Philippines services
DOLE allows employers in the Philippines to defer Holy Week holiday payments. DOLE also clarifies payment computations! Here’s what businesses should know!
Holy week is upon us! As always, employers across the Philippines must consider their obligations regarding payroll and holiday payments during this time.
However, Holy Week 2020 has created quite unique circumstances for businesses in the Philippines. Firstly, two holidays fall on the same day! Secondly, employers across the country are working extremely hard to manage operations and balance cash flow in the context of COVID-19.
The Department of Labor and Employment, or DOLE, has recently issued two sets of guidelines to cover each of the above circumstances as well as clarifying the computation of holiday payments for 9, 10 and 11 April 2020.
If you’re an employer in the Philippines, here’s what you need to know about holiday payments during Holy Week!
Labor Advisory No. 13, Series of 2020, entitled “Payment of Wages for the Regular Holidays on April 9 and 10, 2020 and Special Day on April 11, 2020” was issued by DOLE, dated 30 March 2020. The Advisory was issued in accordance with Section 3 of Proclamation No. 845, which gave DOLE the power to implement guidelines around public holidays in the Philippines for 2020.
Labor Advisory No. 13, Series of 2020 outlines the guidelines around how employees in the Philippines should be compensated by employers during the upcoming holidays on 9, 10 and 11 April 2020.
The presence of two types of unconnected circumstances, makes Holy Week 2020 in the Philippines quite unique from the perspective of holiday payments:
In light of the above circumstances, many employers (and employees) are now asking: What are the rules for compensation payments for 9, 10 and 11 April 2020? How is compensation computed? Can compensation payments be deferred in light of COVID-19?
Labor Advisory No. 13, Series of 2020 outlines the requirements for holiday payments during Holy Week 2020.
The Advisory provides for five specific employee scenarios depending on various criteria, including: if the employee worked during the holiday, how long they worked for and whether or not the day was a regular rest day for the employee.
To make it as easy as possible to understand, we have outlined below the five Scenarios provided for under the DOLE Advisory.
Just match one of the below Scenarios with the circumstances of your employee(s). Then scroll further down below to see the relevant compensation computations for each employee for each holiday!
Scenario One
Scenario Two
Scenario Three
Scenario Four
Scenario Five
Check out below how each Scenario should be compensated under each of the three holidays!
Note: Computation of living allowance is to be included in the computation of holiday pay. See below.
Note: Computation of living allowance is included in the computation of holiday pay. See below.
Note: Computation of living allowance is included in the computation of holiday pay. See below.
The table below outlines the holiday pay rules expressed in formulas:
| April 09, 2020 | April 10, 2020 | April 11, 2020 | |
| Double Regular Holiday | Regular Holiday | Special (Non-Working) Day | |
| Scenario One | (Basic Wage + COLA) x 2 | Basic Wage + COLA | “No Work, No Pay” |
| Scenario Two | (Basic Wage + COLA) x 3 | (Basic Wage + COLA) x 2 | (Basic Wage x 1.30) + COLA |
| Scenario Three | Hourly rate x 3 x 1.30 x number of hours worked | Hourly rate x 2 x 1.30 x hours worked | Hourly rate x 1.30 x 1.30 x hours worked |
| Scenario Four | [(Basic Wage+ COLA) x 3] + [0.30 x (Basic Wage x 3)] | [(Basic Wage + COLA) x 2] + [0.30 x (Basic Wage x 2)] | (Basic Wage x 1.50) + COLA |
| Scenario Five | Hourly rate x 3x 1.30 x 1.30 x number of hours worked | Hourly rate x 2 x 1.30 x 1.30 x hours worked | Hourly rate x 1.50 x 1.30 x hours worked |
Key:
DOLE also released Labor Advisory No. 13-A, a supplementary Advisory which allows for the deferment of the holiday payments referenced in Labor Advisory No. 13, Series of 2020 (see above).
In the context of COVID-19, companies are entitled to defer the release of holiday payments relating to the holidays on 9, 10, and 11 April 2020.
Deferments for how long? Deferment is only permitted “until such time that the present emergency situation has been abated and the normal operations of the company is in place”. In short, when things go back to normal!
Companies that have completely closed or ceased operations during the Enhanced Community Quarantine period are exempted from the holiday payments under Labor Advisory No. 13, Series of 2020.
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