Observe pay rules on EDSA day

February 23, 2020

THE Department of Labor and Employment yesterday reminded private sector employers to properly pay their workers who will report for work on February 25, the Anniversary of the EDSA People Power Revolution.

In Labor Advisory No. 8 Series of 2020, Acting Secretary Ana Dione prompted employers to observe the proper payment of wages on said date, which is a special non-working holiday.

Dione said that employees who will work on the said day shall be paid an additional 30 percent of their basic wage in the first eight hours. Their basic wage shall be multiplied by 130 percent plus COLA.  

If the employee did not work, however, the “no work, no pay” principle shall apply unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.

If they work in excess of eight hours, they will be paid an additional 30 percent on their hourly rate. The computation is ‘hourly rate of the basic wage x 130 percent x 130 percent x number of hours worked.’

For work done during a special day that also falls on the workers’ rest day, they shall be paid an additional 50 percent of their basic wage on the first eight hours of work, or [(basic wage x 150 percent) + COLA].  

Lastly, for overtime work during a special day that also falls on the workers’ rest day, they shall be paid an additional 30 percent of their hourly rate.

Thus, the computation will be ‘hourly rate of the basic wage x 150 percent x 130 percent x number of hours worked.’