Regular Holiday on 12 June 2020: Computation of Holiday Pay (Labor Advisory No. 22) and Deferment of Payment

[The Department of Labor and Employment (DOLE) issued Labor Advisory No. 22, series of 2020, as guide for the computation of payment of holiday pay for 12 June 2020 (Independence Day). However, the payment of the holiday pay is deferred. The full text of Labor Advisory No. 22 is reproduced below.]

Holiay Pay 12 June 2020 (Independence Day) Computation and Deferment of Payment

LABOR ADVISORY NO. 22 

Series of 2020

Payment of Wages for the Regular Holiday on June 12, 2020

Pursuant to Proclamation No. 845 issued by President Rodrigo Roa Duterte on November 15, 2019, the following rules for pay on regular holidays shall apply on June 12, 2020:

1. If the employee did not work, he/she shall be paid 100% of his/her wage for that day, subject certain requirements under the implementing rules and regulations of the Labor Code, as amended. [(Basic wage + COLA) x 100%];

2 For work done during the regular holiday, the employee shall be paid 200% of his/her wage for that day for the first eight hours [(Basic wage + COLA) x 200%];

3. For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30% of his/her hourly rate on said day [Hourly rate of the basic wage x 200% x 130% number of hours worked];

4. 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 basic wage of 200% [(Basic wage + COLA) x 200%] + [30% [Basic wage x 200%)]; and

5. 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 said day (Hourly rate of the basic wage x 200% x 130% x 130% x number of hours worked].

However, in view of the existence of a national emergency arising from the Coronavirus Disease 2019 (COVID-19) situation, employers are allowed to defer payment of holiday pay on June 12, 2020, until such time that the present emergency situation has been abated and the normal operations of the establishment is in place. 

Establishments that have totally closed or ceased operations during the enhanced community quarantine period are exempted from the payment of the holiday pay under this Advisory. 

Be guided accordingly.

SILVESTRE H. BELLO III, Secretary

10 June 2020

P&L Law

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