DOLE releases guidelines on proper payment of wages for December holidays

The Department of Labor and Employment (DOLE) released guidelines to remind employers and workers of the proper payment of wages during holidays.

In an advisory, the labor department released pay rules for private companies for Special (Non-working) Days such as Dec. 8 (Feast of the Immaculate Conception of Mary), 24 (Christmas Eve), and 31 (Last Day of the Year) as well as Regular Holidays such as Dec. 25 (Christmas Day) and 30 (Rizal Day).

According to the agency, on special non-working holidays, if the employee does not work, the "no work, no pay principle" shall apply unless there is a favorable company policy, practice, or collective agreement (CBA) granting payment.

If an employee works during the special days, the employer shall pay them an additional 30% of the basic wage for the first eight hours of work.

For work done in excess of eight hours, employers shall pay workers an additional 30% of the hourly rate. (Hourly rate of the basic wage x 130% x 130% x number of hours worked)

Moreover, if an employee is asked to work during the special days that is also their rest day, the employer should pay an additional 50% of your basic wage for the first eight hours of work. If it exceeds eight hours, they should pay you an additional 30% of the hourly rate on the said day. 

Regular Holidays payment

For regular holidays, the employer shall pay 100% to the employee even if they do not work, provided that the employee reports to work or is on leave of absence with pay on the day immediately preceding the regular holiday.

Likewise, the employee is entitled to double pay for working during regular holidays. 

Employees asked to work more than eight hours are eligible for an additional 30% of the hourly rate on the said day. Similarly, if you are asked to work during regular holidays that fall on your rest day, your employer must grant you an additional 30% of the basic wage.

If you work more than eight hours during your supposed rest day on a regular holiday, the employer shall pay you an additional 30% of the hourly rate. 

Speaking of the holidays, employees in the Philippines enjoy 13th-month pay, a mandatory benefit legally entitling them to an additional month’s salary. Learn more about 13th-month pay and if you should be taxed for it here.