Wage for Work on Public Holiday

Each year, the Ministry of Labor and Vocational Training issues Prakas determining the paid holidays for workers of all enterprises. These paid holidays do not break off the length of employment, which will be used as basis for calculation of paid annual leaves. (Article 161, Labor Law) If public holiday falls on Sunday, workers will be provided another one day off on Monday. Time off for holiday cannot be reason for reducing monthly, bi-monthly, or weekly wages. (Article 162, Labor Law) Furthermore, workers paid by the hour, the day, or by the amount produced must be entitled to an indemnity equal to the wage lost as a result of holidays as defined in the Prakas. (Article 163, Labor Law)

In establishment or enterprise where work cannot be interrupted because of the nature of their activities requiring the workers to occupy with working during holiday; those workers are entitled to an indemnity in addition to wages for the work performed. The amount of this indemnity to be paid by the employer must be set by Prakas of the Ministry in Charge of Labor. (Article 164, Labor Law) Pursuant to Prakas No. 10 dated 04 February 1999 on Indemnity of Work Performed during the Paid Holiday issued by Ministry of Social Affairs, Labor, Vocational Training and Youth Rehabilitation, particularly Article 3 provides that the work on paid holiday is based on the agreement of the workers. The worker who performs work on paid holidays is entitled to indemnity equal to wage of normal working day. (Article 4, Prakas No. 10)

The Prakas, Article 4, further provides formula of the calculation of wage on paid holiday as follow. For example, the worker has monthly actual wage of 52$ per month. On 08 March is paid holiday and the worker voluntarily works for 1 day based on the request of the employer. In this case, the wage to paid to worker is 52$+(52$/26×1)=54$. However, if the worker only works for 4 hours and the duration of working hours is 48 hours per week. The wage to be paid to the workers is based on the following formula= 52$+ [(52$x12/52×48)x4]=53$.

Categories Employment and Labor Laws

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