Contractual and Regular Employee Benefits in the Philippines An Overview "Knowing your benefits even as a contractual employee will

l lessen tension and build trust in the organization you belong in."
The Philippine Labor Code stipulates that an employee may be hired with a probationary period from one to six months upon date of engagement, and it shall not be continued further than that unless due to required period of apprenticeship. After the probationary period, an employer may continue or end an individual's employment based on pre-agreed Key Results Areas (KRA) or other forms of performance appraisals. During the probationary period, however, an employer has no right to neither discriminate an employee nor waive his /her contractual employee benefits. And at the end of this period, hired individuals should receive regular employee benefits as provided by Philippine Laws on employment. How do contractual and regular employee benefits compare? Within the probationary period, a new-hire continues to undergo evaluation on a daily basis, although formal performance reviews may not come until the first, third, or sixth month. This evaluation period somewhat gives companies the right to waive benefits enjoyed by regular employees, including holiday pay and sick leaves. In most cases, sick leaves are converted as "absences" which in turn are limited to a few number of days only (typically only seven days within the six-month period). Expectedly, contractual employee benefits do not level with regular employee benefits, and companies have some good excuse for this. First, contractual employees, being new to the job, do not perform as well as regular employees (although this is not always the case). They lack the experience which makes for their lower pay and fewer benefits than have regular employees. Contractual or probationary employees are not deprived of a few benefits, though. When you are a contractual employee in the Philippines, you can enjoy a day off on holidays (depending on your company's operations) and will also be paid a holiday premium commensurate to your daily pay. The differences between contractual employee benefits and regular employee benefits are in the paid vacation and sick leaves which total to 15 days per year. Many companies now also provide social security benefits to probationary employees from day one. This chart below elucidates the differences in benefits between these two employment statuses: Contractual Regular Benefits Employees Employees

Sick Leaves Vacation Leaves Social Security System (SSS) - private sector GSIS - public sector Home Development Mutual Fund (HDMF) HMO Philippine Health Insurance Corp. (PhilHealth) Other company benefits (e.g. rice allowance, transportation allowance, etc.)

none none

yes yes

company discretion yes none none none Typically none yes yes yes yes

Many companies in the Philippines now provide company benefits to employees, including rice allowance, transportation allowance, boarding allowance, and so on. Knowing your benefits even as a contractual employee will lessen tension and build trust in the organization you belong in.
Employee Benefits Contractual and Regular Employee Benefits in the Philippines An Overview
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JUN

01

Non-diminution of benefits
Employee Wages and Benefits 55 comments

Concept
The principle of non-diminution of benefits states that: any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer.[1] This principle is founded on the Constitutional mandate to protect the rights of workers and promote their welfare, and to afford labor full protection. Said mandate in turn is the basis of Article 4 of the Labor Code which states that all doubts in the implementation and interpretation of this Code, including its implementing rules and regulations shall be rendered in favor of labor.[2]

Benefit and supplement definition

Employee benefits are compensations given to employees in addition to regular salaries or wages.[3] Some benefits are legally required, e.g., social security benefits, medicare, retirement benefits, maternity benefits, service incentive leave, etc. Other benefits are offered by the employer as an incentive to attract and retain employees as well as increase employee morale and improve job performance.[4] Continue Reading

--> The principle of non-diminution of benefits states that: any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer. This principle is founded on the Constitutional mandate to protect the rights of workers and promote their welfare, and to afford labor full protection. Said mandate in turn is the basis of Article 4 of the Labor Code which states that all doubts in the implementation and interpretation of this Code, including its implementing rules and regulations shall be rendered in favor of labor. Continue Reading... employee benefits, non-diminution of benefits, supplements, voluntary company practice
APR

