Published — June 29, 2022
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
After reading “What is the rate of additional compensation for work on a rest day, Sunday, or holiday work?”, read also “What are the instances when an employer may compel his/her employees to work on a rest day?”
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Premium pay refers to the additional compensation for work performed within eight hours on non-work days, such as rest days and special days or special holidays or regular holidays.
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It shall be the duty of every employer, whether for profit or not, to provide each of his employees a rest period of not less than twenty-four consecutive hours after every six consecutive normal work days.
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Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay, the employer shall pay such higher rate.
Premium pay refers to the additional compensation for work performed within eight (8) hours on non-work days, such as rest days and special days (or special holidays) or regular holidays.
The law says:
- Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.
- When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays.
- Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least fifty percent (50%) of his regular wage.
- Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Article, the employer shall pay such higher rate. (Section 93, Labor Code of the Philippines)
What is the rule on employees’ right to weekly rest day?
The law says:
It shall be the duty of every employer, whether for profit or not, to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days. (Article 91, Labor Code of the Philippines)
Thus, during regular holidays, if the employee did not work, he shall be paid 100% of his salary for that day. If the employee worked, he shall be paid 200% of his regular salary for that day for the first eight hours. If the employee worked in excess of eight hours, he shall be paid an additional 30% of his hourly rate on said day. If the employee worked during a regular holiday that also falls on his rest day, he shall be paid an additional 30% of his daily rate of 200%. If the employee worked in excess of eight hours during a regular holiday that also falls on his rest day, he shall be paid an additional 30% of his hourly rate on said day.
On the other hand, during special days or special holidays, if the employee did not work, the “no work, no pay” policy shall apply, unless there is a favorable company policy, practice, or Collective Bargaining Agreement (CBA) granting payment on a special day. If the employee worked, he shall be paid an additional 30% percent of his daily rate on the first eight hours of work. If the employee worked in excess of eight hours, he shall be paid an additional 30% of his hourly rate on said day. If the employee worked during a special day that also falls on his rest day, he shall be paid an additional 50% of his daily rate on the first eight hours of work. If the employee worked in excess of eight hours, during a special day that also falls on his rest day, he shall be paid an additional 30% of his hourly rate on said day. (Labor Advisory No. 6, Series of 2013)
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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