News Briefs: November 30, 2018

Dole reminds employers: Pay proper holiday wages

The Department of Labor and Employment (Dole) reminded private sector employers to observe the proper payment of wages for workers on Friday, a regular holiday. In Labor Advisory No. 16, series of 2018, Labor Secretary Silvestre Bello III prescribed the computation of workers’ wages on Nov. 30. Employers are bound by the following payment rules: If the employees did not work, they shall be paid 100 percent of their salary for the day. However, if the employees worked on the said holiday, they shall be paid 200 percent of their regular salary for the first eight hours. In addition, if the employees worked in excess of eight hours, they shall be paid an additional 30 percent of their hourly rate. If employees worked during a regular holiday that also falls on their rest day, they shall be paid an extra 30 percent of the daily rate of 200 percent. Employees who worked in excess of eight hours during a regular holiday that also falls on their rest day they shall be paid an extra 30 percent of their hourly rate. —TINA G. SANTOS

CA allows review of ERC’s approval of Meralco PSA deals

The Court of Appeals (CA) has reconsidered its earlier resolution denying the petition of a consumer advocate for the review of an Energy Regulatory Commission (ERC) decision favoring the Manila Electric Co. (Meralco). In a two-page resolution dated Nov. 15, the appeals court’s former Third Division gave Meralco 10 days to file its comment on the order. The petition was filed by Romeo Junia, an intervenor who opposed the approval of seven Meralco power supply agreements (PSAs) that were allegedly filed after the expiry of the ERC’s competitive selection deadline and for being above market price. The court had earlier denied his petition for review in February. But the court said that after reviewing the arguments, it decided to grant Junia’s motion for reconsideration. The resolution was written by the division chair, Associate Justice Rosmari Carandang. Junia alleged that Meralco had substantial investments in at least five of the PSAs. —JEROME ANING

BIR scraps order imposing tax on health card premiums

The Bureau of Internal Revenue (BIR) has stopped imposing tax on health premiums paid by employers for their employees’ health cards. The BIR issued the order after reviewing Revenue Memorandum Circular No. 50-2018, which states that health card premiums are included in the computation of the P90,000 tax-free privilege on employee benefits and bonuses. In issuing Revenue Memorandum Circular No. 96-2018 on Monday, BIR Commissioner Cesar Dulay said “the implementation of the pertinent provisions under RMC 50-2018 relative to the group health insurance premiums … which were not affected by the provisions of the TRAIN (Tax Reform for Acceleration and Inclusion) Act, are hereby deleted from RMC 50-2018.” Sen. Sonny Angara, chair of the Senate committee on ways and means, earlier said that the circular had no basis as it was not provided for under the TRAIN law. —DARRYL JOHN ESGUERRA