At the beginning of the new year, the Department of Labor and Employment (DOLE) of the Philippines officially released Labor Advisory No. 01 of 2025, outlining the wage payment standards for the Special (Non-Working) Holiday on January 29, 2025. Employers, HR, and workers, take note! How should wages be calculated? Read on to find out!
What is a “Special (Non-Working) Holiday”?
A Special (Non-Working) Holiday differs from a Regular Holiday. It is typically designated to commemorate a particular event or celebration. The wage calculation for such holidays differs from that of regular workdays, and companies must strictly follow DOLE's regulations. Failure to do so may lead to fines, complaints, or even labor lawsuits.
How to Calculate Wages for Employees Working or Not Working on January 29?
1. If Not Working:
- “No Work, No Pay” Principle: Employers are not obligated to pay wages.
- However, if the company provides benefits (e.g., promised in the employment offer) or has an agreement, the wages should be calculated according to company policies.
2. If Working (Up to 8 Hours):
- Regular Pay = Basic Salary × 130%
- Example: If your daily wage is 1,000 pesos, working on January 29 would result in 1,000 × 130% = 1,300 pesos.
3. Overtime (More than 8 Hours):
- Overtime Pay = Hourly Rate × 130% × 130% × Overtime Hours
4. If January 29 is a Rest Day, but Employee Works (Up to 8 Hours):
- Pay = Basic Salary × 150%
- Example: If your daily wage is 1,000 pesos, and you work on a rest day, your pay would be 1,000 × 150% = 1,500 pesos.
5. Rest Day Overtime (More than 8 Hours):
- Overtime Pay = Hourly Rate × 150% × 130% × Overtime Hours
What Are the Consequences of Not Complying with These Regulations?
Employers who fail to follow these rules may face the following legal risks:
- Employees may file complaints with DOLE, which will arrange a mediation session.
- If found in violation of labor regulations, businesses may face hefty fines.
- In severe cases, business owners may face lawsuits.
A Must-Read for Employers:
- Distinguishing Special Holidays from Regular Holidays: The wage payment for special holidays differs from regular holidays. Employers must understand and follow DOLE’s latest guidelines.
- Legal Consequences of Non-Compliance: Failure to pay wages according to regulations may result in DOLE complaints, mediation, fines, or lawsuits. Ensure strict compliance.
Conclusion:
Employers, keep these key points in mind to avoid legal risks and maintain a healthy relationship with your employees. If you are unsure about any situation, consult FEILIONG LEGAL to ensure the stability and legality of your company’s operations.
FEILIONG LEGAL Says:
If you have any questions about wage payments or other labor law issues, the FEILIONG LEGAL team is here to provide professional legal advice and services. We help you operate in compliance, minimize risks, and ensure the healthy growth of your business.
Feel free to contact us anytime, and let FEILIONG LEGAL be your legal protector!