June 12 2012 Philippine Independence Day Holiday pay rules

The Philippines will be marking its 114th Independence Day celebration this coming June 12, which falls on a Tuesday. Some may be asking if President Benigno Aquino III will move this holiday to June 11 to create another three-day weekend for Filipino workers, and as of posting time, no announcement has been made (check this site for future updates).

June 12 is listed as a regular holiday throughout the country this 2012 by virtue of Aquino’s Proclamation 295. Read the full text of Proclamation 295 in the website of Malacanang.  According to the Department of Labor and Employment (DOLE), even if an employee opts to not go to work on June 12, he/she will still get 100% of his/her regular pay for that day. Meanwhile, those who will render overtime work on June 12 stand to get twice their regular pay for the said day (or more colloquially, a double pay).

Working beyond eight hours on June 12 would mean an additional payment of 30% of one’s holiday rate for every additional hour.  See the complete list of DOLE holiday pay guidelines here. If employees who have Tuesdays as their rest day come to work on Independence Day, they will get plus 30% of their regular holiday rate.

Report for work in the work day before a holiday

As mentioned in DOLE’s Handbook on Worker’s Statutory Monetary Benefits (released in 2010), an employee is entitled to a holiday premium only when “he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday.” Download the 2010 handbook in this link.

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December 30, 2011 Rizal Day National Holiday Pay Rules

The Philippines would be marking the 115th death anniversary of Dr. Jose Rizal this December 30. Unlike Bonifacio Day (which is Gat Andres’ birth date), we commemorate Rizal Day on the day the national hero was executed in Bagumbayan. As noted in a related post last month, this is because of the controversial circumstances that surround the death of Bonifacio. It must be remembered that June 19 of this year was declared a special non-working day to observe Rizal’s 150th birth anniversary.

December 30 is a national holiday, which means that all employees are entitled to receive their normal daily salary even if they choose not to work on the said date. Those who will report for work on December 30 should receive double their regular pay for every hour of work. This is true for both regular (or tenured and permanent) and non-regular (casual, non-permanent, contractual) employees. Once more, here are the pay rules specified by the Department of Labor and Employment:

If it is an employee’s regular workday

a. If unworked – 100%

b. If worked

1st 8 hours – 200% (double pay!)

Excess of 8 hours – plus 30% of hourly rate on said day

If it is an employee’s rest day

a. If unworked – 100%

b. If worked

1st 8 hours – plus 30% of 200% of regular rate plus 30% (for the overtime)

Rizal day falls on a Friday, which in effect gives Filipino workers one last long weekend before 2011 ends.  This should be stressed: Malacanang has not stated yet whether December 24, a Saturday, December 26, a Monday, and January 2, a Monday, would be declared as special non-working days. Nevertheless, some companies can unilaterally declare these dates as no-work days, so better check this with your respective superiors this early so you can plan ahead.

Also, don’t be absent on the work day immediately preceding a holiday (regardless if it’s a national holiday or just a special non-working one) since doing so will automatically disqualify you from getting any holiday premium, as per DOLE rules.

Pay rules for Christmas Day – December 25, 2011

Certain job advertisements explicitly require applicants to be willing to work not only on a shifting schedule, but even during holidays. This is particularly true for those employed in business process outsourcing (BPOs) entities.

Some workers, because of the nature of their occupations, will certainly be required to work this coming Christmas and Rizal Day (both of which are national holidays). Among these are mall salespersons, security guards, and tollgate operators. As a consolation of sorts, these workers are legally entitled to twice their regular pay for the first eight hours of service rendered.

According to the Department of Labor and Employment, the following pay rules shall apply:

If it is an employee’s regular workday

a. If unworked – 100%

b. If worked

1st 8 hours – 200% (double pay!)

Excess of 8 hours – plus 30% of hourly rate on said day

If it is an employee’s rest day

a. If unworked – 100%

b. If worked

1st 8 hours – plus 30% of 200% of regular rate plus 30% (for the overtime)

Excess of 8 hours – plus 30% of hourly rate on said day
*Christmas Day this year falls on a Sunday, which means that for a vast majority of Filipinos, December 25, 2011 is already a rest day to begin with. However, I advice my readers (particularly those working in BPOs) to double check with their superiors this early if they will be made to report on that day.

Always remember that since December 25 is a national holiday, the same rules apply for both regular or tenured and probationary (or a variation of these terms: non-permanent, contractual, and casual) employees.

And it is always worth repeating this advice: don’t be absent on the work day immediately before December 25 (most likely December 23) since doing so would automatically strip you of your right to get a holiday premium even despite not reporting for work.

