DOLE Reminds Employers To Observe Higher Holiday Pay This Chinese New Year
Chinese New Year will be on January 25 this year which falls on a Saturday, and the Department of Labor and Employment (DOLE) is reminding employers to observe appropriate holiday pay to their workers.
Secretary Silvestre Bello released an advisory on Monday that states:
If the employee did not work, the ‘no work, no pay’ principle shall apply unless there is favorable company policy, practice or collective bargaining agreement (CBA) granting payment on a special day.
Employees who have a regular shift on that day will get full pa, their cost-of-living adjustment or allowance (COLA), and an additional 30% of their basic pay. Overtime hours will add another 30% of the basic pay
Meanwhile, for employees whose rest day falls on Chinese New Year but reports to work, they will get 50% additional pay, plus COLA. Meanwhile, overtime pay rate remains at 30% of the basic pay.
The Chinese New Year this year will be the first special non-working holiday for 2020, based on the Proclamation 845 issued by President Rodrigo Duterte in November 2019. In a nutshell, here’s a quick rundown of how your salary for that day will be computed:
Special non-working holiday rate for the first eight hours:
- [(Basic wage x 130%) + COLA]
Special non-working holiday rate for an excess of eight hours:
- (Hourly rate of the basic wage x 130% x 130% x number of hours worked)
Rest day AND special non-working holiday rate for the first eight hours:
- [(Basic wage x 150%) + COLA]
Rest day AND special non-working holiday rate for an excess of eight hours:
- (Hourly rate of the basic wage x 150% x 130% x number of hours worked)