H ANDBOOK ON WORKERS’ STATUTORY MONETARY BENEFITS

BUREAU OF WORKING CONDITIONS
DEPARTMENT OF LABOR AND EMPLOYMENT

INTRAMUROS, MANILA 2010

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Handbook (2010 ed.) Project Team Lourdes M. Trasmonte
Undersecretary

Brenda L. Villafuerte
Director IV

Nicanor V. Bon
Chief - LEO Editorial Staff Emila T. de Guzman Romeo J. Santos Expectacion D. Ruivivar

This Handbook is published by the Bureau of Working Conditions (BWC), Department of Labor and Employment (DOLE) 3rd Floor DOLE Bldg., Intramuros, Manila Tel. No. 527-3000 locals 301, 308 Telefax: 536-8975 email: bureauofw orkingcon ditions@gmail.com website: www .bw c.dole.gov.ph

All rights reserved. This Handbook, or any part thereof, may not be reproduced for commercial purposes without the written permission of the Bureau of Working Conditions, Department of Labor and Employment.

Acknowledgment
Heartfelt appreciation is due the following individuals for providing us valuable technical support in the preparation of this 2010 Edition: ARD Alex V. Avila, ARD Joffrey M. Suyao, DOLE-NCR; Atty. Welma T. Sicangco, NWPC, and Atty. Marissa C. Mapalo, Legal Service.

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PhilHealth and social security benefits.FOREWORD The Handbook on Workers’ Statutory Monetary Benefits has evolved through the years with its continuing revision and updating. we have made sure that it is able to provide complete and authoritative information that the public should know about recent labor laws and regulations on labor standards and their applications. Since its first publication in 1994. workers and employers. It also explains the use of factors or divisors in the computation of estimated monthly rates of employees pursuant to Republic Act No. This 2010 edition incorporates. in particular. I hope that this Handbook will be very useful for any one who wishes to have a better understanding and appreciation of labor standards and their applications in the world of work. or an “Act Rationalizing the Celebration of National Holidays. ROQUE Secretary 4 January 2010 4 . 9492. MARIANITO D. well informed of the latest laws and regulations on labor standards.” This Handbook is an integral part of our sustained efforts to keep the general public. recent updates on the regional wage rates. With its easy-to-understand format and reader-friendly presentation. among others.

Coverage C. Stipulated Overtime Rates 5. Premium Pay Rates 4. Definition B. NIGHT SHIFT DIFFERENTIAL (Article 86) A. Coverage B. Special Days D. Coverage C. Coverage C. Definition B. MINIMUM WAGE A. Definition B. Holiday Pay of Certain Employees 3. Regular Holidays D. and Disabled Workers H. Coverage C. PREMIUM PAY (Articles 91-93) A. Minimum Wage of Workers Paid by Results G. OVERTIME PAY (Article 87) A. Basis D. Minimum Wage Rates C.C ONTENTS 1. Monthly-Paid and Daily-Paid Employees E. Effect of Reduction of Workdays on Wages J. Overtime Pay Rates D. Learners. Temporary or Periodic Shutdown/Cessation of Work H. Computation of the Estimated Equivalent Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Employees F. Definition B. Penalty and Double Indemnity for Violation of the Prescribed Increases or Adjustments in the Wage Rates (RA 8188) 2. Absences F. Minimum Wage of Househelpers (RA 7655) I. Minimum Wage of Apprentices. Successive Regular Holidays G. Computation of Night Shift Differential 2 3 5 5 5 7 8 8 9 9 10 10 11 12 13 14 14 14 15 15 16 17 18 18 18 19 20 20 21 5 . HOLIDAY PAY (Article 94) A. Muslim Holidays E.

Application for Paternity Leave E.6. Meaning of “one year of service” C. PARENTAL LEAVE FOR SOLO PARENTS (RA 8972) A. Coverage B. Termination of the Benefit H. Crediting of Existing Leave G. Coverage B. THIRTEENTH-MONTH PAY (PD 851) A. Protection Against Work Discrimination 11. SERVICE CHARGES (Article 96) A. Requirement for Entitlement D. Definition B. Coverage B. Nonconversion to Cash F. Exempted Employers E. SERVICE INCENTIVE LEAVE (Article 95) A. Minimum Amount D. Usage of the Benefit 12. Time of Payment of Thirteenth-Month Pay 26 26 26 27 28 28 29 29 30 30 30 31 31 31 32 32 33 33 33 33 34 34 35 35 35 36 36 37 37 37 38 38 6 . Payments C. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR CHILDREN (RA 9262) A. Coverage and Purpose C. The Benefit E. MATERNITY LEAVE (RA 1161. Conditions for Entitlement E. PATERNITY LEAVE (RA 8187) A. Nonconversion to Cash F. Crediting of Existing Benefits 10. Tips 7. as amended by RA 8282) A. Usage/Conversion to Cash 8. Coverage B. The Parental Leave Benefit D. Coverage B. Definition of Terms C. Definition of Rank-and-File Employees C. Conditions for Entitlement D. Sharing B. The Paternity Leave Benefit C. Entitlement 9.

Retirement Benefits under a Collective Bargaining Agreement / Applicable Contract D. RETIREMENT PAY (Article 287. Basis of Separation Pay E. Inclusion of Regular Allowance in the Computation 14. The Benefits D. Thirteenth-Month Pay of Resigned or Separated Employee H. Amount of Retirement Pay C. One-Half Month Pay per Year of Service B. The National Health Insurance Program 49 B. SEPARATION PAY (Articles 283-84) A. Coverage B. Notice of Termination D. Coverage C. SOCIAL SECURITY BENEFITS (RA 1161. Other Benefits upon Retirement 15. Retirement Benefit of Underground Mine Employees under Republic Act 8558 G. The Benefits 50 17. PHILHEALTH BENEFITS (RA 7875. Coverage C. as amended by RA 9241) A.F. Retirement Benefits of Workers who are Paid by Results E. as amended by RA 8282) A. Non-inclusion in Regular Wage 13. The Benefits APPENDIX Directory of DOLE Regional Offices Directory of DOLE-NCR Field Offices The Bureau of Working Conditions 54 54 54 57 58 59 7 . Kinds of Disability E. as amended by RA 7641) A. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION PROGRAM (PD 626) A. The Employees’ Compensation Program B. Filing of Claims F. The Social Security Program B. Retirement Benefit of Part-time Workers F. Obligations/Responsibilities of Employers 39 39 40 41 42 42 42 42 43 43 44 44 44 45 45 46 46 46 47 47 48 16. One-Month Pay per Year of Service C. Coverage 49 C. Thirteenth-Month Pay for Certain Types of Employees G.

growing and harvesting of any agricultural or horticultural commodities. raising of livestock or poultry. cultivation. The Rules Implementing RA 6727 define the industrial sectors as follows: “Agriculture” refers to farming in all its branches and. tobacco. depending on the number of workers or capitalization or annual gross sales in some sectors. and nonplantation. includes the cultivation and tillage of the soil. namely. “Service Establishment” is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.” “Retail Establishment” is one principally engaged in the sale of goods to end-users for personal or household use. pineapple. 6727 (also known as the “Wage Rationalization Act”) mandates the fixing of the minimum wages applicable to different industrial sectors. dairying. non-agriculture. “Cottage/Handicraft Establishment” is one engaged in an economic endeavor in which the products are primarily done in the home or such other places for profit which requires manual dexterity and craftsmanship and whose capitalization does not 1 8 .M INIMUM W AGE Republic Act No. agriculture plantation. cottage/handicraft. coconut. Any other agricultural enterprise shall be considered as “Non-plantation Agricultural Enterprise. the culture of fish and other aquatic products in farms or ponds. and any activities performed by a farmer or on a farm as an incident to or in conjunction with such farming operations. abaca. and retail/service. “Plantation Agricultural Enterprise” is one engaged in agriculture with an area of more than 24 hectares in a locality or which employs at least 20 workers. but does not include the manufacturing and/or processing of sugar. production. among others. aquatic or other farm products.

designation.00. 9 . Some Wage Orders grant allowances instead of wage increases.exceed P500. Batangas.CALABARZON (Cavite.MIMAROPA (Mindoro. The Wage Orders likewise provide the basis and procedure for application for exemption from compliance therefrom.Southern Mindanao or Davao Region 12 .000.Northern Mindanao Region 11 .Eastern Visayas Region 9 . regardless of previous registration with the defunct NACIDA. Romblon.Central Visayas Region 8 .Central Mindanao or SOCCSKSARGEN (South Cotabato. Quezon) Region 4-B . regardless of their position. Palawan) Region 5 . Rizal. A. The said law rationalized wage determination by establishing the mechanism and proper standards through the creation of Regional Tripartite Wages and Productivity Boards (RTWPBs) authorized to determine the daily minimum wage rates in the following different regions based on established criteria: National Capital Region (NCR) or Metro Manila Cordillera Administrative Region (CAR) Region 1 .Central Luzon Region 4-A . Marinduque. Sultan Kudarat.Caraga Autonomous Region in Muslim Mindanao (ARMM).Bicol Region 6 .Western Visayas Region 7 .Sarangani.Western Mindanao or Zamboanga Peninsula Region 10 . The Regional Wage Orders prescribe the daily minimum wage rates per industry per locality within the region and in some instances depending on the number of workers and the capitalization of enterprises. General Santos) Region 13 . Coverage A.1 The wage increases prescribed under Wage Orders apply to all private sector workers and employees receiving the daily minimum wage rates or those receiving up to a certain daily wage ceiling. Laguna. where applicable.Northern Luzon or Ilocos Region 2 .Cagayan Valley Region 3 . North Cotabato. .

0 0 3 25.0 0 3 45 . Paranaque. M a n i l a . N o.00 1 5 . No .0 0 3 25. Pasay. Malabon.0 0 E ff e c t i v i t y d a te i s on 2 8 A ugu st 2 007 . NCR-14 b 1 5 . Househelpers. Makati. 00 3 45 . Pasig. Muntinlupa. B.0 0 3 25.0 0 3 25. and irrespective of the method by which their wages are paid.00 5 .00 5 . M a n d a l u yo n g . 7655. 00 T ota l 3 82 . A. E ff e c ti v i t y d a te i s on 1 4 Jun e 200 8 . NCR. NCR . Quezon.0 0 1 5 .0 0 1 5 .13 a 3 62. 00 3 45 .0 0 1 5 . a company/establishment may be exempted from compliance with a Wage Order for a period not to exceed one (1) year. 10 .14 c 5 . 00 3 45 .O. based on documentation and other requirements in accordance with applicable rules and regulations issued by the National Wages and Productivity Commission (NWPC).00 C O LA und er W .0 0 Ba s i c Wa ge u nd er W. 00 3 45 . In te gra tion o f P5 .0 0 3 25. No. including family drivers and workers in the personal service of another whose conditions of work are prescribed in Republic Act No.or status. except the following: 1. Navotas. Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued by the Office of the Municipal or City Treasurer. M a r i k i n a .2 Upon application with and as determined by an RTWPB. Minimum Wage Rates DAILY MINIMUM WAGE National Capital Region As of January 2010 Cit ie s / Munic i pa l i t y Caloocan. 00 5 .O . Taguig.0 0 1 5 . Valenzuela. San Juan.00 5 .00 CO LA in t o th e ba s ic wa ge o n 28 Au gu s t 2 008 . Las Piñas.O .00 5 . 2. and Pateros Se cto r /In dust ry No n-a gr icu ltu re Ag ric ulture P l an ta t i on No np l an ta t i o n Pr i va t e H os p ita l s Wit h b ed ca pa c i t y o f 1 00 o r l e ss Retail/ Se rvi ce Est ablish men ts E mpl o yi ng 15 wo r k er s o r l e ss Man ufacturi ng Establish men ts Em pl o ying le ss th an 1 0 wo r ker s a b c Mi ni mu m Wa ge un de r W.

