Employees who will work on the special non-working days on February 1 (Chinese New Year) and February 25 (EDSA People Power Revolution Anniversary) are entitled to additional wages, the labor department reminded employers.
Labor Secretary Silvestre Bello III issued Labor Advisory No. 3, Series of 2022, to guide employers and employees alike on the proper computation of premium pay for the said special non-working days.
Premium pay refers to the additional compensation for work performed within eight hours on non-workdays, such as special days, Bello said.
Under the Labor Advisory, employees who will report for work on the said days shall be paid an additional 30 percent of their basic wage on the first eight hours of work. The computation is [(Basic wage x 130%) + COLA].
Meanwhile, employees who will render overtime work shall be paid an additional 30 percent of their hourly rate on the said day. Their compensation is computed as follows: Hourly rate of the basic wage x 130% x 130% x number of hours worked.
The Labor Advisory also states that those who will render work on a special day that also falls on their rest day shall be paid an additional 50 percent of their basic wage on the first eight hours of work. The computation is [(Basic wage x 150%) + COLA].
Employees who will work overtime during a special day that also falls on their rest day shall be paid an additional 30 percent of their hourly rate on the said day. This is computed as the hourly rate of the basic wage x 150% x 130% x number of hours worked.
For employees who 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.
February 1 and February 25 are declared Special (Non-Working) Days under Presidential Proclamation No. 1236 issued by President Rodrigo Duterte on October 29, 2021.
Source: Department Of Labor and Employment Republic of Philippines