DOLE reminds employers of pay rules for Labor Day, exempts closed businesses

The Department of Labor and Employment (DOLE) on Friday reminded employers of the pay rules for workers who will report for duty on Labor Day, May 1.

In its Labor Advisory No. 07, series of 2021, released April 30, the DOLE said workers who work on the regular holiday should get paid twice their regular daily wage.

“However, in view of the existence of a national emergency arising from the COVID-19 situation, establishments that have totally closed or ceased operation during the community quarantine period are exempted from the payment of the holiday pay on May 1, 2021,” the Labor Department said.

Meanwhile, employers should observe the following pay rules for Labor Day:

• If the employee did not work, he/she shall be paid 100% of his/her wage for that day, subject to certain requirements under the implementing rules and regulations of the Labor Code, as amended [(Basic wage + COLA) x 100%]
• For work done during the regular holiday, the employee shall be paid a total of 200% of his/her wage for that day for the first eight hours [(Basic wage + COLA) x 200%]
• For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30% of his/her hourly rate on the said day [Hourly rate of the basic wage x 200% x 130% x number of hours worked]
• For work done during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her base wage of 200% [(Basic wage + COLA) x 200%] + [30% (Basic wage x 200%)]
• For work done in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30% of his/her hourly rate on the said day (Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked)

— DVM, GMA News