239.00 220.00 178.00 243.gov.00 Nonplantation 345. cor T. P12 (Resource-Based Area).00 . *For updates on the amount of applicable minimum wage rates and/or allowances.00 .00 216.00 .00 .00 255. RTWPB XI-13 into the basic wage.217.250.207.00 225.00 240.00 219.00 .00 187.00 Agriculture Plantation 345.187.00 .00 .00 .295. Manila Telefax: 627-5155 and 400-6765.nwpc.00 251.00 195.256.00 198.00 241.00 .00 .00 210. P14 (Emerging Growth Area). o/ Granted P7-10.00 226. M.249.00 195.00 196. J.00 236. g/ Granted P10 wage/day to all minimum wage workers & P5 COLA to non-agriculture sector only..00 202.00 215. or your Regional Tripartite Wages and Productivity Board (RTWPB).00 .50 wage/day & P3-5 COLA/day. The P10 COLA under WO No.272.00 215. depending on the industry classification.00 208.00 208.00 222.244.00 220. the P6 from P13 COLA shall be integrated into the basic wage on 1 January 2009.00 . pls.223.275.00 .320.235. RX-13 shall be integrated into the basic wage on 16 November 2008.00 .00 202.CURRENT REGIONAL DAILY MINIMUM WAGE RATES (As of January 2010)* Region NCR a/ CAR b/ 1 c/ 2 d/ 3 e/ 4-A f/ 4-B g/ 5 h/ 6 i/ 7 j/ 8 k/ 9 l/ 10 m/ 11 n/ 12 o/ CARAGA p/ ARMM q/ WO No. c/ Granted P10 COLA/day.00 220.00 226. h/ Granted P13 COLA/day.240.00 245. RX-12 into the basic wage.00 236. The P10 COLA under WO No. n/ Granted P15 COLA & integrated the P16 COLA under WO No. e/ Granted P15/day consisting of P5 basic wage & P10 COLA. i/ Granted P15 Emergency Relief Allowance (ERA)/day until 15 October 2008.242.00 . IX-14 shall be integrated into the basic wage.00 227.00 . RX-14 shall be integrated into the basic wage on 16 September 2008. Kalaw St. l/ Granted P15 wage/day consisting of P5 basic wage and P10 COLA for a period of three months.ph 11 .00 .00 a / Granted a P20/day consisting of P15 basic wage & P5 COLA/day./Date of Effectivity WO 14/14 Jun 2008 WO 13/16 Jun 2008 WO 13/22 Jun 2008 WO 13/15 Jun 2008 WO 14/16 Jun 2008 WO 13/1 Jun 2008 WO 4/19 Jun 2008 WO 13/1 July 2008 WO 16/6 July 2008 WO 14/16 Jun 2008 WO 15/16 Jun 2008 WO 15/3 July 2008 WO 14/1 Jun 2008 WO 15/16 Jun 2008 WO 15/16 Jun 2008 WO 9/20 Jun 2008 WO 11/ July 2008 Non-agriculture 382. Ermita.00 215. k/ Granted P10 COLA/day.00 207.00 218.00 .00 .00 210.260.252. E. thereafter. p/ Granted P13/day consisting of P8 basic wage & P5 COLA.244. q/ Granted P10 wage/day. Bocobo St.00 223. Pls.00 255.00 .267.242.249.00 240. The COLA shall be integrated into the basic wage on 28 August 2008. also visit www.00 .00 .00 229.256.00 196.00 . m/ Granted P12 COLA & integrated the P16 COLA under WO No. Antonino Bldg. j/ Granted P17 wage/day.00 203. b/ Granted P10 & 15 COLA/day depending on the area and industry classification.00 229.00 . RB III-13 into the basic wage. RTWPB-II-09 into the basic wage.223.00 219.00 .00 . d/ Granted P12 basic wage/day and integrated P8 COLA under WO No. G. contact the National Wages and Productivity Commission (NWPC) located at 11/F.00 233. P5 out of the P20 COLA under WO No.00 238.00 216.302.197. f/ Granted P12-20 wage/day as follows: P16-20 (Growth Corridor Area). integrated the P9 COLA under WO No.00 210.00 265..

special days. of days in a year 1 F or wo r kers wh o se re s t da ys fa l l on S und a ys. Computation of the Estimated Equivalent Monthly (EEMR) of Monthly-Paid and Daily-Paid Employees For monthly-paid employees: Rate Factor 365 days in a year is used in determining the equivalent annual and monthly salary of monthly-paid employees. Basis The basis of the minimum wage rates prescribed by law shall be the normal working hours of eight (8) hours a day. wi l l n o w b e ob s er ved o n the la st M on da y o f Au gu s t . the n um ber of r e st da ys in a ye ar i s n ow 5 2 d a ys. D. and regular holidays. U nd er RA 949 2 . To compute their Estimated Equivalent Monthly Rate (EEMR).C. 12 . Daily-paid employees are those who are paid on the days they actually worked and on unworked regular holidays. Monthly-Paid Employees and Daily-Paid Employees Monthly-paid employees are those who are paid every day of the month. E. including unworked rest days. a r e gular h ol i d a y pr evi ou sl y o b se r ved o n the l a st Su nda y o f Au gust . the procedure is as follows: Applicable Daily Rate x 365 12 where 365 days/year = 299 52 11 3 ____ 365 = EEMR ordinary working days rest days 1 regular holidays special days Total equivalent no. t he Na t i o na l Her oe s' D ay.

1.90 ______ 392. if actually worked.50 ordinary working days eleven regular holidays x 200% 52 rest days x 130% three (3) special days x 130% Total equivalent number of days in a year 2. if the two (2 ) spe cia l d a y s und er E O 2 03 a nd o ne ( 1) sp e ci a l d a y un de r R A 9 25 6 ar e n ot con si d ere d pa id .50 = EEMR 12 where 392. this is equivalent to 3. For those who do not work and are not considered paid on Sundays or rest days Applicable Daily Rate x 313 = EEMR 12 where 313 days/year = 299 ordinary working days 11 regular holidays 3 special days (if considered paid. 13 . and regular holidays Applicable Daily Rate x 392. For those who do not work and are not considered paid on Saturdays and Sundays or rest days 2 F a ctor 3 10 m a y be us e d in st ead o f 3 13 .For daily-paid employees: The following factors and formula may be used in computing the EEMR of different groups of daily-paid employees for purposes of entitlement to minimum wages and allied benefits under existing laws. special days. including Sundays or rest days. For those who are required to work everyday.9 days) ____ 313 Total equivalent number of days in a year 2 3.50 days/year = 299 22 67.60 3.

Consultation with representatives of employers’ and workers’ organizations in a tripartite conference called by the DOLE Secretary. This will be done through: 1.9 days) ____ 261 Total equivalent number of days in a year 3 F. 3 F a ctor 25 8 m a y be u se d i f th e two ( 2) sp eci a l d a ys un der EO 20 3 a nd one (1) sp e ci al d ay u n der R A 9 25 6 (Ni no y Aqui no Da y) a re no t wo r ked an d n ot co n si der ed pa id . to determine whether the nontime employees in an enterprise are being paid fair and reasonable wage rates. The wage rates of workers who are paid by results shall continue to be established in accordance with Article 101 of the Labor Code of the Philippines. shall receive not less than the prescribed minimum wage rates under the Regional Wage Orders for normal working hours which shall not exceed eight (8) hours a day. as amended. Time and motion studies. Where the output rates established by the employer do not conform with the standards set under the foregoing methods for establishing output rates. if actually worked. Minimum Wage of Workers Paid by Results All workers paid by results. 2. may be filed with the proper Regional Office. Request for the conduct of time and motion studies. or a proportion thereof. this is equivalent to 3. or task basis. and its implementing regulations.Applicable Daily Rate x 261 = EEMR 12 where 262 days/year = 247 11 3 ordinary working days regular holidays special days (if considered paid. including homeworkers and those who are paid on piece rate. takay. 14 . pakyaw. the employee shall be entitled to the difference between the amount he or she is entitled to receive and the amount paid by the employer.

privileges. and in the municipality of Pateros. 5 of RA 7277 or the Magna Carta for Disabled Persons). a compensation of six hundred fifty pesos (P650. Navotas. a compensation of five hundred fifty pesos (P550. Househelpers who are receiving at least one thousand pesos (P1. Amount of increase in Applicable Minimum Wage (AMW) rate ÷ Previous AMW x 100 = % increase 3. Valenzuela. Las Piñas. Taguig.000. Minimum Workers Wage of Apprentices. Quezon.00) a month is required for househelpers in other chartered cities—cities other than Manila. Manila. Existing rate/piece + increase in rate/piece = Adjusted rate/piece G. Makati. On the other hand. Pasay. Malabon. Marikina. Minimum Wage of Househelpers (RA 7655) The minimum compensation of eight hundred pesos (P800. San Juan. and Caloocan—highly urbanized cities. H. A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation. fringe benefits or allowances as a qualified able bodied person (Sec. and first-class municipalities. Pasay.00) a month shall be covered by the Social Security System and shall be entitled to all the benefits provided therein. Learners.00) a month is required for househelpers in other municipalities. Muntinlupa. and Disabled Wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable minimum wage rates. Pasig.The adjustment in the wage rates by reason of mandatory wage increase for workers paid by results shall be computed in accordance with the following steps: 1. Parañaque. Quezon. benefits.00) a month is required for househelpers in the cities of Caloocan. Apprentices and learners are those who are covered by apprenticeship and learnership agreements duly approved by the Technical Education and Skills Development Authority (TESDA). 15 . Meanwhile. Mandaluyong. Existing rate/piece x % increase = Increase in rate/piece 4.

trust. such as when there is a substantial slump in the demand for his/her goods or services or when there is lack of raw materials.000. Penalty and Double Indemnity for Violation of the Prescribed Increases or Adjustments in the Wage Rates (RA 8188) Any person. Effect of Reduction of Workdays on Wages In situations where the employer has to reduce the number of regular working days to prevent serious losses.000.Employers shall review the employment contracts of their househelpers every three (3) years with the end in view of improving the terms and conditions thereof. trust.00) or imprisonment of not less than two (2) years nor more than four (4) years. partnership. If the violation is committed by a corporation. general manager. The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided. the president. firm. firm. partnership.” This is without prejudice to an agreement or company policy which provides otherwise. or both such fine and imprisonment at the discretion of the court: Provided. corporation. managing director or partner. I. shall be punished by a fine of not less than Twenty-five Thousand Pesos (P25. consistent with the principle of “no work. That any person convicted hereof shall not be entitled to the benefits provided for under the Probation Law. the employer may deduct the wages corresponding to the days taken off from the workweek. association or any other entity. including. no pay. vice-president. but not limited to. association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with RA 6727. chief executive officer. That payment of indemnity shall not absolve the employer from the criminal liability imposable hereof.00) nor more than One Hundred Thousand Pesos (P100. J. 16 . the penalty of imprisonment shall be imposed upon the entity’s responsible officers.

2.H OLIDAY P AY (Article 94) A.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed. if they perform the following duties and responsibilities: 5.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof. B. 5. Househelpers and persons in the personal service of another. under general supervision.3 They have the authority to hire or fire other employees of lower rank. Those of retail and service establishments regularly employing less than ten (10) workers. whether employed by the National Government or any of its political subdivisions. firing. Coverage This benefit applies to all employees except: 1. Government employees. if they meet all of the following conditions: 4. work along specialized or technical lines requiring 17 2 .2 They customarily and regularly direct the work of two or more employees therein. Officers or members of a managerial staff.1 Primarily perform work directly related to management policies of their employer. or their suggestions and recommendations as to hiring. and promotion. Definition Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday. 5. 3. 4. or any other change of status of other employees are given particular weight. 4.2 Customarily and regularly exercise discretion and independent judgment. including those employed in government-owned and/or controlled corporations with original charters or created under special laws. or (b) execute. 5. Managerial employees. 4.

effective 28 August 2008 under Wage Order No. Field personnel and other employees whose time and performance is unsupervised by the employer. Premium Pay).00 .00 Where the holiday falls on the scheduled rest day of the employee. Work performed on that day merits at least twice (200%) the basic wage of the employee. For work within eight (8) hours: Plus 100% of the daily basic rate of 100% or a total of 200% P382. or (c) execute. provided he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday. Illustration: Using the NCR minimum wage rate of P382. including those who are engaged on task or contract basis.2. 6.4 Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 5.3 above. 5. special assignments and tasks. When a regular holiday falls on a Sunday.00 = P764.special training. This means that the employee is entitled to at least 100% of his/her basic wage even if he/she did not report for work. 18 . the following Monday shall not be a holiday. and 5. Regular Holidays Every employee covered by the Holiday Pay Rule is entitled to his/her daily basic wage.1. and 5. under general supervision. purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.00 or 200% of P382. C. work performed on said day merits at least an additional 30% of the employee’s regular holiday rate of 200% or a total of at least 260% (Please see 3.00 + 100% thereof = P382.00 + P382. experience.00 x P382. unless a proclamation is issued declaring it a special day.00 = 2. NCR-14.00 per day for the non-agricultural sector. or knowledge.00 = P764.