17

Case Syllabus Dec 2009

Case Syllabus Add your comment

Employee found guilty of habitual absenteeism and tardiness not No work no pay scheme is not significant in determining employerRequirement for appeals involving monetary award Admissibility of evidence submitted for the first time on appeal Permanent disability and Total disability; Meaning Dismissal based on grounds not alleged in the notice of termination not Dismissal of corporate officer falls under the jurisdiction of regular Labor-only contracting; Pure supply of manpower to assist in sales and Suspension of labor-claims during corporate rehabilitation Drug-Free Workplace Policy; Importance of confirmatory test after drug POEA Standard Employment Contract; Permanent disability defined POEA Standard Employment Contract; Compensation and benefits for

entitled to economic assistance employee relationship

necessarily illegal courts not NLRC distribution of products is prohibited as labor-only contracting

test

injury or illness; Effect of failure of seafarer to submit himself for medical examination within 3 days from repatriation

Executory character of assumption and certification order

Continue Reading... assumption order, certification order, corporate rehabilitation, drug-free workplace policy, economic assistance,habitual absenteeism, labor-only contracting, no work no pay, permanent disability, POEA Standard Employment Contract, tardiness, temporary disability
APR

14

Case Syllabus Nov 2009

Case Syllabus Add your comment

Drug use in employers premises constitutes serious misconduct Lack of written notices entitles employee to award of nominal Simple misconduct does not merit employees dismissal from service Proof that employer acted maliciously or in bad faith not necessary for

damages

award of attorneys fees

When transfer of employee is tantamount to constructive dismissal Loss of confidence must be based on a willful breach of trust to justify Willful breach of trust; Definition Doctrine of strained relations; Requirements for application of the When corporate officer may be deemed employee of the company Ibid.; Jurisdiction over money claims Labor claims cannot proceed pending rehabilitation of employer-

dismissal

doctrine

corporation Continue Reading... attorney's fees, constructive dismissal, corporate officers, corporate rehabilitation, doctrine of strained relations, drug use, loss of confidence, serious misconduct, transfer, willful breach of trust
APR

12

Bank Deposit does not Comply with Appeal Bond Requirement

Featured Cases Add your comment

The court has ruled in the case of Mindanao Times Corporation vs. Confesor, G.R. No. 183417, February 5, 2010, that bank deposit does not comply with the appeal bond requirement under Section 6, Rule 6, of the NLRC Rules of Procedure, viz.: Section 6. Bond. In case the decision of the Labor Arbiter or the [...] Continue Reading... appeal bond
MAR

31

April 3, 2010, declared as Special (Nonworking) Day

News & Current Events Add your comment

Proclamation No. 2029, by authority of the President signed by Executive Secretary Leandro R. Mendoza on March 24, 2010, declared Saturday, April 3, 2010, which falls between Good Friday and Easter Sunday, as a special (nonworking) day throughout the country, citing that, our people must be given the full and uninterrupted opportunity to ponder on [...]

Continue Reading... special day

MAR

28

Employment of Foreigner in the Philippines

Pre-hiring and Hiring Add your comment

Employment permit for non-resident aliens Who may be issued alien employment permit Filing of application for AEP Prohibition against transfer to another jobs Alien exempted from securing AEP References

Continue Reading... alien employment permit, non-resident alien

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JUN

01

Non-diminution of benefits
Employee Wages and Benefits 55 comments

The principle of non-diminution of benefits states that: any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer. This principle is founded on the Constitutional mandate to protect the rights of workers and promote their welfare, and to afford labor full protection. Said mandate in turn is the basis of Article 4 of the Labor Code which states that all doubts in the implementation and interpretation of this Code, including its implementing rules and regulations shall be rendered in favor of labor.

