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HANDBOOK ON WORKERSS TATUTORY MONETARYBENEFITS

BUREAU OF WORKING CONDITIONS INTRAMUROS, MANILA 20 FOREWORD
The H a n d b o o k on W o r k e rs S t a t u t o r y M o n e t a r y Be n e f i t s has evolved through the years with its continuing revision and updating. Since its first publication in 1994, 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 s t a n d a r d s a n d t h e i r a p p l i c a t i o n s . This 2010 edition incorporates, among others, recent updates on the r e g i o n a l wa g e r a t e s , P h i l He a l t h a n d s o c i a l s e c u r i t y b e n e f i t s . I t a l s o e x p l a i n s t h e use of factors or divisors in the computation of estimated monthly rates of e m p l o ye e s p u r s u a n t t o R e p u b l i c A c t No . 9 4 9 2 , o r a n A c t R a t i o n a l i z i n g t h e C e l e b r a t i o n o f N a t i o n a l Ho l i d a y s . ThisH a n d b o o k is an integral part of our sustained efforts to keep the general public, in particular, workers and employers, well informed of the latest laws and regulations on labor standards. With its easy-to-understand format and reader-friendly presentation, I hope that thisH a n d b o o k will be very useful for any one who wishes to have a better understanding and appreciation of labor standards a n d t h e i r a p p l i c a t i o n s i n t h e wo r l d o f wo r k . MARIANITO D. ROQUE Secretary 4 J an u a r y 2 0 10
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DEPARTMENT OF LABOR AND EMPLOYMENT

o r s t a t u s , an d i r r es p ec t i v e o f t h e m e t h o d b y w h i ch t h e i r w a ge s a r e p a i d , e xc e p t t h e f o l l o w i n g : 1. Househelpers, including family drivers and workers in the personal service of another whose conditions of work are prescribed in Republic Act No. 7655. 2. Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued by the Office of the Municipal or City Treasurer. A.2 Upon application with and as determined by an RTWPB, based on documentation and other requirements in accordance with applicable rules and regulations issued by the National Wages and Productivity Commission (NWPC), a company/establishment may be exempted from compliance with a Wage Order for a period not to exceed one (1) year. B. Minimu m Wage Rates DAILY MINIMUM WAGE National Capital Region
As of January 2010
Cities/Municipality
Caloocan, Las Pias, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig, Valenzuela, and Pateros

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Sector/Industry Minimum Wage under W.O. No. NCR-13a Basic Wage under W.O. No. NCR-14b COLA under W.O. No. NCR-14c Total Non-agriculture 362.00 15.00 5.00 382.00 Agriculture Plantation 325.00 15.00 5.00 345.00 Nonplantation 325.00 15.00 5.00 345.00 Private Hospitals With bed capacity of 100 or less

325.00 15.00 5.00 345.00 Retail/Service Establishments Employing 15 workers or less 325.00 15.00 5.00 345.00 Manufacturing Establishments Employing less than 10 workers 325.00 15.00 5.00 345.00
a

Effectivity date is on 28 August 2007. Effectivity date is on 14 June 2008. Integration of P5.00 COLA into the basic wage on 28 August 2008.

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C. Basis T h e b a s i s o f th e m i n i m u m w a g e r a t e s p r es c r i b ed b y l a w sh a l l b e t h e n o r m a l w o r k i n g h o u rs o f ei g h t ( 8 ) h o u r s a d a y . D . M on t h l y - P a i d E m p l o y e e s a n d D a i l y - P a i d E m p l o y e e s Mo n t h l y - p a i d e m p l o y e e s a r e t h o s e w h o a r e p a i d e v e r y d a y o f t h e m o n t h , i n cl u d i n g u n w o r k e d r e s t d a y s , s p e c i a l d a y s , a n d r e g u l a r h o l i d a y s . D a i l y - p a i d e m p l o y ee s a r e t h o se wh o a r e p a i d on t h e d a ys t h e y a c t u a l l y w o r k e d a n d o n u n w o r ke d r e gu l a r h o l i d a y s . E . C o m p u t a t i o n o f th e E s t i m a t e d E q u i v a l e n t M o n th l y R a t e (EEMR) of Monthly-Paid and Daily-Paid Employees F o r m o n th l y - p a id e mp l o y e e s : Factor 365 days in a year is used in determining the equivalent annual and mo n t h l y s a l a r y o f m o n t h l y - p a i d e m p l o y e e s . T o c o m p u t e t h e i r E s t i m a t e d E q u i va l e n t Mo n t h l y R a t e ( E E M R ) , t h e p r o c e d u r e i s a s f o l l o ws : A pp l i c a b l e D a i l y R a t e x 36 5 = EEMR 12 w he r e 36 5 d a y s / y e a r = 299 o r d i n a r y w o r k i n g d a y s 52 r es t d a y s 1 11 r eg u l a r h o l i d a y s 3 sp ec i a l d a ys ____ 365 Total equivalent no. of days in a year
1F o r

workers whose rest days fall on Sundays, the number of rest days in a

year is now 52 days. Under RA 9492, the National Heroes' Day, a regular Monday of August.

holiday

previously observed on the last Sunday of August, will now be observed on the last

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For daily-paid employees: T h e f o l l o wi n g f a c t o r s a n d f o r m u l a m a y b e u s e d i n c o m p u t i n g t h e E E MR o f different groups of daily-paid employees for purposes of entitlement to minimum wages and allied benefits under existing laws. 1 . F o r th o s e w h o a r e r eq u i r ed t o w o r k e v e r y d a y , i n c l u d i n g S un d a y s o r r e s t d a y s , sp e c i a l d a ys , a n d r e gu l a r h o l i d a y s A pp l i c a b l e D a i l y R a t e x 39 2 . 5 0 = E E M R 12 w he r e 39 2 . 5 0 d a ys / y e a r = 2 9 9 ordinary working days 22 e l e ve n r e gu l a r h o l i d a y s x 2 0 0 % 6 7 . 6 0 52 rest days x 130% 3 . 9 0 t h r ee ( 3 ) s pe c i a l d a y s x 13 0 % _ __ __ _ 3 9 2 . 5 0 T o t a l e qu i v a l e n t n u m be r of days in a year 2 . F o r t h o se wh o d o n o t w o r k a n d a r e n o t c o n s id e r ed p a i d o n S un d a y s o r r e s t d a y s A pp l i c a b l e D a i l y R a t e x 31 3 = EEM R 12 w he r e 31 3 d a y s / y e a r = 2 9 9 o r d i n a r y w o r k i n g d a ys 11 r eg u l a r h o l i d a y s 3 sp ec i a l d a ys ( i f c o n s id e r ed p a i d ; i f a c t u a l l y w o r k e d , th i s is eq u i v a l e n t t o 3 . 9 d a ys ) ____ 3 1 3 Total equ ivalen t nu mber of days in a year 2 3 . F o r t h o se wh o d o n o t w o r k a n d a r e n o t c o n s id e r ed p a i d o n Saturdays and Sundays or rest days
2F a c t o r

203 and one (1) special day under RA 9256 are not considered paid.

310 may be used instead of 313, if the two (2) special days under EO

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A pp l i c a b l e D a i l y R a t e x 26 1 = E E M R 12 w he r e 26 2 d a y s / y e a r = 2 4 7 o r d i n a r y w o r k i n g d a ys 11 r eg u l a r h o l i d a y s 3 sp ec i a l d a ys ( i f c o n s id e r ed p a i d ; i f a c tu a l l y w o r ke d , t h is i s eq u i v a l en t t o 3 . 9 d a y s ) ____ 261 Total equivalent number of days in a year3 F. Minimum Wage of Workers Paid by Results A l l wo r k e r s p a i d b y r e s u l t s , i n c l u d i n g h o m e w o r k e rs a n d t h o s e wh o a r e p a i d o n piece rate,t a k a y,p a k y a w, or task basis, shall receive not less than the

p r e sc r i b e d m i n i m u m w a g e r a t e s u n d e r t h e Re g i o n a l W a g e O r d e r s f o r n o rm a l w o r k i n g h o u r s w h i c h s h a l l n o t e x c e e d e i g h t ( 8 ) h o u r s a d a y , o r a p ro p o r t i o n thereof. T h e w a g e r a t e s o f wo r k e r s w h o a r e p a i d b y r e s u l t s s h a l l c o n t i n u e t o b e e s t a b l i s h e d i n a c c o r d a n c e w i t h A rt i c l e 1 0 1 o f t h e L a b o r C o d e o f t h e P h i l i p p i n e s, a s a m e n d e d , a n d i t s i m p l e m e n t i n g r e g u l a t i o n s . T h i s wi l l b e d o n e t h r o u g h : 1. Time and motion studies. 2. Consultation with representatives of employers and workers organizations in a tripartite conference called by the DOLE Secretary. Request for the conduct of time and motion studies, to determine whether the nontime employees in an enterprise are being paid fair and reasonable wage rates, may be filed with the proper Regional Office. Where the output rates established by the employer do not conform with the standards set under the foregoing methods for establishing output rates, 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.
3F a c t o r

special day under RA 9256 (Ninoy Aquino Day) are not worked and not considered paid.

258 may be used if the two (2) special days under EO 203 and one (1)

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The adjustment in the wage rates by reason of mandatory wage increase for w o r k e r s p a i d b y r e s u l t s s h a l l b e c o m p u t e d i n a c c o r d a n c e w i t h t h e f o l l o wi n g s t e p s : 1 . A m o un t o f in c r e a s e i n A pp l i c a b l e M i n i m u m W ag e ( A M W ) rate Previous AMW x 100 = % increase 3 . E x i s t i n g r a t e / p i e c e x % i n c r e a s e = In c r e a se in r a t e / p i e ce 4 . E x i s t i n g r a t e / p i e c e + in c r e a se i n r a t e / p i e ce = A d ju s t e d rate/piece G . M i n i m u m W a g e o f Ap p r en t i c e s , L e a r n e r s , a n d D i s a b le d Workers W a g es o f a p p r en t i c e s a n d l e a r n e rs sh a l l i n n o c as e b e l es s th a n s e ve n t y - f i v e p e r ce n t ( 7 5 % ) o f t h e a pp l i c a b l e m i n i m u m w a g e r a t e s . Apprentices and learners are those who are covered by apprenticeship and l e a r n e r sh i p a g r e e m e n t s d u l y a p p r o v e d b y t h e T e c h n i c a l E d u c a t i o n a n d S ki l l s Development Authority (TESDA). A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe b e n e f i t s o r a l l o w a n c e s a s a q u a l i f i e d a b l e b o d i e d p e r s o n ( S e c . 5 o f RA 7 2 7 7 o r t h e M a g n a C a r t a f o r Di s a b l e d P e r s o n s ) . H. Minimu m Wage of Househelpers (RA 7655) T h e m i n i m u m c o m pe n s a t i o n o f e ig h t h u n d r ed pe s o s ( P 800.00) a mo n t h i s r e q u i r e d f o r h o u s e h e l p e r s i n t h e c i t i e s o f C a l o o c a n , L a s P i a s , Makati, Malabon, M a nd a l u y o n g , Manila,

Muntinlupa, Navotas, Paraaque, Pasay, Pasig, Quezon, San Valenzuela, and in the municipality of Pateros. Me a n w h i l e , a c o m p e n s a t i o n o f s i x h u n d r e d f i f t y p e s o s ( P 6 5 0 . 0 0 ) a m o n t h i s required for househelpers in other chartered citiescities other than Manila, P a s a y , Q u e z o n , a n d C a l o o c a n h i g h l y u r b a n i z e d c i t i e s , a n d f i r s t - cl a ss mu n i ci p a l i t i e s . On the other hand, a compensation of five hundred fifty pesos (P 5 5 0 . 0 0 ) a mo n t h i s r e q u i r e d f o r h o u s e h e l p e r s i n o t h e r m u n i c i p a l i t i e s . Househelpers who are receiving at least one thousand pesos (P 1 , 0 0 0 . 0 0 ) a mo n t h sh a l l b e c o v e r e d b y t h e S o c i a l S e c u ri t y S y s t e m a n d s h a l l b e e n t i t l e d t o a l l t h e b e n e f i t s p r o v i d e d t h e re i n .
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Marikina, Juan, Taguig,

E mp l o y e r s s h a l l r e v i e w t h e e m p l o y m e n t c o n t r a c t s o f t h e i r h o u s e h e l p e r s e v e r y three (3) years with the end in view of improving the terms and conditions thereof. I. Effect of Reduction of Workdays on Wages I n si t u a t i o n s w h e r e t h e e m p l o y e r h a s t o r e d u c e t h e n u m b e r o f re g u l a r w o r k i n g d a ys t o p r e v e n t s e r i o u s l o s s e s , s u c h a s wh e n t h e r e i s a s u b s t a n t i a l s l u m p i n t h e d e ma n d f o r h i s / h e r g o o d s o r s e r v i c e s o r w h e n t h e r e i s l a c k o f r a w m a t e ri a l s , t h e e m p l o ye r m a y d e d u c t t h e wa g e s c o r r e s p o n d i n g t o t h e d a y s t a k e n o f f f r o m t h e w o r k we e k , c o n s i s t e n t w i t h t h e p r i n c i p l e o f n o w o r k , n o p a y . T h i s i s w i t h o u t prejudice to an agreement or company policy which provides otherwise. J . P e n a l t y a n d D o u b l e I n de m n i t y f o r V i o l a t i o n o f t h e P r es c r i b ed Increases or Adjustments in the Wage Rates (RA 8188) Any person, corporation, trust, firm, partnership, 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, shall be punished by a fine of not less than Twenty-five Thousand Pesos (P 2 5 , 0 0 0 . 0 0 ) n o r m o r e t h a n On e H u n d r e d T h o u sa n d P e s o s (P 1 0 0 , 0 0 0 . 0 0 ) o r i m p r i s o n m e n t o f n o t l e s s t h a n t w o ( 2 ) y e a r s n o r more than four (4) years, or both such fine and imprisonment at the discretion of the court: P r o v i d e d , That any person convicted hereof shall not be entitled to the benefits provided for under the Probation Law. T h e e m p l o y e r c o n ce r n ed sh a l l be o r de r e d t o p a y an a m o u n t e qu i v a l e n t t o do u b le t h e u n p a i d b en ef i t s o w i n g t o th e e m p l o y e es : P r o v i d e d , T h a t p a y m en t o f in d e mn i t y s h a l l n o t a b s o l v e t h e e m p l o y e r f r o m t h e c r i m i n a l l i a b i l i t y i m p o s a b le h e r e o f . If the violation is committed by a corporation, trust, firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entitys responsible officers, including, but not limited to, the president, vicepresident, chief executive officer, general manager, managing director or partner.

OLIDAY

2
H
17

P
AY
( A r t i c l e 94 ) A . De f i n i t i o n H o l i d a y p a y r e fe r s t o t h e p a y m e n t o f t h e re g u l a r d a i l y w a ge f o r a n y un w o r k ed r eg u l a r h o l i d a y . B. Coverage T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . T h o se o f r e t a i l a n d s e r v i ce es t a b l i s h m en t s r e gu l a r l y e mp l o y i n g l e ss t h an t en (1 0 ) w o r ke r s ; 3 . H o us e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l se r v i c e o f a n o t h e r ; 4 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 4 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e re i n ; 4 . 3 T he y h a ve t h e au t h o r i t y t o h i r e o r f i r e o t h e r em p l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 5 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 5.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 5 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 5.3 (a ) R e g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g
18

s pe c i a l t r a i n i n g , ex p e r i en c e , o r k n o w l ed ge ; o r ( c ) e x ec u t e , u nd e r g en e r a l s up e r v i s i o n , s pe c i a l a s s i gn m e n t s a n d t a s k s ; an d 5 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 5 . 1 , 5 . 2 , a n d 5 . 3 a b o v e . 6 . F i e l d p e r s o n n e l a n d o t h e r e m p l o y e e s w h o s e t i m e a n d p e r f o r m a n c e i s u n s u p e r vi se d b y t h e e m p l o y e r , i n c l u d i n g t h o s e wh o a r e e n g a g e d o n t a s k o r c o n t r a c t b a s i s , p u r e l y co m m i s s i o n b a s i s o r t h o s e w h o a r e p a i d a f i x e d a m o u n t f o r p e r f o r m i n g w o r k i r r e sp e c t i v e o f t h e t i m e c o n s u m e d i n t h e p e r f o r m a n c e t h e re o f . C . R e gu l a r H o l i d a y s E ve r y e m p l o y e e c o v e r e d b y t h e H o l i d a y P a y Ru l e i s e n t i t l e d t o h i s / h e r d a i l y b a si c w a g e . T h i s m e a n s t h a t t h e e m p l o y e e i s e n t i t l e d t o a t l e a s t 1 0 0 % o f h i s / h e r b a si c w a g e e v e n i f h e / s h e d i d n o t r e p o r t f o r w o r k , p r o v i d e d h e / s h e i s p r e s e n t o r i s o n l e a v e o f a b s e n c e wi t h p a y o n t h e wo r k d a y i m m e d i a t e l y p r e c e d i n g t h e h o l i d a y. W o r k pe r f o r m e d on t h a t d a y m e r i t s a t l e a s t t w i ce ( 20 0 % ) t h e b a s i c w a g e o f t h e em p l o y e e . I l l u s t r a t i o n : Us i n g t h e N C R m i n i m u m w a ge r a t e o f P 3 8 2 . 0 0 p e r d a y for the non -agricu ltural sector, effective 28 August 2008 under Wage O r de r N o . N CR - 1 4 . F o r w o r k w i t h i n e i gh t ( 8 ) h ou r s : P l u s 1 0 0 % o f t h e d a i l y b a s i c r a t e o f 10 0 % o r a t o t a l o f 2 0 0% P38 2 . 0 0 + 1 0 0% t h e r e o f = P 3 8 2 . 0 0 + P 3 8 2 . 0 0 = P 7 6 4 . 0 0 . 0 0 or 200% of P 3 8 2 . 0 0 = 2 . 0 0 x P 3 82 . 0 0 = P 7 6 4 . 0 0 Where the holiday falls on the scheduled rest day of the employee, work performed on said day merits at least an additional 30% of the employees regular holiday rate of 200% or a total of at l e a s t 2 6 0 % ( P l e a s e s e e 3 . P r e m i u m P a y ) . When a regular holiday falls on a Sunday, the following Monday shall not be a holiday, unless a proclamation is issued declaring it a special day.
19

Unless otherwise modified by law, order, or proclamation, the following are the eleven (11) regular holidays in a year under E x e c u t i v e O r d e r N o . 2 9 2 , a s a m e n d e d by Republic Act 9492: N ew Y e a r s D a y January 1 M a un d y Th u r sd a y Movable Date Good Friday Movable Date A r a w ng K ag i t i n g a n M o nd a y n e a r es t Ap r i l 9 Labor Day M o nd a y n e a r es t M a y 1

I n de pe n de n ce D a y M o nd a y n e a r es t Ju n e 1 2 N a t i o n a l H e r o es D a y L a s t M o n d a y o f A u g u s t Eidl Fitr Movable Date Bonifacio Day M o nd a y n e a r es t N o ve m b e r 3 0 Christmas Day D ec e m b e r 2 5 Rizal Day M o nd a y n e a r es t De c e mb e r 30 W h e n A r a w n g K ag i t i n g a n f a l l s o n t h e s a m e d a y a s M a u n d y T h u r s d a y o r G o o d F r i d a y , a c o v e r e d e m p l o y e e i s e n t i t l e d t o a t l e a s t t w o h u n d r e d p e r ce n t ( 2 0 0 % ) o f h i s / h e r b a s i c wa g e e v e n i f s a i d d a y i s u n w o r k e d . W h e r e t h e e m p l o ye e i s r e q u i r e d t o wo r k o n t h a t d a y , h e / s h e i s e n t i t l e d t o a n a d d i t i o n a l 1 0 0 % o f t h e b a si c w a g e . D . Mu s l i m H o l i d a y s P r e si d e n t i a l D e c r e e N o . 1 0 8 3 ( Co d e o f M u s l i m P e r s o n a l L a w s o f t h e Philippines), as amended, recognizes the four (4) Muslim holidays, namely: 1 . m un J a d id (N e w Y e a r ) , w h i ch f a l l s o n th e f i r s t d a y o f t h e l u n a r m o n th o f M u h a r r a m ; 2 . M a u l i d - u n - N a b i ( B i r t h d a y o f th e P r o p h e t M u h a m m a d ) , wh i c h falls on the twelfth day of the third lunar month ofR a b i - u l Awwal; 3 . L a i l a t u l Is r W a l M i r j ( No c t u r n a l J o u r n e y a n d A s c e n s i o n o f t h e P r o p h e t Mu h a mm a d ) , wh i c h f a l l s o n t h e t w e n t y - s e v e n t h d a y o f t h e s e v e n t h l u n a r mo n t h ofR a j a b; 4 . d - u l - A d h ( H a r i R a h a H a j i ) , wh i c h f a l l s o n t h e t en t h d a y o f the twelfth lunar month ofD h l - H i j j a . These official holidays shall be observed in the provinces of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato, Sultan Kudarat, Sulu, T a wi - T a wi , Z a m b o a n g a d e l N o r t e a n d Z a m b o a n g a d e l S u r a n d i n t h e c i t i e s o f Cotabato, Iligan,
20