Muslim Holidays Presidential Decree No. Iligan.Unless otherwise modified by law. North Cotabato. a covered employee is entitled to at least two hundred percent (200%) of his/her basic wage even if said day is unworked. 292. Tawi-Tawi. which falls on the twenty-seventh day of the seventh lunar month of Rajab. Lanao del Norte. Maguindanao. 2. 19 . D. or proclamation. as amended. as amended by Republic Act 9492: New Year ’s Day Maundy Thursday Good Friday Araw ng Kagitingan Labor Day Independence Day National Heroes’ Day Eidl Fitr Bonifacio Day Christmas Day Rizal Day January 1 Movable Date Movable Date Monday nearest April 9 Monday nearest May 1 Monday nearest June 12 Last Monday of August Movable Date Monday nearest November 30 December 25 Monday nearest December 30 When Araw ng Kagitingan falls on the same day as Maundy Thursday or Good Friday. 1083 (Code of Muslim Personal Laws of the Philippines). Sultan Kudarat. he/she is entitled to an additional 100% of the basic wage. 4. These official holidays shall be observed in the provinces of Basilan. Lailatul Isrā Wal Mi’rāj (Nocturnal Journey and Ascension of the Prophet Muhammad). which falls on the first day of the lunar month of Muharram. the following are the eleven (11) regular holidays in a year under Executive Order No. ‘Īd-ul-Adhā (Hari Raha Haji). namely: 1. Sulu. Maulid-un-Nabi (Birthday of the Prophet Muhammad). ‘Ămun Jadid (New Year). Where the employee is required to work on that day. recognizes the four (4) Muslim holidays. Zamboanga del Norte and Zamboanga del Sur and in the cities of Cotabato. 3. Lanao del Sur. which falls on the tenth day of the twelfth lunar month of Dhū’l-Hijja. which falls on the twelfth day of the third lunar month of Rabi-ulAwwal. order.

2.Marawi. Muslim holidays may also be officially observed in other provinces and cities. and Zamboanga. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they do not work on such regular holiday. agencies. whichever is higher. Presidential Proclamation No. All covered employees shall be entitled to holiday pay when they are on leave of absence with pay on the workday immediately preceding the regular holiday. that all Muslim employees working outside of the Muslim provinces and cities shall be excused from work during the observance of the Muslim holidays as recognized by law without diminution or loss of wages during the said period xxx. agencies and entities or establishments operating within the provinces and cities enumerated herein shall observe the legal holidays as proclaimed. he/she shall not be deemed to be on leave of absence on that day. and entities or establishments operating within the designated Muslim provinces and cities are required to observe Muslim holidays. 1198 (26 October 1973) provides: “All private corporations. however. Absences 1. Upon proclamation by the President of the Philippines. Where the day immediately preceding the holiday is a nonwork day in the establishment or the scheduled rest day of the employee. provided. in which case he/she shall be entitled to 20 . and in such other Muslim provinces and cities as may be created by law. both Muslims and Christians working within the Muslim areas may not report for work on the days designated by law as Muslim holidays.” Considering that all private corporations. offices. The dates of Muslim holidays shall be determined by the Office of the President of the Philippines in accordance with the Muslim Lunar Calendar (Hijra). Pagadian. 3. if the employees are not reporting for work while on such leave benefits. Employers shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee’s compensation or social security payment. offices. E.

however. as amended. such as stevedores. 21 . as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken. Seasonal workers may not be paid the required holiday pay during off-season when they are not at work. Successive Regular Holidays Where there are two (2) successive regular holidays. that in no case shall the holiday pay be less than the applicable statutory minimum wage rate. Where the covered employee is paid on piece-rate basis. Temporary or Periodic Shutdown/Cessation of Work In cases of temporary or periodic shutdown and temporary cessation of work of an establishment. H. Workers who do not have regular working days. provided. 2.the holiday pay if he/she worked on the day immediately preceding the nonwork day or rest day. unless he/she works on the first holiday. shall be entitled to this benefit. in which case he/she is entitled to his/her holiday pay on the second holiday. G. an employee may not be paid for both holidays if he/she absents himself/herself from work on the day immediately preceding the first holiday. his/ her holiday pay shall not be less than his/her average daily earnings for the last seven (7) actual work days preceding the regular holiday. 3. F. like Maundy Thursday and Good Friday. Holiday Pay of Certain Employees 1. the regular holidays falling within the period shall be compensated in accordance with the Rules Implementing the Labor Code.

2. if they perform the following duties and responsibilities: 3. or (c) 3 22 . under general supervision.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed. and promotion. or knowledge. or their suggestions and recommendations as to hiring. Officers or members of a managerial staff. if they meet all of the following conditions: 2. such as rest days and special days. 3. Managerial employees. or (b) execute.P REMIUM P AY (Articles 91-93) A.2 Customarily and regularly exercise discretion and independent judgment. B. firing. including those employed in government-owned and/or controlled corporations with original charters or created under special laws. 2. Coverage This benefit applies to all employees except: 1.3 They have the authority to hire or fire other employees of lower rank. 3. 2.1 Primarily perform work directly related to management policies of their employer. experience. whether employed by the National Government or any of its political subdivisions. 3. work along specialized or technical lines requiring special training.2 They customarily and regularly direct the work of two or more employees therein.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof. or any other change of status of other employees are given particular weight. Definition Premium pay refers to the additional compensation for work performed within eight (8) hours on nonwork days. Government employees.

C. the following are the three (3) special days in a year under Executive Order No. 292. 5. including those who are paid on piece rate. as amended by Republic Act 9492.3 above. Workers who are paid by results. Househelpers and persons in the personal service of another. pakyaw. or task basis. and other nontime work. Workers who are not required or permitted to work on special days are not entitled to any compensation.execute. Special Days 1. 3.2. under general supervision. is without prejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for days declared as special days even if unworked. no pay” principle applies during special days and on such other special days as may be proclaimed by the President or by Congress. This.1. Field personnel. 6. work performed on special days merits additional compensation of at least thirty percent (30%) of the basic pay or a total of one hundred thirty percent (130%). and 3. special assignments and tasks. or proclamation. however. On the other hand. that shall be observed in the Philippines: Ninoy Aquino Day All Saints Day Last Day of the Year Monday nearest August 21 November 1 December 31 The “no work.4 Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 3. takay. 4. Where the employee works on a special day falling on his rest day. he/she shall be entitled to an additional compensation of at least fifty percent 23 . Special Days Unless otherwise modified by law. order. or where such rates have been fixed by the Secretary of Labor and Employment. if they regularly perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty. and 3. if their output rates are in accordance with the standards prescribed in the regulations.

(50%) of his/her basic wage or a total of one hundred fifty percent (150%). 2. Special Work Days For work performed on a declared Special Work Day, an employee is entitled only to his/her daily wage rate. No premium pay is required since work performed on said day is considered work on an ordinary workday. D. Premium Pay Rates The minimum statutory premium pay rates are as follows: 1. For work performed on rest days or on special days: Plus 30% of the daily basic rate of 100% or a total of 130%. 2. For work performed on a rest day which is also a special day: Plus 50% of the daily basic rate of 100% or a total of 150%. 3. For work performed on a regular holiday which is also the employee’s rest day (not applicable to employees who are not covered by the holiday-pay rule). Plus 30% of the regular holiday rate of 200% based on his/her daily basic wage rate or a total of 260%. Illustration: Using P382.00 as daily basic rate (DBR) 1. P382.00 + (30% of P382.00) P382.00 + P114.60 = P496.60 or 130% of P382.00 = 1.3 x P 382.00 = P496.60 2. P382.00 +(50% of P382.00) P382.00 + P191.00 = P573.00 or 150% of P382.00 = 1.5 x P382.00 = P573.00 3. (200% of P382.00) + 30% (200% of P382.00) P764.00 + .3 x (2 x P382.00) P764.00 + (.3 x P764.00) P764.00 + P 229.20 = P993.20 or 130% of 200% of P382.00 = 1.30 x 2 x P382.00 = P993.20

24

O VERTIME P AY
(Article 87) A. Definition Overtime pay refers to the additional compensation for work performed beyond eight (8) hours a day. B. Coverage Same as those covered under 3. Premium Pay. C. Overtime Pay Rates The minimum overtime pay rates vary according to the day the overtime work is performed, as follows: 1. For work in excess of eight (8) hours performed on ordinary working days: Plus 25% of the hourly rate. 2. For work in excess of eight (8) hours performed on a scheduled rest day, a special day, and a regular holiday: Plus 30% of the hourly rate on said days. Illustration: Using P382.00 as basic daily rate and P47.75 as basic hourly rate. 1. Overtime pay on an ordinary day P47.75 +(25% of P47.75) = P47.75 + (0.25 x P47.75) P47.75 + P11.93 = P59.68 OT/hour or 125% of P47.75 = 1.25 x P47.75 = P59.68 OT/hour 2. Overtime pay on rest day or on special day 130% of P47.75 + 30% of (130% of P47.75) P62.07 + P18.62 = P80.69 OT/hr.

4

or

25

130% of (130% of P47.75) = 1.3 x (1.3 x P47.75) = 1.3 x P62.07 = P80.69 OT/hr. 3. Overtime pay on a rest day which falls on a special day 150% of P47.75 + 30% of (150% of P47.75) P71.62 + P21.48 = P93.10 OT/hour or 130% of (150% of P47.75) = 1.3 x (1.5 x P47.75) = 1.3 x P71.62 = P93.10 OT/hour

4. Overtime pay on a regular holiday 200% of P47.75 + 30% of (200% of P47.75) = P95.50/hr + P28.65 = P124.15 OT/hour or 130% of (200% of P47.75) = 1.3 x (2.0 x P47.75) = 1.3 x P95.50 = P124.15 OT/hour 5. Overtime pay on a rest day which falls on a regular holiday 260% of P47.75 + 30% of (260% of P47.75) = P124.15/hr + P37.24 = P161.39 OT/hour or 130% of (260% of P47.75) = 1.3 x (2.6 x P47.75) = 1.3 x P124.15 = P161.39 OT/hour D. Stipulated Overtime Rates Generally, the premium pay for work performed on rest days, special days, or regular holidays is included as part of the regular rate of the employee in the computation of overtime pay for overtime work rendered on said days, especially if the employer pays only the minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in their collective agreement the payment for overtime work at rates higher than those provided by law.

26

Managerial employees. Househelpers and persons in the personal service of another. and 6 a.3 They have the authority to hire or fire other employees of lower rank.2 They customarily and regularly direct the work of two or more employees therein. 2. if they meet all of the following conditions: 3. or their suggestions and recommendations as to hiring.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed. Definition Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p. B.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof. and promotion. under general supervision. whether employed by the National Government or any of its political subdivisions.N IGHT S HIFT D IFFERENTIAL (Article 86) A. or (b) execute.2 Customarily and regularly exercise discretion and independent judgment. 4. firing. 4. or any other change of status of other employees are given particular weight. Coverage This benefit applies to all employees except: 1.1 Primarily perform work directly related to management policies of their employer. Government employees. 3. 3. 3. work along specialized or technical lines requiring 27 5 .m.m. 4. if they perform the following duties and responsibilities: 4. including those employed in government-owned and/or controlled corporations with original charters or created under special laws. Officers or members of a managerial staff.

