New Year’s Day Work Entitles Private Sector Employees to Double Pay

In Manila, the Department of Labor and Employment (DOLE) has issued a reminder to employers about the compensation rules for employees working on January 1, 2025, which is designated as a regular holiday. Employees in the private sector who work on New Year’s Day are eligible to receive double their usual daily wage for the first eight hours of work, calculated as the basic wage multiplied by 200 percent. For any hours worked beyond the initial eight, employees are entitled to an additional 30 percent of their hourly rate, calculated as the hourly rate of the basic wage times 200 percent times 130 percent times the number of additional hours worked. If New Year’s Day coincides with an employee’s scheduled rest day, the employee will receive an additional 30 percent on top of the already doubled basic wage, resulting in a calculation of the basic wage times 200 percent times 130 percent. Should the employee work overtime on a holiday that falls on their rest day, they are entitled to yet another 30 percent increase on their hourly rate, calculated as the hourly rate of the basic wage times 200 percent times 130 percent times 130 percent times the number of overtime hours. Employees who do not work on the holiday will still receive their full daily wage if they worked or were on paid leave the day before the holiday. If the day before the holiday is a non-working day or the employee’s rest day, they are still entitled to their full wage for the holiday, provided they worked or were on paid leave the day before the non-working day or rest day.