WITH the nation preparing to mark Labor Day on May 1, employees and employers alike are reminded of the rules governing holiday pay, especially for those who will be working or taking the day off.
The Department of Labor and Employment (DOLE) on Thursday, April 25, released the official wage guidelines for the regular holiday, providing clarity on how workers should be compensated whether they report to duty or not on the occasion.
Labor Day, a regular holiday under Proclamation No. 727, series of 2024, entitles private sector workers to receive 100 percent of their daily wage even if they do not report for work, provided they were present or on paid leave on the workday immediately before May 1.
If the day before Labor Day is a non-working day or a scheduled rest day in the establishment, the employee shall still receive holiday pay as long as they were present or on paid leave on the last working day before that rest day.
For employees who will report to work on May 1, DOLE said they are entitled to the following pay rates: 200 percent of the basic wage for the first eight hours of work;
an additional 30 percent of the hourly rate for work done in excess of eight hours.
If May 1 also falls on an employee’s rest day, they shall receive an additional 30 percent of the 200 percent wage rate.
For overtime work on a holiday that is also a rest day, workers must be paid an additional 30 percent of the hourly rate on top of the premium pay.
DOLE urged employers to observe the rules in accordance with labor standards, emphasizing that holiday pay is a legal right designed to protect workers’ welfare.
Labor Day is traditionally observed as a celebration of the Filipino workforce, and the wage guidelines, DOLE said, aim to ensure workers receive fair compensation for their labor or for their rest.
“Be guided accordingly,” the agency said in its advisory.(TGP)