Ma r a w i , P a g a d i a n , a n d Z a m b o a n g a , a n d i n s u c h o t h e r M u s l i m p r o v i n c e s a n d c i t i e s a s m a y b e c r e a t e d b y l a w. U p o n p ro c l a m a t i o n b y t h e P r e s i d e n t o f t h e P h i l i p p i n e s , M u s l i m h o l i d a y s m a y a l s o b e o f f i c i a l l y o b s e r v e d i n o t h e r p r o v i n ce s a n d ci t i e s . The dates of Muslim holidays shall be determined by the Office of the P r e s i d e n t o f t h e Ph i l i p p i n e s i n a c c o r d a n c e w i t h t h e M u s l i m L u n a r Ca l e n d a r (Hijra). P r e s i de n t i a l P r o c l a m a t i o n N o . 1 1 98 ( 2 6 Oc t o b e r 19 7 3 ) p r o v i d e s : A l l p r i va t e c o r p o r a t i o n s , o f f i c e s , a g e n c i e s a n d e n t i t i e s o r e s t a b l i s h m e n t s operating within the provinces and cities enumerated herein shall observe the legal holidays as proclaimed, provided, however, that all Muslim employees working outside of the Muslim provinces and cities shall be excused from work

d u r i n g t h e o b s e r v a n c e o f t h e M u s l i m h o l i d a y s a s r e c o g n i z e d b y l a w wi t h o u t d i mi n u t i o n o r l o s s o f w a g e s d u r i n g t h e s a i d p e r i o d x x x . Co n s i d e r i n g t h a t a l l p r i v a t e c o r p o r a t i o n s , o f f i c e s , a g e n c i e s , a n d e n t i t i e s o r establishments operating within the designated Muslim provinces and cities are r e q u i r e d t o o b s e r v e M u s l i m h o l i d a y s , b o t h M u s l i m s a n d C h r i s t i a n s wo r k i n g w i t h i n t h e M u sl i m a r e a s m a y n o t r e p o r t f o r wo r k o n t h e d a y s d e s i g n a t e d b y l a w a s Mu sl i m h o l i d a y s . E . A b se n ce s 1 . A l l co v e r e d e m p l o y e e s s h a l l b e e n t i t l e d t o h o l i d a y p a y w h e n t h e y a re o n l e a v e o f a b se n c e wi t h p a y o n t h e w o r k d a y i m m e d i a t e l y p r e c e d i n g t h e r e g u l a r h o l i d a y. E m p l o ye e s wh o a r e o n l e a v e o f a b s e n c e w i t h o u t p a y o n t h e d a y i m m e d i a t e l y p r e ce d i n g a r e g u l a r h o l i d a y m a y n o t b e p a i d t h e r e q u i r e d h o l i d a y p a y i f t h e y d o not work on such regular holiday. 2. Employers shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employees compensation or social security payment, whichever is higher, if the employees are not reporting for wo r k wh i l e o n s u ch l e a v e b e n e f i t s . 3 . W h e r e t h e d a y i m m e d i a t e l y p r e c e d i n g t h e h o l i d a y i s a n o n - wo r k d a y i n t h e establishment or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to
21

t h e h o l i d a y p a y i f h e / s h e w o r k ed on t h e d a y i m m e d i a t e l y p r ec e d in g th e n o n w o r k d a y o r re s t d a y . F . Su cc e ss i v e Re gu l a r H o l i d a y s W h e r e t h e r e a r e t w o ( 2 ) s u c c e s s i v e re g u l a r h o l i d a y s , l i k e M a u n d y T h u r sd a y a n d G o o d F r i d a y , a n e m p l o y e e m a y n o t b e p a i d f o r b o t h h o l i d a y s i f h e / sh e a b se n t s h i m s e l f / h e r s e l f f r o m w o r k o n t h e d a y i m m e d i a t e l y p r e c e d i n g t h e f i r s t holiday, unless he/she works on the first holiday, in which case he/she is entitled t o h i s/ h e r h o l i d a y p a y o n t h e s e c o n d h o l i d a y . G. Temporary or Periodic Shu tdown /Cessation of Work I n ca s e s o f t e m p o r a r y o r p e r i o d i c s h u t d o w n a n d t e m p o r a r y c e s s a t i o n o f w o r k o f a n e s t a b l i s h m e n t , a s w h e n a y e a r l y i n v e n t o r y o r wh e n t h e r e p a i r o r c l e a n i n g o f ma ch i n e r i e s a n d e q u i p m e n t i s u n d e r t a k e n , t h e r e g u l a r h o l i d a y s f a l l i n g w i t h i n t h e p e r i o d sh a l l b e c o m p e n s a t e d i n a c c o r d a n c e w it h t h e Ru l e s I m p l e m e n t i n g t h e L a b o r Co d e , a s a m e n d e d . H . H o l i d a y P a y o f C e r t a i n E m p l o y e es 1. Where the covered employee is paid on piece-rate basis, his/ her holiday pay shall not be less than his/her average daily earnings for the last seven (7) actual w o r k d a y s p r e c e d i n g t h e re g u l a r h o l i d a y ; p ro v i d e d , h o w e v e r , t h a t i n n o c a s e sh a l l t h e h o l i d a y p a y b e l e s s t h a n t h e a p p l i c a b l e s t a t u t o r y m i n i m u m wa g e r a t e . 2 . Se a s o n a l w o r k e r s m a y n o t be p a i d t h e r e qu i r e d h o l i d a y p a y d u r in g o f f - se a s o n w h e n t h e y a r e n o t a t w o r k . 3 . W o r k e rs wh o d o n o t h a ve r eg u l a r w o r k i n g d a y s , su ch a s s t e ve d o r e s , sh a l l be en t i t l e d t o t h i s be n e f i t .

REMIUM

3
P
22

P
AY
( A r t i c l e s 9 1 - 93 ) A . De f i n i t i o n P r e mi u m p a y r e f e r s t o t h e a d d i t i o n a l c o m p e n s a t i o n f o r w o r k p e r f o r m e d w i t h i n e i g h t ( 8 ) h o u r s o n n o n w o r k d a y s, s u c h a s r e s t d a y s a n d s p e c i a l d a y s . B. Coverage T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 2.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 2 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e r e i n ; 2 . 3 T he y h a ve t h e a u th o r i t y t o h i r e o r f i r e o t h e r e mp l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 3 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 3.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 3 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 3 . 3 ( a ) Re g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g s p e c i a l t r a i n i n g , e x p e r i e n c e , o r k n o w l e d g e ; o r ( c )
23

e x ec u t e ,

u nd e r g en e r a l s up e r v i s i o n , s pe c i a l a s s i gn m e n t s a n d t a s k s ; an d 3 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 3 . 1 , 3 . 2 , a n d 3 . 3 a b o v e . 4 . H o us e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l se r v i c e o f a n o t h e r ; 5 . W o r ke r s w h o a r e p a i d b y r e s u l t s , i n c l u d i n g t h o s e w h o a r e p a i d o n p i e c e r a t e , t a k a y , p a k y a w , o r t a s k b a s i s , a n d o t h e r n o n t i m e wo r k , i f t h e i r o u t p u t r a t e s a r e i n a c co r d a n c e w i t h t h e s t a n d a r d s p r e s c r i b e d i n t h e r e g u l a t i o n s , o r wh e r e s u c h r a t e s h a ve b e e n f i x e d b y t h e S e c r e t a r y o f L a b o r a n d E m p l o y m e n t ; 6. Field personnel, 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. C. Special Days 1. Special Days Unless otherwise modified by law, order, or proclamation, the following are the three (3) special days in a year under Executive Order No. 292, as amended by Republic Act 9492, that shall be o b s e r v e d i n t h e P h i l i p p i n e s : N i n o y A q u in o D a y M o nd a y n e a r es t Au gu s t 21 A l l S a i n ts D a y N o v e m be r 1 L a s t D a y o f t h e Ye a r D ec e m b e r 3 1 T h e n o wo r k , n o p a y p r i n c i p l e a p p l i e s d u r i n g s p e c i a l d a y s a n d o n s u c h o t h e r special days as may be proclaimed by the President or by Congress. W o r ke r s wh o a r e n o t r e q u i r e d o r p e r m i t t e d t o w o r k o n s p e c i a l d a y s a r e n o t entitled to any compensation. This, however, is without prejudice to any voluntary p r a ct i ce o r p r o v i s i o n i n t h e C o l l e c t i v e B a r g a i n i n g A g re e m e n t ( C B A ) p r o v i d i n g f o r p a ym e n t o f w a g e s a n d o t h e r b e n e f i t s f o r d a y s d e c l a re d a s s p e c i a l d a y s e v e n i f u n w o r ke d . On t h e o t h e r h a n d , w o r k p e r f o r m e d o n s p e c i a l d a y s m e ri t s a d d i t i o n a l c o mp e n s a t i o n o f a t l e a s t t h i r t y p e r c e n t ( 3 0 % ) o f t h e b a s i c p a y o r a t o t a l o f o n e h u n d re d t h i r t y p e r c e n t (1 3 0 % ) . W h e r e t h e e m p l o y e e w o r k s o n a s p e c i a l d a y falling on his rest day, he/she shall be entitled to an additional compensation of a t l e a st f i ft y p e r c e n t
24

( 5 0 % ) o f h is / h e r b a s i c w a g e o r a t o t a l o f o n e h u n d r e d f i f t y p er c en t (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

T h e m i n i m u m s t a t u t o r y p re m i u m p a y r a t e s a r e a s f o l l o w s : 1 . F o r w o r k pe r f o r m e d on r es t d a y s o r o n s pe c i a l d a y s : P l u s 3 0 % o f t h e d a i l y b as i c r a t e o f 1 00 % o r a t o t a l o f 1 3 0 % . 2 . F o r w o r k pe r f o r m e d on a re s t d a y w h i ch is a l s o a s pe c i a l d a y : P l u s 5 0 % o f t h e d a i l y b as i c r a t e o f 1 00 % o r a t o t a l o f 1 5 0 % . 3. For work performed on a regular holiday which is also the employees rest day (not applicable to employees who are not covered by the holiday-pay rule). P l u s 3 0 % o f t h e re g u l a r h o l i d a y r a t e o f 2 00 % b as ed o n h i s / h e r d a i l y b a s i c w a g e r a t e o r a t o t a l o f 26 0 % . I l l u s t r a t i o n : Us i n g P 3 8 2 . 0 0 a s d a i l y b as i c r a t e ( D B R ) 1 . P 3 8 2 . 0 0 + ( 30 % o f P 3 8 2 . 0 0 ) P382.00 + P114.60 = P 496.60 or 1 3 0 % o f P 3 82 . 0 0 = 1 . 3 x P 3 8 2 . 0 0 = P 496.60 2. P382.00 +(50% of P382.00) P38 2 . 0 0 + P 1 9 1 . 0 0 = P 573.00 or 1 5 0 % o f P 3 82 . 0 0 = 1 . 5 x P 3 8 2 . 0 0 = P 573.00 3 . ( 2 00 % o f P 3 8 2 . 0 0 ) + 3 0% ( 2 00 % o f P 3 8 2 . 0 0 ) P7 6 4 . 0 0 + . 3 x ( 2 x P 3 8 2 . 0 0 ) P7 6 4 . 0 0 + ( . 3 x P 7 6 4 . 0 0 ) P7 6 4 . 0 0 + P 2 2 9 . 2 0 = P 9 9 3 . 2 0 or 1 3 0 % o f 20 0 % o f P 3 8 2 . 0 0 = 1.30 x 2 x P382.00 =P 9 9 3 . 2 0

P
VERTIME

4
25

O
AY
( A r t i c l e 87 ) A . De f i n i t i o n O v e r t i m e p a y r e fe r s t o t h e a d d i t i o n a l c o m p en s a t i o n f o r w o r k p e r f o r m e d b ey o n d e i gh t ( 8 ) h o u rs a d a y . B. Coverage S a m e a s t h o se c o ve r e d u n d e r 3 . P r e m i u m P a y . C. Overtime Pay Rates T h e m i n i m u m o v e r t i m e p a y r a t e s v a r y a cc o r d i n g t o t h e d a y th e o v e r t i m e w o r k is pe r f o r m e d , a s f o l l o w s : 1 . F o r w o r k i n e xc e ss o f e i gh t ( 8 ) h o u r s pe r f o r m e d o n o r d i n a r y

w o r k i n g d a y s : P l u s 2 5 % o f t h e h ou r l y r a t e . 2. For work in excess of eight (8) hours performed on a scheduled d a y, a n d a r e g u l a r h o l i d a y : P l u s 3 0 % o f t h e h o u r l y r a t e o n s a i d I l l u s t r a t i o n : U s i n g P 3 82 . 0 0 a s b a s i c d a i l y r a t e a n d P 4 7 . 7 5 hourly rate. 1 . O ve r t i m e p a y o n a n o r d i n a r y d a y P47 . 7 5 + ( 2 5% o f P 4 7 . 7 5 ) = P 4 7 . 7 5 + ( 0 . 2 5 x P 4 7 . 7 5 ) P47.75 + P11.93 = P 59.68O T / h o u r or 1 2 5 % o f P 4 7 . 7 5 = 1 . 25 x P 4 7 . 7 5 = P 59.68O T / h o u r 2. Overtime pay on rest day or on special day 130% of P4 7 . 7 5 + 3 0 % o f P62.07 + P18.62 = P 8 0 . 6 9 OT/hr. or
26

r e s t d a y , a s p e ci a l days. a s b a s ic

(130% of P47.75)

1 3 0 % o f (1 3 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 1 . 3 x P 4 7 . 7 5 ) = 1 . 3 x P 62.07 = P 8 0 . 6 9 OT/hr. 3 . O ve r t i m e p a y o n a re s t d a y w h i ch f a l l s o n a s pe c i a l d a y 1 5 0 % o f P 4 7 . 7 5 + 30 % o f ( 1 5 0% o f P 4 7 . 7 5 ) P71 . 6 2 + P 2 1 . 4 8 = P 9 3 . 1 0 O T / h ou r or 1 3 0 % o f (1 5 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 1 . 5 x P 4 7 . 7 5 ) = 1.3 x P71.62 =P 9 3 . 1 0 OT/hour 4 . O ve r t i m e p a y o n a re g u l a r h o l i d a y 2 0 0 % o f P 4 7 . 7 5 + 30 % o f ( 2 0 0% o f P 4 7 . 7 5 ) = P 95.50/hr + P28.65 =P 1 2 4 . 1 5 OT/hour or 1 3 0 % o f (2 0 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 2 . 0 x P 4 7 . 7 5 ) = 1 . 3 x P 9 5 . 5 0 = P 1 2 4 . 1 5 O T / h ou r 5 . O ve r t i m e p a y o n a re s t d a y w h i ch f a l l s o n a r e gu l a r h o l i d a y 2 6 0 % o f P 4 7 . 7 5 + 30 % o f ( 2 6 0% o f P 4 7 . 7 5 ) = P 1 2 4 . 1 5 / h r + P 3 7 . 2 4 = P 1 6 1 . 3 9 O T / h ou r or 1 3 0 % o f (2 6 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 2 . 6 x P 4 7 . 7 5 ) = 1 . 3 x P 1 2 4 . 1 5 = P 1 6 1 . 3 9 O T / h ou r D . S t i pu l a t e d Ov e r t i m e R a t es Ge n e r a l l y , t h e p r e m i u m p a y f o r wo r k p e r f o r m e d o n r e s t d a y s , s p e c i a l d a ys , o r regular holidays is included as part of the regular rate of the employee in the c o mp u t a t i o n o f o v e r t i m e p a y f o r o v e r t i m e wo r k r e n d e r e d o n s a i d d a y s , e s p e ci a l l y i f t h e e mp l o y e r p a y s o n l y t h e m i n i m u m o v e r t i m e r a t e s p r e s c r i b e d b y l a w . The employees and employer, however, may stipulate in their collective agreement the payment for overtime work at rates higher than those provided by law.

5
N
IGHT
27

HIFT

D
IFFERENTIAL
( A r t i c l e 86 ) A . De f i n i t i o n Ni g h t S h i f t D i f f e r e n t i a l ( N S D ) r e f e r s t o t h e a d d i t i o n a l c o m p e n s a t i o n o f t e n p e r ce n t ( 1 0 % ) o f a n e m p l o y e e s r e g u l a r w a g e f o r e a c h h o u r o f w o r k p e r f o r me d between 10 p.m. and 6 a.m. B. Coverage T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . H o u se h e l p e r s a n d p e rs o n s i n t h e p er s o n a l se r v i c e o f another; 3 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 3 . 1 T h e i r p r i ma r y d u t y i s t o m a n a g e t h e e s t a b l i s h m e n t i n wh i c h t h e y a r e e m p l o y e d o r of a department or subdivision thereof; 3 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e re i n ; 3 . 3 T he y h a ve t h e au t h o r i t y t o h i r e o r f i r e o t h e r em p l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 4 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 4.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 4 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 4 . 3 ( a ) Re g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s

e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g
28

s pe c i a l t r a i n i n g , ex p e r i en c e , o r k n o w l ed ge ; o r ( c ) e x ec u t e , u nd e r g en e r a l s up e r v i s i o n , s pe c i a l a s s i gn m e n t s a n d t a s k s ; an d 4 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 4 . 1 , 4 . 2 , a n d 4 . 3 a b o v e ; 5 . F i e l d p e rs o n n e l a n d t h o se wh o s e t i m e a n d pe r f o r m a n c e a r e u ns up e r v i s ed b y t h e e mp l o y e r . C. Computation of N ight Shift Differen tial T h e t a b l e b e l o w m a y be u se d t o gu i d e c o m p u t a t i o n s :

Work on: Pay equals x P47.75 8 Hours

(hourly rate)

Regular day 100% or 1 P 47.75 P 382.00 Sunday or rest day 130% or 1.3 62.07 496.56 Special day 130% or 1.3 62.07 496.56 Special day falling on rest day 150% or 1.5 71.62 573.00 Holiday 200% or 2 95.50 764.00 Holiday falling on rest day 260% or 2.6 124.15 993.20 Double holiday 300% or 3 143.25 1,146.00 Double holiday falling on rest day 390% or 3.9

186.22 1,489.76 Regular day, night shift 1 x 1.1 = 1.1 or 110% 52.52 420.16 Rest day, night shift 1.3 x 1.1 = 1.43 or 143% 68.28 546.24 Special day, night shift 1.3 x 1.1 = 1.43 or 143% 68.28 546.24 Special day, rest day, night shift 1.5 x 1.1 = 1.65 or 165% 78.79 630.32 Holiday, night shift 2 x 1.1 = 2.2 or 220% 105.05 840.40 Holiday, rest day, night shift 2.6 x 1.1 = 2.86 or 286% 136.56 1,092.48 Double holiday, night shift 3 x 1.1 = 3.3 or 330% 157.58 1,260.64 Double holiday, rest day, night shift 3.9 x 1.1 = 4.29 or 429% 204.85 1,638.80 Regular day, overtime (OT) 1 x 1.25 = 1.25 or 125% 59.69 Rest day, overtime 1.3 x 1.3 = 1.69 or 169% 80.70 Special day, overtime 1.3 x 1.3 = 1.69 or 169% 80.70 Special day, rest day, overtime 1.5 x 1.3 = 1.95 or 195% 93.11 Holiday, overtime 2 x 1.3 = 2.6 or 260% 124.15 Holiday, rest day, overtime 2.6 x 1.3 = 3.38 or 338% 161.40 Double holiday, overtime 3 x 1.3 = 3.9 or 390% 186.22 Double holiday, rest day, overtime 3.9 x 1.3 = 5.07 or 507% 242.09 Regular day, night shift, overtime

1 x 1.1 x 1.25 = 1.375 65.66 Rest day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 88.77 Special day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 88.77 Special day, rest day, night shift, OT 1.5 x 1.1 x 1.3 = 2.145 102.42 Holiday, night shift, overtime 2 x 1.1 x 1.3 = 2.86 136.56 Holiday, rest day, night shift, overtime 2.6 x 1.1 x 1.3 = 3.718 177.53 Double holiday, night shift, overtime 3 x 1.1 x 1.3 = 4.29 204.85
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Double holiday, rest day, night shift, OT 3.9 x 1.1 x 1.3 = 5.577 266.30

Cases of n ight shift pay, using P 4 7 . 7 5 a s t h e b as i c h o u r l y r a t e (P 38 2 . 0 0 d i v i de d b y 8) : 1. Work on regular days 1 ) Ni g h t s h i f t i s f r o m 1 0 p . m . t o 6 a . m . Work from 10 p.m. to 6 a.m. = P47.75 x 1.1 = P52.52 per hour Night shift pay = P 52 . 5 2 5 x 8 = P 4 2 0 . 2 0 O v e r t i m e a f t e r 6 a . m . = P 4 7 . 7 5 x 1 . 3 75 = P 6 5 . 6 6 pe r h o u r 2) Work shift is from 12 mn . to 8 a.m. Work from 12 mn. to 6 a.m. = P47.75 x 1.1 = P52.52 per hour W o r k f r o m 6 a . m . t o 8 a . m . = P 4 7 . 7 5 pe r h o u r Night shift pay = (P 5 2 . 5 2 x 6 ) + ( P 4 7 . 7 5 x 2 ) = P 4 1 0 . 6 5 3 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m i dn i g h t Work from 4 p.m. to 10 p.m. = P47.75 per hour Work from 10 p.m. to 12 mn. = P47.75 x 1.1 = P52.52 per hour Work shift pay = (P 47 . 7 5 x 6) + ( P 5 2 . 5 2 x 2 ) = P 3 9 1 . 5 5 4) Work shift is from 8 a.m. to 5 p.m. (with one-hour meal b r e a k ) , w i t h o v e r t i m e u n t i l m i dn i g h t W o r k f r o m 8 a . m . t o 5 p . m . = P 4 7 . 7 5 p e r h ou r Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.25 = P59.70 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 1.375 = P65.66/ hour 2. Work on rest days (nigh ts-off) Ni g h t s h i f t e m p l o y e e s a r e e n t i t l e d t o a w e e k l y n i g h t - o f f ( u s u a l l y S a t u r d a y e v e n i n g ) o r a w e e k l y r e s t p e r i o d o f t w e n t y - f o u r (2 4 ) h o u r s b e g i n n i n g a t t h e s t a r t of the night shift. This period may be called their rest day or night-off. 1 ) Ni g h t s h i f t i s b e t we en 1 0 p . m . a n d 6 a . m . ; w o r k r e n d e r ed on a r es t d a y (n i g h t - o f f ) Work from 10 p.m. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour Night shift pay = P 54 6 . 2 6 O v e r t i m e a f t e r 6 a . m . = P 4 7 . 7 5 x 1 . 6 9 = P 8 0 . 7 0 pe r h ou r

2 ) W o r k s h i f t i s f r o m 1 2 m n . t o 8 a . m . ; w o r k r en d e re d o n a r e s t d a y (n i g h t - o f f ) Work from 12 mn. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 1.3 = P62.08 per hour Night shift pay = (P68.28 x 6) + (P62.08 x 2) = P533.83 3 ) Work shift is from 4 p.m. to 12 mn.; work rendered on a rest day Work from 4 p.m. to 10 p.m. = P47.75 x 1.3 = P62.08 per hour Work from 10 p.m. to 12 mn. = P47.75 x 1.43 = P68.28 per hour Work shift pay = P62.08 x 6 + P68.28 x 2 = P509.02 4 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . [ wi t h o n e - h o u r m e a l b r e a k ] ; wo r k re n d e r e d o n a rest day with overtime until midnight Work from 8 a.m. to 5 p.m. = P47.75 x 1.3 = P62.08 per hour Rest day pay = P382.00 x 1.3 = P 496.60 Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.69 = P 80.70 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 1.859 = P 88.77 / hour 3 . W o r k o n sp ec i a l d a y s Night shift employees are also entitled to the premium pay on special days and holidays. These days are reckoned as calendar days which start at midnight and end at the following midnight. The premium pay for the night shift also starts or ends at midnight. However, the employment contract, company policy or collective agreement may provide that in the case of night shift workers, days including special days and regular holidaysshall begin on the night before a calendar day. In that case, the computations above (for rest days) will apply. 1 ) W o r k s h i f t i s f r o m 1 2 m i d n i g h t t o 8 a . m . ; w o r k r en d e re d o n a s pe c i a l d a y Work from 12 mn. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 1.3 = P62.08 per hour Night shift pay = (P68.28 x 6) + (P62.08 x 2) = P533.84 2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m i dn i g h t ; w o r k r e n d e r ed o n a s pe c i a l d a y Work from 4 p.m. to 10 p.m. = P47.75 x 1.3 = P62.08 per hour
Work from 10 p.m. to 12 mn. = P 47.75 x 1.43 = P68.28 per hour

