DOLE reminds employers to give right pay on July 17

Labor and Employment Secretary Rosalinda Dimapilis-Baldoz reminds employer to observe and comply with the pay rules on Friday, July 17. The said date was declared holiday as Filipino Muslims celebrates the feast marking the end of Ramadan known as Eid’l Fitr. DOLE issued an advisory providing guidelines on the correct payment of wages of private sector workers for work done during this day.

1. If the employee did not work, he or she shall be paid 100 percent of his or her salary for that day [(Daily Rate + Cost of Living Allowance) x 100%];

2. For work done during the regular holiday, the employee shall be paid 200 percent of his or her regular salary for that day for the first eight hours [(Daily Rate + Cost of Living Allowance) x 200%];

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

4. For work done during a regular holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his her daily rate of 200 percent [(Daily Rate + Cost of Living Allowance) x 200%] + [30% (Daily Rate x 200%)]; and

5. For work done in excess of eight hours (overtime work) during a holiday that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked).

“Proper observance of the pay rules on regular holidays and special non-working days will lead to more productive and competent employees. Voluntary compliance with labor laws, including the payment of correct wages, is good business practice. It is good for the workers and it is good for the employers,” Baldoz said.