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PH Employers should be aware of their obligations when it comes to paying employee salaries for the Special (Non-Working) Days in February 2021! In this article, we outline these obligations!
Employers in the Philippines – Two Non-Working Days fall this February 2021!
Are you aware of your obligations when it comes to paying your employee salaries in respect of these two Special (Non-Working) Days?
In this article, we outline all you need to know about the most recent DOLE Labor Advisory No. 02, Series of 2021.
If you are considering outsourced payroll services in the Philippines, don’t hesitate to Contact the CloudCfo Team! CloudCfo has its own specialist in-house Payroll Team ready to advise and increase the levels of optimization and efficiency across your payroll function.
Labor Advisory No. 02, Series of 2021, entitled “Payment of Wages for the Special (Non-Working) Days on February 12 (Chinese New Year) and February 25 (EDSA People Power Revolution Anniversary), 2021” was issued by DOLE and dated 9 February 2021.
Proclamation No. 986, which was issued by the President of the Philippines on July 30, 2020, is the basis for this Labor Advisory.
The Advisory outlines the requirements for the payment of wages by employers in the Philippines in relation to the following two Special (Non-Working) Days – both of which fall during February:
Labor Advisory No. 02, Series of 2021, prescribes the mechanism for computing the necessary wage or salary payments for employees.
The Advisory provides for five different scenarios that might apply to employees during these Special (Non-Working) Days and identifies how salaries should be computed based on these scenarios.
The five scenarios will take into account the following factors:
As with previous DOLE Advisories, the “Cost of Living Allowance”, referred to as “COLA” should be included in the pay computation for the two Non-Working days (where applicable below).
In accordance with DOLE Labor Advisory No. 02, Series of 2021, below are the various computations that employers are required to apply depending on the circumstances of each employee on each of the Special (Non-Working) Days:
Scenario 1: If an employee does not work on either of the Special (Non-Working) Days, the principle of “no work, no pay” shall apply unless there exists a company policy, practice, contract or collective agreement which provides for payment on a Special (Non-Working) Day.
Scenario 2: If an employee does work on the Special (Non-Working) Day, they are entitled to receive an additional 30% of their basic wage for the first eight hours that they worked. This is computed as: [(Basic Wage x 130%) + COLA].
Scenario 3: Where an employee works more than 8 hours on the Special (Non-Working) Day, they are entitled to an additional 30% of their hourly rate on the day. This is computed as: [Hourly rate of basic wage x 130% x 130% x number of hours worked].
Scenario 4: If an employee works on the Special (Non-Working) Day and that day is usually a rest day for the employee, they are entitled to an additional 50% of their basic wage for the first 8 hours of the day worked. This is computed as: [(Basic Wage x 150%) + COLA].
Scenario 5: Where an employee works more than 8 hours on the Special (Non-Working) Day and the day would usually be the employee’s rest day, the employee is entitled to an additional 30% of their hourly rate for that day. This is computed as: (Hourly Rate of Basic Wage x 150% x 130% x number of hours worked).
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