Companies may postpone giving double pay on Labor Day-DOLE

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The Department of Employment said in an advisory released Thursday that employers may defer from giving double pay for workers who would report on Labor Day, which is a holiday.

According to Labor Advisory No. 15, Series of 2020, it said that “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 May 1, 2020, until such time that the present emergency situation has been abated and the normal operation of the establishment is in place.”

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Meanwhile, establishments that have totally closed or ceased operation during the enhanced community quarantine period are exempted from payment of the holiday, the advisory signed by DOLE Secretary Silvestre Bello III said.

Should the company choose to give the double pay for Labor Day, it should follow DOLE’s guidelines on Payment of Wages for the Regular Holiday on May 1, 2020

  • If the employee did not work, he/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, or that he or she was present or on leave with pay on April 30, the workday prior to May 1, 2020. (Basic wage + COLA) x 100%)
  • 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%)
  • For work done in excess of eight hours (overtime work0, he/she shall be paid an additional 40% of his/her hourly rate on 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 basic wage of 200% (Basic wage + COLA) x 200% + (30% [Basic wage x200%])
  • 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.)

Also read: DOLE suspends job fairs 2020 on Labor day amid lockdown

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