Project Wonderful

Aug 13, 2012

Pay Guidelines on August 7, 2012 Work Suspension by DOLE



DOLE issues Q&A on payment of wages due to suspension of work in private sector on 7 August
The Department of Labor and Employment (DOLE) yesterday issued guidelines on the payment of wages due to the suspension of work in the private sector on August 7, pursuant to Memorandum Circular No. 33-A, Series of 2012 issued by the Office of the President, declaring work suspension in all offices in the private sector in the National Capital Region (NCR), and in the provinces of Zambales, Bataan, Pampanga, Pangasinan, Tarlac, Bulacan, Laguna, Cavite, and Rizal on August 7, 2012 in the view of the continuing inclement weather brought about by southwest monsoon (Habagat).

The Q&A consists of 11 questions that might be of concern to workers or employers.

It answers concerns such as how to compute the premium pay of 30 percent for employees who worked on that day, particularly those who worked in shifts.

Here is the link.


1. What is Memorandum Circular No. 33-A?

Answer: Memorandum Circular No. 33-A is a Presidential issuance declaring work suspension in all offices in the private sector in the National Capital Region, and in the provinces of Zambales, Bataan, Pampanga, Pangasinan, Tarlac, Bulacan, Laguna, Cavite, and Rizal.

2. What is the period covered by MC 33-A?

Answer: The work suspension covers only the 24-hour period from 12:01 A.M. of 7 August 2012 to 12:00 M.N. of the same day.

3. If an employee did not report to work on 7 August 2012, is he or she entitled to be paid his/her wage?

Answer: No. In this instance, the principle of “no work, no pay” applies. However, an employee can avail of his or her accrued leave credits, or be covered by a favorable company policy and practice, or by collective bargaining agreement (CBA) granting payment of wages during calamities or emergencies.

4. May an employer require his employees to report for work on 7 August 2012 despite the suspension of work pursuant to MC 33-A?

Answer: Yes, but under the following conditions: (a) the employer should ensure the safety of the employee in going to and from work, like the provision of free transportation, personal protective equipment, first aid medicine, etc. and (b) payment of 30% premium pay.

5. How is the premium pay computed when an employee is suffered or required to work on 7 August 2012?

Answer: The 30% premium pay is computed as follows:

     (a) For normal 8-hour work, usually rendered from 8:00 A.M. to 5:00 P.M.

             Sample Computation (Using NCR minimum wage rate):
             Applicable daily rate = (Basic Pay x 130%) + COLA, if applicable
             = (P426 x 1.3) + P20
             = P553.80 + P20
             = P573.80

     (b) For shift work rendered from 10:00 P.M. of 6 August 2012 to 7:00 A.M. of 7 August 2012

For work rendered from 10:00 P.M. to 12:00 M.N. of 6 August 2012, the regular hourly rate (basic pay + 10% night shift differential) plus COLA, if applicable
For work rendered from 12:01 A.M. to 7:00 A.M. of 7 August 2012, the regular hourly rate (basic pay + 10% night shift differential until 6 A.M. + 30% premium pay) plus COLA, if applicable

     (c) For shift work rendered from 10:00 P.M. of 7 August 2012 to 7:00 A.M. of 8 August 2012

For work rendered from 10 PM to 12:00 midnight of August 7, 2012, the regular hourly rate (basic pay + 10% night shift differential until 6 AM + 30% premium pay) plus COLA, if applicable
For work rendered from 12:01 A.M. to 7:00 A.M. of August 8, 2012, the regular hourly rate (basic pay + 10% night shift differential) plus COLA, if applicable

6. If the employee is permitted or suffered to work for less than the normal 8-hour work on 7 August 2012, is the employer required to pay the employee the 30% premium pay?

Answer: Yes. The employer should pay the 30% premium pay based on the actual work hours rendered.

               Sample computation: 4 hours of work rendered (Using NCR minimum wage rate):

                Applicable daily rate = (Basic Pay x 130%) divided by 8 hours x 4 hours + COLA, if applicable
                = (P426 x 1.3) divided by 8 hours x 4 hours + COLA
                = P276.90 + P20
                = P296.90

7. If the employer requires his employee to work in excess of 8 hours on 7 August 2012, how much should the employer pay his employee?

Answer: The employer should pay the 30% overtime premium pay in addition to the regular wage and 30% premium pay.

8. What is the compensation of an employee whose work shift started from 8:00 A.M. of 7 August 2012, but was suspended, for example, at 10:00 A.M. of the same day?

Answer: The employee shall be entitled to the following:

For work rendered from 8:00 A.M. to 10:00 A.M., the hourly rate shall be based on the regular wage plus 30% additional pay based on the basic pay; and
For the unworked period (10:00 A.M. to 5:00 P.M.), the principle of “no work, no pay” applies. But the employee can avail of his/her accrued leave credits, or be covered by a favorable company policy and practice, or by collective bargaining agreement (CBA) granting payment of wages during calamities or emergencies.
9. Who are covered by the premium pay?

Answer: The premium pay benefit applies to all employees, except managerial employees, officers or members of a managerial staff, house helpers, workers who are paid by results, and field personnel.

10. May an employee be disciplinarily sanctioned for failing to report to work?

Answer: No, provided he/she has advised the employer of his/her inability to report for work.

11. If the employer requires or suffers his/her employee to work at home based on agreed output or standards, is the latter entitled to the 30% premium pay ?

Answer: Yes.

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