Wage Rules for Chinese New Year 2025 in the Philippines

The Republic of the Philippines' Department of Labor and Employment (DOLE) has issued Labor Advisory No. 01, Series of 2025, which outlines the payment of wages for the special (non-working) day on January 29, 2025. This date is particularly significant as it coincides with the celebration of Chinese New Year, a major festival observed by Chinese-Filipino communities and acknowledged nationwide. This advisory is crucial for both employers and employees to understand their rights and obligations regarding wage payments on special non-working days.

Key Points of Labor Advisory No. 01, Series of 2025:

1. No Work, No Pay Principle:

   • If an employee does not work on the special non-working day, the "no work, no pay" principle applies. However, this can be overridden if there is a favorable company policy, practice, or collective bargaining agreement (CBA) that grants payment on a special day.

2. Work Done During the Special Day:

   • For work done during the special day, the employer must pay the employee an additional 30% of the basic wage for the first eight hours of work. This is calculated as:

     • Basic wage x 130%

3. Work Done in Excess of Eight Hours:

   • For work done beyond eight hours on the special day, the employer must pay the employee an additional 30% of the hourly rate on said day. This is calculated as:

     • Hourly rate of the basic wage x 130% x number of hours worked

4. Work Done on the Employee's Rest Day:

   • If the special day coincides with the employee's rest day, the employer must pay the employee an additional 50% of the basic wage for the first eight hours of work. This is calculated as:

     • Basic wage x 150%

5. Work Done in Excess of Eight Hours on Rest Day:

   • For work done beyond eight hours on a special day that also falls on the employee's rest day, the employer must pay the employee an additional 30% of the hourly rate on said day. This is calculated as:

     • Hourly rate of the basic wage x 150% x 130% x number of hours worked

Significance of Chinese New Year:

Chinese New Year, also known as the Spring Festival or Lunar New Year, is one of the most important holidays in Chinese culture. It marks the beginning of the lunar new year and is celebrated with various traditions such as family reunions, feasting, and the giving of "hongbao" (red envelopes). In the Philippines, the government has recognized the cultural and economic contributions of the Chinese-Filipino community by declaring Chinese New Year as a special non-working day. This recognition not only honors the heritage and traditions of Chinese-Filipinos but also strengthens the multicultural fabric of the nation.

Conclusion:

This advisory ensures that employees are fairly compensated for their work on special non-working days, especially when these days coincide with their rest days or culturally significant holidays like Chinese New Year. Employers must adhere to these guidelines to maintain compliance with labor laws and ensure fair treatment of their workforce.

Reference: Payment of Wages for the Special (Non-Working) Day on 29 January 2025