30

Work shift pay = (P62.075 x 6) + (P68.2825 x 2) = P509.04

31

3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a special day, with overtime until midnight Work from 8 a.m. to 5 p.m. = P47.75 x 1.3 = P62.08 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.69 = P 80.70 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 1.859 = P 88.77 per hour 4 . W o r k o n re g u l a r h o l i d a y s

Ho l i d a y s a r e r e c k o n e d a s c a l e n d a r d a y s w h i c h s t a r t a t m i d n i g h t a n d e n d a t t h e n e xt mi d n i g h t . H e n c e , t h e n i g h t s h i f t p a y c h a n g e s a t m i d n i g h t . 1 ) W o r k s h i f t i s f r o m 1 2 m n . t o 8 a . m . ; w o r k r en d e re d o n a r e gu l a r h o l i d a y Work from 12 mn. to 6 a.m. = P47.75 x 2.2 = P105.05 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 2 = P95.50 per hour Night shift pay = (P105.05 x 6) + (P95.50 x 2) = P 821.30 2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m n . ; w o r k r e n d e r ed o n a r e gu l a r h o l i d a y Work from 4 p.m. to 10 p.m. = P47.75 x 2 = P95.50 per hour Work from 10 p.m. to 12 mn. = P47.75 x 2.2 = P105.05 per hour Work shift pay = (P95.50 x 6) + (P105.05 x 2) = P783.10 3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a r e g u l a r h o l i d a y , wi t h o v e r t i m e u n t i l m i d n i g h t Work from 8 a.m. to 5 p.m. = P47.75 x 2 = P95.50 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 2.6 = P124.15 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 2.86 = P136.56 per hour 5 . W o r k o n sp ec i a l d a y s f a l l i n g o n r e s t d a y s 1 ) W o r k s h i f t i s f r o m 1 2 m n . t o 8 a . m . ; w o r k r en d e re d o n a s pe c i a l d a y f a l l i n g o n a r e s t d a y (n i g h t - o f f ) Work from 12 mn. to 6 a.m. = P47.75 x 1.65 = P78.79 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 1.5 = P71.62 per hour Night shift pay = (P78.79 x 6) + (P71.62 x 2) = P615.98
32

2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m i dn i g h t ; w o r k r e n d e r ed o n a s pe c i a l d a y f a l l i n g o n a r e s t d a y Work from 4 p.m. to 10 p.m. = P47.75 x 1.5 = P71.62 per hour Work from 10 p.m. to 12 mn. = P47.75 x 1.65 = P78.79 per hour Work shift pay = (P71.62 x 6) + (P78.79 x 2) = P587.32 3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a s p e c i a l d a y f a l l i n g o n a r e s t d a y , wi t h o v e r t i m e u n t i l m i d n i g h t Work from 8 a.m. to 5 p.m. = P47.75 x 1.5 = P71.62 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.95 = P93.11 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 2.145 = P102.42 / hour 6 . W o r k o n re g u l a r h o l i d a y s f a l l i n g o n r es t d a y s 1 ) Ni g h t s h i f t i s f r o m 1 2 mn . t o 8 a . m . ; w o r k r en d e re d on a r e gu l a r h o l i d a y f a l l i n g on a re s t d a y ( n i gh t - o f f ) Work from 12 mn. to 6 a.m. = P47.75 x 2.86 = P136.56 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 2.6 = P124.15 per hour Night shift pay = (P136.56 x 6) + (P124.15 x 2) = P1,067.66 2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m n . ; w o r k r e n d e r ed o n a r e gu l a r h o l i d a y f a l l i n g on a re s t d a y

Work from 4 p.m. to 10 p.m. = P47.75 x 2.6 = P124.15 per hour Work from 10 p.m. to 12 mn. = P47.75 x 2.86 = P136.56 per hour Work shift pay = (P124.15 x 6) + (P136.56 x 2) = P1,018.03 3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a regular holiday falling on a rest day, with overtime until midnight Work from 8 a.m. to 5 p.m. = P47.75 x 2.60 = P124.15 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 3.38 = P161.40 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 3.718 = P177.53 / hour

ERVICE

6
S
33

C
HARGES
( A r t i c l e 96 ) A . Sh a r i n g All rank-and-file employees of employers collecting service charges are e n t i t l e d t o a n e q u a l s h a r e i n t h e e i g h t y - f i v e p e r c e n t ( 8 5 % ) o f t h e t o t a l o f s u ch c h a r g e s. T h e r e m a i n i n g f i f t e e n p e r c e n t ( 1 5 % ) o f t h e c h a r g e s m a y b e r e t a i n e d b y ma n a g e m e n t t o a n s w e r f o r l o s s e s a n d b r e a k a g e s a n d f o r d i s t r i b u t i o n t o ma n a g e r i a l e m p l o y e e s , a t t h e d i s c r e t i o n o f t h e m a n a g e m e n t i n t h e l a t t e r ca se . S e r v i c e c h a r g e s a r e c o l l e c t e d b y m o s t h o t e l s a n d s o m e r e s t a u r a n t s , n i g h t c l u b s, c o ck t a i l l o u n g e s , a m o n g o t h e r s . B. Paymen ts The shares of the employees in the service charges shall be distributed to t h e m o n ce e v e r y t wo ( 2 ) we e k s o r t w i c e a m o n t h a t i n t e r v a l s n o t e x c e e d i n g s i xt e e n ( 1 6 ) d a y s . Where the company stopped collecting service charges, the average share p r e vi o u s l y e n j o y e d b y t h e e m p l o y e e s f o r t h e p a s t t w e l v e ( 1 2 ) m o n t h s i m m e d i a t e l y p r e ce d i n g s u c h s t o p p a g e s h a l l b e i n t e g r a t e d i n t o t h e i r b a s i c w a g e s . C. 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 c u st o me r s t o i t s e m p l o y e e s , t h e p o o l e d t i p s s h o u l d b e m o n i t o r e d , a c c o u n t e d , a n d d i st r i b u t e d i n t h e s a m e m a n n e r a s t h e s e r v i c e c h a rg e s .

S
34

ERVICE NCENTIVE

EAVE
( A r t i c l e 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. T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . H o us e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l se r v i c e o f a n o t h e r ; 3 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 3.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 3 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e re i n ; 3 . 3 T he y h a ve t h e au t h o r i t y t o h i r e o r f i r e o t h e r em p l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 4 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 4.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 4 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 4 . 3 ( a ) Re g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g s p e c i a l t r a i n i n g , e x p e r i e n c e , o r k n o w l e d g e ; o r ( c) execute, u nd e r g en e r a l s up e r v i s i o n , s pe c i a l

a s s i gn m e n t s a n d t a s k s ; an d
35

4 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 4 . 1 , 4 . 2 , a n d 4 . 3 a b o v e ; 5 . F i e l d p e rs o n n e l a n d t h o se wh o s e t i m e a n d pe r f o r m a n c e i s u ns up e r v i s ed b y t h e e mp l o y e r ; 6 . T h o se a l r e a d y e n j o y i n g t h i s b en ef i t ; 7 . T h o se en j o y i n g v a c a t i o n l e a v e w i th p a y o f a t l e a s t f i v e ( 5 ) days; and 8 . T h o se em p l o y e d i n es t a b l i s h me n t s r e gu l a r l y em p l o y i n g le s s t h a n t e n ( 1 0 ) e m p l o y ee s . B . M e an i n g o f o n e y e a r o f s e r v i ce T h e p h r a s e o n e y e a r o f s e r v i c e o f t h e e m p l o y e e m e a n s s e r v i c e wi t h i n t w e l v e (12) months, whether continuous or broken, reckoned from the date the employee s t a r t e d wo r k i n g . T h e p e r i o d i n c l u d e s a u t h o r i z e d a b s e n c e s , u n w o r k e d w e e k l y r e st d a ys , a n d p a i d r e g u l a r h o l i d a y s . I f t h r o u g h i n d i v i d u a l o r c o l l e c t i v e a g r e e m e n t , c o mp a n y p r a c t i c e o r p o l i c y , t h e p e r i o d o f t h e wo r k i n g d a y s i s l e s s t h a n t we l v e (12) months, said period shall be considered as one year for the purpose of determining the entitlement to the service incentive leave. C. Usage/Conversion to Cash T h e se r v i c e i n c e n t i v e l e a v e m a y b e u s e d f o r s i c k a n d v a c a t i o n l e a v e p u r p o se s. T h e u n u se d s e r v i c e i n c e n t i v e l e a v e i s c o m m u t a b l e t o i t s m o n e y e q u i v a l e n t a t t h e end of the year. In computing, the basis shall be the salary rate at the date of conversion. T h e u se a n d c o n v e rs i o n o f th i s be n e f i t m a y be on a pr o r a t a basis.4 I l l u s t r a t i o n : An em p l o y e e w a s h i r e d o n 1 J a n u a r y 2 0 0 0 a n d resigned on 1 March 2001. Assuming that he/she has not used or commuted any o f h i s/ h e r a c c r u e d S I L , h e / s h e i s e n t i t l e d t o t h e c o n v e r s i o n o f h i s / h e r a c c r u e d SIL, upon his/her resignation, as follows: S IL e a r ne d a s o f 3 1 D e ce m b e r 2 0 0 0 5 d a ys P r o p o r t i o n a t e SI L f o r J a n u a r y a n d F eb r u a r y 2 0 0 1 (2/12) x 5 days 0.833 day T o t a l a c c ru e d S IL a s o f 1 M a r ch 20 0 1 5.833 days
4B a s e d

on the opinion of DOLE Legal Service.

ATERNITY

8
M
36

EAVE
(RA 1161, as amended by RA 8282) A. Coverage T h i s b en e f i t a p p l i e s t o a l l f e m a l e e m p l o y e es , w h e t h e r m a r r i e d o r unmarried. B. Entitlement E v e r y p r eg n a n t e m p l o y e e i n t h e p r i v a t e se c t o r , wh e t h e r m a r r i e d o r u n m a r r i e d , i s en t i t l e d t o m a t e r n i t y l e a v e b en e f i t o f s i x t y ( 6 0 ) d a y s in c a se o f n o r m a l d e l i v e r y o r m i s c a r r i a g e , o r s e ve n t y - e ig h t (78) days , in c a se o f C a e s a r i a n s ec t i o n de l i v e r y , w i t h b en e f i t s e qu i v a l e n t t o o n e h u n d r ed pe r c en t ( 10 0 % ) o f t h e a v e r a g e d a i l y s a l a r y cr e d i t o f t h e e m p l o y ee a s d ef i n ed u n de r t h e l a w . To be entitled to the maternity leave benefit, a female employee should be an SSS member employed at the time of her delivery or miscarriage; she must have g i ve n t h e r e q u i r e d n o t i f i c a t i o n t o t h e S S S t h r o u g h h e r e m p l o y e r ; a n d h e r e m p l o ye r m u s t h a v e p a i d a t l e a s t t h r e e m o n t h l y c o n t r i b u t i o n s t o t h e S S S w i t h i n t h e t w e l ve - m o n t h p e r i o d i m m e d i a t e l y b e f o r e t h e d a t e o f t h e c o n t i n g e n c y ( i . e . , childbirth or miscarriage). T h e m a t e rn i t y l e a v e b e n e f i t , l i k e o t h e r b e n e f i t s g r a n t e d b y t h e S o c i a l S e c u r i t y S y st e m ( S S S ) , i s g r a n t e d t o e m p l o y e e s i n l i e u o f w a g e s . T h u s , t h i s m a y n o t b e i n cl u d e d i n c o m p u t i n g t h e e m p l o y e e s t h i r t e e n t h - m o n t h p a y f o r t h e c a l e n d a r y e a r .

ATERNITY

9
P
37

L
EAVE
(RA 8187) A. Coverage Paternity Leave is granted to all married male employees in the private sector, r e g a r d l e s s o f t h e i r e m p l o y m e n t s t a t u s ( e . g . , p r o b a t i o n a r y , re g u l a r , c o n t r a c t u a l , project basis). 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. G o v e r n m e n t e m p l o y e es a r e a l s o e n t i t l e d t o t h e p a t e r n i t y le a v e b en e f i t . T h e y sh a l l b e g o ve r n ed b y t h e C i v i l S e r v i ce r u le s . B . T he P a t e r n i t y L e a v e Be n e f i t Paternity leave benefit shall apply to the first four (4) deliveries of the employees lawful wife with whom he is cohabiting. For this purpose, cohabiting means the obligation of the husband and wife to live together.

I f t h e s p o u s e s a r e n o t p h y s i c a l l y l i v i n g t o g e t h e r b e c a u s e o f t h e wo r k s t a t i o n o r o c cu p a t i o n , t h e m a l e e m p l o y e e i s s t i l l e n t i t l e d t o t h e p a t e r n i t y l e a v e b e n e f i t . The paternity leave shall be for seven (7) calendar days, with full pay, c o n s i s t i n g o f b a s i c s a l a r y a n d m a n d a t o r y a l l o w a n c e s f i x e d b y t h e Re g i o n a l W a g e B o a r d , i f a n y , p r o v i d e d t h a t h i s p a y s h a l l n o t b e l e s s t h a n t h e m a n d a t e d m i n i mu m wage. Us a g e o f t h e p a t e r n i t y l e a v e s h a l l b e a f t e r t h e d e l i v e r y , wi t h o u t p r e j u d i c e t o a n e mp l o y e r s p o l i c y o f a l l o w i n g t h e e m p l o y e e t o a v a i l o f t h e b e n e f i t b e f o r e o r during the delivery, provided that the total number of days shall not be more than s e ve n ( 7 ) c a l e n d a r d a y s f o r e a c h c o v e r e d d e l i v e r y . C . C o n d i t i o n s f o r En t i t l e m e n t A m a r r i e d m a l e e m p l o y ee sh a l l b e en t i t l e d t o p a t e r n i t y l e a v e b en e f i t p r o v i d e d t h a t h e h a s m e t t h e f o l l o w i n g c o n d i t i o n s : 1 . He i s a n e m p l o y e e a t t h e t i m e o f t h e de l i v e r y o f h i s c h i l d ;
38

2 . He i s c o h a b i t i n g w i t h h i s sp o u se a t th e t i m e t h a t sh e g i v es b i r t h o r s u f fe r s a m i s c a r r i a g e ; 3 . H e h a s a p p l i e d f o r p a t e r n i t y l e a v e w i t h h i s e m p l o y e r w i t h i n a re a s o n a b l e p e r i o d o f t i me f r o m t h e e x p e c t e d d a t e o f d e l i v e r y b y h i s p r e g n a n t s p o u s e , o r wi t h i n s u ch p e r i o d a s m a y b e p r o v i d e d b y c o m p a n y r u l e s a n d re g u l a t i o n s , o r b y c o l l e c t i v e bargaining agreement; and 4 . H i s w i f e h a s g i v en b i r t h o r su f f e re d a m i s c a r r i a g e . D . Ap p l i c a t i o n f o r P a t e r n i t y L ea v e T h e m a r r i e d m a l e e m p l o y e e s h a l l a p p l y f o r p a t e r n i t y l e a v e wi t h h i s e m p l o ye r within a reasonable period of time from the expected date of delivery by his p r e g n a n t s p o u s e , o r wi t h i n s u c h p e r i o d a s m a y b e p r o v i d e d b y c o m p a n y r u l e s a n d regulations, or by collective bargaining agreement. In case of a miscarriage, prior a p p l i ca t i o n f o r p a t e r n i t y l e a v e s h a l l n o t b e r e q u i r e d . E . N o n c on v e r s i o n t o C a s h I n t h e e ve n t th a t t h e p a t e rn i t y l e a v e is n o t a v a i l e d o f , i t sh a l l n o t b e c o n ve r t i b l e t o c a s h a n d s h a l l n o t be cu m u l a t i v e . F. Creditin g of Existin g Benefits 1 . I f t h e e xi s t i n g p a t e r n i t y l e a v e b e n e f i t u n d e r t h e c o l l e c t i v e b a r g a i n i n g a g r e e me n t , c o n t r a ct , o r c o m p a n y p o l i c y i s g r e a t e r t h a n s e v e n ( 7 ) c a l e n d a r d a y s a s p r o v i d e d f o r i n RA 8 1 8 7 , t h e g r e a t e r b e n e f i t s h a l l p r e v a i l . 2 . If t h e e xi s t i n g p a t e r n i t y l e a v e b e n e f i t i s l e s s t h a n t h a t p r o v i d e d i n R A 8 1 8 7 , t h e e m p l o ye r s h a l l a d j u s t t h e e x i s t i n g b e n e f i t t o c o v e r t h e d i f f e r e n c e . W h e r e a c o m p a n y p o l i c y , c o n t r a c t , o r c o l l e c t i v e b a rg a i n i n g a g r e e m e n t p r o vi d e s f o r a n e m e r g e n c y o r c o n t i n g e n c y l e a v e w i t h o u t s p e c i f i c p r o v i s i o n s o n p a t e r n i t y l e a v e , t h e e m p l o y e r s h a l l g r a n t t o t h e e m p l o y e e s e v e n ( 7 ) c a l e n d a r d a ys of paternity leave.

10
P
ARENTAL LEAVE FOR
39

OLO

P
ARENTS
(RA 8972) A. 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. Giving birth as a result of rape or, as used by the law, other c r i m e s a g a i n s t ch a s t i t y ; 2 . De a t h o f sp o u s e ; 3 . Sp o u se i s d et a i n e d o r i s s e r v i n g se n te n ce f o r a c r i m i n a l c o n v i c t i o n f o r a t l e a s t on e ( 1 ) ye a r ; 4 . P h y s i c a l an d / o r m e n t a l i n c a p a c i t y o f s p ou se a s c e r t i f i e d b y a p ub l i c m ed i c a l p r a c t i t i o n e r ; 5 . L e g a l s e p a r a t i o n o r d e f a c t o s e p a r a t i o n f r o m s p o u s e f o r a t l e a s t o n e ( 1 ) ye a r : P r o v i d e d t h a t h e / s h e i s e n t r u s t e d wi t h t h e c u s t o d y o f t h e c h i l d r e n ; 6 . D e cl a r a t i o n o f n u l l i t y o r a n n u l m e n t o f m a r r i a g e a s d e c r e e d b y a c o u r t o r b y a c h u r c h : P r o v i d e d , t h a t h e / s h e i s e n t r u s t e d w it h t h e c u s t o d y o f t h e c h i l d r e n ; 7 . Ab a n d o n m en t o f sp o u s e f o r a t l e a s t o n e ( 1 ) ye a r ; 8. Unmarried father/mother who has preferred to keep and rear his/her child/children, instead of having others care for them or give them up to a welfare i n st i t u t i o n ; 9 . An y o t h e r p e r s o n w h o s o l e l y p r o v i d e s p a r e n t a l c a r e a n d s u p p o rt t o a c h i l d o r c h i l d r e n : P ro v i d e d , t h a t h e / s h e i s d u l y l i c e n s e d a s a f o s t e r p a r e n t b y t h e Department of Social Welfare and Development (DSWD) or duly appointed legal guardian by the court; and 10. Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance, or prolonged absence of the parents or solo parent: Provided, that such abandonment, disappearance, or prolonged absence lasts for at least one (1) year. B. Definition of Terms P a r e n t a l l e a v e s h a l l m e a n l e a v e b e n e f i t s g r a n t e d t o a s o l o p a r e n t t o e n a b l e h i m/ h e r t o p e r f o r m p a r e n t a l d u t i e s a n d r e s p o n s i b i l i t i e s w h e r e p h y s i c a l p r e s e n c e i s required.
40

Child refers to a person living with and dependent on the solo parent for support. He/she is unmarried, unemployed, and below eighteen (18) years of age,

or even eighteen (18) years old and above but is incapable of self-support because he/she is mentally- a n d / o r p h y s i c a l l y - c h a l l e n g e d . C. The Parental Leave Benefit The parental leave, in addition to leave privileges under existing laws, shall be for seven (7) work days every year, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his/her pay shall not be l e s s t h a n t h e m a n d a t e d m i n i m u m wa g e . D. Conditions for Entitlement A so l o p a r e n t e m p l o y ee sh a l l b e en t i t l e d t o t h e p a r en t a l l e a v e , provided that: 1 . He / s h e h a s r en d e re d a t l e a s t o n e (1 ) y e a r o f s e r v i ce , w he t h e r c o n t i n u o u s o r b r o k en ; 2 . He / s h e h a s n o t i f i e d h i s / h e r e mp l o y e r t h a t h e / sh e w i l l a v a i l h i m s e l f / h e r s e l f o f i t , w i t h i n a r e a s on a b l e pe r i o d o f t i m e ; a n d 3 . H e / s h e h a s p r e s e n t e d t o h i s / h e r e m p l o y e r a S o l o P a r e n t I d e n t i f i c a t i o n Ca r d , w h i ch ma y b e o b t a i n e d f r o m t h e D S W D o f f i c e o f t h e c i t y o r m u n i c i p a l i t y w h e r e h e / s h e r e s i d e s. E . N on c o n v e rs i o n t o C a s h I n t h e e ve n t th a t t h e p a r en t a l l e a v e is n o t a v a i l e d o f , i t sh a l l n o t b e c o n ve r t i b l e t o c a s h , u n l es s s pe c i f i c a l l y a g r e ed o n p re v i o u s l y . F. Crediting of Existing Leave I f t h e re i s a n e x i s t i n g o r s i m i l a r b e n e f i t u n d e r a c o m p a n y p o l i c y o r a c o l l e c t i v e b a r g a i n i n g a g r e e m e n t , t h e s a m e s h a l l b e c r e d i t e d a s s u c h . I f t h e s a m e i s g re a t e r t h a n t h e s e v e n ( 7 ) d a y s p r o v i d e d f o r i n RA 8 9 7 2 , t h e g r e a t e r b e n e f i t s h a l l p r e v a i l . E me r g e n c y o r c o n t i n g e n c y l e a v e p r o v i d e d u n d e r a c o m p a n y p o l i c y o r a c o l l e ct i ve b a r g a i n i n g a g r e e m e n t s h a l l n o t b e c r e d i t e d a s c o m p l i a n c e w i t h t h e parental leave provided for under RA 8972.
41

G. Termin ation of the Benefit A ch a n g e i n t h e s t a t u s o r c i rc u m s t a n c e o f t h e p a r e n t c l a i m i n g t h e b e n e f i t u n d e r t h e l a w , s u c h t h a t h e / s h e i s n o l o n g e r l e f t a l o n e wi t h t h e r e s p o n s i b i l i t y o f parenthood, shall terminate his/her eligibility for this benefit. H. Protection Against Work Discrimination No e m p l o y e r s h a l l d i s c r i m i n a t e a g a i n s t a n y s o l o p a r e n t e m p l o y e e w i t h r e s p e c t t o t e r ms a n d c o n d i t i o n s o f e m p l o y m e n t o n a c c o u n t o f h i s / h e r b e i n g a s o l o p a r e n t .

