News Release
Department of Labor and Employment
December 21, 2021

Payment of rightful holiday wages a duty — Bello

The labor department on Tuesday said the payment of rightful wages to workers is a duty of employers as it issued an advisory to properly guide them in paying wages during the holidays this month.

“We remind companies and establishments in the private sector to observe the proper payment of wages to their workers this month,” Labor Secretary Silvestre III Bello said.

He added, “It’s the duty of employers to provide the rightful wages and benefits entitled to their workers so that they can truly enjoy the spirit of Christmas with their families amid the pandemic.”

Labor Advisory 23 Series of 2021 is pursuant to Proclamation No. 1107 signed by President Rodrigo Duterte declaring December 24 and December 31 as special working days.

The proclamation also declared regular holidays December 25 and December 30 for the commemoration of the martyrdom of national hero Jose Rizal.

For the declared special working days on December 24 and 31, the advisory said that should a worker report for duty, the employee is entitled to receive his daily wage. No premium shall be paid since those days are considered ordinary working days.

But for work done during the regular holiday on December 25 and December 30, the employee shall be paid double or an equivalent to 200 percent of the wage for the first eight hours [(basic wage + COLA) x 200%], the advisory said.

On the other hand, if the employee did not work, the workers shall be paid 100 percent of the wage for that day [(Basic wage + COLA) x 100%].

“For overtime work, the worker shall be paid an additional 30 percent of the hourly rate on said day [hourly rate of the basic wage x 200% x 130% x number of hours worked],” it said.

If an employee works on a regular holiday that also falls on a rest day, the worker shall be paid an additional 30% of the basic wage of 200% [(basic wage + COLA) x 200%] + [30% (basic wage x 200%)].

For overtime work on a regular holiday that also falls on a rest day, the worker shall be paid an additional 30 percent of the hourly rate on the said day [hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked], the advisory said. ###

 

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