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Higher pay for overtime, employers told

Private employers are reminded of higher pay for employees who work during the holidays in the month of August.

With Proclamation No. 555, s. 2018 and No.789, s.2019, that declared Aug. 12 and 26 as regular holidays in observance of Eid’l Adha and National Heroes Day, respectively, and Aug. 21 as special non-working holiday in commemoration of the death of Ninoy Aquino, Labor Secretary Silvestre Bello III issued a labor advisory prescribing the proper payment of wages for said holidays.

Bello advised the employers to observe the following formula in the computation of wages for workers for Aug. 12 and 26—regular holidays:

Employees who did not work on said holidays shall be paid 100 percent of their salary ([Basic wage + COLA] x 100 percent)], while those who worked shall be paid 200 percent of their regular salary for the first eight hours ([Basic wage + COLA] x 200 percent).

Also, if the employees worked overtime (work done in excess of eight hours), they shall be paid an additional 30 percent of their hourly rate (hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked).

Moreover, those who worked on a regular holiday that also fell on their rest day shall be paid an additional 30 percent of their basic wage of 200 percent [(Basic wage + COLA) x 200 percent] + [30 percent (Basic wage x 200 percent)].

Workers who rendered overtime work on a regular holiday that also fell on their rest day shall be paid an additional 30 percent of their hourly rate on said day (hourly rate of the basic wage x 200 percent x 130 percent x 130 percent x number of hours worked).

On the other hand, the following pay rules should be observed for Aug.  21—special non-working holiday:

If the employee did not work, the “no work, no pay” policy shall apply unless there is another company policy, practice, or collective bargaining agreement granting payment on special days.

For work done during the special non-working holiday, he/she shall be paid an additional 30% of his/her daily rate on the first eight hours of work [(basic wage x 130%) + COLA].

For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30% of his/her hourly rate on the said day [hourly rate of the basic daily wage x 130% x 130% x number of hours worked].

If an employee works on a special holiday that also falls on his/her rest day, he/she shall be paid an additional 50% of his/her daily rate on the first eight hours of work [(basic wage x 150%) + COLA].

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

Topics: Eid’l Adha , National Heroes Day , Silvestre Bello III , Overtime , Department of Labor and Employment
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