IOLENCE AGAINST

11
L

EAVE FOR

V V
42

ICTIMS OF

W
OMEN AND

T
HEIR

HILDREN
(RA 9262) A . De f i n i t i o n V i o l e n c e a g a i n s t wo m e n a n d t h e i r c h i l d r e n , a s u s e d i n Re p u b l i c A c t 9 2 6 2 (the Anti-Violence Against Women and Their Children Act of 2004), refers to a n y a ct o r a s e r i e s o f a c t s c o m m i t t e d b y a n y p e r s o n a g a i n s t a w o m a n w h o i s h i s w i f e , f o r m e r w i f e , o r a g a i n s t a wo m a n w i t h w h o m t h e p e r s o n h a s o r h a d a s e xu a l or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which will result in or is likely to result in physical, sexual, psychological harm or suffering, o r e c o n o m i c a b u s e i n c l u d i n g t h r e a t s o f s u c h a c t s , b a t t e r y , a s s a u l t , c o e r ci o n , h a r a s sm e n t o r a r b i t r a r y d e p r i v a t i o n o f l i b e r t y . B . C o v e r a g e a n d P u r p os e P r i va t e s e c t o r wo m e n e m p l o y e e s wh o a re v i c t i m s a s d e f i n e d i n RA 9 2 6 2 sh a l l be entitled to the paid leave benefit under such terms and conditions provided herein. T h e l e a v e b en e f i t s h a l l c o v e r t h e d a y s t h a t t h e w o m a n e m p l o y e e h a s t o a t t e n d t o m ed i c a l a n d l e g a l c on ce r n s . C . Re q u i re m e n t f o r E n t i t l e m e n t To be entitled to the leave benefit, the only requirement is for the victime m p l o ye e t o p r e s e n t t o h e r e m p l o y e r a c e r t i f i c a t i o n f r o m t h e b a r a n g a y c h a i r ma n ( P u n o ng B a r a n g a y ) o r b a r a n g a y c o u n c i l o r ( b a r a n g a y k a g a w a d ) o r p r o s e cu t o r or the Clerk of Court, as the case may be, that an action relative to the matter is pending.
43

D . T he Be n e f i t I n a d d i t i o n t o o t h e r p a i d l e a v e s u n d e r e x i s t i n g l a b o r l a w s , c o m p a n y p o l i ci e s, a n d / o r co l l e c t i v e b a r g a i n i n g a g r e e m e n t s , t h e q u a l i f i e d v i c t i m - e m p l o y e e s h a l l b e

e n t i t l e d t o a l e a v e o f u p t o t e n ( 1 0 ) d a y s w i t h f u l l p a y , c o n s i s t i n g o f b a s i c sa l a r y a n d ma n d a t o r y a l l o w a n c e s f i x e d b y t h e Re g i o n a l W a g e B o a r d , i f a n y . T h e sa i d l e a v e s h a l l b e e x t e n d e d wh e n t h e n e e d a r i s e s , a s s p e c i f i e d i n t h e protection order issued by the barangay or the court. E . Us a g e o f t h e Be n e f i t The usage of the ten-day leave shall be at the option of the woman employee. I n t h e e ve n t t h a t t h e l e a v e b e n e f i t i s n o t a v a i l e d o f , i t s h a l l n o t b e c o n v e r t i b l e i n t o c a sh a n d s h a l l n o t b e c u m u l a t i v e .

-M T

12
HIRTEENTH
44

ONTH

P
AY
(PD 851) A. Coverage A l l e m p l o y e r s a r e r e q u i r e d t o p a y t h e i r r a n k a n d f il e e m p l o y e e s t h i r t e e n t h mo n t h p a y , r e g a r d l e s s o f t h e n a t u r e o f t h e i r e m p l o y m e n t a n d i r r e s p e c t i v e o f t h e me t h o d s b y w h i c h t h e i r wa g e s a r e p a i d , p r o v i d e d t h e y wo r k e d f o r a t l e a s t o n e ( 1 ) mo n t h d u r i n g a c a l e n d a r y e a r . T h e t h i r t e e n t h - m o n t h p a y s h o u l d b e g i v e n t o t h e e m p l o ye e s n o t l a t e r t h a n De c e m b e r 2 4 o f e v e r y y e a r . B . D e f in i t i o n o f R a n k - a n d - F i l e E m p l o y e es The Labor Code, as amended, distinguishes a rank-and-file employee from a ma n a g e r i a l e m p l o y e e . A m a n a g e r i a l e m p l o y e e i s o n e w h o i s v e s t e d w i t h p o w e r s or prerogatives to lay down and execute management policies and/or to hire, t r a n sf e r , s u s p e n d , l a y o f f , r e c a l l , d i s c h a rg e , a s s i g n , o r d i s c i p l i n e e m p l o y e e s , o r t o e f f e c t i v e l y re c o m m e n d s u c h m a n a g e r i a l a c t i o n s . A l l e m p l o y e e s n o t f a l l i n g w i t h i n t h i s d e f i n i t i o n a r e c o n s i d e r e d r a n k - a n d - f il e e m p l o y e e s . 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. C. Minimum Amount T h e t h i r t ee n t h - m o n t h p a y sh a l l n o t b e l es s t h a n on e - t w e l f th ( 1 / 1 2 ) o f t he t o t a l b a s i c s a l a r y e a r n ed b y a n e m p l o y e e i n a c a l en d a r y e a r . T h e " b a s i c s a l a r y " o f a n e m p l o y e e f o r t h e p u r p o s e o f c o m p u t i n g t h e t h i rt e e n t h mo n t h p a y s h a l l i n c l u d e a l l r e m u n e r a t i o n s o r e a r n i n g s p a i d b y h i s o r h e r e m p l o ye r f o r se r vi c e s r e n d e r e d . I t d o e s n o t i n c l u d e a l l o w a n c e s a n d m o n e t a r y b e n e f i t s w h i ch a r e n o t c o n s i d e r e d o r i n t e g r a t e d a s p a r t o f t h e r e g u l a r o r b a s i c s a l a r y , s u c h a s t h e ca s h e q u i v a l e n t o f u n u s e d v a c a t i o n a n d s i c k l e a v e c r e d i t s , o v e r t i m e ,

p r e mi u m, n i g h t s h i f t d i f f e r e n t i a l a n d h o l i d a y p a y , a n d c o s t o f l i v i n g a l l o w a n ce ( C OL A ) . H o w e v e r , t h e s e s a l a r y - r e l a t e d b e n e f i t s s h o u l d b e i n c l u d e d a s p a r t o f t h e b a si c s a l a r y i n t h e c o m p u t a t i o n o f t h e t h i r t e e n t h - m o n t h p a y i f t h e s e a r e t r e a t e d a s part of the basic salary

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o f t he e mp l o y e e s , t h r o u gh i n d i v i d u a l o r c o l l ec t i v e a g r ee m e n t , c o m p a n y p r a c t i ce o r po l i c y . D . E x e m p t ed E m p l o y e r s T h e f o l l o w i n g em p l o y e r s a r e n o t c o v e r e d b y P D 8 51 : 1 . T h e g o ve rn m e n t a n d a n y o f i t s p o l i t i c a l s u b d i v i s i o n s , i n c l u d i n g g o v e r n m e n t - o w n e d a n d - co n t r o l l e d c o r p o r a t i o n s , e x c e p t t h o s e c o r p o r a t i o n s o p e r a t i n g e s s e n t i a l l y a s p r i va t e su b s i d i a r i e s o f t h e g o v e r n m e n t ; 2 . E mp l o y e r s w h o a re a l r e a d y p a y i n g t h e i r e m p l o y e e s t hi r t e e n t h - m o n t h p a y o r mo r e i n a ca l e n d a r y e a r o r i t s e q u i v a l e n t a t t h e t i m e o f t h e i s s u a n c e o f P D 8 5 1 ; 3 . E m p l o y e r s o f h o u s e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l s e r v i ce o f a n o t h e r in re l a t i o n t o s u c h w o r k e r s ; a n d 4 . E mp l o ye r s o f t h o s e w h o a r e p a i d o n p u re l y c o m m i s s i o n , b o u n d a r y o r t a s k b a s i s , a n d t h o s e w h o a r e p a i d a f i x e d a m o u n t f o r p e r f o r m i n g s p e c i f i c wo r k , i r r e s p e ct i ve o f t h e t i me c o n s u m e d i n t h e p e r f o r m a n c e t h e r e o f ( e x c e p t t h o s e w o r k e r s w h o a r e paid on piece-rate basis, in which case their employer shall grant them thirteenthmo n t h p a y ) . A s u s e d h e r e i n , w o r k e r s p a i d o n p i e c e - r a t e b a s i s s h a l l re f e r t o t h o s e wh o a r e p a i d a s t a n d a r d a m o u n t f o r e v e r y p i e c e o r u n i t o f wo r k p r o d u c e d t h a t i s m o r e o r l e s s r e g u l a r l y r e p l i c a t e d , w it h o u t re g a r d t o t h e t i m e s p e n t i n p ro d u c i n g t h e s a me . T h e t e r m " it s e q u i v a l e n t " a s u s e d i n i t e m D . 2 a b o v e s h a l l i n c l u d e Ch r i st ma s b o n u s, mi d y e a r b o n u s , c a s h b o n u s e s , a n d o t h e r p a y m e n t s a m o u n t i n g t o n o t l e ss t h a n o n e - t w e l f t h ( 1 / 1 2 ) o f t h e b a s i c s a l a r y b u t s h a l l n o t i n c l u d e c a s h a n d st o ck d i vi d e n d s , c o s t o f l i v i n g a l l o w a n c e , a n d a l l o t h e r a l l o w a n c e s r e g u l a rl y e n j o y e d b y t h e e m p l o y e e , a s w e l l a s n o n m o n e t a ry b e n e f i t s . E . T i m e o f P a y m e n t o f T h i r t e en t h - M on t h P a y The thirteenth-month pay shall be paid not later than December 24 of every year. An employer, however, 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. The frequency of payment of this monetary benefit may be the subject of an agreement between
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t h e e m p l o y e r a n d t h e r e c og n i z e d / c o l l e c t i v e b a r g a i n i n g a ge n t o f t h e e m p l o y e es . F. Thirteenth -M onth Pay for Certain Types of Employees 1 . E m p l o y e e s w h o a r e p a i d o n p i ec e w o r k b as i s a r e en t i t l e d t o t h e t h i r t ee n t h - m o n t h p a y . 2 . E mp l o y e e s w h o a r e p a i d a f i x e d o r g u a r a n t e e d w a g e p l u s c o m m i s s i o n a r e a l so entitled to the thirteenth-month pay, based on their earnings during the calendar year (i.e., on both their fixed or guaranteed wage and commission).

I n t h e c o n s o l i d a t e d c as e s o f B o i e T a k e d a C h e m i c a l s , I n c . v s . D i o n i s i o d e l a S er n a , G.R. No. 92174 December 10, 1993, a n d P h i l i p p i n e F u j i X e r o x C o r p o r a t i o n v s . C r e s en c i a n o B . T r a j a n o a n d P h i l i pp i n e F u j i Xe r o x E m p l o y e e s Un i o n , G.R. No. 1 0 2 5 5 2 D e c e m b e r 1 0 , 1 9 9 3 , t h e S u p r e m e C o u r t r u l e d t h a t c o m m i s s i o n s , wh i l e i n cl u d e d i n t h e g e n e r i c t e r m w a g e , a re n o t p a r t o f " b a s i c s a l a r y / w a g e " a n d t h e r e f o r e s h o u l d n o t b e i n c l u d e d i n c o m p u t i n g t h e t h i r t e e n t h - m o n t h p a y . T h u s:
In remunerative schemes consisting of a fixed or guaranteed wage plus commission, the fixed or guaranteed wage is patently the "basic salary" for this is what the employee receives for a standard work period. Commissions are given for extra efforts exerted in consummating sales or other related transactions. They are, as such, additional pay, which this Court has made clear do not form part of the "basic salary" (228 SCRA 329 [1993]).

3. Employees with multiple employers Go ve r n m e n t e m p l o y e e s w o r k i n g p a r t - t i m e i n a p r i v a t e e n t e r p r i s e , i n c l u d i n g p r i va t e e d u c a t i o n a l i n s t i t u t i o n s , a s we l l a s e m p l o y e e s w o r k i n g i n t w o o r mo re p r i va t e f i r m s , wh e t h e r o n f u l l - t i m e o r p a r t - t i m e b a s i s , a r e e n t i t l e d t o t h e thirteenth- month pay from all their private employers, regardless of their total earnings from each of their employers. G . T h i r t e en t h - M o n th P a y o f Re s i gn ed o r Se p a r a t e d E m p l o y e e A n e mp l o y e e w h o h a s r e s i g n e d o r wh o s e s e r v i c e s a r e t e r m i n a t e d a t a n y t i me before the time of payment of the thirteenth-month pay is entitled to this mo n e t a r y b e n e f i t i n p r o p o r t i o n t o t h e l e n g t h o f t i m e h e o r s h e h a s w o r k e d d u r i n g the year, reckoned from the time he or
47

she has started working during the calendar year up to the time of his or her r e s i g n a t i o n o r t e r m i n a t i o n f r o m t h e s e r v i c e . T h u s , i f h e o r s h e w o r k e d o n l y f ro m J a n u a r y t o S e p t e m b e r, h i s o r h e r p r o p o r t i o n a t e t h i r t e e n t h - m o n t h p a y s h o u l d b e e q u a l t o o n e - t we l f t h (1 / 1 2 ) o f h i s o r h e r t o t a l b a s i c s a l a ry e a r n e d d u r i n g t h a t period. H. Non-inclusion in Regu lar Wage T h e ma n d a t e d t h i r t e e n t h - m o n t h p a y n e e d n o t b e c r e d i t e d a s p a r t o f t h e r e g u l a r wage of employees for purposes of determining overtime and premium payments, fringe benefits, as well as contributions to the State Insurance Fund, Social S e c u r i t y S y s t e m , N a t i o n a l H e a l t h I n s u r a n c e P r o g r a m , a n d p r i v a t e r e t i r e me n t plans.

EPARATION

13
S
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P
AY
( A r t i c l e s 2 8 3 - 84 ) Separation pay is given to employees in instances covered by Articles 283 and 284 of the Labor Code of the Philippines. An employees entitlement to separation pay depends on the reason or ground for the termination of his or her services. An employee may be terminated for just cause (i.e., gross and habitual neglect of duty, fraud, or commission of a crime), and other similar causes as enumerated under Article 282 of the Labor Code and, generally, may not be entitled to separation pay. 5 O n t h e o t h e r h a n d , w h e r e t h e t e r m i n a t i o n i s f o r a u t h o r i z e d c a u s e s , separation pay is due. A . On e - H a l f (1 / 2 ) M on t h P a y pe r Ye a r o f S er v i c e A n e m p l o y e e i s e n t i t l e d t o re c e i v e a s e p a r a t i o n p a y e q u i v a l e n t t o o n e - h a l f ( 1 / 2 ) mo n t h p a y f o r e v e r y y e a r o f s e r v i c e , a f r a c t i o n o f a t l e a s t s i x ( 6 ) m o n t h s b e i n g c o n s i d e r e d a s o n e ( 1 ) wh o l e y e a r , i f h i s / h e r s e p a r a t i o n f r o m t h e s e r v i ce i s due to any of the following authorized causes: 1 . Re t r e n ch m e n t t o p r e ve n t l o s s es ( i . e . , r e du c t i o n o f p e rs o n n e l e f fe c t e d b y m a n a g e m en t t o p re v e n t l o s s es ) ; 2 . C l o s u r e o r ce s s a t i o n o f o p e r a t i o n o f a n es t a b l i s h m en t n o t d u e t o s e r i o u s l o ss e s o r f i n a n c i a l r e v e r se s ; a n d 3. When the employee is suffering from a disease not curable within a period of six ( 6 ) mo n t h s a n d h i s / h e r c o n t i n u e d e m p l o y m e n t i s p r e j u d i c i a l t o h i s / h e r h e a l t h o r t o the health of his/her co-employees. In no case will an employee get less than one (1) month separation pay if the separation is due to the above stated causes, and he/she has served for at least s i x (6 ) mo n t h s . T h us , i f a n e m p l o y ee h ad be en in th e s e r v i c e f o r a t le a s t s i x ( 6 ) m o n t h s b u t l es s th a n a y e a r , h e / sh e i s en t i t l e d t o o n e ( 1 ) f u l l
5

The Supreme Court has ruled in certain cases that separation pay shall be

granted the workers.

months pay as his/her separation pay if his/her separation is due to a n y o f t h e c a u se s e n u m e r a t e d a b o v e . B. One-Month Pay per Year of Service An employee is entitled to separation pay equivalent to his/her one-month pay f o r e ve r y y e a r o f s e r v i c e , a f r a c t i o n o f a t l e a s t s i x ( 6 ) m o n t h s b e i n g c o n s i d e r e d a s o n e wh o l e y e a r , i f h i s / h e r s e p a ra t i o n f r o m s e r v i c e i s d u e t o a n y o f t h e f o l l o w i n g : 1 . I ns t a l l a t i o n b y e m p l o y e r o f l a b o r - s a v i n g de v i c es ; 2. Redundancy, as when the position of the employee has been found to be e x ce ss i v e o r u n n e c e s s a r y i n t h e o p e r a t i o n o f t h e e n t e r p r i s e ;

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3 . I mp o s si b l e r e i n s t a t e m e n t o f t h e e m p l o y e e t o h i s o r h e r f o r m e r p o s i t i o n o r t o a substantially equivalent position for reasons not attributable to the fault of the e m p l o ye r , a s w h e n t h e re i n s t a t e m e n t o r d e r e d b y a c o m p e t e n t a u t h o r i t y c a n n o t b e i m p l e me n t e d due to closure or cessation of operations of the e s t a b l i s h m e n t / e m p l o y e r , o r t h e p o s i t i o n t o wh i c h h e o r s h e i s t o b e r e i n s t a t e d n o longer exists and there is no substantially equivalent position in the establishment to which he or she can be assigned.6 C. 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 a n d t h e D e p a r t m e n t o f L a b o r a n d E m p l o y m e n t t h r o u g h i t s r e g i o n a l o ff i c e h a v i n g j u r i sd i c t i o n o v e r t h e p l a c e o f b u s i n e s s a t l e a s t o n e ( 1 ) m o n t h b e f o r e t h e i n t e n d e d date thereof. D. Basis of Separation Pay T h e c o m p u t a t i o n o f s ep a r a t i o n p a y o f a n e m p l o y ee sh a l l b e b a se d o n hi s / h e r l a t e s t s a l a r y r a t e . E . In c l u s i o n o f Re gu l a r A l l o w a n c e i n th e C o m p u t a t i o n I n t h e c o m p u t a t i o n o f s e p a r a t i o n p a y , i t wo u l d b e e r r o r n o t t o i n t e g r a t e t h e a l l o w a n ce wi t h t h e b a s i c s a l a r y . T h e s a l a r y b a s e p r o p e r l y u s e d i n c o m p u t i n g t h e separation pay should include not just the basic salary but also the regular a l l o w a n ce s t h a t a n e m p l o y e e h a s b e e n r e c e i v i n g . 7
6 7

Gaco vs. NLRC, et al., G.R. No. 104690, February 23, 1994. Planters Products, Inc. vs. NLRC, G.R. No. 78524, January 20, 1989.

ETIREMENT

14
R
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P
AY
( A r t i c l e 28 7 , a s a m e n de d b y RA 76 4 1 ) A. Coverage 1 . E mp l o ye e s s h a l l b e r e t i r e d u p o n r e a c h i n g t h e a g e o f s i x t y ( 6 0 ) y e a r s o r m o r e b u t not beyond sixty-five (65) years old [and have served the establishment for at l e a s t f i ve (5 ) y e a r s ] . 2 . T h i s be n e f i t a p p l i es t o a l l e mp l o y e e s e x ce p t : 1 ) go v e r n m en t e mp l o y e e s ; 2 ) e m p l o ye e s o f r e t a i l , s e r v i c e a n d a g r i c u l t u r a l e s t a b l i s h - m e n t s / o p e r a t i o n s r e g u l a r l y e m p l o yi n g n o t m o r e t h a n t e n ( 1 0 ) e m p l o y e e s . B . A m o u n t o f Re t i r e m e n t P a y The minimum retirement pay shall be equivalent to one-half (1/2) month salary f o r e ve r y y e a r o f s e r v i c e , a f r a c t i o n o f a t l e a s t s i x ( 6 ) m o n t h s b e i n g c o n s i d e r e d a s one (1) whole year.

F o r th e p u rp o s e o f c o m pu t i n g r e t i r e m e n t p a y , " o n e - h a l f m o n t h s a l a r y " sh a l l i n c lu d e a l l o f t h e f o l l o w i n g : 1 . F i ft e e n ( 1 5 ) d a y s s a l a r y b a s e d o n t h e l a t e s t s a l a ry r a t e ; 2. Cash equivalent of five (5) days of service incentive leave; 3 . O n e - t we l f t h ( 1 / 1 2 ) o f t h e t h i r t e e n t h - m o n t h p a y . ( 1 / 1 2 x 3 6 5 / 1 2 = . 0 8 3 x 30 . 4 1 = 2 . 5 2 ) Thus, one-half month salary is equivalent to 2 2 . 5 days (Capitol Wireless, Inc. vs. Honorable Secretary Ma. Nieves R. Confesor, G. R. No. 117174, November 13, 1996). Illustration: Minimum Retirement Pay = Daily Rate x 22.5 days x number of years in service Ot h e r b e n e f i t s m a y b e i n c l u d e d i n t h e c o m p u t a t i o n o f t h e r e t i r e m e n t p a y u p o n a g r e e m e n t o f t h e e m p l o y e r a n d t h e e m p l o y e e o r i f p r o v i d e d i n t h e Co l l e ct i ve B a r g a i n i n g A g r e e m e n t (C B A ) .
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C . R e t i r e m en t B en e f i t s u n d e r a C o l l e c t i v e B a r g a i n i n g Ag r e e me n t o r A pp l i c a b l e C o n t r a c t A n y e m p l o y e e m a y re t i r e o r b e r e t i r e d b y h i s o r h e r e m p l o y e r u p o n r e a c h i n g t h e r e t i r e m e n t a g e e s t a b l i s h e d i n t h e c o l l e c t i v e b a r g a i n i n g a g r e e m e n t (C B A ) o r other applicable agreement/contract and shall receive the retirement benefits granted therein; provided, however, that such retirement benefits shall not be l e ss t h a n t h e r e t i r e m e n t p a y r e q u i r e d u n d e r R A 7 6 4 1 , a n d p r o v i d e d f u r t h e r t h a t i f s u ch r e t i r e m e n t b e n e f i t s u n d e r t h e a g r e e m e n t a r e l e s s , t h e e m p l o y e r s h a l l p a y the difference. Where both the employer and the employee contribute to a retirement fund p u r su a n t t o t h e a p p l i c a b l e a g r e e m e n t , t h e e m p l o y e r ' s t o t a l c o n t r i b u t i o n s a n d t h e a c cr u e d i n t e r e s t t h e r e o f s h o u l d n o t b e l e s s t h a n t h e t o t a l r e t i r e m e n t b e n e f i t s t o w h i ch t h e e m p l o y e e w o u l d h a v e b e e n e n t i t l e d h a d t h e r e b e e n n o s u c h r e t i r e m e n t b e n e f i t s f u n d . I f s u c h t o t a l p o r t i o n f r o m t h e e m p l o y e r i s l e s s , t h e e m p l o y e r sh a l l pay the deficiency. D. Retiremen t Benefits of Workers wh o are Paid by Resu lts F o r co v e r e d w o r k e r s wh o a r e p a i d b y r e s u l t s a n d d o n o t h a v e a f i x e d m o n t h l y salary rate, the basis for the determination of the salary for fifteen (15) days shall b e t h e i r a v e r a g e d a i l y s a l a r y ( AD S ) . T h e A DS i s d e r i v e d b y d i v i d i n g t h e t o t a l s a l a r y o r e a r n i n g s f o r t h e l a s t t w e l v e m o n t h s r e c k o n e d f r o m t h e d a t e o f r e t i r e me n t by the number of actual working days in that particular period, provided that the determination of rates of payment by results are in accordance with the established regulations. E . R e t i r e m en t B en e f i t o f P a r t - t i m e W o r ke r s Part-time workers are also entitled to retirement pay of one- month 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, and should have rendered at least five (5) years of service with the employer.

