DoLE reminds employers of Eid’l Fitr pay rules

The Department of Labor and Employment (DoLE) has issued a reminder to employers about the proper pay rules for the upcoming Eid’l Fitr holiday. Malacañang has declared 1 April a regular holiday throughout the Philippines to mark the end of Ramadan, a significant religious observance for Muslims.

Under the pay rules for regular holidays, employees who do not work on Eid’l Fitr are entitled to 100 percent of their daily wage, provided they report to work or are on paid leave on the day immediately preceding the regular holiday.

If the day before the holiday is a non-working day, or if it’s the employee’s rest day, the employee will still be entitled to holiday pay, as long as they report to work or are on paid leave the day before the non-working day or rest day.

For employees who are required to work on a regular holiday, employers must pay 200 percent of the employee’s wage for the first eight hours worked. This is in recognition of the regular holiday pay rate. If the employee works beyond the eight hours, they will receive an additional 30 percent of their hourly rate for the extra hours worked.

Moreover, if the regular holiday falls on the employee’s scheduled rest day, and the employee works on that day, the employer is required to pay an additional 30 percent of the basic wage on top of the 200 percent holiday pay.

For overtime work (over eight hours) on a regular holiday that coincides with the employee’s rest day, the employer must pay the employee an additional 30 percent of the hourly rate for the excess hours worked.

DoLE stressed that these rules are in accordance with the guidelines stipulated in the Labor Code of the Philippines to ensure that workers are compensated fairly, especially during holidays. Employers are urged to comply with these regulations to avoid labor disputes and ensure that workers are properly compensated for their time during the religious holiday.

Employers are also advised to ensure they are prepared for any adjustments or shifts in work schedules, especially for businesses or industries where work must continue during holidays, to guarantee that all workers receive their rightful compensation.

The reminder aims to promote fairness, transparency, and the protection of workers’ rights, ensuring that the spirit of Eid’l Fitr is honored not just spiritually, but also in the workplace.