Continue Reading... employee benefits, non-diminution of benefits, supplements, voluntary company practice
FEB

27

Service Incentive Leave

Employee Wages and Benefits 38 comments

Basis Employees entitled to SIL At least one year of service Meaning Employees not covered Manner of availment Commutability to cash Computation of SIL Illustration Part-time Workers Vacation and Sick leave Case

Continue Reading... employee benefits, paid leave, service incentive leave, sick leave, vacation leave
FEB

26

Productivity Incentives
Employee Wages and Benefits 7 comments

Productivity Incentives Programs Concept Labor Management Committee (LMC) Composition of LMC Productivity Bonus Time of Payment of Productivity Bonus Benefits and Tax Incentives Disputes and Grievances Reference

Continue Reading... employee benefits, Labor Management Committee, productivity incentives

FEB

25

Paternity Leave
Employee Wages and Benefits 8 comments

Basis Paternity Leave Definition Checklist for Availment of Paternity Leave Limitation When Paternity Leave may be Availed of Commutability to Cash Reference

Continue Reading... employee benefits, maternity leave, paid leave, parental leave, paternity leave
FEB

24

Maternity leave
Employee Wages and Benefits 42 comments

Basis Maternity Leave Leave extension Maternity Benefits under SSS Law Amount Time of payment Who makes the payment Checklist for Availment 3-monthly Contribution Illustration Valid marriage not required Limitation on Availment Bar to recovery of sickness benefits. Effect of Failure of Employer to Remit Contribution.

Continue Reading... employee benefits, maternity leave, paid leave, parental leave, paternity leave
FEB

23

Overtime Pay
Employee Wages and Benefits 24 comments

Basis Terminology

Overtime Pay Overtime Work Work day Overtime Pay Rates Computation of Overtime Pay On ordinary day On rest day and special day On rest day which falls on a special day On a regular holiday On a rest day which falls on a regular holiday Work need not be Continuous Undertime cannot be Offset by Overtime Emergency Overtime Work Managerial Employees not Entitled to Overtime Pay

Continue Reading... hours worked, overtime pay, overtime work, regular holiday, rest day, special day, workday
FEB

22

Premium Pay
Employee Wages and Benefits 8 comments

Premium Pays Concept

No Work, No Pay Rule

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Feb 26

Productivity Incentives Employee Wages and Benefits 2010-02-26

Productivity Incentives Programs Concept

Productivity Incentives Program is a formal agreement established by the Labor-Management Committee (LMC) containing a process that will promote gainful employment, improve working conditions and result in increased productivity, including cost savings. Under this agreement, the employees are granted salary bonuses proportionate to increases in current productivity over the average for the preceding three consecutive years. The agreement shall be ratified by at least a majority of the employees who have rendered at least six months of continuous service. The agreement reached by the parties act as a supplement to existing collective bargaining agreement. If there is yet no CBA, and should there be one in the future, the terms of the agreement may be incorporated therein.

Labor Management Committee (LMC)

Labor-management Committee is a negotiating body in a business enterprise composed of the representatives of labor and management created to establish a productivity incentives program, and to settle disputes arising therefrom.
Composition of LMC

LMC shall be composed of an equal number of representatives from the management and from the rank-and-file employees, with both management and labor having equal voting rights. In business enterprises with duly recognized or certified labor organizations, the representatives of labor shall be those designated by the collective bargaining agent(s) of the bargaining unit(s). In business enterprises without duly recognized or certified labor organizations, the representatives of labor shall be elected by at least a majority of all rankand-file employees who have rendered at least six months of continuous service.

Productivity Bonus
The productivity incentives program shall contain provisions for the manner of sharing and the factors in determining productivity bonuses. However, productivity bonuses granted to labor under the program shall not be less than half of the percentage increase in the productivity of the business enterprise. The payment of productivity bonus shall be over and above existing bonuses granted by the business enterprise and by law. Productivity bonus shall not be deemed as salary increases due the employees and workers.

Time of Payment of Productivity Bonus

Bonuses provided for under the productivity incentives program shall be given to the employees not later than every six months from the start of such program.

Benefits and Tax Incentives

A business enterprise which adopts a productivity incentives program shall be granted a special deduction from gross income equivalent to 50% of the total productivity bonuses given to employees under the program.