A p p l yi n g t h e f o r e g o i n g p r i n c i p l e , t h e c o m p o n e n t s o f r e t i r e m e n t b e n e f i t o f p a r t t i me w o r k e r s m a y l i k e w i s e b e c o m p u t e d a t l e a s t i n p r o p o r t i o n t o t h e s a l a r y a n d related benefits due them.

52

F . Re t i r e m e n t B e n e f i t o f Un de r g r o u n d M i n e E m p l o y e e s u n d e r R ep u b l i c A c t 8 5 5 8 T h e r e t i r e m e n t a g e o f u n d e rg r o u n d m i n e e m p l o y e e s h a s b e e n r e d u c e d t o a mu ch l o we r a g e . F o r t h i s p u r p o s e , a n u n d e r g r o u n d m i n e e m p l o y e e r e f e r s t o a n y p e r so n e m p l o y e d t o e x t r a c t m i n e r a l d e p o s i t s u n d e r g r o u n d o r t o wo r k i n e x ca va t i o n s o r wo r k i n g s s u c h a s s h a f t s , wi n z e s , t u n n e l s , d r i f t s , c r o s s c u t s , r a i se s , w o r k i n g p l a c e s wh e t h e r a b a n d o n e d o r i n u s e b e n e a t h t h e e a r t h s s u r f a c e f o r t h e purpose of searching for and extracting mineral deposits. In the absence of a retirement plan or other applicable agreement providing f o r re t i r e m e n t b e n e f i t s o f u n d e r g r o u n d m i n e e m p l o y e e s i n t h e e s t a b l i s h m e n t , a n e m p l o ye e m a y r e t i r e u p o n r e a c h i n g t h e c o m p u l s o r y r e t i r e m e n t a g e o f s i x t y ( 6 0 ) years or upon optional retirement at the age of fifty (50) years, provided he/she h a s se r ve d f o r a t l e a s t f i v e ( 5 ) y e a r s a s a n u n d e r g r o u n d m i n e e m p l o y e e o r i n u n d e rg r o u n d m i n e o f t h e e s t a b l i s h m e n t . G . O th e r B e n e f i t s u p o n R e t i r e me n t T h e r e t i r e m en t be n e f i t s u n de r RA 7 64 1 a n d RA 85 5 8 a r e s ep a r a t e a n d d i s t i n c t f r o m t h o se g r a n te d b y th e S o c i a l S ec u r i t y S ys t e m . Under the law, upon optional or compulsory retirement, the employee is also entitled to the proportionate thirteenth-month pay for the calendar year and to the cash equivalent of accrued leave benefits.

15
B
ENEFITS

U
NDER THE
53

MPLOYEES

C
OMPENSATION

ROGRAM
(PD 626) A . T h e E m p l o y e e s C o m p en s a t i o n P r o g r a m The Employees Compensation Program (ECP) is a government program d e si g n e d t o p r o v i d e a p a c k a g e o f b e n e f i t s f o r p u b l i c a n d p r i v a t e se ct o r e m p l o ye e s a n d t h e i r d e p e n d e n t s i n t h e e v e n t o f w o rk - re l a t e d c o n t i n g e n c i e s su c h a s s i ck n e s s , i n j u r y , d i s a b i l i t y , o r d e a t h . 8 B. Coverage T h e E C P c o v e r s a l l w o r ke r s in th e f o r m a l s ec t o r . C o v e r a g e i n t h e E C P s t a r t s o n t h e f i r s t d a y o f em p l o y m e n t . E mp l o y e e s i n t h e p r i v a t e s e c t o r wh o a r e r e g i s t e r e d m e m b e r s o f t h e S o c i a l Security System (SSS), except self-employed workers and voluntary members of the SSS. C. The Benefits L o ss o f i n c o m e b en e f i t o r a c a s h b en ef i t g i v en t o a w o r k e r t o c o m p en s a t e f o r l o s t i n c o m e d u e t o h i s o r h e r in a b i l i t y t o w o r k . M ed i c a l be n e f i t s wh i c h i n c lu d e t h e r e i m bu r s e me n t o f t h e c o s t o f me d i ci n e f o r t h e i l l n e s s o r i n j u r y , p a y m e n t s t o p r o v i d e r s o f m e d i c a l c a r e , h o sp i t a l c a r e , su r g i c a l e x p e n s e s , a n d t h e c o s t s o f a p p l i a n c e s a n d s u p p l i e s wh e r e n e ce ss a r y . T h e m e d i c a l s e r v i c e s a r e l i m i t e d t o wa r d s e r v i c e s o f a n a c c r e d i t e d h o sp i t a l . R eh a b i l i t a t i o n se r v i c e s i n c lu d e p h ys i c a l t h e r a p y , v o c a t i o n a l t r a i n i n g , a n d sp e c i a l a ss i s t a n c e p r o v i d ed t o em p l o y e e s wh o s u s t a i n
8F o r

more information, please write or call the Employees Compensation Commission (ECC), Information and Public Assistance Division, located at 355 Sen. Gil Puyat Avenue, Makati City. Telephone Nos. 899-4251 to 52 locals 227 and 228; Fax: 897-7597. Public Assistance Center (PAC) Telephone No. 899- 4251. Email:e c c _ m a i l @ i n f o . c o m . p h. Website:w w w . e c c . g o v. p h
54

a d i s a b i l i t y a s a r es u l t o f s i c kn e ss o r in j u r y a r i s i n g o u t o f employment. The objective is to develop the workers mental, vocational, and s o ci a l p o t e n t i a l a n d t o h e l p t h e m r e m a i n a s p r o d u c t i v e m e m b e r s o f s o c i e t y . C a r e r s a l l o w a n c e wh i c h i s p r o v i d e d t o a n e m p l o y e e wh o s u f f e r s a p e r ma n e n t t o t a l d i s a b i l i t y ( P T D ) a r i s i n g o u t o f e m p l o y m e n t t h e e x t e n t o f w h i ch i s su c h t h a t h e o r s h e c o u l d n o t o n h i s o r h e r o wn a t t e n d t o h i s o r h e r b a s i c p e r so n a l n e e d s . Death benefits w h i ch a r e g r a n t ed t o be n e f i c i a r i e s o f a n e m p l o ye e w h o d i e s a s a r e s u l t o f s i c k n e s s o r i n j u r y a r i s i n g o u t o f e m p l o y me n t . W h e n a w o r k e r o n P T D s t a t u s d i e s , h i s o r h e r p ri m a r y b e n e f i c i a r i e s s h a l l r e c e i ve eighty percent (80%) of his or her monthly income benefit plus ten percent (10%) for every dependent child but not exceeding five (5). D . K i nd s o f D i s a b i l i t y T h e re a r e t h r ee ( 3 ) t y p es o f l o s s o f i n c o m e b en e f i t s : Temporary Total Disability ( T T D ) b en e f i t w h i ch i s g i v en t o an e m p l o y e e wh o i s u n a b le t o w o r k f o r a c on t i n u o u s pe r i o d n o t e x ce e d in g 1 2 0 d a y s .

P e r m a n e n t P a r t i a l D i s a b i l i t y ( P P D ) b en e f i t w h i ch i s g i v en t o a w o r k e r wh o l o se s a b o d y p a r t a n d c o n s e qu en t l y t h e l o s s o f t h e u s e of that body part. Permanen t Total Disability ( P T D ) b en e f i t wh i c h i s g i v en i f t h e employees inability to work lasts for more than 240 days. PTD b en e f i t c a n be c l a i m e d in th e f o l l o w i n g c a se s : 1 . co mp l e t e l o s s o f v i s i o n ; 2 . l o ss o f t w o l i m b s a t o r a b o v e t h e a n k l e s o r w ri s t s ; 3 . p e rm a n e n t a n d c o m p l e t e p a r a l y s i s o f t w o l i m b s , a n d 4 . b r a i n i n j u r y re s u l t i n g in i n c u r a b l e i m b e c i l i t y o r i n s a n i t y , i f c a u se d b y w o r k . E. Filing of Claims E m p l o y e e s c a n c l a i m on l y f o r w o r k - c o n n e c te d s i c kn e ss , i n j u r i es , o r d e a th .
55

W h o m a y f i le : T h e c l a i m a n t o r h is / h e r re p r es e n t a t i v e m a y f i l e a n a p p r o p r i a t e c l a i m w i t h t h e G S I S , i n c as e o f p u b l i c s ec t o r c l a i m a n t , o r w i t h t h e SS S , in c as e o f p r i v a t e se c t o r c l a i m a n t . W he n : A c l a i m m a y b e f i l ed w i t h in t h re e ( 3 ) ye a r s f r o m t h e d a t e o f t he o cc u r r e n c e o f t h e c on t i n ge n c y ( i . e . , s ic k n e s s , in j u r y , o r death). H o w : F i l l in th e p r e sc r i b e d f o r m s su pp l i e d b y th e G S I S o r S SS a n d a t t a c h t h e su pp o r t i n g d oc u m en t s re q u i r ed f o r ev e r y contingency. W he r e : A c l a i m m a y b e f i l ed a t a n y G S I S b r a n ch o f f i c e , f o r g o v e r n m en t e mp l o y e e s , o r a t a n y SS S b r a n ch o f f i ce , f o r e m p l o y e es in t h e pr i v a t e s ec t o r . P e r i o d o f Ap pe a l . T h e c l a i m a n t s h a l l f i le w i t h t h e G S I S o r t h e SS S , a s th e c a s e m a y b e , a n o t i c e o f a pp e a l w i t h i n t h i r t y ( 30 ) c a l en d a r d a y s f r o m re c e i p t o f t h e de c is i o n . F . Ob l i g a t i o n s / R e sp o n s i b i l i t i e s o f E m p l o y e r s 1 . C o n t r i b u t i o n t o t h e S t a t e I n s u r a n ce F u n d ( S I F ) . T h e e m p l o y e r sh a l l c o n t r i b u t e i n b e h a l f o f h i s o r h e r e m p l o y e e s t o t h e S I F , f r o m wh i c h p a y m e n t s f o r benefits are drawn. 2.R e g i s t r a t i o n . Every employer (and every employee as well) shall be r e g i s t e r e d wi t h t h e GS I S o r S S S b y a c c o m p l i s h i n g t h e p r e s c r i b e d f o r m s . 3 . S a fe t y De v i c es . T h e e m p l o y e r s h a l l c o m p l y wi t h h e a l t h a n d s a f e t y l a ws a n d shall take the necessary precautions for the prevention of work-related disability or death. 4. E m p l o y e r s L o gb o o k . The employer is required to maintain a logbook to contain his or her employees sickness, injuries, disabilities, and deaths. Notification of such contingencies to the GSIS or SSS shall be made within five (5) days from the date of contingency. 5 . De p r i v a t i o n s C l a u s e . N o c o n t r a c t , r e g u l a t i o n , o r d e v i c e wh a t s o e v e r sh a l l o p e r a t e t o d e p r i v e t h e e m p l o y e e o r h i s / h e r d e p e n d e n t s o f a n y p a r t o f t h e E CP c o mp e n s a t i o n p a c k a g e .

H P

16
HIL
56

EALTH

B
ENEFITS
(RA 7875, as amended by RA 9241) A . T h e N a t i o n a l H e a l t h I n s u r a n ce P r o g r a m T h e N a t i o n a l H e a l t h I n s u r a n c e P r o g r a m ( N H I P ) , f o r m e r l y k n o w n a s M e d i ca r e , 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 a s si st a n c e w h e n t h e y g e t h o s p i t a l i z e d . T h e P h i l i p p i n e He a l t h I n s u r a n c e Co r p o r a t i o n o r P h i l H e a l t h i s t h e m a n d a t e d a d mi n i s t r a t o r o f t h e M e d i c a r e p r o g r a m ( n o w k n o w n a s N H I P ) u n d e r t h e N a t i o n a l Health Insurance Act of 1995 (Republic Act 7875).9 B. Coverage The program covers the following: 1 . E m p l o y e d M e m be r s a l l t h o s e e m p l o y ed i n t h e g o v e r n m en t a n d p r i v a t e s ec t o r . 2 . I n d i vi d u a l l y P a y i n g M e m b e rs s e l f - e m p l o y e d , o v e r s e a s F i l i p i n o w o r k e r s , p r o f e s si o n a l s i n p ri v a t e p r a c t i c e (d o c t o r s , l a w y e r s , d e n t i s t s , e t c . ) 3 . N o n - p a y i n g M e m be r s t h e f o l l o w i n g a r e e n t i t l ed t o l i f e t i m e coverage:

R e t i r e e s a n d p e n s i o n e r s o f t h e GS I S a n d S S S ( i n c l u d i n g p e r m a n e n t t o t a l d i sa b i l i t y a n d s u r v i v o r s h i p p e n s i o n e r s o f t h e S S S ) p r i o r t o t h e e f f e c t i v i t y o f RA 7875 on March 4, 1995.

9

For inquiries on NHIP coverage, benefits and procedures for SSS members,

you may visit the Philippine Health Insurance Corporation (PhilHealth) at the Citystate Centre Bldg., 709 Shaw Blvd., Barangay Oranbo, Pasig City or call telephone number 6379999. You may also visit the PhilHealth website at http://www.philhealth.gov.ph .
57

Me mb e r s w h o h a v e r e a c h e d t h e r e t i r e m e n t a g e a n d h a v e p a i d a t l e a s t 1 2 0 mo n t h l y c o n t r i b u t i o n s . Op t i o n a l R e t i r e e s ( u n d e r R A 1 6 1 6 , P D 1 1 4 6 o r P D 1 1 8 4 ) are not yet entitled to lifetime coverage until they reach the age of retirement (60 years old). 4 . I nd i g e n t M em b e r s u n de r t h e in d i ge n t c o m p on e n t o f t h e NHIP. C. The Benefits

A unified benefit package for all PhilHealth members is being implemented w h i ch i n c l u d e s t h e f o l l o w i n g c a t e g o r i e s o f p e r s o n a l h e a l t h s e r v i c e s : 1. Inpatien t hospital care:

Room and board; S e r v i ce s o f h e a l t h c a r e p r o f e ss i o n a l s ; D i a g n o s t i c , l a b o r a t o r y , a n d o t h e r m e d i c a l ex a m i n a t i o n s e r v i ce s ;

U se o f s u r g ic a l o r m e d i c a l eq u ip m e n t a n d f a c i l i t i e s ; P r e s c r i p t i o n d r u g s an d bi o l o g i c a l s , su b je c t t o t h e l i m i t a t i o n s s t a t e d i n S ec t i o n 3 7 o f R A 7 87 5 ; a n d

I n p a t i en t ed u c a t i o n p a c k a g es . 2. Outpatien t care:

S e r v i ce s o f h e a l t h c a r e p r o f e ss i o n a l s ; D i a g n o s t i c , l a b o r a t o r y , a n d o t h e r m e d i c a l ex a m i n a t i o n s e r v i ce s ;

P e r s o n a l p re v e n t i v e s er v i c e s ; P r e s c r i p t i o n d r u g s an d bi o l o g i c a l s , su b je c t t o t h e l i m i t a t i o n s de sc r i b e d i n S ec t i o n 3 7 o f RA 78 7 5 ; a n d

E m e r g en c y a n d t r a n s fe r se r v i c e s .

60

S p e c i a l i s t (Groups 2, 3, and 4)
Per Day P 500 P 600 Maximum per confinement P 2,000 P 3,600 b. Surgery (for Case Types A and B)

Surgeon Anesthesiologist First Tier (Group 1)

General Practitioner RVU x PCF 40 = PF1 40% of surgeons fee (PF1) With training

Second Tier (Groups 5 and 6)

RVU x PCF 48 = PF2

48% of surgeons fee (PF1) Diplomate/fellow

Third Tier (Groups 2, 3, and 4)

RVU x PCF 56 = PF3 56% of surgeons fee (PF1) Max. of P2,000 per confinement Max. fee computed as percentage of P2,000 The following are also included in your PhilHealth benefits:

Outpatient Malaria Package starting 01

December 2008

Normal Spontaneous Delivery up to fourth childbirth starting 01 January 2009 Voluntary Surgical Contraception Procedures starting 01 October 2008 Cataract Package starting 01 May 2009 A(H1N1) Package starting 01 May 2009 Additional Update In compliance to PhilHealth Circular Nos.
22, s. 2007 and 11, s. 2008, the hospitals Statement of Account (SA) or Billing Statement (BS) should be attached to a claim application.

No need to attach an SA or BS to claim

applications for packages likeMa t e r n i t y

Care Package, SARS, Peritoneal Dialysis,

and Avian Flu .

17
S
61

OCIAL ECURITY

ENEFITS
(RA 1161, as amended by RA 8282) A. T h e S o c i a l Se cu r i t y P r o g r a m The Social Security Program provides a package of benefits in the event of death, disability, sickness, maternity, and old age. Basically, the Social Security S y st e m ( S S S ) p r o v i d e s f o r a r e p l a c e m e n t o f i n c o m e l o s t o n a c c o u n t o f t h e a f o r e m e n t i o n e d c o n t i n g e n c i e s . 10 B. Coverage

A pr i v a t e e m p l o y ee , w h e t h e r p e r m a n e n t , t e m p o r a r y o r provisional;

A ho u se h o l d h e lp e r e a r n i n g a t l e a s t P 1 , 0 0 0 a m o n t h i s s ub j e c t t o c o m p u ls o r y c o v e r a g e s t a r t i n g Se p te m b e r 1 , 1 9 93 . C. T h e B en e f i t s C . 1 S i c kn e ss 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. A me m b e r i s qu a l i f i e d t o a v a i l h i m se l f / h e r se l f o f th i s be n e f i t i f : 1 . h e / sh e i s u n a b l e t o w o r k d u e t o s i c k n e s s o r i n j u r y a n d i s t h u s c o n f i n e d e i t h e r i n t h e h o sp i t a l o r a t h o m e f o r a t l e a s t f o u r d a y s ; 2 . h e / s h e h a s p a i d a t l e a s t t h re e m o n t h l y c o n t r i b u t i o n s wi t h i n t h e 1 2 - m o n t h p e r i o d i m me d i a t e l y b e f o r e t h e s e m e s t e r o f s i c k n e s s ;
10F o r

inquiries on SSS benefits and other related matters, you may visit the

Social Security System (SSS) at the SSS Building, East Avenue, Diliman, Quezon City or its nearest branch office. You may also call telephone numbers 920-6401 (operator-assisted), 920-6446 (Member Relations Department), 9177777 (machine-assisted; press your SSS no. and wait for instructions) or visit its website atw w w . s s s . g o v. p h or e-mail it atm e m b e r _ r e l a t i o n s @ s s s . g o v. p h .
62

3 . he / s he h as u s ed u p a l l c u r r en t c o m p a n y s i c k l e a v e s w i t h p a y f o r th e c u r r en t y e a r ; a n d 4 . he / s he h as n o t i f i ed h is / h e r e m p l o y e r . T h e a m o u n t o f a n em p l o y e e s s i c kn e ss be n e f i t i s c o m p u te d a s : t h e d a i l y s i ck n es s a l l o w a n c e t i m e s t h e a pp r o v e d n u m be r o f d a ys . Effective May 24, 1997, the daily sickness allowance is 90 percent of the a v e r a g e d a i l y s a l a r y c r e d i t ( Se c t i o n 1 4 o f R e p u b l i c A c t 8 2 8 2 ) . C . 2 . M a t e r n i t y (s e e 8 . M a t e rn i t y L e a ve ) C.3.D i s a b i l i t y I t i s a c a sh be n e f i t p a i d t o a me m b e r wh o be c o m es p e r m a ne n t l y d is a b l e d , ei t h e r p a r t i a l l y o r t o t a l l y . A member who suffers partial or total permanent disability, with at least one (1) contribution paid to the SSS prior to the s e m e s t e r o f c o n t i n g e n c y , i s q u a l i f i e d . T h e c o m p l e te a n d pe r m a n e n t l o s s o f u se o f a n y o f t h e f o l l o w i n g p a r t s o f t h e b od y u n de r pe r m a n e n t p a r t i a l di s a b i l i t y : o n e t hu m b s i gh t o f on e e y e one big toe o n e i n de x f in g e r h e a r i ng o f o n e e a r o n e h a nd one middle finger h e a r i ng o f b o t h ea r s one arm o n e r i n g f i n ge r one foot one ear one little finger

one leg both ears The following fall under permanent total disability: 1. Complete loss of sight of both eyes; 2 . L o ss o f t w o l i m b s a t o r a b o v e t h e a n k l e o r w r i s t s ; 3. Permanent complete paralysis of two limbs; 4. Brain injury causing insanity; and 5 . Ot h e r c a s e s a s d e t e r m i n e d a n d a p p r o v e d b y t h e SS S . Types of disability benefits: 1. The monthly pension which is paid to a disabled member who has paid at least 36 monthly contributions to the SSS; and 2 . T he lu m p su m a m o u n t w h i ch i s g r a n te d t o t h o s e w h o h a v e n o t p a i d t h e r eq u i r ed 36 m o n t h l y c o n t r i b u t i o n s . C.4.R e t i r e m e n t
63

I t i s a c a sh be n e f i t p a i d t o a me m b e r wh o c an n o l o n ge r w o r k d ue t o o l d a ge . A me m b e r i s qu a l i f i e d t o a v a i l h i m se l f o f t h i s b en e f i t i f : b . H e/ sh e i s 6 0 y e a r s o l d a n d u n e m p l o y e d a n d h a s p a i d a t l e a s t 1 2 0 m o n t h l y contributions prior to the semester of retirement. b . h e / sh e i s 6 5 y e a r s o l d , wh e t h e r e m p l o y e d o r n o t . I f e m p l o y e d h e / s h e s h o u l d h a v e p a i d 1 2 0 m o n t h l y c o n t r i b u t i o n s p r i o r t o t h e s e m e s t e r o f r e t i r e m e n t , wh e t h e r e m p l o ye d o r n o t . T h e t yp e s o f re t i r e m e n t b e n e f i t s a r e : a. the monthly pension, and b. the lump sum amount. T h e mo n t h l y p e n s i o n i s a l i f e t i m e c a s h b e n e f i t p a i d t o a r e t i r e e w h o h a s p a i d a t l e a st 1 2 0 m o n t h l y c o n t r i b u t i o n s t o t h e S S S p ri o r t o t h e s e m e s t e r o f r e t i r e me n t . T h e l u m p s u m a m o u n t is g r a n te d t o a r e t i r ee wh o h a s n o t p a i d t h e r eq u i r e d 1 2 0 m o n t h l y c on t r i b u t i o n s . C.5.Death & Funeral T h e d e a th be n e f i t i s a c a sh p a i d t o t h e be n e f i c i a r i e s o f a d ec e a se d me m b e r . The primary beneficiaries are the legitimate dependent spouse until he or she remarries and legitimate, legitimated, legally adopted or illegitimate dependent children of the member. In the absence of primary beneficiaries, the secondary beneficiaries are the dependent parents of the member. In their absence, the person designated by the member as beneficiary in his/her members r e c o r d w i l l b e the recipient. T h e t yp e s o f d e a t h b e n e f i t s a r e : 1. the monthly pension; and 2. the lump sum amount. The monthly pension is granted only to the primary beneficiaries of a d e ce a s e d m e m b e r w h o h a d p a i d 3 6 m o n t h l y c o n t r i b u t i o n s b e f o r e t h e s e m e s t e r o f death.