77 88.3 = 3. overtime Double holiday.24 546. overtime Special day. rest day.40 186.11 124.09 65.2.43 or 143% 1.38 or 338% 3 x 1. night shift.3 or 330% 3.859 1.85 P382. night shift.5 200% or 2 260% or 2.32 840.5 x 1.6 x 1.718 3 x 1.6 x 1.20 1.22 52.1 = 1.29 P47.9 1 x 1. rest day. night shift Rest day.1 = 2.43 or 143% 1.5 x 1.9 x 1.1 x 1.3 = 1. rest day.145 2 x 1.25 186.95 or 195% 2 x 1. overtime 100% or 1 130% or 1.16 546. overtime Double holiday.62 95. night shift Double holiday. 75 ( hourl y r ate) 8 Hour s Regular day Sunday or rest day Special day Special day falling on rest day Holiday Holiday falling on rest day Double holiday Double holiday falling on rest day Regular day. 4.3 above.146.28 68. overtime (OT) Rest day.1 = 3.3 = 3.1 = 4.25 or 125% 1.66 88. night shift Double holiday.638.15 143. rest day.24 630.3 x 1. overtime Special day.3 = 5.76 420.28 78.69 80.40 1.3 = 4.4 Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 4.260.00 764.48 1.1 or 110% 1.3 = 1. OT Holiday.80 28 . C.56 496. or knowledge. special assignments and tasks. night shift Special day.05 136. night shift. Field personnel and those whose time and performance are unsupervised by the employer. rest day.3 x 1.07 62.1.42 136.special training. rest day.64 1. night shift Holiday.1 x 1.1 = 1. and 4.00 496.1 x 1.56 573. overtime Regular day. overtime Holiday. night shift. overtime Rest day. night shift Special day.07 71.3 x 1. experience.3 = 1.859 1.375 1.9 or 390% 3.77 102.489.3 = 2.1 x 1. or (c) execute.2 or 220% 2.70 93.3 = 1.25 = 1. Computation of Night Shift Differential The table below may be used to guide computations: Wor k on: P ay equ al s x P4 7.07 or 507% 1 x 1.1 x 1. night shift Holiday. night shift Regular day. rest day.1 = 1.69 or 169% 1.6 300% or 3 390% or 3.86 2.1 x 1.15 161. overtime Holiday. night shift.53 204.9 x 1. under general supervision.50 124.3 = 2.00 1.29 or 429% 1 x 1. overtime Holiday. night shift.3 150% or 1.3 x 1.6 or 260% 2.52 68. overtime Special day.85 59.6 x 1.75 62.3 = 3. rest day.79 105.1 = 2.56 177. night shift.5 x 1.3 = 1.1 x 1.56 157.00 993.3 130% or 1. overtime Double holiday.3 x 1.22 242.3 x 1. overtime Special day.70 80.1 = 1.86 or 286% 3 x 1.65 or 165% 2 x 1.3 = 2. 5.69 or 169% 1.58 204. and 4.092.25 = 1.

(with one-hour meal break).m.75 x 1.75 x 2) = P410.m.1 = P52.20 Overtime after 6 a. Work on rest days (nights-off) Night shift employees are entitled to a weekly night-off (usually Saturday evening) or a weekly rest period of twenty-four (24) hours beginning at the start of the night shift.m.75 x 6) + (P52.69 = P80.525 x 8 = P420.m.55 4) Work shift is from 8 a. with overtime until midnight Work from 8 a. to 6 a.m. = P47. to 8 a.75 x 1.75 x 1. OT 3.375 = P65. night shift.28 per hour Night shift pay = P546.m. = P47.m.m.1 = P52.1 = P52.75 as the basic hourly rate (P382.m. to 6 a.75 per hour Overtime from 5 p. = P47.m.70 per hour 29 . = P47.m.m.9 x 1.52 per hour Work shift pay = (P47. Work from 10 p. 1) Night shift is between 10 p.m. to 12 mn. to 12 midnight Work from 4 p.m.75 x 1. to 5 p.75 x 1. using P47. = P47. to 12 mn.75 per hour Work from 10 p.m.52 x 6) + (P47.m.52 per hour Night shift pay = P52..m. Work on regular days 1) Night shift is from 10 p. = P47. = P47. rest day. = P47. to 6 a.66/ hour 2. work rendered on a rest day (night-off) Work from 10 p.375 = P65.m. = P47.577 266. = P47.m.m.52 per hour Work from 6 a.70 per hour Overtime from 10 p. to 10 p.25 = P59. = P47. and 6 a.3 = 5.1 x 1.75 x 1.m.m.m.Double holiday. to 6 a.75 x 1. to 8 a.m.m.65 3) Work shift is from 4 p.75 x 1. This period may be called their “rest day” or night-off.75 per hour Night shift pay = (P52. to 5 p.43 = P68. Work from 12 mn.52 x 2) = P391.30 Cases of night shift pay. to 10 p.00 divided by 8): 1.66 per hour 2) Work shift is from 12 mn.26 Overtime after 6 a.

28 x 6) + (P62.m. work rendered on a rest day with overtime until midnight Work from 8 a.43 = P68. = P47.m. = P47. The premium pay for the night shift also starts or ends at midnight.m. company policy or collective agreement may provide that in the case of night shift workers.75 x 1.02 4) Work shift is from 8 a. to 12 mn.m.m.m.60 Overtime from 5 p.2) Work shift is from 12 mn.08 per hour Night shift pay = (P68.08 per hour Work from 10 p. work rendered on a special day Work from 12 mn.3 = P 496.75 x 1.75 x 1. to 5 p.28 per hour Work shift pay = (P62.m.75 x 1.859 = P88.43 = P68. = P47.08 per hour Rest day pay = P382.28 per hour Work from 6 a. [with one-hour meal break].3 = P62.m.3 = P62.m. = P47. Work on special days Night shift employees are also entitled to the premium pay on special days and holidays.08 x 2) = P533.43 = P68. to 8 a.m. days –including special days and regular holidays–shall begin on the night before a calendar day.75 x 1. work rendered on a special day Work from 4 p.m. However.m. to 6 a.28 per hour Work from 6 a.75 x 1. These days are reckoned as calendar days which start at midnight and end at the following midnight. the computations above (for rest days) will apply. = P47.75 x 1.08 x 6 + P68.m. In that case.. to 12 mn. = P47. to 10 p. work rendered on a rest day (night-off) Work from 12 mn.70 per hour Overtime from 10 p.75 x 1.3 = P62.m. to 10 p. = P47.m.m.08 x 2) = P533. = P47. = P47.77 / hour 3.m.m. to 8 a.75 x 1. to 12 mn.m.2825 x 2) = P509. to 12 midnight. = P47. to 8 a. 1) Work shift is from 12 midnight to 8 a. to 6 a.28 x 6) + (P62.3 = P62.m.04 30 .75 x 1.08 per hour Night shift pay = (P68. to 10 p. to 12 mn.00 x 1.m.m.84 2) Work shift is from 4 p. work rendered on a rest day Work from 4 p.83 3) Work shift is from 4 p. = P47.075 x 6) + (P68.43 = P68..75 x 1.08 per hour Work from 10 p.m.3 = P62.69 = P80.28 x 2 = P509. to 5 p.28 per hour Work shift pay = P62. the employment contract..

= P47. = P47. to 5 p.m.75 x 1. work rendered on a regular holiday Work from 4 p.m.75 x 1.75 x 1.65 = P78.m.2 = P105.m.m.79 x 6) + (P71.m.m. to 10 p. to 8 a.m.m.56 per hour 5. to 5 p.79 per hour Work from 6 a.75 x 2 = P95. to 8 a. Hence.2 = P105. with overtime until midnight Work from 8 a.m.69 = P80.859 = P88. to 5 p.m. work rendered on a special day. (with one-hour meal break). to 12 mn.75 x 2. = P47..10 3) Work shift is from 8 a.50 per hour Overtime from 5 p.m. = P47. the night shift pay changes at midnight.15 per hour Overtime from 10 p.m.50 per hour Night shift pay = (P105.75 x 2. to 12 mn.75 x 2. = P47.m.05 per hour Work from 6 a.75 x 1.m.50 x 6) + (P105. work rendered on a special day falling on a rest day (night-off) Work from 12 mn.m. = P47. = P47. to 5 p.3 = P62.m. Work on special days falling on rest days 1) Work shift is from 12 mn. = P47..m.05 x 6) + (P95.50 per hour Work from 10 p.98 31 . with overtime until midnight Work from 8 a. = P47. work rendered on a regular holiday Work from 12 mn.75 x 1. to 10 p.m. to 10 p.m.m.70 per hour Overtime from 10 p.m.08 per hour Overtime from 5 p.6 = P124.30 2) Work shift is from 4 p. to 8 a.m.62 per hour Night shift pay = (P78. work rendered on a regular holiday.m. = P47.50 x 2) = P821.62 x 2) = P615. (with one-hour meal break). to 6 a.05 per hour Work shift pay = (P95. Work on regular holidays Holidays are reckoned as calendar days which start at midnight and end at the next midnight.77 per hour 4. = P47.86 = P136. to 12 mn..75 x 2 = P95.75 x 2 = P95.5 = P71. to 12 mn. = P47.75 x 2. to 8 a.3) Work shift is from 8 a.m. to 6 a.m. 1) Work shift is from 12 mn.05 x 2) = P783.

with overtime until midnight Work from 8 a.75 x 2. to 8 a.62 per hour Overtime from 5 p.2) Work shift is from 4 p.11 per hour Overtime from 10 p.53 / hour 32 .145 = P102.79 x 2) = P587.56 x 6) + (P124..03 3) Work shift is from 8 a.067.79 per hour Work shift pay = (P71.65 = P78. = P47.m. to 12 mn.56 per hour Work from 6 a.15 x 6) + (P136. = P47.38 = P161.6 = P124.018.15 per hour Work from 10 p.718 = P177. to 10 p.m.m.m.m.m.86 = P136. = P47.75 x 2. = P47.6 = P124.m.m.m. (with one-hour meal break).m.5 = P71.5 = P71.m. to 10 p.m.66 2) Work shift is from 4 p.42 / hour 6.15 x 2) = P1.m.60 = P124. to 5 p.m..40 per hour Overtime from 10 p. = P47. to 8 a. = P47. = P47.75 x 2. to 12 mn.75 x 2.m.75 x 3. to 5 p.m.m. = P47.m. (with one-hour meal break). = P47.m.m.75 x 1. = P47.m. to 5 p.m.32 3) Work shift is from 8 a. work rendered on a regular holiday falling on a rest day (night-off) Work from 12 mn.75 x 3.m. work rendered on a special day falling on a rest day.75 x 1. work rendered on a regular holiday falling on a rest day. to 12 mn.86 = P136. to 12 midnight.62 per hour Work from 10 p. to 6 a. to 5 p.75 x 1. to 10 p. Work on regular holidays falling on rest days 1) Night shift is from 12 mn. to 12 mn.56 per hour Work shift pay = (P124.75 x 1.56 x 2) = P1. work rendered on a regular holiday falling on a rest day Work from 4 p.m.75 x 2.15 per hour Night shift pay = (P136. work rendered on a special day falling on a rest day Work from 4 p.15 per hour Overtime from 5 p.75 x 2. with overtime until midnight Work from 8 a. to 12 mn.m.m. to 10 p.62 x 6) + (P78. = P47. = P47.95 = P93.

