DOLE allows delayed payment of holiday pay for April holidays

CEBU CITY, Philippines—Due to the crisis brought about by the coronavirus disease 2019 (Covid-19), the Department of Labor and Employment (DOLE) has allowed companies to defer the payment of holiday pay for the three holidays in April.

There are three holidays this month – April 9, Araw ng Kagitingan and Holy Thursday; April 10, Good Friday; and April 11, a special non-working day. Each has different computation for the payment of holiday pay, according to an emailed press release from DOLE regional office in Central Visayas.

Labor Secretary Silvestre Bello III issued Labor Advisory No. 13-A, Series of 2020 on Wednesday, April 1, 2020, which provides for the deferment of the payment of holiday pay for the April 2020 Holidays.

Based on the advisory, employers can pay the workers with the holiday pay at a later time when the present emergency situation has abated and the normal operations of establishments have been put in place.

However, establishments that have closed or ceased operations during the enhanced community quarantine period are exempted from payment of April holidays pay, said Salome Siaton, DOLE regional director in Central Visayas, 

Siaton reminded employers that they have to pay the deferred holiday pay when the situation returns to normal.

Guidelines

She added that DOLE has come up with guidelines on the April holiday pay to guide employers.

April 9, Araw ng Kagitingan and Holy Thursday, is a double regular holiday, according to DOLE. This means that workers who will not report for work on this day will be paid 200 percent of their daily wage rate on condition that they must be present or on leave with pay on the workday prior to the start of the enhanced community quarantine in their respective area.

On the other hand, if workers work on April 9, they must be paid 300 percent of their daily wage rate for the first eight hours of work. For work done in excess of eight hours on this day, they must be paid an additional 30 percent of their hourly rate.

For the April 10 holiday, workers who will not work on that day will be paid 100 percent of the daily wage rate while they are present or on leave with pay on the workday prior to the start of the ECQ. 

For work done on that day, workers must be paid 200 percent of their daily wage rate for the first eight hours of work. Workers must be paid an additional 30 percent of their hourly rate for work done in excess of eight hours.

If April 10 falls on their rest day, workers who work on this day will be paid an additional 30 percent based on 200 percent of their basic wage and another 30 percent if they render overtime work.

Meanwhile, the “no work, now pay” principle will apply on April 11, which is a special non-working day unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on that day even if unworked.

Workers reporting for duty on that day must be paid an additional 30 percent of their basic wage for the first 8 hours of work and additional 30 percent of their hourly rate for overtime work. 

If a worker’s rest day fall on April 11, the workers will get another 50 percent of the basic wage for the first eight hours of work. /bmjo