T h e l u m p s u m i s t h e a m o u n t g r a n t e d t o t h e p r i m a ry b e n e f i c i a r i e s o f a d e ce a s e d m e m b e r w h o h a d p a i d l e s s t h a n 3 6 m o n t h l y c o n t r i b u t i o n s b e f o r e t h e s e me st e r o f d e a t h .

64

D i r e c t o r y o f DO L E R e g i o n a l O f f i c es
National Capital Region (NCR) DOLE-NCR Bldg., 967 Maligaya St., Malate, 1004 Manila Telephones: 339-2013 & 339-2017 / 523-2677 & 400-6011 Fax: (632) 400-6241 dolencr_planning@yahoo.com See next page for the Directory of DOLE-NCR Field Offices Cordillera Administrative Region (CAR) Cabinet Hills, 2600 Baguio City Tel. # (074) 442-2447 Telefax: (074) 443-5339 dolecar88@pldtdsl.net; dole-car@pldtdsl.net Region 1 ARNEL Bldg., Mabini St., Catbangen, San Fernando City, 2500 La Union Telefax: (072) 700-2520 dolero1@digitelone.com Region 2 Turingan Bldg., Caritan Centro, Tuguegarao City, 3500 Cagayan Telephones: (078) 844-1364 / 844-1383 & 844-5516 Telefax: (078) 844-1553 ad_services_ro2@yahoo.com Region 3 SWTLC Bldg., Regional Govt Center, Maimpis, San Fernando City, 2000 Pampanga Tel. # (045) 961-1305 Telefax: (045) 961-2195 Dolero3@mail.irnet.net.ph Region 4-A CALABARZON 3/F & 4/F, Andenson Bldg. II, Barangay Parian, Calamba City, 4027 Laguna Tel. # (049) 545-7357 Telefax: (049) 545-7360 imsd@mozcom.com Region 4-B MIMAROPA 7/F, Ben-Lor Bldg., 1184 Quezon Avenue, 1100 Quezon City Tel. # (632) 374-7972 Telefax: (632) 374-7974 doleregion4b@pacific.net.ph; dolemimaropa@pacific.net.ph

Region 5 Doa Aurora St., Old Albay, 4500 Legaspi City Tel. # (052) 480-5831 Telefax: (052) 820-4806 dolero5@yahoo.com Region 6 2/F & 3/F, St. Clemens Bldg., Luna St., La Paz, 5000 Iloilo City Tel. # (033) 320-6904 Telefax: (033) 320-8026 doleregion6@yahoo.com.ph Region 7 2/F, GMC Plaza Bldg., M. J. Cuenco Avenue cor. Legaspi St., 6000 Cebu City Telephones: (032) 253-0638 & (032) 254-5156 dolero7@cvis.net.ph Region 8 Trece Martirez St., 6500 Tacloban City Tel. # (053) 325-2237 Telefax: (053) 325-5236 Dolero8@mail.evis.net Region 9 Wee Agro Bldg., Veterans Avenue, 7000 Zamboanga City Tel. # (062) 993-1877 Telefax: (062) 991-2672 & 991-2673 dole_region_9@yahoo.com; dole9zam@pldtdsl.net Region 10 2/F, Gonzalo Go Bldg., Corrales Avenue, 9000 Cagayan de Oro City Tel. # (088) 857-1931 Telefax: (088) 857-2218 Fax: (08822) 72-7682 dole10@websprinter.net Region 11 LDL Bldg., F. Bangoy St., 8000 Davao City Tel. # (082) 227-8772 Telefax: (082) 226-2671 dole11davao@yahoo.com Region 12 102 Acepal Bldg., Mabini Extension, Koronadal City, 9506 South Cotabato

Telephones: (083) 520-0125 & 228-4920 Telefax: (083) 228-2190 dolexii@cotabato.mozcom.com Region 13 CARAGA Regional Office 3/F, Nimfa Tiu Bldg., J. T. Rosales Avenue, 8600 Butuan City Tel. # (085) 342-9606 Telefax: (085) 225-3229 dolexiii@sky.net

65

D i r e c t o r y o f DO L E - N C R F i e l d Of f i c es
CAMANAVA Field Office (CFO) 5/F, Araneta Square Center, Monumento Circle 1400 Caloocan City Telefax: (02) 323-7466 & 362-3187 Jurisdiction: Cities of Caloocan, Malabon, Navotas, and Valenzuela MUNTAPARLAS Field Office (MFO) 3/F, Susana Arcade Alabang-Zapote Road, Almanza I 1750 Las Pias City Telephones: 800-1538 Jurisdiction: Cities of Muntinlupa, Taguig, Paraaque, and Las Pias Manila Field Office (MFO) G/F, DOLE-NCR Bldg., (formerly Wasmiya Bldg.)

967 Maligaya St., Malate 1004 Manila Telephones: 338-7830 / 339-2014 & 400-3002 PAMAMARISAN Field Office (PFO) 6/F, Semicon Bldg. (near Salve Regina Hospital) Marcos Highway 1600 Pasig City Telephone: 408-9614 Jurisdiction: Pateros and the cities of Mandaluyong, Marikina, Pasig, and San Juan Makati-Pasay Field Office (MPFO) 2/F, Employees Compensation Commission (ECC) Bldg., 355 Sen. Gil Puyat Avenue Extension 1200 Makati City Telephones: 328-8815 & 338-5865 Quezon City Field Office (QCFO) 4/F, Arcadia Bldg. Quezon Avenue 1100 Quezon City Telephones: 497-3002 376-5983 & 414-4471

Vision 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, occupational safety and health, and other conditions of employment. I n Ma y 1 9 8 2 , t h e B u r e a u o f L a b o r S t a n d a r d s , w h i c h wa s c r e a t e d i n J u n e 1 9 5 7 u n d e r R e o r g a n i z a t i o n P l a n N o . 2 0 - A , w a s r e n a m e d t h e B u r e a u o f W o r ki n g Conditions. The BWC performs all functions in relation to the formulation of policies and enforcement of labor standards performed by the then Wage A d m i n i st r a t i v e S e r v i c e a n d t h e I n d u s t r i a l S a f e t y D i v i s i o n o f t h e B u r e a u o f L a b o r .

66

Well-guided employers and workers committed to a safe, healthful, and p r o d u c t i v e wo r k e n v i r o n m e n t , a d a p t i v e t o i n d u s t r y t r e n d s a n d d e v e l o p m e n t s , a n d equitably enjoying the gains of joint endeavors.

Mission

F o r mu l a t e p o l i c i e s a n d i n i t i a t e l e g i s l a t i o n s o n l a b o r s t a n d a r d s , b a s e d o n r e l e va n t i n f o r m a t i o n c u l l e d f r o m m o n i t o r i n g , c o n s u l t a t i o n s , n e t wo r k i n g , a n d r e s e a r c h e s.

Standardize the use of enforcement instruments and to clothe the inspectorate s ys t e m w it h s t r o n g e n f o r c e m e n t a u t h o r i t y t o e n s u r e c o m p l i a n c e w it h l a w s a n d regulations.

Develop and sustain the capability of enterprises toward self- management of safety and health in workplaces, thus, upholding the principle of shared r e s p o n si b i l i t y b e t w e e n wo r k e r s a n d e m p l o y e r s .

Enhance the capability of small enterprises in implementing practical and efficient methods of improving working conditions and productivity.

Inform and advise the public on labor standards, including occupational safety a n d h e a l t h , a n d o n i n n o v a t i v e wo r k p r a c t i c e s o r a r r a n g e m e n t s .

Philippine Dole Handbook 2009

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C ONTENTS
1. MINIMUM WAGE A. Coverage

2 B. Minimu m Wage Rates 3 C. Basis 5 D . M o n th l y - P a i d a n d D a i l y - P a i d E m p l o y e e s 5 E . C o m p u t a t i o n o f th e E s t i m a t e d E q u i v a l e n t M o n th l y R a t e 5 (EEMR) of Monthly-Paid and Daily-Paid Employees F. Minimum Wage of Workers Paid by Results 7 G . M in i m u m W a ge o f A pp r e n t i ce s , L e a r n e r s , a n d D i s a b l ed W o r ke r s 8 H . M i n i m u m W a g e o f H o u s eh e l pe r s ( RA 76 5 5 ) 8 I. Effect of Redu ction of Workdays on Wages 9 J . P e n a l t y a n d D o u b l e In de m n i t y f o r V i o l a t i o n o f t h e P r e s c r i be d I n c r e a se s o r A d ju s t m e n ts i n t h e W a ge R a t es (RA 8188) 9 2. HOLIDAY PAY (Article 94) A . De f i n i t i o n 10 B. Coverage 10 C . R e gu l a r H o l i d a y s 11 D . Mu s l i m H o l i d a y s 12 E . A b se n ce s 13 F . Su c ce ss i v e Re g u l a r H o l i d a y s 14 G. Temporary or Periodic Shu tdown /Cessation of Work 14 H. Holiday Pay of Certain Employees 14 3. PREMIUM PAY (Articles 91-93) A . De f i n i t i o n 15 B. Coverage 15 C. Special Days 16 D. Premium Pay Rates 17 4. OVERTIME PAY (Article 87) A . De f i n i t i o n 18 B. Coverage

18 C . O ve r t i m e P a y R a t e s 18 D . S t i p u l a t ed O ve r t i m e R a t e s 19 5. NIGHT SHIFT DIFFERENTIAL (Article 86) A . De f i n i t i o n 20 B. Coverage 20 C . C o m p u t a t i o n o f N i g h t S h i f t D i f f e r en t i a l 21

66. S E RVIC E C H ARGE S ( Arti cl e 9 6 ) A . Sh a r i n g 26 B. Paymen ts 26 C. Tips 26 7. SERVICE IN CENTIVE LEAVE (Article 95) A. Coverage 27 B . M e an i n g o f o n e y e a r o f s e r v i c e 28 C . Us a g e / C o n v e r s i o n t o C a s h 28 8. MATERN ITY L EAVE (RA 1161, as amended by RA 8282) A. Coverage 29 B. Entitlement 29 9. PATERNITY L EAVE (RA 8187) A. Coverage 30 B . T h e P a t e r n i t y L e a ve Be n e f i t 30 C . C o n d i t i o n s f o r E n t i t l e m en t 30 D . A pp l i c a t i o n f o r P a t e r n i t y L e a v e 31 E . N on c o n v e rs i o n t o C a s h 31 F . C r e d i t i n g o f E x i s t i n g Be n e f i t s 31 10. PAREN TAL LEAVE FOR SOLO PARENTS (RA 8972) A. Coverage 32 B. Definition of Terms 32 C . T he P a r e n t a l L e a v e B en e f i t 33

D. Conditions for Entitlement 33 E . N on c o n v e rs i o n t o C a s h 33 F. Crediting of Existing Leave 33 G . T e r m i n a t i o n o f t h e B en e f i t 34 H. Protection Against Work Discrimination 34 11. LEAVE FOR VICTIM S OF VIOL EN CE AGAINST WOM EN A N D T H E I R C H IL D R E N (R A 92 6 2 ) A . De f i n i t i o n 35 B . C o v e r a g e a n d P u r p os e 35 C . Re q u i re m e n t f o r E n t i t l e m e n t 35 D . T he Be n e f i t 36 E . Us a g e o f t h e Be n e f i t 36 12. THIRTEENTH-MON TH PAY (PD 851) A. Coverage 37 B . D e f in i t i o n o f R a n k- a n d - F i l e E m p l o y e es 37 C. Minimum Amount 37 D . E x e m p t ed E m p l o y e r s 38 E . T i m e o f P a y m e n t o f Th i r t e e n th - M o n th P a y 38 F . T h i r t ee n t h - M o n t h P a y f o r C e r t a i n T y pe s o f E m p l o y e e s 39 G . T h i r t ee n t h - M o n t h P a y o f Re s i g n e d o r S ep a r a t e d E m p l o y e e 39 H . N o n - in c l u s i o n i n R eg u l a r W a ge 40 13. SEPARATION PAY (Articles 283-84) A . O ne - H a l f M on t h P a y pe r Ye a r o f Se r v i c e 41 B . O ne - M on t h P a y pe r Ye a r o f S er v i c e 42 C . N o t i ce o f T e r m i n a t i o n 42 D . B a s i s o f S ep a r a t i o n P a y 42 E . In c l u s i o n o f Re gu l a r A l l o w a n c e i n th e C o m p u t a t i o n 42
7

14. RETIREM EN T PAY (Article 287, as amended by RA 7641) A. Coverage 43 B . A m o u n t o f R e t i r e me n t P a y 43 C . R e t i r e m en t B en e f i t s u n d e r a C o l l e c t i v e B a r g a i n i n g A g r ee m e n t / Ap p l i c a b l e C o n t r a c t 44 D . Re t i r e m e n t Be n e f i t s o f W o r k e r s w h o a r e P a i d b y R es u l t s 4 4 E . R e t i r e m en t B en e f i t o f P a r t - t i m e W o r ke r s 44 F . Re t i r e m e n t B en e f i t o f U n d e r g r o u n d M i n e E m p l o y e es u nd e r R ep u b l i c A c t 8 5 5 8 45 G . O t he r B en e f i t s u p on Re t i r e m e n t 45 1 5 . B E N E F I T S UN D E R T H E E M P L O Y E E S C O M P E N S A T IO N P R O G R A M ( P D 6 26 ) A . T h e E m p l o y e e s C o m p en s a t i o n P r o g r a m 46 B. Coverage 46 C . T h e B en e f i t s 46 D . K i n ds o f D i s a b i l i t y 47 E. Filing of Claims 47 F . Ob l i g a t i o n s / R e s p on s i b i l i t i e s o f E m p l o y e r s 48 1 6 . P H I LH E A L T H B E N E F I T S (R A 78 7 5 , a s a m e n de d b y RA 92 4 1 ) A . T he N a t i o n a l He a l t h In s u r a n ce P r o g r a m 49 B. Coverage 49 C . T h e B en e f i t s 50 1 7 . SO C I A L S E C U R I T Y B E N E F I T S ( R A 1 1 61 , a s a m en d ed b y RA 8282) A . T h e S o c i a l Se cu r i t y P r o g r a m 54 B. Coverage 54 C . T he Be n e f i t s 54 APPENDIX D i r e c t o r y o f DO L E R e g i o n a l O f f i c es 57 D i r e c t o r y o f DO L E - N C R F i e l d Of f i c es 58 T h e B u re a u o f W o r k i n g C o n d i t i o n s 59

INIMUM

1
8

M W
AGE
Re p u b l i c A c t N o . 6 7 2 7 ( a l s o k n o w n a s t h e W a g e Ra t i o n a l i z a t i o n A ct ) ma n d a t e s t h e f i x i n g o f t h e m i n i m u m w a g e s a p p l i c a b l e t o d i f f e r e n t i n d u st r i a l s e ct o r s, n a m e l y , n o n - a g r i c u l t u r e , a g r i c u l t u re p l a n t a t i o n , a n d n o n p l a n t a t i o n , c o t t a g e / h a n d i c r a f t , a n d r e t a i l / s e r v i c e , d e p e n d i n g o n t h e n u m b e r o f wo r k e r s o r c a p i t a l i za t i o n o r a n n u a l g r o s s s a l e s i n s o m e s e c t o r s . T h e R u le s I m p l e m en t i n g R A 67 2 7 d e f in e t h e i n du s t r i a l s ec t o r s a s follows: A g r i cu l t u r e r e f e r s t o f a r m i n g i n a l l i t s b r a n c h e s a n d , a m o n g o t h e r s , i n c l u d e s t h e c u l t i va t i o n a n d t i l l a g e o f t h e s o i l , p r o d u c t i o n , c u l t i v a t i o n , g r o w i n g a n d h a r v e st i n g of any agricultural or horticultural commodities, dairying, raising of livestock or p o u l t r y, t h e c u l t u r e o f f i s h a n d o t h e r a q u a t i c p r o d u c t s i n f a r m s o r p o n d s , a n d a n y a c t i v i t i e s p e r f o r m e d b y a f a r m e r o r o n a f a r m a s a n i n c i d e n t t o o r i n c o n j u n ct i o n w i t h s u ch f a rm i n g o p e r a t i o n s , b u t d o e s n o t i n c l u d e t h e m a n u f a c t u r i n g a n d / o r p r o ce ss i n g o f s u g a r , c o c o n u t , a b a c a , t o b a c c o , p i n e a p p l e , a q u a t i c o r o t h e r f a r m products. Plantation Agricultural Enterprise is one engaged in agriculture with an area of mo r e t h a n 2 4 h e c t a r e s i n a l o c a l i t y o r w h i c h e m p l o y s a t l e a s t 2 0 w o r k e r s . A n y other agricultural enterprise shall be considered as Non-plantation Agricultural E n t e r p r i se . R e t a i l E s t a b l i s h m e n t is o n e p r in c i p a l l y e n g a g ed in t h e s a le o f g o o d s t o e n d - u s e rs f o r pe r s o n a l o r h o u s e h o l d u se . Service Establishment is one principally engaged in the sale of service to i n d i v i d u a l s f o r t h e i r o w n o r h o u s e h o l d u s e a n d i s g e n e ra l l y r e c o g n i z e d a s s u ch . Cottage/Handicraft Establishment is one engaged in an economic endeavor in w h i ch t h e p r o d u c t s a r e p ri m a r i l y d o n e i n t h e h o m e o r s u c h o t h e r p l a c e s f o r p r o f i t w h i ch r e q u i r e s m a n u a l d e x t e r i t y a n d c r a f t s m a n s h i p a n d w h o s e c a p i t a l i z a t i o n d o e s not
9

e x ce e d P 5 0 0 , 0 0 0 . 0 0 , re g a r d l e ss o f p r e v i o u s r e g is t r a t i o n w i th t h e d ef un c t N A C I D 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 re g i o n s b a s e d o n e s t a b l i s h e d c r i t e r i a :

N a t i o n a l C a p i t a l R e g i o n ( NC R ) o r M e t r o M a n i l a C o r d i l l e r a A d m i n i s t r a t i v e Re g i o n ( CA R ) Region 1 - No r t h e r n L u z o n o r I l o c o s R eg i o n 2 - Cagayan Valley R eg i o n 3 - C en t r a l L u z on R eg i o n 4 - A - C AL A B A R ZO N ( C a v i t e , L a gu n a , B a t a n g a s , Rizal, Quezon) R eg i o n 4 - B - MI M A RO P A (M i n d o r o , M a r i n du q u e , R o m b l o n , Palawan) R eg i o n 5 - Bicol R eg i o n 6 - Western Visayas R eg i o n 7 - Central Visayas R eg i o n 8 - Eastern Visayas R eg i o n 9 - We s te r n M i n d a n a o o r Z a m b o a n g a P e n in s u l a R eg i o n 1 0 - No r t h e r n M in d a n a o Region 11 - Southern Mindanao or Davao R eg i o n 1 2 - C en t r a l M i n d a n a o o r S O C C S KS A R G E N (S o u t h Cotabato, North Cotabato, Sultan Kudarat, - S a r a ng a n i , G e n e r a l S a n t o s ) R eg i o n 1 3 - Caraga A u t o n o m o u s R eg i o n in M u s l i m M i n d a n a o (A R M M ) . T h e R e g i o n a l W a g e Or d e r s p re s c r i b e t h e d a i l y m i n i m u m w a g e r a t e s p e r industry per locality within the region and in some instances depending on the n u mb e r o f w o r k e r s a n d t h e c a p i t a l i z a t i o n o f e n t e r p r i s e s . T h e W a g e O r d e rs l i ke wi se p r o v i d e t h e b a s i s a n d p r o c e d u r e f o r a p p l i c a t i o n f o r e x e m p t i o n f r o m c o mp l i a n c e t h e r e f r o m . S o m e W a g e Or d e r s g ra n t a l l o wa n c e s i n s t e a d o f w a g e i n cr e a se s. A. Coverage A . 1 T h e wa g e i n c r e a s e s p r e s c r i b e d u n d e r W a g e O r d e r s a p p l y t o a l l p r i v a t e s e ct o r w o r k e r s a n d e m p l o y e e s r e c e i v i n g t h e d a i l y m i n i m u m w a g e r a t e s o r t h o s e r e c e i vi n g u p t o a c e r t a i n d a i l y wa g e c e i l i n g , w h e r e a p p l i c a b l e , r e g a r d l e s s o f t h e i r p o si t i o n , d e s i g n a t i o n ,
10

o r s t a t u s , an d i r r es p ec t i v e o f t h e m e t h o d b y w h i ch t h e i r w a ge s a r e

p a i d , e xc e p t t h e f o l l o w i n g : 1. Househelpers, including family drivers and workers in the personal service of another whose conditions of work are prescribed in Republic Act No. 7655. 2. Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued by the Office of the Municipal or City Treasurer. A.2 Upon application with and as determined by an RTWPB, based on documentation and other requirements in accordance with applicable rules and regulations issued by the National Wages and Productivity Commission (NWPC), a company/establishment may be exempted from compliance with a Wage Order for a period not to exceed one (1) year. B. Minimu m Wage Rates DAILY MINIMUM WAGE National Capital Region
As of January 2010
Cities/Municipality
Caloocan, Las Pias, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig, Valenzuela, and Pateros

Sector/Industry Minimum Wage under W.O. No. NCR-13a Basic Wage under W.O. No. NCR-14b COLA under W.O. No. NCR-14c Total Non-agriculture 362.00 15.00 5.00 382.00 Agriculture Plantation 325.00 15.00 5.00 345.00 Nonplantation 325.00 15.00 5.00 345.00 Private Hospitals With bed capacity of 100 or less 325.00 15.00 5.00

345.00 Retail/Service Establishments Employing 15 workers or less 325.00 15.00 5.00 345.00 Manufacturing Establishments Employing less than 10 workers 325.00 15.00 5.00 345.00
a

Effectivity date is on 28 August 2007. Effectivity date is on 14 June 2008. Integration of P5.00 COLA into the basic wage on 28 August 2008.

