Employers reminded of pay rules for January 28, Chinese New Year

The Department of Labor and Employment reminded employers to follow pay rules for January 28, which was declared  a special non-working day on the occasion of the Chinese New Year.

Labor Secretary Silvestre Bello III stressed the importance of observing pay rules for holidays, saying this will encourage workers to be more productive and efficient.

It may be recalled that in August 2016, President Rodrigo Duterte declared January 28, 2017 or the Chinese New Year as a special non-working day. January 28 falls on a Saturday.

The proper pay rules to be observed for the special non-working day are as follows:

• If the employee did not work, the “no work, no pay” principle shall apply, unless there is a favorable company policy, practice, or collective bargaining agreement granting payment on a special day.

• If the employee worked, the employee will be paid an additional 30 percent of the daily rate on the first eight hours of work. Computation: [(Daily rate x 130%) + COLA].

• If the employee worked in excess of eight hours, the employee will be paid an additional 30 percent of the hourly rate on said day. Computation: (Hourly rate of the basic daily wage x 130% x 130% x number of hours worked).

• If the employee worked during a special day that also falls on a rest day, the employee will be paid an additional fifty percent of the daily rate on the first eight hours of work. Computation: [(Daily rate x 150%) + COLA].

• If the employee worked in excess of eight hours during a special day that also falls on a rest day, the employee will be paid an additional 30 percent of the hourly rate on the said day. Computation: (Hourly rate of the basic daily wage x 150% x 130% x number of hours worked). CDG/rga