MANILA – The Department of Labor and Employment (DOLE) has released guidelines on how private sector employees should be compensated for working on December 24, a special non-working day, and December 25, a regular holiday. According to DOLE, the ‘no work, no pay’ rule applies on Christmas Day unless company policies, practices, or collective bargaining agreements state otherwise.
Employees working on Christmas Day will receive double their basic wage for the first eight hours (basic wage x 200%). Overtime on this day will be compensated at an additional 30% of the hourly rate (hourly rate of basic wage x 200% x 130% x hours worked). If Christmas Day coincides with an employee’s rest day, they will receive an additional 30% on top of the 200% basic wage (basic wage x 200% x 130%). Overtime on a rest day during a regular holiday will be paid at an additional 30% of the hourly rate (hourly rate of basic wage x 200% x 130% x 130% x hours worked).
Employees who do not work on a regular holiday but are entitled to holiday pay will receive their full basic wage (basic wage x 100%), provided 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 holiday pay if they worked or were on paid leave the day before that.
For those working on December 24, a special day, they will receive an additional 30% of their basic wage for the first eight hours (basic wage x 130%). Overtime on this day will be compensated at an additional 30% of the hourly rate (hourly rate of basic wage x 130% x 130% x hours worked). If December 24 falls on an employee’s rest day, they will receive an additional 50% of their basic wage for the first eight hours (basic wage x 150%). Overtime on a rest day during a special day will be paid at an additional 30% of the hourly rate (hourly rate of basic wage x 150% x 130% x hours worked).