Taguig City Foundation Day Holiday – December 8, 2011

Working in McKinley Hill in Taguig City? Then, this is good news for you.

Malacañang has declared December 8 as a special non-working day in Taguig City. Proclamation 298 was signed by Executive Secretary Paquito Ochoa, Jr. in behalf of President Benigno Aquino III last December 1. Taguig will be celebrating its Foundation Day (the 7th anniversary its cityhood) on the said date.

As in similar official declarations in the past, Proclamation 298 aims to give  the people of Taguig the “full opportunity to celebrate and participate in the occasion with appropriate ceremonies.” See the full text of the proclamation here:

Proclamation No. 298 for Taguig City

As I have written in past blogs, the Department of Labor and Employment has set the following pay rules governing special non-working holidays:

  1. If unworked
    • No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked (to avail of this, you must not be absent on the day before the holiday – MM)
  2. If worked
    • 1st 8 hours – plus 30% of the daily rate of 100%
    • excess of 8 hours – plus 30% of hourly rate on said day
  3. Falling on the employee’s rest day and if worked
    • 1st 8 hours – plus 50% of the daily rate of 100%
    • excess of 8 hours – plus 30% of hourly rate on said day

Pay rules – Dec. 7 and 8 holiday in Virac and Batangas

Malacanang has declared December 7 and 8 as a non-working day in the municipality of Virac, Catanduanes and the province of Batangas, respectively. Proclamation No. 287 (for Virac, Catanduanes) and 288 (for Batangas City) were signed by Executive Secretary Paquito Ochoa, Jr. in behalf of President Benigno Aquino III last November 9.

Virac, Catanduanes will be celebrating its annual “Kaaldawan nin Virac” on December 7 while Batangas will be marking its 430th Foundation Day anniversary this December 8. The holiday proclamations were intended to give residents of Virac, Catanduanes and Batangas “full opportunity to celebrate and participate in the occasion with appropriate ceremonies.” See the original proclamations here:

Executive Sec. Paquito Ochoa signed Proclamations 287 and 288 in behalf of President Aquino

Proclamation No. 287 for Virac, Catanduanes

Proclamation No. 288 for Batangas

For these special non-working days, the Department of Labor and Employment has set the following pay rules:

  1. If unworked
    • No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked (in this case, don’t be absent the day before the holiday or else … – MM)
  2. If worked
    • 1st 8 hours – plus 30% of the daily rate of 100%
    • excess of 8 hours – plus 30% of hourly rate on said day
  3. Falling on the employee’s rest day and if worked
    • 1st 8 hours – plus 50% of the daily rate of 100%
    • excess of 8 hours – plus 30% of hourly rate on said day

Keep in mind that your employment status has bearing on this. For instance, contractual workers are not bound to receive anything because most companies observe the “no work, no pay” policy (as a reference, my soon-to-be ex company does not fall on this category, regardless of employment status).

November 30, 2011 national holiday pay rules

November 30, 2011 – another Philippine holiday!

In less than three weeks, we’ll be celebrating Andres Bonifacio day – or specifically, the 148th birth anniversary of the Katipunan founder. Before I discuss the pay rules for that national holiday, let me give you some historical points to ponder. We celebrate Jose Rizal day annually to commemorate his execution in 1896, while we celebrate Bonifacio on his birth date. Why the difference?

In a forum our company sponsored last July, Ms Fe B. Mangahas, member of the National Historical Commission of the Philippines, explained that this was done because the circumstances surrounding Bonifacio’s death remains very controversial up to now (unlike Rizal’s death, except for the retraction issue). If Bonifacio day falls on the day of the hero’s death, then it will surely open a can of worms, so to speak. What did really happen on May 10, 1897? Is it really a legal execution, or a planned assassination of a political rival? The subject will be discussed at length in a future post.

Now, off to the exciting part: the pay rules! November 30 is a legal national holiday. By definition, there are dates that are marked red in your calendars. You can download President Benigno Aguino III’s Proclamation 84, which lists all regular holidays and special non-working days for the entire 2011, here: http://www.dole.gov.ph/fndr/bong/files/PROC-84.pdf. According to the Department of Labor and Employment (http://www.dole.gov.ph/list_of_holidays.php?id=95), the following pay rules shall apply:

If it is an employee’s regular workday

a. If unworked – 100%

b. If worked

1st 8 hours – 200% (double pay!)

Excess of 8 hours – plus 30% of hourly rate on said day

*Assume that you are a minimum-wage earner here in Metro Manila. You are getting P426 per regular work day (P404 for basic pay plus the additional P22 COLA or cost of living allowance). This means you are paid P53.25 per hour (multiply that with 8 hours and you’ll get P426). So, you’ll be getting double that amount (or P106.50 per hour) if you choose to work on the 30th. An additional of 30% would be added on your pay for that day if you work overtime. Using example, that would an additional of P31.95 for every hour.