12

C. Basis T h e b a s i s o f th e m i n i m u m w a g e r a t e s p r es c r i b ed b y l a w sh a l l b e t h e n o r m a l w o r k i n g h o u rs o f ei g h t ( 8 ) h o u r s a d a y . D . M on t h l y - P a i d E m p l o y e e s a n d D a i l y - P a i d E m p l o y e e s Mo n t h l y - p a i d e m p l o y e e s a r e t h o s e w h o a r e p a i d e v e r y d a y o f t h e m o n t h , i n cl u d i n g u n w o r k e d r e s t d a y s , s p e c i a l d a y s , a n d r e g u l a r h o l i d a y s . D a i l y - p a i d e m p l o y ee s a r e t h o se wh o a r e p a i d on t h e d a ys t h e y a c t u a l l y w o r k e d a n d o n u n w o r ke d r e gu l a r h o l i d a y s . E . C o m p u t a t i o n o f th e E s t i m a t e d E q u i v a l e n t M o n th l y R a t e (EEMR) of Monthly-Paid and Daily-Paid Employees F o r m o n th l y - p a id e mp l o y e e s : Factor 365 days in a year is used in determining the equivalent annual and mo n t h l y s a l a r y o f m o n t h l y - p a i d e m p l o y e e s . T o c o m p u t e t h e i r E s t i m a t e d E q u i va l e n t Mo n t h l y R a t e ( E E M R ) , t h e p r o c e d u r e i s a s f o l l o ws : A pp l i c a b l e D a i l y R a t e x 36 5 = EEMR 12 w he r e 36 5 d a y s / y e a r = 299 o r d i n a r y w o r k i n g d a y s 52 r es t d a y s 1 11 r eg u l a r h o l i d a y s 3 sp ec i a l d a ys ____ 365 Total equivalent no. of days in a year
1F o r

workers whose rest days fall on Sundays, the number of rest days in a

year is now 52 days. Under RA 9492, the National Heroes' Day, a regular Monday of August.

holiday

previously observed on the last Sunday of August, will now be observed on the last

13

For daily-paid employees: T h e f o l l o wi n g f a c t o r s a n d f o r m u l a m a y b e u s e d i n c o m p u t i n g t h e E E MR o f different groups of daily-paid employees for purposes of entitlement to minimum wages and allied benefits under existing laws. 1 . F o r th o s e w h o a r e r eq u i r ed t o w o r k e v e r y d a y , i n c l u d i n g S un d a y s o r r e s t d a y s , sp e c i a l d a ys , a n d r e gu l a r h o l i d a y s A pp l i c a b l e D a i l y R a t e x 39 2 . 5 0 = E E M R 12 w he r e 39 2 . 5 0 d a ys / y e a r = 2 9 9 ordinary working days 22 e l e ve n r e gu l a r h o l i d a y s x 2 0 0 % 6 7 . 6 0 52 rest days x 130% 3 . 9 0 t h r ee ( 3 ) s pe c i a l d a y s x 13 0 % _ __ __ _ 3 9 2 . 5 0 T o t a l e qu i v a l e n t n u m be r of days in a year 2 . F o r t h o se wh o d o n o t w o r k a n d a r e n o t c o n s id e r ed p a i d o n S un d a y s o r r e s t d a y s A pp l i c a b l e D a i l y R a t e x 31 3 = EEM R 12 w he r e 31 3 d a y s / y e a r = 2 9 9 o r d i n a r y w o r k i n g d a ys 11 r eg u l a r h o l i d a y s 3 sp ec i a l d a ys ( i f c o n s id e r ed p a i d ; i f a c t u a l l y w o r k e d , th i s is eq u i v a l e n t t o 3 . 9 d a ys ) ____ 3 1 3 Total equ ivalen t nu mber of days in a year 2 3 . F o r t h o se wh o d o n o t w o r k a n d a r e n o t c o n s id e r ed p a i d o n Saturdays and Sundays or rest days
2F a c t o r

203 and one (1) special day under RA 9256 are not considered paid.

310 may be used instead of 313, if the two (2) special days under EO

14

A pp l i c a b l e D a i l y R a t e x 26 1 = E E M R 12 w he r e 26 2 d a y s / y e a r = 2 4 7 o r d i n a r y w o r k i n g d a ys 11 r eg u l a r h o l i d a y s 3 sp ec i a l d a ys ( i f c o n s id e r ed p a i d ; i f a c tu a l l y w o r ke d , t h is i s eq u i v a l en t t o 3 . 9 d a y s ) ____ 261 Total equivalent number of days in a year3 F. Minimum Wage of Workers Paid by Results A l l wo r k e r s p a i d b y r e s u l t s , i n c l u d i n g h o m e w o r k e rs a n d t h o s e wh o a r e p a i d o n piece rate,t a k a y,p a k y a w, or task basis, shall receive not less than the p r e sc r i b e d m i n i m u m w a g e r a t e s u n d e r t h e Re g i o n a l W a g e O r d e r s f o r n o rm a l

w o r k i n g h o u r s w h i c h s h a l l n o t e x c e e d e i g h t ( 8 ) h o u r s a d a y , o r a p ro p o r t i o n thereof. T h e w a g e r a t e s o f wo r k e r s w h o a r e p a i d b y r e s u l t s s h a l l c o n t i n u e t o b e e s t a b l i s h e d i n a c c o r d a n c e w i t h A rt i c l e 1 0 1 o f t h e L a b o r C o d e o f t h e P h i l i p p i n e s, a s a m e n d e d , a n d i t s i m p l e m e n t i n g r e g u l a t i o n s . T h i s wi l l b e d o n e t h r o u g h : 1. Time and motion studies. 2. Consultation with representatives of employers and workers organizations in a tripartite conference called by the DOLE Secretary. Request for the conduct of time and motion studies, to determine whether the nontime employees in an enterprise are being paid fair and reasonable wage rates, may be filed with the proper Regional Office. Where the output rates established by the employer do not conform with the standards set under the foregoing methods for establishing output rates, 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.
3F a c t o r

special day under RA 9256 (Ninoy Aquino Day) are not worked and not considered paid.

258 may be used if the two (2) special days under EO 203 and one (1)

15

The adjustment in the wage rates by reason of mandatory wage increase for w o r k e r s p a i d b y r e s u l t s s h a l l b e c o m p u t e d i n a c c o r d a n c e w i t h t h e f o l l o wi n g s t e p s : 1 . A m o un t o f in c r e a s e i n A pp l i c a b l e M i n i m u m W ag e ( A M W ) rate Previous AMW x 100 = % increase 3 . E x i s t i n g r a t e / p i e c e x % i n c r e a s e = In c r e a se in r a t e / p i e ce 4 . E x i s t i n g r a t e / p i e c e + in c r e a se i n r a t e / p i e ce = A d ju s t e d rate/piece G . M i n i m u m W a g e o f Ap p r en t i c e s , L e a r n e r s , a n d D i s a b le d Workers W a g es o f a p p r en t i c e s a n d l e a r n e rs sh a l l i n n o c as e b e l es s th a n s e ve n t y - f i v e p e r ce n t ( 7 5 % ) o f t h e a pp l i c a b l e m i n i m u m w a g e r a t e s . Apprentices and learners are those who are covered by apprenticeship and l e a r n e r sh i p a g r e e m e n t s d u l y a p p r o v e d b y t h e T e c h n i c a l E d u c a t i o n a n d S ki l l s Development Authority (TESDA). A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe b e n e f i t s o r a l l o w a n c e s a s a q u a l i f i e d a b l e b o d i e d p e r s o n ( S e c . 5 o f RA 7 2 7 7 o r t h e M a g n a C a r t a f o r Di s a b l e d P e r s o n s ) . H. Minimu m Wage of Househelpers (RA 7655) T h e m i n i m u m c o m pe n s a t i o n o f e ig h t h u n d r ed pe s o s ( P 800.00) a mo n t h i s r e q u i r e d f o r h o u s e h e l p e r s i n t h e c i t i e s o f C a l o o c a n , L a s P i a s , Makati, Malabon, M a nd a l u y o n g , Manila,

Muntinlupa, Navotas, Paraaque, Pasay, Pasig, Quezon, San Valenzuela, and in the municipality of Pateros. Me a n w h i l e , a c o m p e n s a t i o n o f s i x h u n d r e d f i f t y p e s o s ( P 6 5 0 . 0 0 ) a m o n t h i s required for househelpers in other chartered citiescities other than Manila, P a s a y , Q u e z o n , a n d C a l o o c a n h i g h l y u r b a n i z e d c i t i e s , a n d f i r s t - cl a ss mu n i ci p a l i t i e s . On the other hand, a compensation of five hundred fifty pesos (P 5 5 0 . 0 0 ) a mo n t h i s r e q u i r e d f o r h o u s e h e l p e r s i n o t h e r m u n i c i p a l i t i e s . Househelpers who are receiving at least one thousand pesos (P 1 , 0 0 0 . 0 0 ) a mo n t h sh a l l b e c o v e r e d b y t h e S o c i a l S e c u ri t y S y s t e m a n d s h a l l b e e n t i t l e d t o a l l t h e b e n e f i t s p r o v i d e d t h e re i n .
16

Marikina, Juan, Taguig,

E mp l o y e r s s h a l l r e v i e w t h e e m p l o y m e n t c o n t r a c t s o f t h e i r h o u s e h e l p e r s e v e r y three (3) years with the end in view of improving the terms and conditions thereof. I. Effect of Reduction of Workdays on Wages I n si t u a t i o n s w h e r e t h e e m p l o y e r h a s t o r e d u c e t h e n u m b e r o f re g u l a r w o r k i n g d a ys t o p r e v e n t s e r i o u s l o s s e s , s u c h a s wh e n t h e r e i s a s u b s t a n t i a l s l u m p i n t h e d e ma n d f o r h i s / h e r g o o d s o r s e r v i c e s o r w h e n t h e r e i s l a c k o f r a w m a t e ri a l s , t h e e m p l o ye r m a y d e d u c t t h e wa g e s c o r r e s p o n d i n g t o t h e d a y s t a k e n o f f f r o m t h e w o r k we e k , c o n s i s t e n t w i t h t h e p r i n c i p l e o f n o w o r k , n o p a y . T h i s i s w i t h o u t prejudice to an agreement or company policy which provides otherwise. J . P e n a l t y a n d D o u b l e I n de m n i t y f o r V i o l a t i o n o f t h e P r es c r i b ed Increases or Adjustments in the Wage Rates (RA 8188) Any person, corporation, trust, firm, partnership, 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, shall be punished by a fine of not less than Twenty-five Thousand Pesos (P 2 5 , 0 0 0 . 0 0 ) n o r m o r e t h a n On e H u n d r e d T h o u sa n d P e s o s (P 1 0 0 , 0 0 0 . 0 0 ) o r i m p r i s o n m e n t o f n o t l e s s t h a n t w o ( 2 ) y e a r s n o r more than four (4) years, or both such fine and imprisonment at the discretion of the court: P r o v i d e d , That any person convicted hereof shall not be entitled to the benefits provided for under the Probation Law. T h e e m p l o y e r c o n ce r n ed sh a l l be o r de r e d t o p a y an a m o u n t e qu i v a l e n t t o do u b le t h e u n p a i d b en ef i t s o w i n g t o th e e m p l o y e es : P r o v i d e d , T h a t p a y m en t o f in d e mn i t y s h a l l n o t a b s o l v e t h e e m p l o y e r f r o m t h e c r i m i n a l l i a b i l i t y i m p o s a b le h e r e o f . If the violation is committed by a corporation, trust, firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entitys responsible officers, including, but not limited to, the president, vicepresident, chief executive officer, general manager, managing director or partner.

OLIDAY

2
H
17

P
AY
( A r t i c l e 94 ) A . De f i n i t i o n H o l i d a y p a y r e fe r s t o t h e p a y m e n t o f t h e re g u l a r d a i l y w a ge f o r a n y un w o r k ed r eg u l a r h o l i d a y . B. Coverage T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . T h o se o f r e t a i l a n d s e r v i ce es t a b l i s h m en t s r e gu l a r l y e mp l o y i n g l e ss t h an t en (1 0 ) w o r ke r s ; 3 . H o us e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l se r v i c e o f a n o t h e r ; 4 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 4.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 4 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e re i n ; 4 . 3 T he y h a ve t h e au t h o r i t y t o h i r e o r f i r e o t h e r em p l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 5 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 5.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 5 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 5.3 (a ) R e g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g
18

s pe c i a l t r a i n i n g , ex p e r i en c e , o r k n o w l ed ge ; o r ( c ) e x ec u t e , u nd e r g en e r a l s up e r v i s i o n , s pe c i a l a s s i gn m e n t s a n d t a s k s ; an d 5 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 5 . 1 , 5 . 2 , a n d 5 . 3 a b o v e . 6 . F i e l d p e r s o n n e l a n d o t h e r e m p l o y e e s w h o s e t i m e a n d p e r f o r m a n c e i s u n s u p e r vi se d b y t h e e m p l o y e r , i n c l u d i n g t h o s e wh o a r e e n g a g e d o n t a s k o r c o n t r a c t b a s i s , p u r e l y co m m i s s i o n b a s i s o r t h o s e w h o a r e p a i d a f i x e d a m o u n t f o r p e r f o r m i n g w o r k i r r e sp e c t i v e o f t h e t i m e c o n s u m e d i n t h e p e r f o r m a n c e t h e re o f . C . R e gu l a r H o l i d a y s E ve r y e m p l o y e e c o v e r e d b y t h e H o l i d a y P a y Ru l e i s e n t i t l e d t o h i s / h e r d a i l y b a si c w a g e . T h i s m e a n s t h a t t h e e m p l o y e e i s e n t i t l e d t o a t l e a s t 1 0 0 % o f h i s / h e r b a si c w a g e e v e n i f h e / s h e d i d n o t r e p o r t f o r w o r k , p r o v i d e d h e / s h e i s p r e s e n t o r i s o n l e a v e o f a b s e n c e wi t h p a y o n t h e wo r k d a y i m m e d i a t e l y p r e c e d i n g t h e h o l i d a y. W o r k pe r f o r m e d on t h a t d a y m e r i t s a t l e a s t t w i ce ( 20 0 % ) t h e b a s i c w a g e o f t h e em p l o y e e . I l l u s t r a t i o n : Us i n g t h e N C R m i n i m u m w a ge r a t e o f P 3 8 2 . 0 0 p e r d a y for the non -agricu ltural sector, effective 28 August 2008 under Wage O r de r N o . N CR - 1 4 . F o r w o r k w i t h i n e i gh t ( 8 ) h ou r s : P l u s 1 0 0 % o f t h e d a i l y b a s i c r a t e o f 10 0 % o r a t o t a l o f 2 0 0% P38 2 . 0 0 + 1 0 0% t h e r e o f = P 3 8 2 . 0 0 + P 3 8 2 . 0 0 = P 7 6 4 . 0 0 . 0 0 or 200% of P 3 8 2 . 0 0 = 2 . 0 0 x P 3 82 . 0 0 = P 7 6 4 . 0 0 Where the holiday falls on the scheduled rest day of the employee, work performed on said day merits at least an additional 30% of the employees regular holiday rate of 200% or a total of at l e a s t 2 6 0 % ( P l e a s e s e e 3 . P r e m i u m P a y ) . When a regular holiday falls on a Sunday, the following Monday shall not be a holiday, unless a proclamation is issued declaring it a special day.
19

Unless otherwise modified by law, order, or proclamation, the following are the eleven (11) regular holidays in a year under E x e c u t i v e O r d e r N o . 2 9 2 , a s a m e n d e d by Republic Act 9492: N ew Y e a r s D a y January 1 M a un d y Th u r sd a y Movable Date Good Friday Movable Date A r a w ng K ag i t i n g a n M o nd a y n e a r es t Ap r i l 9 Labor Day M o nd a y n e a r es t M a y 1

I n de pe n de n ce D a y M o nd a y n e a r es t Ju n e 1 2 N a t i o n a l H e r o es D a y L a s t M o n d a y o f A u g u s t Eidl Fitr Movable Date Bonifacio Day M o nd a y n e a r es t N o ve m b e r 3 0 Christmas Day D ec e m b e r 2 5 Rizal Day M o nd a y n e a r es t De c e mb e r 30 W h e n A r a w n g K ag i t i n g a n f a l l s o n t h e s a m e d a y a s M a u n d y T h u r s d a y o r G o o d F r i d a y , a c o v e r e d e m p l o y e e i s e n t i t l e d t o a t l e a s t t w o h u n d r e d p e r ce n t ( 2 0 0 % ) o f h i s / h e r b a s i c wa g e e v e n i f s a i d d a y i s u n w o r k e d . W h e r e t h e e m p l o ye e i s r e q u i r e d t o wo r k o n t h a t d a y , h e / s h e i s e n t i t l e d t o a n a d d i t i o n a l 1 0 0 % o f t h e b a si c w a g e . D . Mu s l i m H o l i d a y s P r e si d e n t i a l D e c r e e N o . 1 0 8 3 ( Co d e o f M u s l i m P e r s o n a l L a w s o f t h e Philippines), as amended, recognizes the four (4) Muslim holidays, namely: 1 . m un J a d id (N e w Y e a r ) , w h i ch f a l l s o n th e f i r s t d a y o f t h e l u n a r m o n th o f M u h a r r a m ; 2 . M a u l i d - u n - N a b i ( B i r t h d a y o f th e P r o p h e t M u h a m m a d ) , wh i c h falls on the twelfth day of the third lunar month ofR a b i - u l Awwal; 3 . L a i l a t u l Is r W a l M i r j ( No c t u r n a l J o u r n e y a n d A s c e n s i o n o f t h e P r o p h e t Mu h a mm a d ) , wh i c h f a l l s o n t h e t w e n t y - s e v e n t h d a y o f t h e s e v e n t h l u n a r mo n t h ofR a j a b; 4 . d - u l - A d h ( H a r i R a h a H a j i ) , wh i c h f a l l s o n t h e t en t h d a y o f the twelfth lunar month ofD h l - H i j j a . These official holidays shall be observed in the provinces of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato, Sultan Kudarat, Sulu, T a wi - T a wi , Z a m b o a n g a d e l N o r t e a n d Z a m b o a n g a d e l S u r a n d i n t h e c i t i e s o f Cotabato, Iligan,
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Ma r a w i , P a g a d i a n , a n d Z a m b o a n g a , a n d i n s u c h o t h e r M u s l i m p r o v i n c e s a n d c i t i e s a s m a y b e c r e a t e d b y l a w. U p o n p ro c l a m a t i o n b y t h e P r e s i d e n t o f t h e P h i l i p p i n e s , M u s l i m h o l i d a y s m a y a l s o b e o f f i c i a l l y o b s e r v e d i n o t h e r p r o v i n ce s a n d ci t i e s . The dates of Muslim holidays shall be determined by the Office of the P r e s i d e n t o f t h e Ph i l i p p i n e s i n a c c o r d a n c e w i t h t h e M u s l i m L u n a r Ca l e n d a r (Hijra). P r e s i de n t i a l P r o c l a m a t i o n N o . 1 1 98 ( 2 6 Oc t o b e r 19 7 3 ) p r o v i d e s : A l l p r i va t e c o r p o r a t i o n s , o f f i c e s , a g e n c i e s a n d e n t i t i e s o r e s t a b l i s h m e n t s operating within the provinces and cities enumerated herein shall observe the legal holidays as proclaimed, provided, however, that all Muslim employees working outside of the Muslim provinces and cities shall be excused from work

d u r i n g t h e o b s e r v a n c e o f t h e M u s l i m h o l i d a y s a s r e c o g n i z e d b y l a w wi t h o u t d i mi n u t i o n o r l o s s o f w a g e s d u r i n g t h e s a i d p e r i o d x x x . Co n s i d e r i n g t h a t a l l p r i v a t e c o r p o r a t i o n s , o f f i c e s , a g e n c i e s , a n d e n t i t i e s o r establishments operating within the designated Muslim provinces and cities are r e q u i r e d t o o b s e r v e M u s l i m h o l i d a y s , b o t h M u s l i m s a n d C h r i s t i a n s wo r k i n g w i t h i n t h e M u sl i m a r e a s m a y n o t r e p o r t f o r wo r k o n t h e d a y s d e s i g n a t e d b y l a w a s Mu sl i m h o l i d a y s . E . A b se n ce s 1 . A l l co v e r e d e m p l o y e e s s h a l l b e e n t i t l e d t o h o l i d a y p a y w h e n t h e y a re o n l e a v e o f a b se n c e wi t h p a y o n t h e w o r k d a y i m m e d i a t e l y p r e c e d i n g t h e r e g u l a r h o l i d a y. E m p l o ye e s wh o a r e o n l e a v e o f a b s e n c e w i t h o u t p a y o n t h e d a y i m m e d i a t e l y p r e ce d i n g a r e g u l a r h o l i d a y m a y n o t b e p a i d t h e r e q u i r e d h o l i d a y p a y i f t h e y d o not work on such regular holiday. 2. Employers shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employees compensation or social security payment, whichever is higher, if the employees are not reporting for wo r k wh i l e o n s u ch l e a v e b e n e f i t s . 3 . W h e r e t h e d a y i m m e d i a t e l y p r e c e d i n g t h e h o l i d a y i s a n o n - wo r k d a y i n t h e establishment or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to
21

t h e h o l i d a y p a y i f h e / s h e w o r k ed on t h e d a y i m m e d i a t e l y p r ec e d in g th e n o n w o r k d a y o r re s t d a y . F . Su cc e ss i v e Re gu l a r H o l i d a y s W h e r e t h e r e a r e t w o ( 2 ) s u c c e s s i v e re g u l a r h o l i d a y s , l i k e M a u n d y T h u r sd a y a n d G o o d F r i d a y , a n e m p l o y e e m a y n o t b e p a i d f o r b o t h h o l i d a y s i f h e / sh e a b se n t s h i m s e l f / h e r s e l f f r o m w o r k o n t h e d a y i m m e d i a t e l y p r e c e d i n g t h e f i r s t holiday, unless he/she works on the first holiday, in which case he/she is entitled t o h i s/ h e r h o l i d a y p a y o n t h e s e c o n d h o l i d a y . G. Temporary or Periodic Shu tdown /Cessation of Work I n ca s e s o f t e m p o r a r y o r p e r i o d i c s h u t d o w n a n d t e m p o r a r y c e s s a t i o n o f w o r k o f a n e s t a b l i s h m e n t , a s w h e n a y e a r l y i n v e n t o r y o r wh e n t h e r e p a i r o r c l e a n i n g o f ma ch i n e r i e s a n d e q u i p m e n t i s u n d e r t a k e n , t h e r e g u l a r h o l i d a y s f a l l i n g w i t h i n t h e p e r i o d sh a l l b e c o m p e n s a t e d i n a c c o r d a n c e w it h t h e Ru l e s I m p l e m e n t i n g t h e L a b o r Co d e , a s a m e n d e d . H . H o l i d a y P a y o f C e r t a i n E m p l o y e es 1. Where the covered employee is paid on piece-rate basis, his/ her holiday pay shall not be less than his/her average daily earnings for the last seven (7) actual w o r k d a y s p r e c e d i n g t h e re g u l a r h o l i d a y ; p ro v i d e d , h o w e v e r , t h a t i n n o c a s e sh a l l t h e h o l i d a y p a y b e l e s s t h a n t h e a p p l i c a b l e s t a t u t o r y m i n i m u m wa g e r a t e . 2 . Se a s o n a l w o r k e r s m a y n o t be p a i d t h e r e qu i r e d h o l i d a y p a y d u r in g o f f - se a s o n w h e n t h e y a r e n o t a t w o r k . 3 . W o r k e rs wh o d o n o t h a ve r eg u l a r w o r k i n g d a y s , su ch a s s t e ve d o r e s , sh a l l be en t i t l e d t o t h i s be n e f i t .