Disputes and Grievances

Disputes, grievances, or other matters arising from the interpretation or implementation of the productivity incentives program, shall be resolved by the LMC. They may seek assistance of the NCMB for such purpose. Any dispute which remains unresolved within 20 days from the time of its submission to LMC shall be submitted for voluntary arbitration. The productivity incentives program shall include the name(s) of the voluntary arbitrator or panel of voluntary arbitrators previously chosen and agreed upon by the labor-management committee.

Reference
1. Productivity Incentives Act of 1990, Republic Act No. 6791. Last Edited: Thursday, February 25, 2010

Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.

Related posts
1. 13th Month Pay Law

employee benefits, Labor Management Committee, productivity incentives Trackback 7 comments

1. ishie Comment:
May 26th, 2010 at 02:46 pm

Dear Sir/Madam: Good day to you! I hope you can help me with my dilemma. I am working as a collection agent in a call center in RCBC, Makati City. I was happy and satisfied with the company until just recently there has been a conflict regarding incentives. Last April, the management set out goals for our campaign. The goal was $100 and is equivalent to PhP 750 bonus on top of the basic salary. The so called accelerator was $650, my team leader said that if we reach it (individually) then our incentive will be if not doubled, increased highly. No one in the management level can actually tell the the amount well get since the higher management is not that transparent. I was able to meet the accelerator, in fact even higher. But came May 22nd, I was not able to get the bonus that was due to me. I found out some of the agents were not able to get their bonuses as well. The reason that the management came out with, my Team Leader is not sure of this actually, was that way back April there were some monitored calls that were tagged as bad calls. But the point is that they only informed us of such on the day that we were supposed to get the bonus, May 22nd. The bonus was for the month of April. In April, no memos were released and signed, no info nor agreement, not even a verbal agreeement. Now, I want to file a complaint against my employer for such discrepancy. I want to get whats due to me but I dont know how. If you could please advice me on the steps and the fees involved to get this done.I thank you in advance.

[Reply]

Ted Ferrolino Reply:

May 27th, 2010 at 1:30 pm

I suggest that you first make a written (formal) demand to the management for payment of your claims. This is the easiest and least expensive way (saves you money and time). If your effort fails, you can file a money claim to recover all your unpaid claims and benefits. If your claim is 5,000.00 or less, file your money claims with the DOLE. If more than 5,000, file it with the National Labor Relations Commission. [Reply]

ishie Reply:
May 28th, 2010 at 10:30 pm

thanks much! :) [Reply]

Ted Ferrolino Reply:

June 3rd, 2010 at 11:43 am

Youre welcome..
2. antonietta L. Demisana Comment:
December 4th, 2010 at 09:55 pm

Good eve Mam/Sir:

Please help me out with problems we are facing with our company. We have signed our loading for this second semester and just the other day we were informed that there will be a reduction of the related learning experience fee from our original pay which is suppose to be until the end of this sem. Just would like to ask if what can be the legal basis for infoming the employees of the diminution of the pay, and how long should the company implement the chnage of pay just in case, one month, or 3 months, ? please help. thanks very much. [Reply]
3. antonietta L. Demisana Comment:
December 6th, 2010 at 03:52 pm

Please advice on this case. thanks very much. Will appreciate your early reply. [Reply]
4. roger kuneho Comment:
December 16th, 2010 at 09:26 am

Our company instituted new audit policies and programs. They provided incentives for compliance to policies and procedures, along with prizes for process improvement contests. They stated however that noncompliance or non-participation would result in a deduction of P3,000.00 from our performance bonus per infraction. Is this even legal? Would it be legal if only the managers are the targets for the deductions? [Reply] Add your comment now

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Premium Pay
Employee Wages and Benefits 2010-02-22

Premium Pay Meaning

Premium pay refers to the additional compensation required by law to be paid to employees for work performed on non-working days, such as rest days and special days.

