Labor Department Clarifies Labor Day Pay Rules for Employees

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The Department of Labor and Employment (DOLE) reminded all employers on the pay rules of the forthcoming Labor Day which is considered as holiday.

DOLE Secretary Rosalinda Baldoz had issued Labor Advisory No. 06, Series of 2012, indicating the guidelines on the pay rules that shall be implemented by the employers.

This is connection with the upcoming May 1- Labor Day celebration on Wednesday, which was affirmed by the president as regular holiday under Proclamation No. 459 issued on August 16 last year.

Under the Labor Advisory, if the holiday falls on employee’s workday, the employee shall pay 200 percent of his basic wage on the first eight hours while an additional 30 percent of his hourly rate if the employee works more than eight hours.

Meaning, if the employee’s basic wage is P456, he shall be paid P912 for the first eight hours and an additional P17.1 to his P57 hourly rate (a total of P74.1) for every hour in excess of eight hours of work.

If the holiday is un-worked by the employee, he is still entitled to 100 percent of the regular daily rate, as long as he was present, or was on leave with pay, on the workday immediately preceding the holiday.

Meanwhile, if the forthcoming holiday is employee’s rest day and worked for that day, the pay rule entitles a 260 percent of daily rate on the first eight hours.

So, for a minimum wage of P456, the employee shall be paid P1,185.60 for first eight hours.

If the employee works for more than eight hours, he is entitled to an additional 30 percent of hourly rate.

If the holiday falls on a rest day is un-worked, the employee must get 100 percent of his daily rate, given that he is present or on leave with pay on the workday immediately before the holiday.

“The law mandates May 1 as a regular holiday in honor of all Filipino workers. It is right but to observe the pay rules and other general labor standards on this day,” Baldoz said.

The labor and employment chief also added that all employers shall bear at heart the welfare and protection of all employees not only on worker’s day, but each day, by paying them the correct wages and benefits. (PNA report)

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