Rules on Pay During Special Working Holiday 2021
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On 30 July 2020, Proclamation No. 986 was issued by Malacañang providing the list of regular holidays and special days for the year 2021. Special days are non-working under such proclamation. It also provides for two (2) additional special non-working days.
Specifically, All Soul’s Day, falling on 2 November 2021 and Christmas Eve on 24 December 2021 were added as special non-working days. This means that these special days can be celebrated away from work.
However, on 26 February 2021 Proclamation No. 1107 was issued declaring the added special days as special working days. It also made last day of the year, 31 December 2021, as special working day.
As seeming rationale for the changes, the 3rd and 4th Whereas Clauses of Proclamation No. 1107 provide that due to the country being under the State of Calamity on account of COVID-19, the health authorities discourage large gatherings and festivities that usually take place during public commemorations.
Further, in an effort to help the country recover from the adverse economic impact of the COVID-19
pandemic, the government encourages economic productivity by minimizing work disruptions.
Hence, 2 November 2021, 24 December 2021, and 31 December 2021 became special working days instead of special non-working days. Apparently, the conversion is intended to discourage large gatherings and festivities and minimize work disruptions to encourage economic productivity.
The question now is how much should the employee be paid when they work on days declared as special working days? The answer to this question is provided in DOLE Memorandum Circular 01, Series of 2004 which was issued on 8 March 2004.
It provides that for those declared as special working holidays the rule is that for work performed on said day, an employee is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days.
For instance, if the employee in NCR worked on a special working day, he shall be paid 100% of the wage only. Thus:
Formula: [(Basic Wage + COLA) X 100%]
Illustration:
PhP537.00 x 100% = PhP537.00
Note: there is no COLA in NCR under Wage Order No. 22.
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