No Work, No Pay Rule

During rest and special days, the principle of no work, no pay applies. Workers who were not required or permitted to work on those days are not by law entitled to any compensation. This is consistent with the definition above that premium pay is to be paid for work performed. Performance of work is necessary for entitlement to premium pay.

Premium Pay For Rest Days

As a general rule, where an employee is made or permitted to work on his scheduled rest day, whether it is a regular day or a holiday, he shall be paid an additional compensation of at least 30% of his regular wage for that day. The rule is different for work performed on a rest day which is also a special day, in which case, 50% of the regulary daily rate is added, instead of 30% of the daily rate for special day.

In sum, the premium pay rates for rest days are as follows: 1. For work performed on rest days, an additional 30% of the daily rate or a total of 130%; 2. For work performed on a rest day which is also a special day, an additional of 50% of the daily rate or a total of 150%; and 3. For work performed on a regular holiday which is also the employees rest day, an additional 30% of the regular holiday rate of 200% or a total of 260%.

Computation
For work performed on rest day, using P250.00 as Basic pay, the rate may be determined as follows: Rate on Rest day = Basic pay + Premium pay Where, Premium pay = 30% of Basic pay = 30% of P250.00 = 0.3 x P250.00 = P75.00 Thus, Rate on Rest day = Basic pay + Premium pay = P250.00 + P75.00 = P325.00 For work performed on a regular holiday which is also the employees rest day, the rate may be determined as follows: Rate = Daily rate on holiday + Premium pay Where, Premium pay = 30% of Daily rate on holiday, and Daily rate on holiday = 200% of Basic pay = P500.00 Thus, Premium pay = 0.3 x Daily rate on holiday = 0.3 x P500.00 = P150.00 Thus, the rate on rest day falling on a holiday is: Rate = Daily rate on holiday + Premium pay = P500.00 + P150.00 = P650.00 Or,

Rate = 260% of Basic pay = 2.6 x P250.00 = P650.00

Premium pay for Special Days

There are two national special days observed in the Philippines: 1. All Saints Day (November 1); and 2. The last day of the year (December 31). Work performed on special days merits additional compensation of not less than 30% on top of the basic pay or a total of 130%.

Computation
Using P250.00 as daily rate (Basic pay), the Rate on special day may be determined as follows: Rate on special day = Basic pay + Premium Where, Premium = 30% of Basic pay = 30% of P250.00 = P75.00 Thus, Rate on special day = Basic pay + Premium = P250.00 + P75.00 = P325.00 Or, Rate on special day = 130% of Basic pay = Basic pay x 1.3 = P250.00 x 1.3 = P325.00

Premium Pay For Special Day falling on Rest Day.

If the special day falls on employees scheduled rest day, he is entitled to at least 50% over and above the basic pay or a total of 150%.

Computation
Rate for work on special days which is also the employees rest day entitles him to an additional 50% of the daily rate (Basic pay). Rate = Basic pay + Premium pay Where, Premium pay = 50% of Basic pay

= P250.00 x 0.5 = P125.00 Thus, Rate = Basic pay + Premium pay = P250.00 + P125.00 = P375.00 Or, Rate = 150% of Basic pay = Basic pay x 1.5 = P250.00 x 1.5 = P375.00

If no regular workdays and no scheduled regular rest days

Where the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays.

Premium Pay and Holiday Pay Comparison

Using the definition of premium pay above, holiday pay is not a premium pay because it does not requireperformance of work by the employee. In case of holiday pay, the employee is entitled payment even if he does not work. The same cannot be said of premium pay. Thus, unlike in premium pay, the principle no work, no pay does not similarly apply to holiday pay. Last Edited: Saturday, April 17, 2010 Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.

