OpinionsEcon 101Much ado about holiday economics 

Much ado about holiday economics 

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Are you eagerly anticipating  your  next  holiday escapade  when you can enjoy a day or a long weekend of celebration being entitled to stay away from work or school? What about  the time when you are assigned to work on a holiday?

Under Philippine labor laws, employees are entitled to holiday pay on regular holidays, regardless of whether or not they perform work on that day.

The statutory rate for holiday pay on regular holidays is 200 percent of the employee’s daily wage.

If an employee works on a regular holiday, he is entitled to receive an additional 30 percent of his daily rate, for a total of 230 percent.

This year, there are 13 Regular  Holidays. In addition, there are 12 Special Non-Working Holidays; if the employee does not work (because it’s a non-working day), there is no obligation for the employer to pay him. But if work is performed, the employee is entitled to an additional 30 percent of his daily rate, on top of the standard 100 percent daily wage.

The concept of holiday pay is rooted in the principle of fair labor practices, aiming to balance work with rest and cultural celebration.

Due to concerns about   the correlation of workers’ productivity and the number of holidays, Senate President Francis expressed the  Philippine Senate’s stand that there is just too many holidays now, and that there is  no longer a need to add more. He also clarified the Senate has no intention of reducing the number of existing holidays.

The Philippines currently observes a month’s worth of holidays annually, including local, regional, and national holidays. As it is,  there are local holidays in every city, municipality, and province, on top of the national holidays and religion-related holidays. Other countries have fewer holidays.

Employers  are legally bound to comply with the holiday pay provisions as stipulated in the Labor Code and guided by the Department of Labor and Employment.Failure to adhere to these regulations can result in legal consequences, including labor disputes and potential fines.

Employers must accurately compute holiday pay, and ensure its timely distribution to eligible employees. Proper record-keeping is essential for employers to demonstrate compliance with holiday pay regulations.

This includes maintaining accurate attendance logs, pay slips, and other relevant documentation. In instances of disputes, these records serve as essential evidence to support the employer’s case or to identify any discrepancies in pay.

Hence, there is a e need to strike a balance between what benefits Filipinos, and ensuring the survival of businesses, and the country’s international  business competitiveness  as an investment haven for foreign investors, in relation to its ASEAN neighbors.

Labor Sec. Bienvenido Laguesma had acknowledged that too many holidays may affect the productivity and competitiveness of Philippine industries, a major consideration among local and foreign investors.

Federation of Free Workers President Sonny Matula said there is no need for a new law to reduce the number of holidays since employers have the option to require workers to work on a holiday, provided they pay a premium for work done on that day.

Let’s just enjoy our holidays!

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Author’s email: [email protected]

 

 

 

 

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