Labor Secretary Bienvenido Laguesma has issued Labor Advisory No. 9 to clarify the rules on holiday pay for upcoming special and regular holidays in August.

August 21: Special Non-Working Day

August 21 is designated as a special non-working day. Under the “no work, no pay” principle, employees are not entitled to pay unless their company policy, practice, or collective bargaining agreement states otherwise. However, employees who do work on this day must receive an additional 30% of their basic wage for the first eight hours. Any overtime work will be compensated with an extra 30% of the hourly rate. If the special non-working day falls on an employee’s rest day, the pay increases to 50% of the basic wage for the first eight hours, plus 30% for overtime.

August 26: Regular Holiday

August 26 is a regular holiday, which entitles employees who work on that day to double (200%) their daily wage for the first eight hours. Overtime work is paid an additional 30% of the hourly rate. When the regular holiday coincides with an employee’s rest day, workers are entitled to an additional 30% on top of the 200% holiday pay, plus 30% for any overtime hours worked.

The Department of Labor and Employment (DOLE) strongly urges all employers to strictly follow these guidelines to ensure proper holiday pay computation, protect workers’ rights, and prevent labor disputes. These clarifications aim to help companies process payroll accurately and provide fair compensation for employees working during holidays.