DOLE issues pay rules for October 31 and November 1

Labor and Employment Secretary Silvestre H. Bello III reminded private sector employers to observe the correct pay rules and core labor standards on October 31 and November 1 which were declared as special non-working days.

“All Saints Day, or ‘Undas’, is one of the country’s most cherished traditions. The proper observance of the pay rules and core labor standards on this Special Non-Working Day promotes decent work, workers’ productivity, and competitiveness,” said Bello after issuing Labor Advisory No. 15, Series of 2016, or the Guidelines on the Payment of Wages for the Special Non-Working Days on October 31 and November 1, 2016.

According to Bello, October 31 and November 1 (All Saints Day) were declared special non-working days by virtue of Proclamation 1105, Series of 2015.

For the said special non-working days, the pay rules to be observed are as follows:

·         If an employee did not work, the “no work, no pay” principle shall apply unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.

·         For work done during the special day, the workers shall be paid an additional 30 percent of their daily rate on the first eight (8) hours of work. The Daily Rate x 130 percent plus COLA scheme will be observed.

·         For work done in excess of eight (8) hours (overtime work), the workers will be paid an additional 30 percent of their hourly rate on said day. The computation will be: hourly rate of the basic daily wage x 130 percent x 130 percent x number of hours worked.

·         For work done during a special day that also falls on the workers’ rest day, they shall be paid an additional 50 percent of their daily rate on the first eight (8) hours of work, thus, the ‘Daily Rate x 150 percent + COLA’ computation will apply.

·         For work done in excess of eight (8) hours (overtime work) during a special day that also falls on the workers’ rest day, they shall be paid an additional 30 percent of their hourly rate on said day, or a computation of hourly rate of the basic daily wage x 150 percent x 130 percent x number of hours worked.