Sharing All rank-and-file employees of employers collecting service charges are entitled to an equal share in the eighty-five percent (85%) of the total of such charges.S ERVICE C HARGES (Article 96) A. Payments The shares of the employees in the service charges shall be distributed to them once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. 6 C. The remaining fifteen percent (15%) of the charges may be retained by management to answer for losses and breakages and for distribution to managerial employees. 33 . Where the company stopped collecting service charges. cocktail lounges. Service charges are collected by most hotels and some restaurants. and distributed in the same manner as the service charges. the average share previously enjoyed by the employees for the past twelve (12) months immediately preceding such stoppage shall be integrated into their basic wages. among others. Tips Where a restaurant or similar establishment does not collect service charges but has a practice or policy of monitoring and pooling tips given voluntarily by its customers to its employees. accounted. nightclubs. the pooled tips should be monitored. B. at the discretion of the management in the latter case.

4. 3.1 Primarily perform work directly related to management policies of their employer. 3. This benefit applies to all employees except: 1. or (b) execute. Officers or members of a managerial staff. whether employed by the National Government or any of its political subdivisions. Managerial employees. if they meet all of the following conditions: 3. experience.3 They have the authority to hire or fire other employees of lower rank. special assignments and tasks. 4. or their suggestions and recommendations as to hiring. including those employed in government-owned and/or controlled corporations with original charters or created under special laws.2 They customarily and regularly direct the work of two or more employees therein. Househelpers and persons in the personal service of another. 4. or knowledge.2 Customarily and regularly exercise discretion and independent judgment.S ERVICE I NCENTIVE L EAVE (Article 95) A. Coverage Every employee who has rendered at least one (1) year of service is entitled to Service Incentive Leave (SIL) of five (5) days with pay. if they perform the following duties and responsibilities: 4. or any other change of status of other employees are given particular weight. work along specialized or technical lines requiring special training. and 34 7 . under general supervision. 2.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof. or (c) execute. firing. Government employees. 3. and promotion.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed. under general supervision.

Field personnel and those whose time and performance is unsupervised by the employer.5. 8. Those enjoying vacation leave with pay of at least five (5) days. he/she is entitled to the conversion of his/her accrued SIL. the basis shall be the salary rate at the date of conversion. 6. Those already enjoying this benefit. 35 . upon his/her resignation. The unused service incentive leave is commutable to its money equivalent at the end of the year. the period of the working days is less than twelve (12) months. C.833 days B a sed o n t h e op in i o n o f DOL E Le ga l Ser vi ce . In computing. and Those employed in establishments regularly employing less than ten (10) employees. The period includes authorized absences.2. If through individual or collective agreement. reckoned from the date the employee started working. and paid regular holidays. as follows: SIL earned as of 31 December 2000 Proportionate SIL for January and February 2001 (2/12) x 5 days Total accrued SIL as of 1 March 2001 4 5 days 0. 4.3 above. Assuming that he/she has not used or commuted any of his/her accrued SIL.833 day 5. unworked weekly rest days.1. B. Usage/Conversion to Cash The service incentive leave may be used for sick and vacation leave purposes. and 4. 7. 4. said period shall be considered as one year for the purpose of determining the entitlement to the service incentive leave. Meaning of “one year of service” The phrase “one year of service” of the employee means service within twelve (12) months. 4 Illustration: An employee was hired on 1 January 2000 and resigned on 1 March 2001. whether continuous or broken. The use and conversion of this benefit may be on a pro rata basis.4 Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 4. company practice or policy.

Entitlement Every pregnant employee in the private sector. To be entitled to the maternity leave benefit. 36 . Thus. is granted to employees in lieu of wages. 8 B. whether married or unmarried. with benefits equivalent to one hundred percent (100%) of the average daily salary credit of the employee as defined under the law. a female employee should be an SSS member employed at the time of her delivery or miscarriage. as amended by RA 8282) A. Coverage This benefit applies to all female employees. is entitled to maternity leave benefit of sixty (60) days in case of normal delivery or miscarriage. this may not be included in computing the employee’s thirteenth-month pay for the calendar year. in case of Caesarian section delivery. The maternity leave benefit.. she must have given the required notification to the SSS through her employer.M ATERNITY L EAVE (RA 1161. whether married or unmarried. childbirth or miscarriage). and her employer must have paid at least three monthly contributions to the SSS within the twelve-month period immediately before the date of the contingency (i.e. like other benefits granted by the Social Security System (SSS). or seventy-eight (78) days.

The paternity leave shall be for seven (7) calendar days. If the spouses are not physically living together because of the workstation or occupation. Coverage Paternity Leave is granted to all married male employees in the private sector. regardless of their employment status (e. the male employee is still entitled to the paternity leave benefit. Government employees are also entitled to the paternity leave benefit. provided that the total number of days shall not be more than seven (7) calendar days for each covered delivery. project basis). B.g. probationary. if any. consisting of basic salary and mandatory allowances fixed by the Regional Wage Board. provided that his pay shall not be less than the mandated minimum wage. They shall be governed by the Civil Service rules. “cohabiting” means the obligation of the husband and wife to live together. without prejudice to an employer ’s policy of allowing the employee to avail of the benefit before or during the delivery.. For this purpose. regular. with full pay. Conditions for Entitlement A married male employee shall be entitled to paternity leave benefit provided that he has met the following conditions: 1. 37 9 . He is an employee at the time of the delivery of his child. contractual. The Paternity Leave Benefit Paternity leave benefit shall apply to the first four (4) deliveries of the employee’s lawful wife with whom he is cohabiting. Usage of the paternity leave shall be after the delivery. The purpose of this benefit is to allow the husband to lend support to his wife during her period of recovery and/or in nursing her newborn child.P ATERNITY L EAVE (RA 8187) A. C.

Where a company policy. or by collective bargaining agreement. 2. He has applied for paternity leave with his employer within a reasonable period of time from the expected date of delivery by his pregnant spouse. 3. Crediting of Existing Benefits 1. the employer shall grant to the employee seven (7) calendar days of paternity leave.2. F. it shall not be convertible to cash and shall not be cumulative. Application for Paternity Leave The married male employee shall apply for paternity leave with his employer within a reasonable period of time from the expected date of delivery by his pregnant spouse. or by collective bargaining agreement. If the existing paternity leave benefit under the collective bargaining agreement. or collective bargaining agreement provides for an emergency or contingency leave without specific provisions on paternity leave. His wife has given birth or suffered a miscarriage. 38 . prior application for paternity leave shall not be required. or company policy is greater than seven (7) calendar days as provided for in RA 8187. E. D. In case of a miscarriage. contract. and 4. or within such period as may be provided by company rules and regulations. the employer shall adjust the existing benefit to cover the difference. contract. or within such period as may be provided by company rules and regulations. Nonconversion to Cash In the event that the paternity leave is not availed of. He is cohabiting with his spouse at the time that she gives birth or suffers a miscarriage. the greater benefit shall prevail. If the existing paternity leave benefit is less than that provided in RA 8187.

4. Giving birth as a result of rape or. Abandonment of spouse for at least one (1) year. or prolonged absence lasts for at least one (1) year. 2. Death of spouse. instead of having others care for them or give them up to a welfare institution. 9. disappearance. Definition of Terms “Parental leave” shall mean leave benefits granted to a solo parent to enable him/her to perform parental duties and responsibilities where physical presence is required. disappearance. that such abandonment. 7. 3. Spouse is detained or is serving sentence for a criminal conviction for at least one (1) year. Coverage Parental leave for solo parents is granted to any solo parent or individual who is left alone with the responsibility of parenthood due to: 1. and 10. 8. Legal separation or de facto separation from spouse for at least one (1) year: Provided that he/she is entrusted with the custody of the children. Physical and/or mental incapacity of spouse as certified by a public medical practitioner. Any other person who solely provides parental care and support to a child or children: Provided. or prolonged absence of the parents or solo parent: Provided. abandonment. 5. 39 10 .P ARENTAL LEAVE FOR S OLO P ARENTS (RA 8972) A. that he/she is entrusted with the custody of the children. B. as used by the law. other crimes against chastity. Unmarried father/mother who has preferred to keep and rear his/her child/children. that he/she is duly licensed as a foster parent by the Department of Social Welfare and Development (DSWD) or duly appointed legal guardian by the court. 6. Declaration of nullity or annulment of marriage as decreed by a court or by a church: Provided. Any family member who assumes the responsibility of head of family as a result of the death.

He/she has notified his/her employer that he/she will avail himself/herself of it. E. in addition to leave privileges under existing laws. Emergency or contingency leave provided under a company policy or a collective bargaining agreement shall not be credited as compliance with the parental leave provided for under RA 8972. He/she is unmarried. the same shall be credited as such. He/she has rendered at least one (1) year of service. with full pay. within a reasonable period of time. or even eighteen (18) years old and above but is incapable of self-support because he/she is mentallyand/or physically-challenged. which may be obtained from the DSWD office of the city or municipality where he/she resides. it shall not be convertible to cash. The Parental Leave Benefit The parental leave. Conditions for Entitlement A solo parent employee shall be entitled to the parental leave. F. provided that: 1. 40 . unless specifically agreed on previously. if any. He/she has presented to his/her employer a Solo Parent Identification Card. and 3. the greater benefit shall prevail. Crediting of Existing Leave If there is an existing or similar benefit under a company policy or a collective bargaining agreement. and below eighteen (18) years of age. D.“Child” refers to a person living with and dependent on the solo parent for support. provided that his/her pay shall not be less than the mandated minimum wage. 2. consisting of basic salary and mandatory allowances fixed by the Regional Wage Board. whether continuous or broken. shall be for seven (7) work days every year. If the same is greater than the seven (7) days provided for in RA 8972. unemployed. Nonconversion to Cash In the event that the parental leave is not availed of. C.

such that he/she is no longer left alone with the responsibility of parenthood. Protection Against Work Discrimination No employer shall discriminate against any solo parent employee with respect to terms and conditions of employment on account of his/her being a solo parent. H. 41 . shall terminate his/her eligibility for this benefit. Termination of the Benefit A change in the status or circumstance of the parent claiming the benefit under the law.G.

Coverage and Purpose Private sector women employees who are victims as defined in RA 9262 shall be entitled to the paid leave benefit under such terms and conditions provided herein. which will result in or is likely to result in physical. or against her child whether legitimate or illegitimate. or against a woman with whom the person has or had a sexual or dating relationship. battery. within or without the family abode.” as used in Republic Act 9262 (the “Anti-Violence Against Women and Their Children Act of 2004”). sexual. harassment or arbitrary deprivation of liberty. as the case may be. assault. the only requirement is for the victim-employee to present to her employer a certification from the barangay chairman (Punong Barangay) or barangay councilor (barangay kagawad) or prosecutor or the Clerk of Court. Requirement for Entitlement To be entitled to the leave benefit. that an action relative to the matter is pending.” B. C. former wife.LEAVE FOR VICTIMS OF VIOLENCE AGAINST AND 11 WOMEN THEIR CHILDREN (RA 9262) A. Definition “Violence against women and their children. “refers to any act or a series of acts committed by any person against a woman who is his wife. or with whom he has a common child. 42 . or economic abuse including threats of such acts. The leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns. coercion. psychological harm or suffering.

and/or collective bargaining agreements. it shall not be convertible into cash and shall not be cumulative. as specified in the protection order issued by the barangay or the court. In the event that the leave benefit is not availed of. if any. The said leave shall be extended when the need arises.D. Usage of the Benefit The usage of the ten-day leave shall be at the option of the woman employee. consisting of basic salary and mandatory allowances fixed by the Regional Wage Board. 43 . the qualified victim-employee shall be entitled to a leave of up to ten (10) days with full pay. The Benefit In addition to other paid leaves under existing labor laws. company policies. E.

or discipline employees. such as the cash equivalent of unused vacation and sick leave credits. C. suspend. regardless of the nature of their employment and irrespective of the methods by which their wages are paid. overtime. these salary-related benefits should be included as part of the basic salary in the computation of the thirteenth-month pay if these are treated as part of the basic salary 44 12 . provided they worked for at least one (1) month during a calendar year. B. Coverage All employers are required to pay their rank and file employees thirteenth-month pay. night shift differential and holiday pay. A managerial employee is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire. The "basic salary" of an employee for the purpose of computing the thirteenth-month pay shall include all remunerations or earnings paid by his or her employer for services rendered. recall. Definition of Rank-and-File Employees The Labor Code. and cost of living allowance (COLA). However. The thirteenth-month pay should be given to the employees not later than December 24 of every year. as amended.T HIRTEENTH -M ONTH P AY (PD 851) A. transfer. distinguishes a rank-and-file employee from a managerial employee. assign. layoff. premium. or to effectively recommend such managerial actions. Minimum Amount The thirteenth-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year. It does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary. All employees not falling within this definition are considered rank-and-file employees. The above distinction shall be used as guide for the purpose of determining who are rank-and-file employees entitled to the thirteenth-month pay. discharge.

