March 03, 2021 |

DOLE reminds employers of payment of extra wages on Chinese New Year

The Department of Labor and Employment (DOLE) has reminded employers to observe the proper payment of wages for the Chinese New Year on February 12, which is considered as a special non-working holiday.

According to a labor advisory  released on Tuesday, the “no work, no pay” principle shall apply if the employee will not work unless there is a favorable company policy, practice or Collective Bargaining Agreement (CBA) granting payment on a special holiday.

For work done during the special non-working day, an employee shall be paid an additional 30 percent of his or her basic wage on the first eight hours of work or computed as Basic wage x 130% + COLA.

If the work is done in excess of eight hours or in overtime, the employee shall be paid an additional 30 percent of his or her hourly rate on said day or computed as (Hourly rate of the basic wage x 130% x 130% x number of hours worked).

“For work done during a special day that also falls on his/her rest day, he/she shall be paid an additional 50% of his/her basic wage on the first eight hours of work [(Basic wage x 150%) + COLA].

Work done in excess of eight hours or overtime work during a special day that also falls on the employee’s rest day shall be paid an additional 30 percent of the hourly rate on said day or computed as (Hourly rate of the basic wage x 150 % x 130 % x number of hours worked).

The rules for pay on special non-working day is in pursuant to the Proclamation No. 986 issued by President Rodrigo Duterte on July 30, 2020. It will also be applied on February 25, which is commemoration of EDSA People Power Revolution Anniversary.

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