Pay rules for 2020 national holidays

Presidential Proclamation 845 issued by President Rodrigo Duterte declares the regular holidays and special (non-working) days for 2020. For this year, the remaining regular holidays are the National Heroes Day on Aug. 31, Bonifacio Day on Nov. 30, Christmas Day on Dec. 25, and Rizal Day on Dec. 30.
The special (non-working) holidays include Ninoy Aquino Day on Aug. 21, All Saints’ Day on Nov. 1, additional special (non-working) day on Nov. 2, Feast of the Immaculate Conception of Mary on Dec. 8, and additional special (non-working) day on Dec. 24 and Dec. 31.
The Department of Labor and Employment separately issues labor advisories prescribing for the appropriate determination of holiday pay rules.
The following rules for pay on regular holidays and special days for 2020 shall apply:
The regular holidays, employers are reminded of the pay rules are as follows: If the employee did not work during these days, he/she shall still be paid 100 percent of his/her wage for that day, or [(basic wage + COLA) x 100 percent].
For work done during these days shall be paid 200 percent of an employee’s wage for the first eight hours or, [(basic wage + COLA) x 200 percent] and for work done in excess of eight hours (overtime), an additional 30 percent of the employee’s hourly rate, or [(hourly rate of the basic wage x 200 percent x 130 percent x number of hours worked)].
For work done during these days that also fall on employee’s rest day shall be paid an additional 30 percent of his/her basic wage of 200 percent, or [(basic wage + COLA) x 200 percent] + [30 percent (basic wage x 200 percent)] while for work done in excess of eight hours (overtime) that also falls on his/her rest day, he or she an employee shall be paid an additional 30 percent of his/her hourly rate, or [(hourly rate of the basic wage x 200 percent x 130 percent x 130 percent x number of hours worked)].
For the special (non-working days), on the other hand, the pay rules are the following: If the employee does not report for 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.
For work done on these days, an employee shall be paid an additional 30 percent of his/her basic wage on the first eight hours, or [(basic wage x 130 percent) + COLA] and for work done in excess of eight hours (overtime), employee shall be paid an additional 30 percent of his/her hourly rate, or [(hourly rate of the basic wage x 130 percent x 130 percent x number of hours worked)].
For work done during these days that also fall on employee’s rest day, he/she shall be paid an additional 50 percent of his/her basic wage on the first eight hours, or [(basic wage x 150 percent) + COLA] while for work done in excess of eight hours (overtime), an employee shall be paid an additional 30 percent of his/her hourly rate, or [(hourly rate of the basic wage x 150 percent x 130 percent x number of hours worked)].
While the law requires that holiday pay be paid, it is not due to all employees. There are only certain employees who are covered or entitled to receive that statutory monetary benefit.
All employees in all establishments and undertakings, whether for profit or not, are entitled to holiday pay except the following: government employees; managerial employees; officers or members of a managerial staff; field personnel; members of the family of the employer who are dependent on him for support; domestic helpers; persons in the personal service of another; and workers who are paid by results as determined by the DOLE Secretary. If an employee falls in the above list of exemptions, then he/she is not entitled to the statutory monetary benefit of a holiday pay.
DOLE may sanction employers for their failure to comply with labor laws. These may be in the form of administrative penalties or fines.
An employer may face a labor complaint which could result in a judgment award requiring the business to pay the holiday pay. In addition, if the withholding of the payment was done in bad faith, the employer may also be liable for moral and exemplary damages. Further, the employer may also be directed to pay the attorney’s fees of the employees.
Labor Code violations may result in the following penalties: a. Fine not less than P1,000 but not more than P10,000; b.Imprisonment of not less than three months but not more than three years; or c. Both fine and imprisonment at the discretion of the court. It is the guilty officer/s who will be liable.