DOLE issues pay rules for Labor Day

The Department of Labor and Employment (DOLE) has issued a reminder on the proper payment of wages for employees on Labor Day, May 1.

MANILA, Philippines — The Department of Labor and Employment (DOLE) has issued a reminder on the proper payment of wages for employees on Labor Day, May 1.

DOLE released the pay rules through Labor Advisory No. 04, series of 2025, signed by Labor Sec. Bienvenido Laguasma.

Under President Ferdinand Marcos Jr.’s Proclamation No. 727, Labor Day is declared a regular holiday, which means all non-essential work and classes are suspended on that date.

READ: LIST: 2025 holidays – regular, special non-working days

According to DOLE, if an employee does not work, employers are mandated to pay 100 percent of their employee’s wage for that day, “provided that the employee reports to work or is on leave of absence with pay on the day immediately preceding the regular holiday.”

“Where the day preceding the regular holiday is a non-working day in the establishment or the scheduled rest day of the employee, he or she shall be entitled to holiday pay if the employee reports to work or is on leave of absence with pay on the day immediately preceding the non-working day or rest day,” DOLE said.

Meanwhile, those working during the holiday are entitled to double pay for the first eight hours of their shift, calculated as basic wage x 200 percent.

Those working overtime are then to be paid an additional 30 percent of their hourly rate (calculated as hourly rate x 200 percent x 130 percent x number of hours worked).

If the Labor Day falls on an employee’s rest day and they choose to work, they are entitled to an additional 30 percent on top of their double pay (calculated as basic wage × 200% × 130%).

For any overtime hours worked on that day, they will likely receive an extra 30 percent of the hourly rate, computed as: hourly rate of the basic wage × 200 percent × 130 percent × 130 percent × number of hours worked.