TO : HR
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Accounting
Thru : Madel
Date: January 26 2017
Subject: Query on whether somebody who is absent before a holiday who is paid on monthly basis is entitled to holiday pay?
The answer is no.
We are aware of this since Unisun day and this is the answer of DOLE on such a query: This is to clarify the issue for new employees who are ignorant of such a ruling:
First, we must make this clear that August 21-Ninoy Aquino Day is a SPECIAL NON-WORKING HOLIDAY (Arts. 91-93 of the Labor Code) and NOT a REGULAR HOLIDAY (Art. 94 of the Labor Code).
Being a special non-working holiday, the rule in Article 94 regarding attendance on the day immediately preceding the regular holiday is NOT applicable.
SPECIAL NON-WORKING HOLIDAYS are covered by the rules found in Article 91-93 (PREMIUM PAY) of the Labor Code.
Premium pay refers to the additional compensation for work performed within eight (music) hours on nonwork days, such as rest days and special days.
Unless otherwise modified by law, order, or proclamation, the following are the three (3) special days in a year under Executive Order No. 292, as amended by Republic Act 9849 that shall be observed
in the Philippines:
1.) Ninoy Aquino Day Monday nearest August 21
2.) All Saints Day November 1
3.) Last Day of the Year December 31
A.DAILY PAID WORKERS (no work no pay salary basis)
The "no work, no pay" principle applies during special days and on such other special days as may be proclaimed by the President or by Congress.
Workers who are not required or permitted to work on special days are not entitled to any compensation. This, however, is without prejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for
days declared as special days even if unworked.
On the other hand, work performed on special days merits additional compensation of at least thirty percent (30%) of the basic pay or a total of one hundred thirty percent (130%). Where the employee works on a special day falling on his rest day, he/she shall be entitled to an additional compensation of at least fifty percent (50%) of his/her basic wage or a total of one hundred fifty percent(150%).
Since you did not work on August 21, Ninoy Aquino Day, you are not entitled to Premium Pay under Article 91-93 of the Labor Code.
B.MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular or special days, although he does not regularly work on these days.
If you fall in the above category, your special day pays are already factored in your monthly pays because you are paid on every day of the month although you do not regularly work on those days. So it does not matter if you were absent on the day of the special non-working holiday because you are still
paid your daily pay regardless.
It will be different in case of Regular Holiday Pay (Art. 94). Even if you are monthly paid, 1.) if you are present or is on approved leave with pay on the day immediately preceding the regular holiday and 2.) on the day of the regular holiday you reported for work, satisfying these 2 conditions will
entitle you to double pay (daily pay + holiday pay or 200% of your daily rate).
For more information, kindly inquire with the Bureau of Working Conditions (BWC) at this number 527-3000 locals 301 or 302 (Wages and Hour Standards), 303 or 407 (Occ. Health and Safety), 304 or 307 (Labor Standards), 309 or 308 (Inspection Standards).
We hope this answers your query. Thank you for writing.
Being a special non-working holiday, the rule in Article 94 regarding attendance on the day immediately preceding the regular holiday is NOT applicable.
SPECIAL NON-WORKING HOLIDAYS are covered by the rules found in Article 91-93 (PREMIUM PAY) of the Labor Code.
Premium pay refers to the additional compensation for work performed within eight (music) hours on nonwork days, such as rest days and special days.
Unless otherwise modified by law, order, or proclamation, the following are the three (3) special days in a year under Executive Order No. 292, as amended by Republic Act 9849 that shall be observed
in the Philippines:
1.) Ninoy Aquino Day Monday nearest August 21
2.) All Saints Day November 1
3.) Last Day of the Year December 31
A.DAILY PAID WORKERS (no work no pay salary basis)
The "no work, no pay" principle applies during special days and on such other special days as may be proclaimed by the President or by Congress.
Workers who are not required or permitted to work on special days are not entitled to any compensation. This, however, is without prejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for
days declared as special days even if unworked.
On the other hand, work performed on special days merits additional compensation of at least thirty percent (30%) of the basic pay or a total of one hundred thirty percent (130%). Where the employee works on a special day falling on his rest day, he/she shall be entitled to an additional compensation of at least fifty percent (50%) of his/her basic wage or a total of one hundred fifty percent(150%).
Since you did not work on August 21, Ninoy Aquino Day, you are not entitled to Premium Pay under Article 91-93 of the Labor Code.
B.MONTHLY PAID EMPLOYEE refers to one who is paid his wage or salary for every day of the month, including rest days, Sundays, regular or special days, although he does not regularly work on these days.
If you fall in the above category, your special day pays are already factored in your monthly pays because you are paid on every day of the month although you do not regularly work on those days. So it does not matter if you were absent on the day of the special non-working holiday because you are still
paid your daily pay regardless.
It will be different in case of Regular Holiday Pay (Art. 94). Even if you are monthly paid, 1.) if you are present or is on approved leave with pay on the day immediately preceding the regular holiday and 2.) on the day of the regular holiday you reported for work, satisfying these 2 conditions will
entitle you to double pay (daily pay + holiday pay or 200% of your daily rate).
For more information, kindly inquire with the Bureau of Working Conditions (BWC) at this number 527-3000 locals 301 or 302 (Wages and Hour Standards), 303 or 407 (Occ. Health and Safety), 304 or 307 (Labor Standards), 309 or 308 (Inspection Standards).
We hope this answers your query. Thank you for writing.
Jorge U. Saguinsin
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CONFIDENTIALITY NOTICE/disclaimer: The information contained herein is strictly confidential in nature and is the property of Holy Gardens Group and intended only for the intended recipient and its reuse,reprinting or taking action other than the intended party is strictly prohibited. Holy Gardens assume no responsibility liability arising from such unauthorized use.
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