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8 comments

1. Veronica Comment:
July 16th, 2010 at 11:27 pm

If no regular workdays and no scheduled regular rest days Where the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays. What do you mean exactly by the above statement? we are working in a company where we have a different work schedule every month. like for example, for this month my work days are mon-fri and come next month WED SUNDAY. Am i entitled to premium pay for my sunday work? even if that is my regular working day and my restday falls on mon and tue??
[Reply]

2. johnd Comment:
August 6th, 2010 at 08:24 pm

I have 3 office employees. In their contract, it is specified that their working days are from Monday to Saturday and that their Monthly Basic Salary is P15,000. Because of this stipulation in their contract, THEY automatically identified themselves as Monthly-Paid employees. I have read the Labor Code and looked at other labor-related websites. The typical definition of MonthlyPaid Employees is: those paid every day of the month INCLUDING unworked rest days, special days and regular holidays. This definition honestly does not provide a lot of helpful information. Because my staff considered themselves as monthly-paid employees, they used 365 as the divisor in getting the rate to be used for OT, absences, leave credits, holiday pay and premium pay computation. I never really bothered to review their payroll computation because in a way I trusted that they knew what they were doing. I just ordered them to follow

the basic requirements of the labor code. One time, I decided to check their computation for the period of June 16 30. As we all know, June 30 was declared a Special Non-Working Holiday. I am well aware that employees who worked on this day are given an additional 30% PREMIUM (assuming it is not their rest day). One of my employees did not go to work on this special non-working day. She did not deduct P493.15 ((P15000 x 12 months)/365 days) from her pay for this payroll period claiming that as a monthly-paid employee, all her UNWORKED holidays (regular AND special) are PAID. I did not agree with her on this stating that under the Labor Code The nowork, no-pay principle applies during special days. In addition, the Labor Code does not mention that monthly-paid employees are EXEMPT from this no-work, no-pay principle. The mere fact that the Labor Code does not specify the kind of pay that an employee should receive on an UNWORKED special day is already an indication that there is no pay to be received by an employee who does not go to work on a special day (as opposed to the pay an employee gets on an UNWORKED REGULAR holiday which is specifically called HOLIDAY PAY). This is just my own analysis. Unfortunately, my employee does not want to agree with me by always pointing out the Labor Codes definition of monthly-paid employees. So who is correct in this case? (I hope its me.) If ever I prevail in this case, is the 365 factor still the correct divisor to use? My employees argue that if ever I am right, then their divisor should also be corrected. Using 365 as the divisor assumed that even the UNWORKED special days are paid. In my opinion, I would like to stick with the 365 divisor as this would also prevent us from always adjusting the divisor for new legal and special holidays that are proclaimed yearly. Is sticking with 365 as the factor legal? And kindly expound on what really is a monthly-paid employee. Avoid giving definitions already found in the labor code and other HR books because these definitions are not helpful at all. They are rather confusing. Kindly enlighten me. Thank you.
[Reply]

Ted Ferrolino Reply:

August 19th, 2010 at 12:20 am

Month paid employees are those paid uniformly every month regardless of the number of working days in any particular month. This is a devise intended primarily for convenience, e.g., to simplify computation of wages. Now to address some of your questions: (1) The definition you cited is based Section 2, Rule IV, Book III of the Omnibus Rules Implementing the Labor Code (not the Labor Code itself) which essentially states that monthly-paid employees are presumed to be paid for all days in the month whether worked or not. This provision has long been nullified by the Supreme Court because it expands the law. (2) No work no pay is founded on the principle of fair play. It applies to all employees, whether daily paid or monthly paid. (3) With regards to the divisor, the minimum allowable divisor in your case is 314 (365 less 51 Sundays). You can use a different divisor above that. The use of 365 as divisor simply means that your employees are paid for unworked rest days.
[Reply]

3. johnd Comment:
August 19th, 2010 at 02:53 pm

thanks for the reply :)

[Reply]

4. jemsky Comment:
September 23rd, 2010 at 07:44 pm

If no regular workdays and no scheduled regular rest days Where the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays.

