Notes on Holiday Pay

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i
HOLIDAY PAY
(Article 94)

Coverage:

This benefit shall apply to all employees, except:
a) Those of the government and any of the political subdivisions,
including government-owned and controlled corporations.
b) Those of retail and service establishments regularly employing
less than ten (10) workers
c) Domestic helpers and person in the personal service of another
d) Managerial employees; and
e) Field personnel and other employees whose time and
performance is unsupervised by the employer including those
who are engaged on task or contract basis, purely commission
basis or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof.

REGULAR HOLIDAYS
Every employee covered by the Holiday Pay Rule is entitled to his daily basic
wage for any unworked regular holiday. This means that the employee is entitled
to at least 100% of his basic wage even if he did not report for work, provided he
is present or is on leave of absence with pay on the work day immediately
preceding the holiday.
Work performed on that day merits at least twice (200%) the basic wage of the
employee.
Where the holiday falls on the scheduled rest day of the employee, work
performed on said day merits at least an additional 30% of the employee’s
regular holiday rate of 200% or a total of, at least, 260%.
ILLUSTRATION: Using the NCR minimum wage rate of Php223.50 per day for
the non-agricultural sector effective October 31, 1999.
For work within 8 hours:
Plus 100% of the daily basic rate of 100% or a total of 200%
Php223.50 + 100% thereof = Php223.50 + Php223.50 = Php447.00

ii
or
200% of Php223.50 = 2.00 x Php223.50 = Php447.00
Where the holiday falls on the scheduled rest day of the employee, work
performed on said day merits at least an additional 30% of the employee’s
regular holiday rate of 200% or at least 260%.
R.A . No. 9177 November 13, 2002 lists of eleven (11) regular holidays and two
(2) special days:
REGULAR HOLIDAYS
New Year's Day
Maundy Thursday
Good Friday
Eidul Fitr
Araw ng Kagitingan
(Bataan and Corregidor Day)
Labor Day
Independence Day
National Heroes Day
Bonifacio Day
Christmas Day
Rizal Day

-

January 1
Movable Date
Movable Date
Movable Date

-

April 9
May 1
June 12
Last Sunday of August
November 30
December 25
December 30

NATIONWIDE SPECIAL HOLIDAYS
All Saints Day - November 1
Last Day of the Year - December 31
[NOTE: Eidul Fitr is the first day marking the end of the thirty (30)-day fasting
period of Ramadhan]
During special days, the principle of “NO WORK, NO PAY” applies, and on such
other special days as may be proclaimed as such by the President or Congress.
Workers who were not required or permitted to work on those days are not by
law entitled to any compensation. This however, is without prejudice to any
voluntary practice or provision in the Collective Bargaining Agreement (CBA)
providing for payment of wages and other benefits for days declared as special
days even if unworked.
Upon the other hand, work performed on special days merits additional
compensation of not less than 30% on top of the basic pay, or a total of 130%
and at least 50% over and above the basic pay or a total of 150% if the worker is
permitted or suffered to work on said day which may be his scheduled rest day.

iii

Thus, for declared SPECIAL DAYS such as special non-working day, special
public holiday, in addition to the two (2) nationwide special days (November 1, all
Saints Day and December 31, Last Day of Year) , the following rules shall apply:
a. 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
b. if worked
1st eight (8) hours – plus 30% of the daily rate of 100%
excess of eight (8) hours – plus 30% of hourly rate on said day
c. falling on the employee’s rest day and if worked
1st eight (8) hours – plus 50% of the daily rate of 100%
excess of eight (8) hours – plus 30% of hourly rate on said day
For those declared as SPECIAL WORKING HOLIDAYS, the following shall
apply:
for work performed, an employee is entitled only to his basic rate. No
premium pay is required since work performed on said days is
considered work on ordinary working days.
ABSENCES
a)

All covered employees shall be entitled to holiday pay when they are on
leave of absence with pay. Employees who are on leave of absence without
pay on the day immediately preceding a regular holiday may not be paid the
required holiday pay if they have not worked on such regular holiday.

b)

Employers shall grant the same percentage of the holiday pay as the
benefit granted by competent authority in the form of employee’s
compensation or social security payment whichever is higher, if they are not
reporting for work while on such benefits.

c)

Where the day immediately preceding the holiday is a non-working day in
the establishment or the scheduled rest day of the employee, he shall not be
deemed to be on leave of absence on that day, in which case he shall be
entitled to the holiday pay if he worked on the day immediately preceding the
non-working day or rest day.

iv
TEMPORARY OR PERIODIC SHUTDOWN/CESSATION OF WORK
In cases of temporary or periodic shutdown and temporary cessation of work of
an establishment, as when a yearly inventory or when the repair or cleaning of
machineries and equipment is undertaken, the regular holidays falling within the
period shall be compensated in accordance with the Rules Implementing the
Labor Code.
HOLIDAY PAY OF CERTAIN EMPLOYEES
a)

Where the covered employee is paid on piece rate basis, his holiday pay
shall not be less than his average daily earnings for the last seven (7) actual
working days preceding the regular holiday; Provided, however, that in no
case shall the holiday pay be less than the applicable statutory minimum
wage rate.

b)

Seasonal workers may not be paid the required holiday pay during offseason when they are not at work.

c)

Workers who do not have regular working days, such as stevedores, shall
be entitled to this benefit.

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