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DEFERMENT OF HOLIDAY PAY FOR THE APRIL 2020 HOLIDAYS

The Department of Labor and Employment (DOLE) allowed employers to defer giving holiday pay during Holy Week, as the country faces the coronavirus crisis. This is in pursuant to Article 5 of the labor Code of the Philippines, as amended, in relation to Labor Advisory No 13, Series of 2020.

On the account of the existence of a national emergency, employers are allowed to defer payment of holiday pay on April 9, 10, and 11, 2020, as may be applicable, until such time that the present emergency situation has been abated and the normal operations of the establishment are in place.

Labor Advisory No 13-A, Series of 2020 stated that establishments that have totally closed or ceased operation during the Enhanced Community Quarantine period are exempted from then payment of the holiday pay under Labor Advisory No 13, Series of 2020.

Araw ng Kagitingan (Day of Valor) and Maundy Thursday both fall on April 9, while Good Friday is on April 10. Both days are regular holidays while Black Saturday, April 11, is a special non-working holiday.

Under DOLE advisory 13-20. there are different payment rules for the Double Regular Holiday on April 9 which is “Araw ng Kagitingan” and Holy Thursday. If the employee did not work, the employee should be paid 200% of the daily wage, because it's a double holiday. To be qualified, the employee must have been either present or on leave with pay on March 16, the day before the "enhanced community quarantine" began on March 17 pursuant to Proclamation No 929 issued by President Rodrigo Roa Duterte on March 16, 2020. The computation here is basic wage + cost-of-living allowance (COLA), multiplied by 200%.

If the employee worked on April 9, then he or she should be paid thrice their daily wage for the first 8 hours. It should follow the computation of (basic wage + COLA) x 300%.

For overtime work, employees should be paid an additional 30% of the hourly rate. DOLE's computation on this is: hourly rate of the basic wage x 300% x 130% x number of hours worked.

If work done during the double holiday falls on an employee's rest day, the employee should be paid an extra 30% of his or her tripled basic wage. The total pay should be: [(basic wage + COLA) x 300%] + [30% of (basic wage x 30)].

If the overtime work on April 9 falls on an employee's rest day, then the computation should include an additional 30% of his or her rate that day: hourly rate of the basic wage x 300% x 130% x 130% x number of hours worked.

For the regular holiday on April 10 (Good Friday), if the employee did not work, 100% of his or her salary shall be paid for that day. To be qualified, the employee must have been either present or on leave with pay on March 16, the day before the "enhanced community quarantine" began on March 17.

If the employee worked, he or she shall be paid 200% of his or her regular salary for that day for the first 8 hours. This is computed as: basic wage + COLA x 200%.

For overtime over 8 hours, employees should be paid an additional 30% of their hourly rate. This is computed as: hourly rate of the basic wage x 200% x 130% x number of hours worked.

For employees who work on the holiday which also coincides on their rest day, they shall be paid an additional 30% of their daily rate of 200%. This is computed as: [(basic wage + COLA) x 200%] + [30% (basic wage x 200%)].

For overtime in this scenario, workers should be paid an additional 30% of their hourly rate that day. DOLE's computation for this is: hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked.

For the Special Non-Working Holiday on April 11 (Black Saturday), if the employee did not work, the "no work, no pay" principle will apply unless a company policy, practice, or collective bargaining agreement is in place which grants payments for special holidays.

For work done on the special holiday, workers should be paid an additional 30% of daily wages for the first 8 hours of work.

For work done after 8 hours, workers should be paid an additional 30% of hourly rates. DOLE's computation is: hourly rate of the basic wage x 130% x 130% x number of hours worked.

If work done on the special holiday coincides with the worker's rest day, he or she must be paid an additional 50% of his or her daily wage for the first 8 hours of work. DOLE computes this as: basic wage x 150% + COLA.

For overtime in this scenario, workers should be paid an additional 30% of their hourly rate. This is computed as: hourly rate of the basic wage x 150% x 130% x number of hours worked.

For more information visit www.dole.gov.ph www.car.dole.gov.ph

END/Patrick T Rillorta

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2020-04-13
Dir.Exequiel Guzman
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