What do you mean exactly by the above statement? we are working in a company where we have a different work schedule every month. like for example, for this month my work days are mon-fri and come next month WED SUNDAY. Am i entitled to premium pay for my sunday work? even if that is my regular working day and my restday falls on mon and tue?? May I know the answer of the above concern of Miss Veronica? Because this must be the same concern of other employees with no regular workdays and no scheduled regular rest days, example are the shifting personnel with 3 shifts in a day. 1st shift is 12mn to 8am, 2nd shift is 8am to 4pm and the 3rd shift is 4pm to 12mn. These shifting personnel work on a 5 days a week and the divisor to get their daily rate is 262 which means they are paid for their unworked regular holidays and spceial non-working holidays
[Reply]

5. jemsky Comment:
September 23rd, 2010 at 07:46 pm

Sir Ted Ferrolino, please reply

[Reply]

6. Rhea Comment:
November 6th, 2010 at 09:59 am

Is it possible that HR department can deduct the holiday to the basic salary of the employee if she/he dont have available leave at that time. They issue this policy that employee who file a leave without pay 1 day before the holiday may not be paid or deduct from his/her salary the said holiday. Is it legal or unconstitutional.TThanks
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7. ema Comment:
November 29th, 2010 at 07:17 pm

http://newsinfo.inquirer.net/breakingnews/nation/view/20100830289552/DoLE-issues-National-Heroes-Day-holiday-pay-rules > here is the updated pay rule when employee works on a holiday (that falls on a work day)
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Computation of pay for holidays: Regular, special non-working, special working holidays
Articles - HR, Labor and Office One of the more confusing matters, for employees and HR people alike, is the computation of holiday pay, complicated by the fact that there are different kinds of holidays. This is cleared by Memorandum Circular No. 1 of the Department of Labor and Employment (DOLE), the full text of which is reproduced and discussed below. MEMORANDUM CIRCULAR NO. 01 (8 March 2004) Pursuant to the provisions of the Labor Code, as amended in relation to the observance of declared holidays and in response to the queries received every time a Presidential Proclamation or a law is enacted by Congress which declares certain days either as a regular holiday, a special day or a special working holiday, the following guidelines shall be

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observed by all employers in the private sector: 1. For regular holidays as provided for under EO 203 (incorporated in EO 292) as amended by RA 9177: {mosgoogle} New Years Day - January 1 Maundy Thursday - Movable Date Good Friday - Movable Date Araw ng Kagitingan - April 9 Labor Day - May 1 Independence Day - June 12 National Heroes Day- Last Sunday of August Bonifacio Day - November 30 Eidul Fitr - Movable Date Christmas Day - December 25 Rizal Day - December 30 the following rules shall apply: a. If it is an employees regular workday * If unworked - 100% * If worked o 1st 8 hours - 200% o excess of 8 hours - plus 30% of hourly rate on said day b. If it is an employees rest day * If unworked - 100% * If worked o 1st 8 hours - plus 30% of 200% o excess of 8 hours - plus 30% of hourly rate on said day 2. For declared special days such as Special Non-Working Day, Special Public Holiday, Special National Holiday, in addition to the two (2) nationwide special days (November 1, All Saints Day and December 31, Last Day of the Year) listed under EO 203, as amended, the following rules shall apply: a. If unworked * No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked.

b. If worked * 1st 8 hours - plus 30% of the daily rate of 100% * excess of 8 hours - plus 30% of hourly rate on said day c. Falling on the employees rest day and if worked * 1st 8 hours - plus 50% of the daily rate of 100% * excess of 8 hours - plus 30% of hourly rate on said day 3. For those declared as special working holidays, the following rules shall apply: For work performed, an employee is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days. Please be guided accordingly. _________________________________ (Added: Please note a new law - the act rationalizing the celebration of national holidays, Republic Act No. 9492. Here's the list of holidays for 2007 and for 2008.)
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