If it is an employee’s rest day

a. If unworked – 100%

b. If worked

1st 8 hours – plus 30% of 200% of regular rate plus 30% (for the overtime)

Excess of 8 hours – plus 30% of hourly rate on said day

Keep in mind that since November 30 is a national holiday, the same rules apply for both regular (or tenured) and probationary (or non-permanent, contractual, and casual) employees. And just a friendly reminder: being absent on the work day before November 30 automatically disqualifies you from getting a holiday premium.

November 7, 2011 national holiday pay rules

Many had been surprised about the declaration made by Malacanang last week, through Proclamation 276, that November 7 would be a national holiday because of the Islamic feast of Eidul Adha (not to be confused with Eid al-Fitr, the one celebrated last August 30). Proclamation 276 noted that Eidul Adha is “one of the greatest feasts of Islam.” The recommendation for the observance of Eidul Adha on November 7 was made by the National Commission on Muslim Filipinos. You can access the one-page proclamation here:

http://www.gov.ph/downloads/2011/10oct/20111020-PROC-0276-BSA.pdf.

Eidul Adha (or Feastof Sacrifice) was previously just a regional holiday for the Autonomous Region of Muslim Mindanao, as Manila Bulletin once reported

http://www.mb.com.ph/articles/239741/rp-muslims-hail-signing-eid-l-adha-law . It became a national feast by virtue of Republic Act 9849, a law signed by then-President Gloria Macapagal-Arroyo early last year. The entire text of RA 9849 can be accessed at

http://www.lawphil.net/statutes/repacts/ra2009/ra_9849_2009.html. You can download Proclamation 84, which lists all regular holidays and special non-working days here http://www.dole.gov.ph/fndr/bong/files/PROC-84.pdf.

Now, off to the exciting part: the pay rules! As written above, Eidul Adha is indeed a national holiday. Notice that in Section 2, it is emphasized that the proclamation declaring national holidays for the observance of Eid’al Fifr and Eidul Adha will only be issued once the approximate dates of these holidays had been determined “in accordance to the Islamic calendar (hijra) and astronomical calculations.” The movable nature of these dates Is the reason they can’t be marked red in the calendar.

According to the Department of Labor and Employment (http://www.dole.gov.ph/list_of_holidays.php?id=95), the following pay rules shall apply:

  1. If it is an employee’s regular workday

If unworked – 100%

If worked

1st 8 hours – 200% (double pay!)

excess of 8 hours – plus 30% of hourly rate on said day

2. If it is an employee’s rest day

If unworked – 100%

If worked

1st 8 hours – plus 30% of 200% of regular rate plus 30% (for the overtime)

excess of 8 hours – plus 30% of hourly rate on said day

Pay rules for Oct. 31 and Nov. 1, 2011 special non-working days

President Noynoy Aquino declared last Monday that October 31 this year is a special non-working day throughout the country. The day is sandwiched between October 30, a Sunday, and All Saints’ Day, which falls on a Tuesday.  According to Presidential Proclamation No. 265 (http://www.gov.ph/2011/10/10/proclamation-no-265-s-2011 ), this aims “to give full opportunity to (Filipinos) to properly observe the day with all its religious fervor which invariably requires them to travel to and from different regions of the country.” The two consecutive non-working days gives Filipinos a four-day weekend (from October 28 to November 1). But what if you choose to work on those dates? Are you entitled to a double pay? What does the law say about it?

Just like October 31, All Saints Day is NOT a regular holiday. They are both considered special non-working holidays, as per Presidential Proclamation No. 84 (http://www.dole.gov.ph/fndr/bong/files/PROC-84.pdf) and existing DOLE rules (http://www.dole.gov.ph/list_of_holidays.php?id=95). A particular day becomes a special non-working holiday by virtue of an official declaration from the Office of the President or your respective local governments.

As I’ve written in my previous blogs, your pay for this day depends on your status as an employee and existing company policy. If you are a regular (or tenured) employee, you will be paid in full automatically even if you choose not to work. Meanwhile, most companies adopt the “no work, no pay” policy for non-permanent employees (or those we refer to as “contractual,” “casual,” and “probationary” workers). For employees whose month pay is fixed, the day is as good as paid. The entire thing is a bit complicated for employees being paid based on the number of days they actually worked.

