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Holiday Pay Rules From the Handbook on Workers’ Statutory Monetary Benefits 2017

May 30, 2018

Update: As of November, 2018, the Minimum Wage in Metro Manila has increased for 25Php. This means the minimum wage earners must be given this increase starting November 22, 2018. Hence, the minimum wage now is 537 Pesos.

How about those earning more than 537 Pesos in the past? Are they included in the 25-Peso increase? No, they are not. The minimum wage is the minimum standard wage to be paid by an employer to an employee in the private sector. If the employee earns more than this minimum standard already, then generally, there is no need to add the 25-Peso wage increase. Take note, this is only applicable in Metro Manila.

Below is the Handbook on Workers’ Statutory Monetary Benefits – Rules on HOLIDAY PAY As released by the Department of Labor and Employment, Bureau of Working Conditions, Intramuros Manila (2017). Their address is at 3rd Floor, DOLE Bldg., Intramuros, Manila. Phone number: 5273000 locals 303, 308

The rules below apply to employers and employees in the private sector and do not cover government employees.

HOLIDAY PAY RULES

A. Definition
Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.

B. Coverage
This benefit applies to all employees except:
1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws;
2. Those of retail and service establishments regularly employing less than ten (10) workers;
3. Kasambahay and persons in the personal service of another;
4. Managerial employees, if they meet all of the following conditions:
4.1. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;
4.2. They customarily and regularly direct the work of two or more employees therein; and
4.3. They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing and promotion, or any other change of                   status of other employees are given particular weight.
5. Officers or members of a managerial staff, if they perform the following duties and responsibilities:
5.1. Primarily perform work directly related to management policies of their employer;
5.2. Customarily and regularly exercise the discretion and independent judgment;
5.3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b)                   execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special            assignments and tasks; and
5.4. Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work                   described in paragraphs 5.1, 5.2, and 5.3 above.
6. Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.

C. Regular Holidays

Every employee covered by the Holiday Pay Rule is entitled to the minimum wage rate (daily basic wage and COLA). This means that the employee is entitled to at least 100% of his or her minimum wage rate even if he/she did not report for work, provided he/she is present or is on leave of absence with pay on the workday immediately preceding the holiday.

Work performed on the day merits at least twice (200%) the wage rate of the employee.

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