These benefits are generally a matter of agreement between an employer and an employee (or the employee's representative). Workers were … Returns affect your sales as well so if someone buys $400 one day and returns it a week later, you suffer a loss that week. Murphy is cutting annual holiday entitlement for staff to 21 days plus a 10% pay cut for three months in response to the ongoing coronavirus pandemic. To start off, workers need to remember that regular holidays are days that have fixed dates such as New Year's Day, Rizal Day, and Christmas Day. Holiday pay is based on a week’s pay. Taking a pay cut may be advisable if it will help protect jobs in the long term. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). Premium pay for holiday work will not be included in determining the regular hourly rate of pay for the purpose of calculating overtime payments. It's incredibly demanding in sales, long hours, and somewhat okay pay (if you're lucky enough to survive the reviews). Businesses that are seeing significant revenue losses due to the coronavirus pandemic are weighing some stark options: furloughs, reductions in hours and pay cuts, or layoffs. Example 1: Employee works 14 hours on the holiday … Holiday premium pay is paid in addition to any overtime pay due. Others opine that taxation of salary in such a case would depend on whether the salary reduction is a pay cut … First and foremost, be aware of the possibility of a pay cut. Gauge The Possibility Of A Pay Cut. If you work shifts, or have no normal working hours, then holiday pay is calculated by using the preceding 12 weeks of pay. If the pay-cut is made via any other arrangement then the income tax department may not take into account such cuts and consider it as salary due as per some chartered accountants. Holiday premium pay, calculated at one-half (0.5) times the applicable hourly rate for hours worked on January 1, last Monday in May, July 4, 1st Monday in September, Thanksgiving Day and December 25th, shall count towards any premium overtime compensation earned during the same workweek. While organisations may not want to lay off employees, the drain on resources may force them to temporarily cut pay, according to Suresh Sadagopan, founder of Ladder7 Financial Advisories. In other words — regular overtime rules apply, since the law treats federal holidays as just another business day. This works out to around 5.6 weeks of holiday. By at least $1-$2. Holiday Premium Pay . Like usual, if you qualify for overtime pay, and you work over 40 hours during the week of a federal holiday, then you are entitled to “time and a half” pay for the hours worked over 40. Let's say your employer has cut your pay without asking you first, there are two options for you. 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