DOLE releases payment guidelines for employees working on Labor Day

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

In a Labor Advisory No. 12, series of 2025, released on Friday, DOLE noted that if an employee does not work this Labor Day, “the employer shall pay 100 percent of the 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.”

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“Where the day immediately 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.

Conversely, those who work on the regular holiday shall receive “double pay,” totaling 200 percent of their wages for the first eight hours. 

DOLE also noted that for employees who take overtime or do work exceeding their eight-hour shift, their employers must pay them an additional 30 percent of the hourly rate on the said day.

This can be calculated as the hourly rate of the basic wage x 200 x 130% x number of hours worked.

Employees who will work during the holiday that also falls on their rest day shall be paid an additional 30 percent of their basic wage of 200 percent (basic wage x 200% x 130%).

“For work done in excess of eight hours during a regular holiday that also falls on the employee’s rest day, the employer shall pay the employee an additional 30 percent of the hourly rate on said day,” DOLE also said, adding that this can be computed as the hourly rate of the basic wage x 200% x 130% x 130% x the number of hours worked. /mr