TAX NOTES

Wages for the special (non-working) days on Feb. 16 and 25

The Department of Labor and Employment (DOLE) recently issued Labor Advisory No. 03, Series of 2018, providing the rules for pay during the special non-working days on February 16 and 25, 2018, pursuant to Proclamation No. 269, which covers companies that are observing the “no work, no pay” policy or the equivalent of 250 to 252 factor days in a year. The general rules include:

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

For work done on special (non-working) days, the following applies:

 

First 8 hours

Excess of 8 hours (Overtime)

First 8 hours that falls on a rest day

Excess of 8 hours (Overtime) that falls on a rest day

(Daily rate x 130%) + COLA*

Hourly rate of the basic daily wage x 130% x 130% x number of hours worked

(Daily rate x 150%) + COLA*

Hourly rate of the basic daily wage x 150% x 130% x number of hours worked

 *COLA – Cost of Living Allowances

Please be guided accordingly.

Source: P&A Grant Thornton

Certified Public Accountants

Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd