Notes on Holiday Pay

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    HOLIDAY PAY(Article 94)

    Coverage: This benefit shall apply to all employees, except:

    a) Those of the government and any of the political subdivisions,including government-owned and controlled corporations.

    b) Those of retail and service establishments regularly employingless than ten (10) workers

    c) Domestic helpers and person in the personal service of another

    d) Managerial employees; and

    e) Field personnel and other employees whose time andperformance in unsupervised by the employer including thosewho are engaged on task or contract basis, purely commissionbasis or those who are paid a fixed amount for performing workirrespective of the time consumed in the performance thereof.

    REGULAR HOLIDAYS

    Every employee covered by the Holiday Pay Rule is entitled to his daily basic

    wage for any unworked regular holiday. This means that the employee is entitledto at least 100% of his basic wage even if he did not report for work, provided heis present or is on leave of absence with pay on the work day immediatelypreceding the holiday.

    Work performed on that day merits at least twice (200%) the basic wage of theemployee.

    Where the holiday falls o the scheduled rest day of the employee, workperformed on said day merits at least an additional 30% of the employeesregular holiday rate of 200% or a total of, at least, 260%.

    ILLUSTRATION: Using the NCR minimum wage rate of Php223.50 per day for the non-agricultural sector effective October 31, 1999.

    For work within 8 hours:

    Plus 100% of the daily basic rate of 100% or a total of 200%Php223.50 + 100% thereof = Php223.50 + Php223.50 = Php447.00

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    or

    200% of Php223.50 = 2.00 x Php223.50 = Php447.00

    Where the holiday falls on the scheduled rest day of the employee, work

    performed on said day merits at least an additional 30% of the employeesregular holiday rate of 200% or at least 260%.

    R.A . No. 9177 November 13, 2002 lists of eleven (11) regular holidays and two(2) special days:

    REGULAR HOLIDAYSNew Year's Day - January 1Maundy Thursday - Movable DateGood Friday - Movable DateEidul Fitr - Movable DateAraw ng Kagitingan(Bataan and Corregidor Day) - April 9Labor Day - May 1Independence Day - June 12National Heroes Day - Last Sunday of AugustBonifacio Day - November 30Christmas Day - December 25Rizal Day - December 30

    NATIONWIDE SPECIAL HOLIDAYSAll Saints Day - November 1Last Day of the Year - December 31

    [NOTE: Eidul Fitr is the first day marking the end of the thirty (30)-day fastingperiod of Ramadhan ]

    During special days, the principle of NO WORK, NO PAY applies, and on suchother special days as may be proclaimed as such by the President or Congress.

    Workers who were not required or permitted to work on those days are not bylaw entitled to any compensation. This however, is without prejudice to anyvoluntary practice or provision in the Collective Bargaining Agreement (CBA)providing for payment of wages and other benefits for days declared as specialdays even if unworked.

    Upon the other hand, work performed on special days merits additionalcompensation of not less than 30% on top of the basic pay, or a total of 130%and at least 50% over and above the basic pay or a total of 150% if the worker ispermitted or suffered to work on said day which may be his scheduled rest day.

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    ABSENCES

    a) All covered employees shall be entitled to holiday pay when they are on

    leave of absence with pay. Employees who are on leave of absence withoutpay on the day immediately preceding a regular holiday may not be paid therequired holiday pay if they have not worked on such regular holiday.

    b) Employers shall grant the same percentage of the holiday pay as thebenefit granted by competent authority in the form of employeescompensation or social security payment whichever is higher, if they are notreporting for work while on such benefits.

    c) Where the day immediately preceding the holiday is a non-working day inthe establishment or the scheduled rest day of the employee, he shall not be

    deemed to be on leave of absence on that day, in which case he shall beentitled to the holiday pay if he worked on the day immediately preceding thenon-working day or rest day.

    TEMPORARY OR PERIODIC SHUTDOWN/CESSATION OF WORK

    In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within theperiod shall be compensated in accordance with the Rules Implementing the

    Labor Code.

    HOLIDAY PAY OF CERTAIN EMPLOYEES

    a) Where the covered employee is paid on piece rate basis, his holiday payshall not be less than his average daily earnings for the last seven (7) actualworking days preceding the regular holiday; Provided, however, that in nocase shall the holiday pay be less than the applicable statutory minimumwage rate.

    b) Seasonal workers may not be paid the required holiday pay during off-season when they are not at work.

    c) Workers who do not have regular working days, such as stevedores, shallbe entitled to this benefit.

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