the day prior to that rest day or non-working day.
Additional compensation rules apply for extended hours or rest day work on a regular holiday:
- Overtime Work: An additional 30% of the daily hourly rate for work exceeding eight hours.
- Work on a Rest Day: An extra 30% added to the 200% basic daily rate for employees working on their scheduled day off.
- Overtime on a Rest Day: An additional 30% of the hourly rate for extra hours worked during a regular holiday that overlaps with a rest day.
For Ninoy Aquino Day, a special non-working day falling on a Friday, DOLE noted that the “no work, no pay” rule applies unless company policies, existing practices, or collective bargaining agreements state otherwise.
Workers performing duty on a special non-working day are entitled to the following rates:
- Standard 8-Hour Work: An additional 30% on top of the basic daily wage for the first eight hours.
- Overtime Work: An extra 30% of the hourly rate for work performed beyond eight hours.
- Work on a Rest Day: An additional 50% of the basic wage for the initial eight hours if the special day falls on a scheduled day off.
- Overtime on a Rest Day: An extra 30% of the hourly rate for overtime hours rendered on a rest day.