The Department of Labor and Employment (DOLE) reminded private sector employers on the proper computation of wages for their workers during the observance of Eid’l Fitr on Monday, May 25, which is a regular holiday.

In Labor Advisory No. 20, series of 2020, DOLE Secretary Silvestre H. Bello III said that the following rules for pay on regular holidays shall apply on May 25, 2020:

For work done during the regular holiday, the employee shall be paid 200% of his/her wage for that day for the first eight hours [(Basic wage + COLA) x 200%].

If the employee did not work, he/she shall be paid 100% of his/her wage for that day [(Basic wage + COLA) x 100%].

For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30% of his/her hourly rate on said day [Hourly rate of the basic wage x 200% x 130% x number of hours worked].

If an employee work during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her basic wage of 200% [(Basic wage + COLA) x 200%] + [30% (Basic wage x 200%)].

For overtime work during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on said day [Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked].

Due to on-going COVID-19 crisis, however, the labor department also said that employers are allowed to defer payment of the holiday pay on May 25, 2020, until such time that the present emergency situation has been abated and the normal operations of the establishment is in place.

“Establishments that have totally closed or ceased operation during the community quarantine period are exempted from the payment of the holiday pay under this Advisory,” it further stated.

The pay rules for May 25 regular working holiday is pursuant to Proclamation No. 944 issued by President Rodrigo Roa Duterte on May 19, 2020.

END / HAquino