Govt to employers: Observe pay rules on New Year’s Day

Labor and Employment Secretary Rosalinda D. Baldoz on Wednesday reminded all employers in the country’s private sector that Saturday, 1 January 2011, is a regular holiday nationwide in observance of New Year’s Day.

Baldoz reiterated to employers the goal of President Benigno S. Aquino III, in his 22-point labor and employment agenda, to strengthen the welfare and protection of the country’s workforce.

Accordingly, the labor and employment chief emphasized that the lawful holiday pay rules must be applied on 1 January 2011, alongside core labor standards, for the benefit and protection of workers.

The regular holiday on 1 January is the first of 12 regular holidays for the entire 2011 pursuant to Republic Act No. 9849, said Baldoz.

She said that the pay rules to be observed are as follows:

a) If the holiday falls on an employee’s regular workday:

If 1 January 2011 is worked, the employee is entitled to 200 percent of his [or her] basic wage on the first eight (8) hours and, for work in excess of the 8 hours, to an additional 30 percent of his or her hourly rate on the said day. But, if unworked, the employee is entitled to 100 percent of the regular daily rate, provided he or she was present, or was on leave with pay, on the workday immediately preceding the holiday.

b) If the day is the employee’s rest day:

If the day is worked, the employee is entitled, on the first eight (8) hours, to 200 percent of his or her daily rate plus 30 percent and, for work in excess of 8 hours, plus 30 percent of his or her hourly rate on said day. But, if unworked, the employee is entitled to 100 percent of his or her regular daily rate, provided he or she was present, or was on leave with pay, on the workday immediately preceding the holiday.

c) Finally, in case the day immediately preceding the holiday is a non-work day in the establishment, or is the scheduled rest day of the employee, the employee shall not be deemed on leave of absence on that day, in which case he or she shall be entitled to the holiday pay. PNA

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