2 above shall include Christmas bonus. “workers paid on piece-rate basis” shall refer to those who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated. The frequency of payment of this monetary benefit may be the subject of an agreement between 45 . An employer. Time of Payment of Thirteenth-Month Pay The thirteenth-month pay shall be paid not later than December 24 of every year. 2. Employers of those who are paid on purely commission. D. midyear bonus. The government and any of its political subdivisions. as well as nonmonetary benefits. The term "its equivalent" as used in item D. may give to his or her employees one-half (1/2) of the thirteenth-month pay before the opening of the regular school year and the remaining half on or before December 24 of every year. and 4. Employers of househelpers and persons in the personal service of another in relation to such workers. however.of the employees. Employers who are already paying their employees thirteenthmonth pay or more in a calendar year or its equivalent at the time of the issuance of PD 851. irrespective of the time consumed in the performance thereof (except those workers who are paid on piece-rate basis. without regard to the time spent in producing the same. As used herein. cash bonuses. E. Exempted Employers individual or collective agreement. boundary or task basis. and other payments amounting to not less than one-twelfth (1/12) of the basic salary but shall not include cash and stock dividends. 3. including government-owned and -controlled corporations. and all other allowances regularly enjoyed by the employee. except those corporations operating essentially as private subsidiaries of the government. and those who are paid a fixed amount for performing specific work. through company practice or policy. The following employers are not covered by PD 851: 1. in which case their employer shall grant them thirteenth-month pay). cost of living allowance.

Trajano and Philippine Fuji Xerox Employees Union. G. Inc. as well as employees working in two or more private firms.the employer and the recognized/collective bargaining agent of the employees. Thus: In remunerative sc hemes consisting of a fixed or guaranteed wage plus commission. 3. based on their earnings during the calendar year (i. F. Employees who are paid a fixed or guaranteed wage plus commission are also entitled to the thirteenth-month pay.R. on both their fixed or guaranteed wage and commission). G. the Supreme Court ruled that commissions. Dionisio de la Serna. 2. are entitled to the thirteenthmonth pay from all their private employers. while included in the generic term wage.e. Commissions are given for extra efforts exerted in consummating sales or other related transactions.R.. reckoned from the time he or 46 . Employees with multiple employers Government employees working part-time in a private enterprise. whether on full-time or part-time basis. 1993. the fixed or guaranteed wage is patently the "basic salary" for this is what the employee receives for a standard work period. Cresenciano B. as such. which this Court has made clear do not form part of the "basic salary" (228 SCRA 329 [1993]). Employees who are paid on piecework basis are entitled to the thirteenth-month pay. vs. 102552 December 10. No. No. including private educational institutions. Thirteenth-Month Pay of Resigned or Separated Employee An employee who has resigned or whose services are terminated at any time before the time of payment of the thirteenth-month pay is entitled to this monetary benefit in proportion to the length of time he or she has worked during the year. 92174 December 10. They are. In the consolidated cases of Boie Takeda Chemicals. Thirteenth-Month Pay for Certain Types of Employees 1. are not part of "basic salary/wage" and therefore should not be included in computing the thirteenth-month pay. regardless of their total earnings from each of their employers. G. 1993. and Philippine Fuji Xerox Corporation vs. additional pay.

and private retirement plans. fringe benefits. 47 . his or her proportionate thirteenth-month pay should be equal to one-twelfth (1/12) of his or her total basic salary earned during that period. if he or she worked only from January to September. H.she has started working during the calendar year up to the time of his or her resignation or termination from the service. Thus. Non-inclusion in Regular Wage The mandated thirteenth-month pay need not be credited as part of the regular wage of employees for purposes of determining overtime and premium payments. National Health Insurance Program. Social Security System. as well as contributions to the State Insurance Fund.

e.. generally. and other similar causes as enumerated under Article 282 of the Labor Code and. fraud. where the termination is for authorized causes. or commission of a crime).e. Closure or cessation of operation of an establishment not due to serious losses or financial reverses. if his/her separation from the service is due to any of the following authorized causes: 1. An employee’s entitlement to separation pay depends on the reason or ground for the termination of his or her services. 2.S EPARATION P AY (Articles 283-84) Separation pay is given to employees in instances covered by Articles 283 and 284 of the Labor Code of the Philippines. he/she is entitled to one (1) full 13 T he Supr eme Cour t h a s r u led in cer ta in ca se s tha t s epar a tion pa y shall be g r an t ed t he wo r ker s . One-Half (1/2) Month Pay per Year of Service An employee is entitled to receive a separation pay equivalent to one-half (1/2) month pay for every year of service. 5 48 . reduction of personnel effected by management to prevent losses). gross and habitual neglect of duty. When the employee is suffering from a disease not curable within a period of six (6) months and his/her continued employment is prejudicial to his/her health or to the health of his/her co-employees.. A. a fraction of at least six (6) months being considered as one (1) whole year. separation pay is due. Retrenchment to prevent losses (i. 5 On the other hand. Thus. In no case will an employee get less than one (1) month separation pay if the separation is due to the above stated causes. if an employee had been in the service for at least six (6) months but less than a year. may not be entitled to separation pay. and 3. and he/she has served for at least six (6) months. An employee may be terminated for just cause (i.

19 89 . 1 994 . it would be error not to integrate the allowance with the basic salary. The salary base properly used in computing the separation pay should include not just the basic salary but also the regular allowances that an employee has been receiving. 49 .. 1 046 90 . Redundancy. Feb r uar y 23 . 7 852 4 . e t a l . No. or the position to which he or she is to be reinstated no longer exists and there is no substantially equivalent position in the establishment to which he or she can be assigned. 6 C. Jan uar y 20 . 3. Inclusion of Regular Allowance in the Computation In the computation of separation pay.month’s pay as his/her separation pay if his/her separation is due to any of the causes enumerated above. Impossible reinstatement of the employee to his or her former position or to a substantially equivalent position for reasons not attributable to the fault of the employer. One-Month Pay per Year of Service An employee is entitled to separation pay equivalent to his/her one-month pay for every year of service. vs. D. 2. P lan t er s’ Pr odu cts. 7 6 7 G a co vs. if his/her separation from service is due to any of the following: 1. No . Installation by employer of labor-saving devices. B. G. as when the reinstatement ordered by a competent authority cannot be implemented due to closure or cessation of operations of the establishment/employer. Notice of Termination The employer may terminate the employment of any employee due to the above-mentioned authorized causes by serving a written notice on the employee and the Department of Labor and Employment through its regional office having jurisdiction over the place of business at least one (1) month before the intended date thereof. as when the position of the employee has been found to be excessive or unnecessary in the operation of the enterprise. R. a fraction of at least six (6) months being considered as one whole year. Basis of Separation Pay The computation of separation pay of an employee shall be based on his/her latest salary rate. R. NL RC. E. G. Inc. NL RC.

service and agricultural establishments/operations regularly employing not more than ten (10) employees. November 13. Nieves R. For the purpose of computing retirement pay. (1/12 x 365/12 = .5 days x number of years in service Other benefits may be included in the computation of the retirement pay upon agreement of the employer and the employee or if provided in the Collective Bargaining Agreement (CBA). “one-half month salary” is equivalent to 22.52) Thus. Confesor. Cash equivalent of five (5) days of service incentive leave. 2) employees of retail. No. as amended by RA 7641) A.5 days (Capitol Wireless. a fraction of at least six (6) months being considered as one (1) whole year. 2. Illustration: Minimum Retirement Pay = Daily Rate x 22. 14 50 .083 x 30. 2. "one-half month salary" shall include all of the following: 1. Employees shall be retired upon reaching the age of sixty (60) years or more but not beyond sixty-five (65) years old [and have served the establishment for at least five (5) years]. One-twelfth (1/12) of the thirteenth-month pay. vs. Honorable Secretary Ma.R ETIREMENT P AY (Article 287. G. 1996). Fifteen (15) days salary based on the latest salary rate. This benefit applies to all employees except: 1) government employees. Inc.41 = 2. 117174. Amount of Retirement Pay The minimum retirement pay shall be equivalent to one-half (1/2) month salary for every year of service. 3. B. R. Coverage 1.

E. provided that the determination of rates of payment by results are in accordance with the established regulations. Where both the employer and the employee contribute to a retirement fund pursuant to the applicable agreement. Retirement Benefits under a Collective Bargaining Agreement or Applicable Contract Any employee may retire or be retired by his or her employer upon reaching the retirement age established in the collective bargaining agreement (CBA) or other applicable agreement/contract and shall receive the retirement benefits granted therein. and should have rendered at least five (5) years of service with the employer. The ADS is derived by dividing the total salary or earnings for the last twelve months reckoned from the date of retirement by the number of actual working days in that particular period. Applying the foregoing principle. that such retirement benefits shall not be less than the retirement pay required under RA 7641. provided. the employer shall pay the difference. the employer's total contributions and the accrued interest thereof should not be less than the total retirement benefits to which the employee would have been entitled had there been no such retirement benefits’ fund. 51 . D. however. the components of retirement benefit of part-time workers may likewise be computed at least in proportion to the salary and related benefits due them. If such total portion from the employer is less. Retirement Benefit of Part-time Workers Part-time workers are also entitled to retirement pay of “onemonth salary” for every year of service under RA 7641 after satisfying the following conditions precedent for optional retirement: (a) there is no retirement plan between the employer and the employee and (b) the employee should have reached the age of sixty (60) years. the basis for the determination of the salary for fifteen (15) days shall be their average daily salary (ADS). the employer shall pay the deficiency. and provided further that if such retirement benefits under the agreement are less. Retirement Benefits of Workers who are Paid by Results For covered workers who are paid by results and do not have a fixed monthly salary rate.C.

Under the law. provided he/she has served for at least five (5) years as an underground mine employee or in underground mine of the establishment. an employee may retire upon reaching the compulsory retirement age of sixty (60) years or upon optional retirement at the age of fifty (50) years. G. raises. an underground mine employee refers to any person employed to extract mineral deposits underground or to work in excavations or workings such as shafts. upon optional or compulsory retirement. In the absence of a retirement plan or other applicable agreement providing for retirement benefits of underground mine employees in the establishment. tunnels. drifts. working places whether abandoned or in use beneath the earth’s surface for the purpose of searching for and extracting mineral deposits.F. Other Benefits upon Retirement The retirement benefits under RA 7641 and RA 8558 are separate and distinct from those granted by the Social Security System. crosscuts. 52 . Retirement Benefit of Underground Mine Employees under Republic Act 8558 The retirement age of underground mine employees has been reduced to a much lower age. For this purpose. the employee is also entitled to the proportionate thirteenth-month pay for the calendar year and to the cash equivalent of accrued leave benefits. winzes.

