The Iglesia ni Cristo (INC), one of the country’s biggest religious movements, is celebrating its founding anniversary on July 27 this year. The date is a nationally recognized and celebrated holiday, pursuant to RA 9645, or the “Commemoration of the Founding Anniversary of Iglesia ni Cristo Act.”
But, most workers, students or employers are not aware of the meaning of this designation. The knowledge of the legal status of July 27 will keep employers and workers from getting involved in confusion, and facilitate adherence to Philippine labor laws.
Is July 27 a Public Non-Working Holiday?
July 27 falls under RA No. 9645 (Special National Working Holiday) instead of RA No. 9645 (Special Non-Working Holiday). There is a distinction because that determines which way business goes and payment of employees.
The government and President, if he chooses to do so, may declare any day of July for a specific year to be Special Non-Working Day, in which case, all business industries on such a day would remain closed throughout the country.
Will There Be Work and Classes?
Regular operations are generally in effect on July 27 as it is a Special Working Holiday.
Most government offices, businesses, banks, schools, etc. are closed as usual. Other necessary services like public transport, hospitals also continue as usual.
So, employees should assume that they will go to work, unless directed otherwise by their employer or by the local government’s guidance.
DOLE Pay Rules for July 27
The day is considered as a Special Working Holiday and the conditions of regular wage are applied.
All employees with a normal 8 hour work day are paid 100% of their regular daily rate. There is no fixed “holiday premium” just because of July 27, as there is with normal holidays or special holidays which are not of the working kind.
Overtime pay shall be provided for those employees who are called to work outside of their scheduled hours as provided by normal labor laws.
Overtime Pay on a Special Working Holiday
If an employee works longer than eight hours July 27, overtime pay is applicable pursuant to the existing overtime criteria of the DOLE.
The overtime rate is 125% of the employee’s regular hourly wage rate for any hour worked after the normal dozen-hour day.
Thus, you will not be able to earn “extra pay” during the holiday period; however overtime pay for overtime work is still applicable as per the current labour regulations.
Company Policies May Offer Better Benefits
Special Working Holidays are not a mandatory provision in Philippine laws; however, some employers may decide to offer better benefits.
Firms that have a Collective Bargaining Agreement (CBA) or an internal policy that is more generous with their staff may offer additional compensation, bonuses, or premium rates in addition to what the minimum allowable would be.
Staff members are encouraged to refer to their employment contract or company handbook or contact the HR department if they have any questions regarding their particular rights and benefits.
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Why Does Holiday Classification Matters?
Special Working Holiday vs Special Non-Working Holiday is not an insignificant issue in relation to staffing, attendance and payroll.
It seems like many employees think that any day that is a national holiday will automatically be a holiday with great pay. Indeed, Philippine labour law categorises holidays and sets various rules for different types of holidays.
Employers need to know and create payroll which follows these classifications, and employees need to be aware of their rights and obligations.
FAQs
Is July 27th of the year in the Philippines a public holiday?
No. July 27 is marked as a Special Non-Working Holiday, not a Special Non-Working Holiday.
How much overtime is calculated for July 27?
Employees who work overtime beyond 8 hours are paid for overtime according to the regular overtime practice of DOLE, which is 125% of the regular hourly rate.
Will July 27 bring increased wages for the companies?
Yes. Although mandatory by law, premium pay or extra benefits may be offered by the employer voluntarily by company policy or a Collective Bargaining Agreement.