Here are the specific pay rules for special non-working days as mandated by the Department of Labor (http://www.dole.gov.ph/list_of_holidays.php?id=95).  I am providing specific examples for better understanding:

1. If worked

*1st 8 hours – plus 30% of the daily rate of 100%

*excess of 8 hours – plus 30% of hourly rate on said day

So, if you are a minimum-wage earner (P404 in Metro Manila):

P50.50 (the hourly pay) X 0.30 (the additional pay) = P65.65 (your holiday rate)

2. Falling on the employee’s rest day and if worked

1st 8 hours – plus 50% of the daily rate of 100%

P50.50 (the hourly pay) X 0.50 (the additional pay, or P25.25) = P75.25 (your holiday rate)

Excess of 8 hours – plus 30% of hourly rate on said day

P75.25 (the hourly pay) X 0.30 (the additional pay, or P22.58) = P97.83 (your holiday rate)

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Pay rules for the August 29 and 30, 2011 regular holidays

August 29 is National Heroes’ Day this year, while Eid al-Fitr falls on August 30. These are not fixed annual dates. National Heroes’ Day is observed every last Monday of August while the date for the Eid al-Fitr depends on the Islamic calendar. We all know that National Heroes’ Day is a legal national holiday. One only has to refer to a Philippine calendar to see that. But did you know that Eid al Fitr is a national holiday, too?

The Philippine Department of Labor has to be strict about the implementation of the holiday pay

That is mandated by Republic Act 9177, a law signed during the time of President Gloria Mcapagal-Arroyo. The entire text of RA 9177 can be accessed at http://www.lawphil.net/statutes/repacts/ra2002/ra_9177_2002.html . August 30 this year has been declared a regular holiday by virtue of Proclamation No. 234 signed by President Benigno Aquino III. You can read the proclamation at http://www.gov.ph/2011/08/11/proclamation-no-234-s-2011.

Since Eid al-Fitr is now included in the list of regular holidays (http://www.dole.gov.ph/list_of_holidays.php?id=95 ) just like National Heroes’ Day, employees who report for work on August 29 and 30, 2011 will be getting double of their regular pay REGARDLESS of his/her employment status. Meanwhile, those who opt to take advantage of the holiday will still be able to get their regular salary for those dates whether they are a permanent or a casual employee. We can only hope that employers choose the tuwid na daan by paying their employees what’s due for them.

Pay rules for the August 19 special non-working day

*According to my latest research, August 30, 2011 is a national holiday. Please refer here: http://rightonthemark.wordpress.com/2011/08/22/pay-rules-for-the-august-29-and-30-2011-regular-holidays

Every year, August 19 is marked as a special non-working day in Quezon City and Quezon province to mark Manuel L. Quezon’s birth anniversary. This 2011, August 19 will also be a non-working day in Davao City by virtue of President Benigno Aquino III’s Proclamation 215. According to him, this was done to give residents of this Southern city “the opportunity to celebrate and participate” in the Kadayawan festival (taken from Sun.Star Davao: http://www.sunstar.com.ph/breaking-news/2011/08/11/aug-19-declared-holiday-davao-city-172288).

So, you may be thinking of reporting for work on that day. How will you be paid by your employer? Take note of the fact that August 19 is NOT a national holiday.  As I explained in a blog last June (http://rightonthemark.wordpress.com/2011/06/17/oh-yes-june-20-2011-is-a-non-working-day-will-you-be-paid-by-your-company): For a date to be considered a special non-working day, there must be an official declaration from the Office of the President (or your respective local governments).”  What if you choose not to work on this day? Will you still be able to get a holiday pay?

It depends on: 1) your status as an employee, and 2) company policy. If you are a regular (or tenured) employee, then you will be paid in full automatically. Most companies adopt the “no work, no pay” policy for non-permanent employees (or those we refer to as “contractual,” “casual,” and “probationary” workers). For employees whose month pay is fixed (as against those paid based on the number of days they actually worked), the day is as good as paid.

Here are the specific pay rules for special non-working days as mandated by the Department of Labor (http://www.dole.gov.ph/list_of_holidays.php?id=95).  I am providing specific examples for better understanding:

1. If worked

*1st 8 hours – plus 30% of the daily rate of 100%

*excess of 8 hours – plus 30% of hourly rate on said day

So, if you are a minimum-wage earner (P404 in Metro Manila):

P50.50 (the hourly pay) X 0.30 (the additional pay) = P65.65 (your holiday rate)

2. Falling on the employee’s rest day and if worked

1st 8 hours – plus 50% of the daily rate of 100%

P50.50 (the hourly pay) X 0.50 (the additional pay, or P25.25) = P75.25 (your holiday rate)

Excess of 8 hours – plus 30% of hourly rate on said day

P75.25 (the hourly pay) X 0.30 (the additional pay, or P22.58) = P97.83 (your holiday rate)