8 994 251 .p h 53 . Coverage The ECP covers all workers in the formal sector. C.go v. I n f or ma t i on a nd Pub l i c A ssi sta n ce Div i sion . ph . 8 B. p l e ase wr i t e o r ca l l the Emp l oye es ’ Co m pe nsa t i on Co mm iss io n ( ECC) . payments to providers of medical care.co m.425 1 to 5 2 lo cal s 22 7 a nd 2 28 . The Employees’ Compensation Program The Employees’ Compensation Program (ECP) is a government program designed to provide a package of benefits for public and private sector employees and their dependents in the event of workrelated contingencies such as sickness. Medical benefits which include the reimbursement of the cost of medicine for the illness or injury.B ENEFITS U NDER THE E MPLOYEES ’ C OMPENSATION P ROGRAM (PD 626) A. 8 99.ecc . l o ca t ed a t 3 55 Se n . Ma ka t i Ci ty.759 7 . Fa x: 897 . We b si te : ww w. vocational training. injury. E ma i l : ec c_ ma i l@in fo . hospital care. and the costs of appliances and supplies where necessary. The Benefits Loss of income benefit or a cash benefit given to a worker to compensate for lost income due to his or her inability to work. Te le ph one No s. Pub l i c Ass i sta n ce Cen te r ( PAC) Tel eph one No . G i l Pu ya t Ave nue . or death. Rehabilitation services include physical therapy. except self-employed workers and voluntary members of the SSS. Employees in the private sector who are registered members of the Social Security System (SSS). and special assistance provided to employees who sustain 8 15 For m or e i n fo r ma t i o n. Coverage in the ECP starts on the first day of employment. disability. surgical expenses. The medical services are limited to ward services of an accredited hospital.

complete loss of vision. D. When a worker on PTD status dies. if caused by work. The objective is to develop the workers’ mental. Carer ’s allowance which is provided to an employee who suffers a permanent total disability (PTD) arising out of employment the extent of which is such that he or she could not on his or her own attend to his or her basic personal needs. Permanent Total Disability (PTD) benefit which is given if the employee’s inability to work lasts for more than 240 days. vocational. Kinds of Disability There are three (3) types of loss of income benefits: Temporary Total Disability (TTD) benefit which is given to an employee who is unable to work for a continuous period not exceeding 120 days. permanent and complete paralysis of two limbs. 3. Permanent Partial Disability (PPD) benefit which is given to a worker who loses a body part and consequently the loss of the use of that body part. and brain injury resulting in incurable imbecility or insanity. and social potential and to help them remain as productive members of society. his or her primary beneficiaries shall receive eighty percent (80%) of his or her monthly income benefit plus ten percent (10%) for every dependent child but not exceeding five (5). Death benefits which are granted to beneficiaries of an employee who dies as a result of sickness or injury arising out of employment. injuries. or death. 54 . Filing of Claims Employees can claim only for work-connected sickness. 2. PTD benefit can be claimed in the following cases: 1.a disability as a result of sickness or injury arising out of employment. 4. E. loss of two limbs at or above the ankles or wrists.

in case of public sector claimant. F. How: Fill in the prescribed forms supplied by the GSIS or SSS and attach the supporting documents required for every contingency. The claimant shall file with the GSIS or the SSS. 2. for employees in the private sector. – The employer shall contribute in behalf of his or her employees to the SIF. – Every employer (and every employee as well) shall be registered with the GSIS or SSS by accomplishing the prescribed forms. Safety Devices. regulation. Where: A claim may be filed at any GSIS branch office. – The employer is required to maintain a logbook to contain his or her employees’ sickness. – No contract. 4. injuries. as the case may be.. Period of Appeal. for government employees. Employer ’s Logbook. in case of private sector claimant. Deprivations Clause. or device whatsoever shall operate to deprive the employee or his/her dependents of any part of the ECP compensation package. or with the SSS. from which payments for benefits are drawn. disabilities.e. sickness. Obligations/Responsibilities of Employers 1. injury.Who may file: The claimant or his/her representative may file an appropriate claim with the GSIS. Contribution to the State Insurance Fund (SIF). – The employer shall comply with health and safety laws and shall take the necessary precautions for the prevention of work-related disability or death. and deaths. Registration. 55 . Notification of such contingencies to the GSIS or SSS shall be made within five (5) days from the date of contingency. When: A claim may be filed within three (3) years from the date of the occurrence of the contingency (i. 5. a notice of appeal within thirty (30) calendar days from receipt of the decision. or death). 3. or at any SSS branch office.

lawyers. Coverage The program covers the following: 1.) 3.99 99 ... as amended by RA 9241) A. yo u ma y visi t th e Ph ilip p in e He al t h Insu ran ce Corpor at io n ( PhilHea l th ) a t th e Ci tysta te C e ntre Bldg . formerly known as Medicare. is a health insurance program for SSS members and their dependents whereby the healthy subsidize the sick who may find themselves in need of financial assistance when they get hospitalized. etc.P HIL H EALTH B ENEFITS (RA 7875. F or i nqu ir ie s on NHIP c o ver age .g o v. The National Health Insurance Program 16 The National Health Insurance Program (NHIP). Yo u m ay a lso vi si t the P hi l He alt h we b si t e a t h t t p : //w ww. Non-paying Members – the following are entitled to lifetime coverage: Retirees and pensioners of the GSIS and SSS (including permanent total disability and survivorship pensioners of the SSS) prior to the effectivity of RA 7875 on March 4. 1995. 9 B. professionals in private practice (doctors. The Philippine Health Insurance Corporation or PhilHealth is the mandated administrator of the Medicare program (now known as NHIP) under the National Health Insurance Act of 1995 (Republic Act 7875). those employed in the 2. b ene fits an d pro ced ure s for S SS me mbe r s. Bar ang a y Or an bo .p h ilh ea lt h. Pa sig C ity or ca ll t e l e pho ne n um ber 6 37 . Individually Paying Members – self-employed. ph . dentists. 7 09 Sha w Bl vd . overseas Filipino workers. Employed Members – all government and private sector. 9 56 .

Optional Retirees (under RA1616. The Benefits A unified benefit package for all PhilHealth members is being implemented which includes the following categories of personal health services: 1. 57 .Members who have reached the retirement age and have paid at least 120 monthly contributions. 2. PD 1146 or PD 1184) are not yet entitled to lifetime coverage until they reach the age of retirement (60 years old). Diagnostic. subject to the limitations stated in Section 37 of RA 7875. Indigent Members – under the indigent component of the NHIP. Personal preventive services. Prescription drugs and biologicals. and other medical examination services. Outpatient care: • • • • • Services of health care professionals. Services of health care professionals. Prescription drugs and biologicals. Use of surgical or medical equipment and facilities. and other medical examination services. and Emergency and transfer services. and Inpatient education packages. laboratory. 4. laboratory. Diagnostic. Inpatient hospital care: • • • • • • Room and board. subject to the limitations described in Section 37 of RA 7875. C.

0 00 P 3.200 Fo r pro ce du re s wit h RVU 30 & below = P 1. 000 P 2 8. 28 0 48 % o f su rge on’s fee ( P F1) 56 % o f su rge on’s fee ( P F1) 4 0 % of su rge on’s fee (P F1 ) M ax. 200 P40 0 P2. p er sing le per i o d o f co n fi ne men t .2 00 For procedure s wit h RVU 3 1 to 80 = P 1 . 600 P7 00 P5 . La b.000 For RVU 50 0 an d be lo w S urge on RVU x P C F 40 = P F1 M ax . 2009 HOSPITAL CATEGORIES Levels 3 & 4 Hospitals (Tertiary) Benefit Item Case Type A B C Ro om and B o ard ∗ Dr ug s a nd Med i cine s ∗ ∗ X.280 4 8 % of su rge on’s fee (P F 1) 4 0 % of su rge on’s fee (P F 4) ∗ ∗∗ M a ximu m o f 45 d a ys p er ye ar.r a y.0 00 P 4. D ail y vi si ts Ge ne ral P racti ti one r (Groups 1. 58 .100 /day P50 0/ da y P 1 4. 3.200 P 1 0. 50 0) Pr ofe ss ion al F ees a. 00 0 P 30. and 4 ) P50 0 P 2. of P1.600 P8 00 P8 . of P3 . Su rge ry Ge ne ral P ractiti one r Fi rs t Ti e r (Gro up 1 ) With t rainin g Se co nd Tier (Gro up s 5 an d 6) Dipl o ma te/fel l ow Third Tie r (G rou ps 2 . and 4 ) Pe r Da y Maximum per confinemen t b.5 00 O pe rat i ng R oo m Fo r pro ce du res wi t h RVU 81 to 60 0: RVU x P C F 20 (Mini mum = P3. 5. 400 P5 00 P4 . of P1.200 RVU x P C F 48 = P F2 RVU x P C F 56 = P F3 Anes.000 P6 00 P6 .thesiologis t For RVU 501 a nd above S urge on RVU x P C F 40 = P F1 M ax .The New PhilHealth Inpatient Benefit Schedule Effective April 5. and 6 ) Pe r Da y Maximum per confinemen t S peciali st (Groups 2. of P3 .000 P30 0 P1. 50 0 P 2 1. a nd O thers* * D P50 0/ da y P8 00/d ay P 1 . 000 P60 0 P3. 00 0 P 40.200 RVU x P C F 48 = P F2 RVU x P C F 80 = P F4 Anesthesiologist 40 % o f su rge on’s fee (P F1 ) Max. 3 .

Level 2 Hospitals (Secondary) Case Type B Benefit Item Ro om and B o ard * Dr ug s a nd Med i cine s** X. and 4 ) Per D ay Ma xi mu m pe r co nfin ement b. 5.200 P4 00 P2 . 3. Su rge ry (fo r Ca se Types A. 5. 200 For pro c edure s wit h RVU 81 to 60 0 RVU x PCF 15 (Mini m um = P2. and 6 ) Per D ay Ma xi mu m pe r co nfin ement P300/d ay P2.200 P4 00 P2 . 28 0 M axi mum o f P 3. and 4 ) P 3 00 P 1 . 3 . La bo ra tor y and O ther s ** A C O pe rat i ng R oo m P 4 00 /d ay P 600/d ay P 400/ da y P 11.000 P 3 00 P 1 .000 P3 . B and C) G en eral P ra c ti ti on er Fi rst tie r (Gro up 1 ) With t rainin g Se co nd tier (Gro up s 5 an d 6) Dipl o ma te/fel l ow Third ti er (G rou ps 2 . D ail y vi si ts Ge ne ral P racti ti one r (Groups 1. 600 P500 Case Type B P 300/d ay P 9. 40 0 P 3. 70 0 Fo r pro ce du re s wit h RVU 30 & below = P 750 Fo r pro ce du re s wit h RVU 31 to 80 = P1.2 40 P 7. 700 P1. 200 P 2 2.35 0 P 1 4.000 P 5.r a y. D ail y vi si ts Ge ne ral P racti ti one r (Groups 1.5 00 ) Pr ofe ss ion al F ees a. 200 RVU x P C F 48 = P F2 RVU x P C F 56 = P F3 48 % of s urg eo n’s f ee (P F1 ) 56 % of s urg eo n’s f ee (P F1 ) Level 1 Hospitals (Primary) Benefit Item A Ro om and B o ard * Dr ug s a nd Med i cine s** X. and 6 ) Per D ay Ma xi mu m pe r co nfin ement S peciali st (Groups 2.600 P5.r a y.000 P 5 00 P6 00 P700 P 2 . 20 0 and M axi mu m = P 7 .3 60 P 2.600 S ur ge on An est hes io log is t 40 % of s urg eo n’s f ee RVU x P C F 40 (P F1 ) = P F1 M axi mum o f P 1.400 P500 P4.400 59 . La bo ra tor y and O ther s ** O per ati ng Ro om Pr ofe ss ion al F ees a.

