Under existing pay rules, there are different policies that shall be in effect for December 31 (special working day), January 1 (regular holiday), and January 2 (special non-working day).
For work performed on a declared special working day, like December 31, employee are entitled only to their daily wage.
“No premium pay is required since work performed on said day is considered work on an ordinary working day,” said DOLE.
For work performed on January 1, the DOLE said employees shall be paid a total of 200 percent of their wage for that day for the first eight hours, and an additional 30 percent of their hourly rate on said day for overtime work.
And if work is done during a regular holiday that also falls on their rest day, they shall be paid an additional 30 percent of their basic wage of 200 percent; and an additional 30 percent of their hourly rate on said day for overtime work.
“If the employee did not work, he/she shall be paid 100 percent of his/her wage for that day,” said DOLE.
And for work done on January 2, the labor department said workers shall be paid an additional 30 percent of their basic wage on the first eight hours of work, and an additional 30 percent of their hourly rate on said day for overtime work.
For work done during a special non-working day that also falls on their rest day, they shall be paid an additional 50 percent of their basic wage on the first eight hours of work, and an additional 30 percent of his/her hourly rate on said day for overtime work.
“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 (CBA) granting payment on a special non-working day,” said DOLE.
Proclamation No. 1236 declared December 31 (last day of the year) as a special working day.
On the other hand, Proclamation No. 42 declared January 1 (New Year’s Day) as a regular holiday; while Proclamation No. 90 sets January 2 (day after New Year) as a special non-working day. (HDT/SunStar Philippines)