Fewer non-working holidays, fewer premium pay

By Gem Marquez

---

Pursuant to the Proclamation No. 1107, amending the Proclamation No. 986, Nov. 2 (All Soul’s Day), Dec. 24 (Christmas Eve) and Dec. 31 (last day of the year) were considered “special working holidays."

The proclamation, signed by the President last Feb. 27, declared the regular holidays and special non-working days for 2021.

Rodolfo Brosola, a sales promoter for four years in an electronics and mobile communications company assigned in a mall, shared his sentiments when asked about the recent revision of the holiday list of 2021.

“Pag tinanggal ni Duterte yung holiday siyempre masasayang naman yung magiging double pay namin, bale ang magiging bayad na lang non one pay lang,” he answered.

(If Duterte removes the holiday, indeed we will lose our double pay, it will only be one pay instead.)

“Katulad nung sa 24, sinasabi na pwede na lang magbakasyon. So sa amin kasi syempre papasok pa rin kami kahit ‘di na siya double pay kasi yun talaga yung hinahabol namin, makasahod kami nang kumpleto.” he added.

(On the 24th for an instance, it was said that we could just take a vacation. But with us of course, we would still come at work even if it won’t give a double pay because that’s really what we’re after, for us to get fully paid.)

Brosola also expressed his dismay over the sudden reversal in non-working holidays, affecting the additional 30% in their basic wage that they normally receive during special non-working holidays.

“Syempre hindi [okay], kasi parang nakasanayan na namin na ganon eh. Pag holiday kailangan double pay. Ang sarap sarap pumasok pag double pay ta’s ngayon syempre parang nakaka- nakakapanghinayang kung tatanggalin niya yun.”

(Of course it’s not okay, because we’re used to that [practice] already. Holidays require double pay. It’s great to go to work if it’s a double pay, but now of course it’s saddening if he will remove that.)

However, Brosola noted that usually, their schedule to duty still depends if the company will recognize the holiday as a non-working holiday or a regular holiday that would grant an additional compensation.

Urge for reappraisal

The newly amended proclamation has sparked a reappraisal from Sen. Risa Hontiveros due to conflicts with the supposed double pay of workers during “special working holidays."

Duterte’s declaration has lessened non-working holidays to “minimize work disruption” and to revive and increment the economy.

However, Sen. Hontiveros has sought to reverse the order saying that “nothing short of disastrous for workers already dealing with a pandemic and an economic crisis.”

“While we understand the need to increase economic productivity, demoting special Filipino holidays to special working holidays will only burden and demoralize Filipino workers, many of whom are already underpaid and struggling with high prices of goods,” she said, quoted from Inquirer’s report.

“This is rubbing salt on the people’s wounds. Bakit aalisin ang pagkakataon para kumita ang mga kababayan natin ng extra, ngayong marami ang hirap sa buhay?” she added.

(This is rubbing salt on the people’s wounds. Why take away the opportunity for our people to earn extra, especially now that a lot of people are struggling financially?) translated by Inquirer.

Sen. Hontiveros’ antithesis on this issue further echoed in her tweets last March 1.

In a report in the Inquirer, Labor Secretary Silvestre Bello III suggested that workers who want to extend their vacation may simply petition for a leave.

During an online media forum, Bello spelled out the changes under the new proclamation, “Ang importante dyan, kasi kung halimbawa hindi ka papasok, may bayad pa rin ‘di ba pero walang production. Pero ngayon na public holiday pero working, kapag hindi ka pumasok walang bayad."

(What is important here, because before if you won’t go to work, you will still receive pay but there is no production. But now that the dates were declared working holidays, you will not receive compensation if you don’t go to work.) translated by Inquirer.

“Kung gusto mong mapahaba ang bakasyon, ‘di mag-avail of your leave credits. Leave credits ka na lang (If you want to extend your vacation, just use your leave credits),” he also said.

How does the 'no work, no pay' work?

According to 2019 labor advisory, “If the employee did not work, the 'no work, no pay' principle shall apply, unless there is a company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day.”

Holiday pay and premium pay share differences in terms of the rate depending if the employer reports to work during that particular day.

According to the Department of Labor and Employment, a holiday pay is a payment of the regular daily wage for any unworked regular holiday, the worker shall receive a “100% of the employee’s daily wage rate (Basic pay + cost-of-living adjustment or COLA)."

However, if the employer decided to work on a regular holiday, the employer will receive “plus 100% or a total of 200% of the employee’s daily wage rate (Basic pay + COLA).”

On the other hand, a premium pay is an additional payment for work performed within eight hours on rest day or special day.

According to Presidential Decree No. 442, also known as the “Labor Code of the Philippines,” a covered employee is entitled to a premium pay of 30% of the employer’s basic wage which is a total of 130%.

“Plus 30% of the daily basic rate or a total of 130% for work performed on rest day or special day.

Plus 50% of the daily basic rate or a total of 150% for work performed on a special day falling on the employee’s rest day.

Plus 30% of the daily basic rate or a total of 260% for work performed on a regular holiday falling on the employee’s rest day.”

Now that the prior proclamation has been modified, employers that intend to work during the mentioned dates, which were special non-working days, are no longer eligible to receive a premium pay of 30% granted on employees’ regular wage, that is normally subjected to the employer’s hours of work rendered during special non-working holidays.