s. f ee compu ted as p erce ntage of P 2. 2008 . a nd Avia n F lu. S ARS. 00 0 A dd iti ona l Upda te • I n c o m pl i an ce t o P hi l He al t h C i r c ul a r N o s. s.00 0 pe r co nfinem en t The following a re al so i nclude d in yo ur Phi l Heal t h ben efi ts : • Outpa ti ent M al ari a Pa ck age st art i ng 01 D ec em ber 2 00 8 • No rmal S pont ane ous De live ry up to fou rth chi ld birt h s t arti ng 01 Jan ua ry 2 00 9 • Vol un ta r y S u r gic a l C on tr a c e p ti o n P roc edures s ta rti n g 01 Oct ob er 20 08 • Ca taract Pa ck age s ta rtin g 01 May 200 9 • A(H 1N 1) P a cka ge sta rtin g 01 Ma y 2009 P6 00 P3 .000 S urgeon RVU x P C F 40 = P F1 RVU x P C F 48 = P F2 RVU x P C F 56 = P F3 Ma x. 3 . o f P2. th e ho sp ital’s St atem en t of A c co un t (SA ) or Billi ng St atem en t (BS ) sh ou ld b e a tt ached to a cl aim a ppli c ati o n. Pe ri tone al D ialy si s. 60 . Su rge ry (fo r Ca se Types A and B ) G en eral P ra c ti ti on er Fi rs t Ti e r ( Gro up 1 ) With t rainin g Se co nd Tier (Gro up s 5 an d 6) Dipl o ma te/fel l ow Third Tie r (G rou ps 2 . 3.S peciali st (Groups 2. 20 07 a nd 11. • N o ne ed to a ttach an SA or BS to cla im a ppli c atio ns fo r packag es li ke Materni ty C a re P ack ag e. 2 2. and 4 ) P 5 00 P 2 .600 Anes thesiologis t 40 % of surg eo n’s f ee (P F1 ) 48 % of surg eo n’s f ee (P F1 ) 56 % of surg eo n’s f ee (P F1 ) Ma x. and 4 ) Per D ay Ma xi mu m pe r co nfin ement b.

sss.000 a month is subject to compulsory coverage starting September 1. and old age.S OCIAL S ECURITY B ENEFITS (RA 1161. 92 0-6 446 (M em ber Re la tio n s Depar tm en t). he/she is unable to work due to sickness or injury and is thus confined either in the hospital or at home for at least four days. you m a y v isi t th e So c ia l Sec urit y Syst em ( SSS) a t th e SSS Bui ld i ng . maternity. temporary or provisional. C. Basically. 2. go v. whether permanent. The Social Security Program 17 The Social Security Program provides a package of benefits in the event of death. as amended by RA 8282) A. 1993. disability. sickness.640 1 (o per a tor. Q ue zo n Ci ty or i ts n ea r e st bra nch o ff i ce . F or in qu ir ie s on SS S b en e fits a nd o the r r ela ted mat ter s.1 Sickness The sickness benefit is a daily cash allowance paid for the number of days a member is unable to work due to sickness or injury. Di lim an .assi sted ).p h or e-mail it at mem be r_ re l at io ns@s ss . A member is qualified to avail himself/herself of this benefit if: 1. A household helper earning at least P1. 9 177 777 (m a ch in e-a ssi sted . pr e s s yo ur SSS n o .go v. You m a y a l so ca l l t e l ep hon e nu mber s 9 20. Coverage • • A private employee. he/she has paid at least three monthly contributions within the 12-month period immediately before the semester of sickness. 10 B. p h . 10 61 . The Benefits C. a nd wa it for in stru ct io n s) o r vi sit i ts we b s i t e a t www. the Social Security System (SSS) provides for a replacement of income lost on account of the aforementioned contingencies. Ea s t Ave nue .

The amount of an employee’s sickness benefit is computed as: the daily sickness allowance times the approved number of days. 2. Permanent complete paralysis of two limbs. he/she has used up all current company sick leaves with pay for the current year. with at least one (1) contribution paid to the SSS prior to the semester of contingency. Other cases as determined and approved by the SSS. Loss of two limbs at or above the ankle or wrists. Maternity (see 8. 1997. and 4. The lump sum amount which is granted to those who have not paid the required 36 monthly contributions.4. either partially or totally. Types of disability benefits: 1. is qualified.3. Effective May 24. C. Brain injury causing insanity. 4. C. and 2. who becomes A member who suffers partial or total permanent disability. he/she has notified his/her employer.2. Disability It is a cash benefit paid to a member permanently disabled.3. Retirement 62 . the daily sickness allowance is 90 percent of the average daily salary credit (Section 14 of Republic Act 8282). and 5. The monthly pension which is paid to a disabled member who has paid at least 36 monthly contributions to the SSS. Complete loss of sight of both eyes. The complete and permanent loss of use of any of the following parts of the body under permanent partial disability: one thumb sight of one eye one big toe one index finger hearing of one ear one hand one middle finger hearing of both ears one arm one ring finger one foot one ear one little finger one leg both ears The following fall under permanent total disability: 1. Maternity Leave) C. 3.

the person designated by the member as beneficiary in his/her member ’s record will be the recipient. and b. legitimated. The lump sum amount is granted to a retiree who has not paid the required 120 monthly contributions. The types of retirement benefits are: a. he/she is 65 years old. the secondary beneficiaries are the dependent parents of the member. and 2. beneficiaries contributions the primary less than 36 63 . the lump sum amount. C. whether employed or not. In their absence. A member is qualified to avail himself of this benefit if: b. the lump sum amount. whether employed or not. If employed he/she should have paid 120 monthly contributions prior to the semester of retirement. The primary beneficiaries are the legitimate dependent spouse until he or she remarries and legitimate. The monthly pension is a lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement. Death & Funeral The death benefit is a cash paid to the beneficiaries of a deceased member.It is a cash benefit paid to a member who can no longer work due to old age. legally adopted or illegitimate dependent children of the member. the monthly pension. The monthly pension is granted only to the primary of a deceased member who had paid 36 monthly before the semester of death. In the absence of primary beneficiaries. The types of death benefits are: 1. He/she is 60 years old and unemployed and has paid at least 120 monthly contributions prior to the semester of retirement. The lump sum is the amount granted to beneficiaries of a deceased member who had paid monthly contributions before the semester of death. the monthly pension. b.5.

.net. 2500 La Union Telefax: (072) 700-2520 dolero1@digitelone. net.2 6 7 7 & 4 0 0 . 9506 South Cotabato Telephones: (083) 520-0125 & 228-4920 Telefax: (083) 228-2190 d ole xi i@c otaba to ..2 0 1 3 & 3 3 9 . Luna St. Mabini St.. # (074) 442-2447 Telefax: (074) 443-5339 d o l e c a r 8 8 @ p l dt d s l .com See next page for the Directory of DOLE-NCR Field Offices Region 1 ARNEL Bldg. 6000 Cebu City Telephones: (032) 253-0638 & (032) 254-5156 dolero7@cvis.net.. II. Barangay Parian. 967 Maligaya St.ph Region 9 Wee Agro Bldg. 4500 Legaspi City Tel.. Regional Gov’t Center.Directory of DOLE Regional Offices National Capital Region (NCR) DOLE-NCR Bldg.net.com. Gonzalo Go Bldg. n e t Region 11 LDL Bldg.. # (053) 325-2237 Telefax: (053) 325-5236 Dolero8@mail. Malate. # (049) 545-7357 Telefax: (049) 545-7360 imsd@mozcom. # (052) 480-5831 Telefax: (052) 820-4806 dolero5@yahoo. Bangoy St. ph. 7000 Zamboanga City Tel.ph Region 4-B MIMAROPA 7/F.com Region 5 Doña Aurora St. c o m Region 13 CARAGA Regional Office 3/F. Veterans Avenue. 6500 Tacloban City Tel.. d o l e 9 z a m @ p l d td s l . Tuguegarao City.2 0 1 7 / 5 2 3 . M. Mabini Extension. Koronadal City. 8600 Butuan City Tel.com Cordillera Administrative Region (CAR) Cabinet Hills. n e t Region 10 2/F. # (045) 961-1305 Telefax: (045) 961-2195 Dolero3@mail. J. Clemens Bldg. 4027 Laguna Tel.com Region 4-A C AL AB ARZON 3/F & 4/F. Cuenco Avenue cor. # (062) 993-1877 Telefax: (062) 991-2672 & 991-2673 dole_region_9@yahoo. Ben-Lor Bldg. Old Albay.6 0 11 Fax: (632) 400-6241 dolencr_planning@yahoo. 1100 Quezon City Tel.com Region 3 SW TLC Bldg. dol em im aropa@pac if ic . Legaspi St. La Paz.irnet.. 8000 Davao City Tel.... 9000 Cagayan de Oro City Tel. Corrales Avenue. San Fernando City. Caritan Centro. ph Region 6 2/F & 3/F.com. # (088) 857-1931 Telefax: (088) 857-2218 Fax: (08822) 72-7682 d o l e 1 0 @ w e b s p r i n t e r. d o l e ..net Region 7 2/F... St.. 1004 Manila Te l e p h o n e s : 3 3 9 . 2600 Baguio City Tel. Maimpis. San Fernando City.ph Region 8 Trece Martirez St. co m 64 .evis.c a r @ p l dtd s l . 2000 Pampanga Tel. n e t Region 2 Turingan Bldg. # (632) 374-7972 Telefax: (632) 374-7974 dol ere gi on4 b@pac ifi c. 1184 Quezon Avenue. Andenson Bldg. # (082) 227-8772 Telefax: (082) 226-2671 d o l e 11 d a v a o @ y a h o o . 3500 Cagayan Telephones: (078) 844-1364 / 844-1383 & 844-5516 Telefax: (078) 844-1553 ad_services_ro2@yahoo. J. T. n e t .. n e t Region 12 102 Acepal Bldg. # (033) 320-6904 Telefax: (033) 320-8026 doleregion6@yahoo... Rosales Avenue. GMC Plaza Bldg. Catbangen..mo zc om. # (085) 342-9606 Telefax: (085) 225-3229 d o l e x i i i @ s k y. Nimfa Tiu Bldg. 5000 Iloilo City Tel. F. Calamba City.

Semicon Bldg. Pasig. and San Juan Makati-Pasay Field Office (MPFO) 2/F. (near Salve Regina Hospital) Marcos Highway 1600 Pasig City Telephone: 408-9614 Jurisdiction: Pateros and the cities of Mandaluyong.Directory of DOLE-NCR Field Offices CAM AN AV A Field Office (CFO) 5/F. Quezon Avenue 1100 Quezon City Telephones: 497-3002 376-5983 & 414-4471 65 . 355 Sen. Gil Puyat Avenue Extension 1200 Makati City Telephones: 328-8815 & 338-5865 Quezon City Field Office (QCFO) 4/F. M a l a b o n . Marikina. Parañaque.) 967 Maligaya St. Almanza I 1750 Las Piñas City Telephones: 800-1538 Jurisdiction: Cities of Muntinlupa.. and Las Piñas Manila Field Office (MFO) G/F. a n d Va l e n z u e l a MUNTAPARLAS Field Office (MFO) 3/F. Arcadia Bldg. N a v o t a s . Malate 1004 Manila Telephones: 338-7830 / 339-2014 & 400-3002 PAMAMARISAN Field Office (PFO) 6/F. DOLE-NCR Bldg. (formerly Wasmiya Bldg. Employees Compensation Commission (ECC) Bldg. Taguig.. Susana Arcade Alabang-Zapote Road. Monumento Circle 1400 Caloocan City Telefax: (02) 323-7466 & 362-3187 Jurisdiction: Cities of Caloocan.. Araneta Square Center.

and researches. • • • • 66 . Develop and sustain the capability of enterprises toward selfmanagement of safety and health in workplaces. and equitably enjoying the gains of joint endeavors. upholding the principle of shared responsibility between workers and employers. healthful. based on relevant information culled from monitoring. Inform and advise the public on labor standards. consultations. 20-A. occupational safety and health. the Bureau of Labor Standards.The BWC The Bureau of Working Conditions (BWC) is responsible for the formulation and development of labor standards in the areas of hours of work. The BWC performs all functions in relation to the formulation of policies and enforcement of labor standards performed by the then Wage Administrative Service and the Industrial Safety Division of the Bureau of Labor. adaptive to industry trends and developments. Standardize the use of enforcement instruments and to clothe the inspectorate system with strong enforcement authority to ensure compliance with laws and regulations. and other conditions of employment. thus. was renamed the Bureau of Working Conditions. Enhance the capability of small enterprises in implementing practical and efficient methods of improving working conditions and productivity. Vision Well-guided employers and workers committed to a safe. which was created in June 1957 under Reorganization Plan No. In May 1982. and on innovative work practices or arrangements. including occupational safety and health. Mission • Formulate policies and initiate legislations on labor standards. and productive work environment. networking.

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