REMIUM

3
P
22

P
AY
( A r t i c l e s 9 1 - 93 ) A . De f i n i t i o n P r e mi u m p a y r e f e r s t o t h e a d d i t i o n a l c o m p e n s a t i o n f o r w o r k p e r f o r m e d w i t h i n e i g h t ( 8 ) h o u r s o n n o n w o r k d a y s, s u c h a s r e s t d a y s a n d s p e c i a l d a y s . B. Coverage T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 2.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 2 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e r e i n ; 2 . 3 T he y h a ve t h e a u th o r i t y t o h i r e o r f i r e o t h e r e mp l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 3 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 3.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 3 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 3 . 3 ( a ) Re g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g s p e c i a l t r a i n i n g , e x p e r i e n c e , o r k n o w l e d g e ; o r ( c )
23

e x ec u t e ,

u nd e r g en e r a l s up e r v i s i o n , s pe c i a l a s s i gn m e n t s a n d t a s k s ; an d 3 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 3 . 1 , 3 . 2 , a n d 3 . 3 a b o v e . 4 . H o us e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l se r v i c e o f a n o t h e r ; 5 . W o r ke r s w h o a r e p a i d b y r e s u l t s , i n c l u d i n g t h o s e w h o a r e p a i d o n p i e c e r a t e , t a k a y , p a k y a w , o r t a s k b a s i s , a n d o t h e r n o n t i m e wo r k , i f t h e i r o u t p u t r a t e s a r e i n a c co r d a n c e w i t h t h e s t a n d a r d s p r e s c r i b e d i n t h e r e g u l a t i o n s , o r wh e r e s u c h r a t e s h a ve b e e n f i x e d b y t h e S e c r e t a r y o f L a b o r a n d E m p l o y m e n t ; 6. Field personnel, 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. C. Special Days 1. Special Days Unless otherwise modified by law, order, or proclamation, the following are the three (3) special days in a year under Executive Order No. 292, as amended by Republic Act 9492, that shall be o b s e r v e d i n t h e P h i l i p p i n e s : N i n o y A q u in o D a y M o nd a y n e a r es t Au gu s t 21 A l l S a i n ts D a y N o v e m be r 1 L a s t D a y o f t h e Ye a r D ec e m b e r 3 1 T h e n o wo r k , n o p a y p r i n c i p l e a p p l i e s d u r i n g s p e c i a l d a y s a n d o n s u c h o t h e r special days as may be proclaimed by the President or by Congress. W o r ke r s wh o a r e n o t r e q u i r e d o r p e r m i t t e d t o w o r k o n s p e c i a l d a y s a r e n o t entitled to any compensation. This, however, is without prejudice to any voluntary p r a ct i ce o r p r o v i s i o n i n t h e C o l l e c t i v e B a r g a i n i n g A g re e m e n t ( C B A ) p r o v i d i n g f o r p a ym e n t o f w a g e s a n d o t h e r b e n e f i t s f o r d a y s d e c l a re d a s s p e c i a l d a y s e v e n i f u n w o r ke d . On t h e o t h e r h a n d , w o r k p e r f o r m e d o n s p e c i a l d a y s m e ri t s a d d i t i o n a l c o mp e n s a t i o n o f a t l e a s t t h i r t y p e r c e n t ( 3 0 % ) o f t h e b a s i c p a y o r a t o t a l o f o n e h u n d re d t h i r t y p e r c e n t (1 3 0 % ) . W h e r e t h e e m p l o y e e w o r k s o n a s p e c i a l d a y falling on his rest day, he/she shall be entitled to an additional compensation of a t l e a st f i ft y p e r c e n t
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( 5 0 % ) o f h is / h e r b a s i c w a g e o r a t o t a l o f o n e h u n d r e d f i f t y p er c en t (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

T h e m i n i m u m s t a t u t o r y p re m i u m p a y r a t e s a r e a s f o l l o w s : 1 . F o r w o r k pe r f o r m e d on r es t d a y s o r o n s pe c i a l d a y s : P l u s 3 0 % o f t h e d a i l y b as i c r a t e o f 1 00 % o r a t o t a l o f 1 3 0 % . 2 . F o r w o r k pe r f o r m e d on a re s t d a y w h i ch is a l s o a s pe c i a l d a y : P l u s 5 0 % o f t h e d a i l y b as i c r a t e o f 1 00 % o r a t o t a l o f 1 5 0 % . 3. For work performed on a regular holiday which is also the employees rest day (not applicable to employees who are not covered by the holiday-pay rule). P l u s 3 0 % o f t h e re g u l a r h o l i d a y r a t e o f 2 00 % b as ed o n h i s / h e r d a i l y b a s i c w a g e r a t e o r a t o t a l o f 26 0 % . I l l u s t r a t i o n : Us i n g P 3 8 2 . 0 0 a s d a i l y b as i c r a t e ( D B R ) 1 . P 3 8 2 . 0 0 + ( 30 % o f P 3 8 2 . 0 0 ) P382.00 + P114.60 = P 496.60 or 1 3 0 % o f P 3 82 . 0 0 = 1 . 3 x P 3 8 2 . 0 0 = P 496.60 2. P382.00 +(50% of P382.00) P38 2 . 0 0 + P 1 9 1 . 0 0 = P 573.00 or 1 5 0 % o f P 3 82 . 0 0 = 1 . 5 x P 3 8 2 . 0 0 = P 573.00 3 . ( 2 00 % o f P 3 8 2 . 0 0 ) + 3 0% ( 2 00 % o f P 3 8 2 . 0 0 ) P7 6 4 . 0 0 + . 3 x ( 2 x P 3 8 2 . 0 0 ) P7 6 4 . 0 0 + ( . 3 x P 7 6 4 . 0 0 ) P7 6 4 . 0 0 + P 2 2 9 . 2 0 = P 9 9 3 . 2 0 or 1 3 0 % o f 20 0 % o f P 3 8 2 . 0 0 = 1.30 x 2 x P382.00 =P 9 9 3 . 2 0

P
VERTIME

4
25

O
AY
( A r t i c l e 87 ) A . De f i n i t i o n O v e r t i m e p a y r e fe r s t o t h e a d d i t i o n a l c o m p en s a t i o n f o r w o r k p e r f o r m e d b ey o n d e i gh t ( 8 ) h o u rs a d a y . B. Coverage S a m e a s t h o se c o ve r e d u n d e r 3 . P r e m i u m P a y . C. Overtime Pay Rates T h e m i n i m u m o v e r t i m e p a y r a t e s v a r y a cc o r d i n g t o t h e d a y th e o v e r t i m e w o r k is pe r f o r m e d , a s f o l l o w s : 1 . F o r w o r k i n e xc e ss o f e i gh t ( 8 ) h o u r s pe r f o r m e d o n o r d i n a r y

w o r k i n g d a y s : P l u s 2 5 % o f t h e h ou r l y r a t e . 2. For work in excess of eight (8) hours performed on a scheduled d a y, a n d a r e g u l a r h o l i d a y : P l u s 3 0 % o f t h e h o u r l y r a t e o n s a i d I l l u s t r a t i o n : U s i n g P 3 82 . 0 0 a s b a s i c d a i l y r a t e a n d P 4 7 . 7 5 hourly rate. 1 . O ve r t i m e p a y o n a n o r d i n a r y d a y P47 . 7 5 + ( 2 5% o f P 4 7 . 7 5 ) = P 4 7 . 7 5 + ( 0 . 2 5 x P 4 7 . 7 5 ) P47.75 + P11.93 = P 59.68O T / h o u r or 1 2 5 % o f P 4 7 . 7 5 = 1 . 25 x P 4 7 . 7 5 = P 59.68O T / h o u r 2. Overtime pay on rest day or on special day 130% of P4 7 . 7 5 + 3 0 % o f P62.07 + P18.62 = P 8 0 . 6 9 OT/hr. or
26

r e s t d a y , a s p e ci a l days. a s b a s ic

(130% of P47.75)

1 3 0 % o f (1 3 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 1 . 3 x P 4 7 . 7 5 ) = 1 . 3 x P 62.07 = P 8 0 . 6 9 OT/hr. 3 . O ve r t i m e p a y o n a re s t d a y w h i ch f a l l s o n a s pe c i a l d a y 1 5 0 % o f P 4 7 . 7 5 + 30 % o f ( 1 5 0% o f P 4 7 . 7 5 ) P71 . 6 2 + P 2 1 . 4 8 = P 9 3 . 1 0 O T / h ou r or 1 3 0 % o f (1 5 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 1 . 5 x P 4 7 . 7 5 ) = 1.3 x P71.62 =P 9 3 . 1 0 OT/hour 4 . O ve r t i m e p a y o n a re g u l a r h o l i d a y 2 0 0 % o f P 4 7 . 7 5 + 30 % o f ( 2 0 0% o f P 4 7 . 7 5 ) = P 95.50/hr + P28.65 =P 1 2 4 . 1 5 OT/hour or 1 3 0 % o f (2 0 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 2 . 0 x P 4 7 . 7 5 ) = 1 . 3 x P 9 5 . 5 0 = P 1 2 4 . 1 5 O T / h ou r 5 . O ve r t i m e p a y o n a re s t d a y w h i ch f a l l s o n a r e gu l a r h o l i d a y 2 6 0 % o f P 4 7 . 7 5 + 30 % o f ( 2 6 0% o f P 4 7 . 7 5 ) = P 1 2 4 . 1 5 / h r + P 3 7 . 2 4 = P 1 6 1 . 3 9 O T / h ou r or 1 3 0 % o f (2 6 0 % o f P 4 7 . 7 5 ) = 1 . 3 x ( 2 . 6 x P 4 7 . 7 5 ) = 1 . 3 x P 1 2 4 . 1 5 = P 1 6 1 . 3 9 O T / h ou r D . S t i pu l a t e d Ov e r t i m e R a t es Ge n e r a l l y , t h e p r e m i u m p a y f o r wo r k p e r f o r m e d o n r e s t d a y s , s p e c i a l d a ys , o r regular holidays is included as part of the regular rate of the employee in the c o mp u t a t i o n o f o v e r t i m e p a y f o r o v e r t i m e wo r k r e n d e r e d o n s a i d d a y s , e s p e ci a l l y i f t h e e mp l o y e r p a y s o n l y t h e m i n i m u m o v e r t i m e r a t e s p r e s c r i b e d b y l a w . The employees and employer, however, may stipulate in their collective agreement the payment for overtime work at rates higher than those provided by law.

5
N
IGHT
27

HIFT

D
IFFERENTIAL
( A r t i c l e 86 ) A . De f i n i t i o n Ni g h t S h i f t D i f f e r e n t i a l ( N S D ) r e f e r s t o t h e a d d i t i o n a l c o m p e n s a t i o n o f t e n p e r ce n t ( 1 0 % ) o f a n e m p l o y e e s r e g u l a r w a g e f o r e a c h h o u r o f w o r k p e r f o r me d between 10 p.m. and 6 a.m. B. Coverage T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . H o u se h e l p e r s a n d p e rs o n s i n t h e p er s o n a l se r v i c e o f another; 3 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 3 . 1 T h e i r p r i ma r y d u t y i s t o m a n a g e t h e e s t a b l i s h m e n t i n wh i c h t h e y a r e e m p l o y e d o r of a department or subdivision thereof; 3 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e re i n ; 3 . 3 T he y h a ve t h e au t h o r i t y t o h i r e o r f i r e o t h e r em p l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 4 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 4.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 4 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 4 . 3 ( a ) Re g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s

e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g
28

s pe c i a l t r a i n i n g , ex p e r i en c e , o r k n o w l ed ge ; o r ( c ) e x ec u t e , u nd e r g en e r a l s up e r v i s i o n , s pe c i a l a s s i gn m e n t s a n d t a s k s ; an d 4 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 4 . 1 , 4 . 2 , a n d 4 . 3 a b o v e ; 5 . F i e l d p e rs o n n e l a n d t h o se wh o s e t i m e a n d pe r f o r m a n c e a r e u ns up e r v i s ed b y t h e e mp l o y e r . C. Computation of N ight Shift Differen tial T h e t a b l e b e l o w m a y be u se d t o gu i d e c o m p u t a t i o n s :

Work on: Pay equals x P47.75 8 Hours

(hourly rate)

Regular day 100% or 1 P 47.75 P 382.00 Sunday or rest day 130% or 1.3 62.07 496.56 Special day 130% or 1.3 62.07 496.56 Special day falling on rest day 150% or 1.5 71.62 573.00 Holiday 200% or 2 95.50 764.00 Holiday falling on rest day 260% or 2.6 124.15 993.20 Double holiday 300% or 3 143.25 1,146.00 Double holiday falling on rest day 390% or 3.9

186.22 1,489.76 Regular day, night shift 1 x 1.1 = 1.1 or 110% 52.52 420.16 Rest day, night shift 1.3 x 1.1 = 1.43 or 143% 68.28 546.24 Special day, night shift 1.3 x 1.1 = 1.43 or 143% 68.28 546.24 Special day, rest day, night shift 1.5 x 1.1 = 1.65 or 165% 78.79 630.32 Holiday, night shift 2 x 1.1 = 2.2 or 220% 105.05 840.40 Holiday, rest day, night shift 2.6 x 1.1 = 2.86 or 286% 136.56 1,092.48 Double holiday, night shift 3 x 1.1 = 3.3 or 330% 157.58 1,260.64 Double holiday, rest day, night shift 3.9 x 1.1 = 4.29 or 429% 204.85 1,638.80 Regular day, overtime (OT) 1 x 1.25 = 1.25 or 125% 59.69 Rest day, overtime 1.3 x 1.3 = 1.69 or 169% 80.70 Special day, overtime 1.3 x 1.3 = 1.69 or 169% 80.70 Special day, rest day, overtime 1.5 x 1.3 = 1.95 or 195% 93.11 Holiday, overtime 2 x 1.3 = 2.6 or 260% 124.15 Holiday, rest day, overtime 2.6 x 1.3 = 3.38 or 338% 161.40 Double holiday, overtime 3 x 1.3 = 3.9 or 390% 186.22 Double holiday, rest day, overtime 3.9 x 1.3 = 5.07 or 507% 242.09 Regular day, night shift, overtime

1 x 1.1 x 1.25 = 1.375 65.66 Rest day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 88.77 Special day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 88.77 Special day, rest day, night shift, OT 1.5 x 1.1 x 1.3 = 2.145 102.42 Holiday, night shift, overtime 2 x 1.1 x 1.3 = 2.86 136.56 Holiday, rest day, night shift, overtime 2.6 x 1.1 x 1.3 = 3.718 177.53 Double holiday, night shift, overtime 3 x 1.1 x 1.3 = 4.29 204.85
29

Double holiday, rest day, night shift, OT 3.9 x 1.1 x 1.3 = 5.577 266.30

Cases of n ight shift pay, using P 4 7 . 7 5 a s t h e b as i c h o u r l y r a t e (P 38 2 . 0 0 d i v i de d b y 8) : 1. Work on regular days 1 ) Ni g h t s h i f t i s f r o m 1 0 p . m . t o 6 a . m . Work from 10 p.m. to 6 a.m. = P47.75 x 1.1 = P52.52 per hour Night shift pay = P 52 . 5 2 5 x 8 = P 4 2 0 . 2 0 O v e r t i m e a f t e r 6 a . m . = P 4 7 . 7 5 x 1 . 3 75 = P 6 5 . 6 6 pe r h o u r 2) Work shift is from 12 mn . to 8 a.m. Work from 12 mn. to 6 a.m. = P47.75 x 1.1 = P52.52 per hour W o r k f r o m 6 a . m . t o 8 a . m . = P 4 7 . 7 5 pe r h o u r Night shift pay = (P 5 2 . 5 2 x 6 ) + ( P 4 7 . 7 5 x 2 ) = P 4 1 0 . 6 5 3 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m i dn i g h t Work from 4 p.m. to 10 p.m. = P47.75 per hour Work from 10 p.m. to 12 mn. = P47.75 x 1.1 = P52.52 per hour Work shift pay = (P 47 . 7 5 x 6) + ( P 5 2 . 5 2 x 2 ) = P 3 9 1 . 5 5 4) Work shift is from 8 a.m. to 5 p.m. (with one-hour meal b r e a k ) , w i t h o v e r t i m e u n t i l m i dn i g h t W o r k f r o m 8 a . m . t o 5 p . m . = P 4 7 . 7 5 p e r h ou r Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.25 = P59.70 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 1.375 = P65.66/ hour 2. Work on rest days (nigh ts-off) Ni g h t s h i f t e m p l o y e e s a r e e n t i t l e d t o a w e e k l y n i g h t - o f f ( u s u a l l y S a t u r d a y e v e n i n g ) o r a w e e k l y r e s t p e r i o d o f t w e n t y - f o u r (2 4 ) h o u r s b e g i n n i n g a t t h e s t a r t of the night shift. This period may be called their rest day or night-off. 1 ) Ni g h t s h i f t i s b e t we en 1 0 p . m . a n d 6 a . m . ; w o r k r e n d e r ed on a r es t d a y (n i g h t - o f f ) Work from 10 p.m. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour Night shift pay = P 54 6 . 2 6 O v e r t i m e a f t e r 6 a . m . = P 4 7 . 7 5 x 1 . 6 9 = P 8 0 . 7 0 pe r h ou r

2 ) W o r k s h i f t i s f r o m 1 2 m n . t o 8 a . m . ; w o r k r en d e re d o n a r e s t d a y (n i g h t - o f f ) Work from 12 mn. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 1.3 = P62.08 per hour Night shift pay = (P68.28 x 6) + (P62.08 x 2) = P533.83 3 ) Work shift is from 4 p.m. to 12 mn.; work rendered on a rest day Work from 4 p.m. to 10 p.m. = P47.75 x 1.3 = P62.08 per hour Work from 10 p.m. to 12 mn. = P47.75 x 1.43 = P68.28 per hour Work shift pay = P62.08 x 6 + P68.28 x 2 = P509.02 4 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . [ wi t h o n e - h o u r m e a l b r e a k ] ; wo r k re n d e r e d o n a rest day with overtime until midnight Work from 8 a.m. to 5 p.m. = P47.75 x 1.3 = P62.08 per hour Rest day pay = P382.00 x 1.3 = P 496.60 Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.69 = P 80.70 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 1.859 = P 88.77 / hour 3 . W o r k o n sp ec i a l d a y s Night shift employees are also entitled to the premium pay on special days and holidays. These days are reckoned as calendar days which start at midnight and end at the following midnight. The premium pay for the night shift also starts or ends at midnight. However, the employment contract, company policy or collective agreement may provide that in the case of night shift workers, days including special days and regular holidaysshall begin on the night before a calendar day. In that case, the computations above (for rest days) will apply. 1 ) W o r k s h i f t i s f r o m 1 2 m i d n i g h t t o 8 a . m . ; w o r k r en d e re d o n a s pe c i a l d a y Work from 12 mn. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 1.3 = P62.08 per hour Night shift pay = (P68.28 x 6) + (P62.08 x 2) = P533.84 2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m i dn i g h t ; w o r k r e n d e r ed o n a s pe c i a l d a y Work from 4 p.m. to 10 p.m. = P47.75 x 1.3 = P62.08 per hour
Work from 10 p.m. to 12 mn. = P 47.75 x 1.43 = P68.28 per hour

30

Work shift pay = (P62.075 x 6) + (P68.2825 x 2) = P509.04

31

3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a special day, with overtime until midnight Work from 8 a.m. to 5 p.m. = P47.75 x 1.3 = P62.08 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.69 = P 80.70 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 1.859 = P 88.77 per hour 4 . W o r k o n re g u l a r h o l i d a y s

Ho l i d a y s a r e r e c k o n e d a s c a l e n d a r d a y s w h i c h s t a r t a t m i d n i g h t a n d e n d a t t h e n e xt mi d n i g h t . H e n c e , t h e n i g h t s h i f t p a y c h a n g e s a t m i d n i g h t . 1 ) W o r k s h i f t i s f r o m 1 2 m n . t o 8 a . m . ; w o r k r en d e re d o n a r e gu l a r h o l i d a y Work from 12 mn. to 6 a.m. = P47.75 x 2.2 = P105.05 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 2 = P95.50 per hour Night shift pay = (P105.05 x 6) + (P95.50 x 2) = P 821.30 2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m n . ; w o r k r e n d e r ed o n a r e gu l a r h o l i d a y Work from 4 p.m. to 10 p.m. = P47.75 x 2 = P95.50 per hour Work from 10 p.m. to 12 mn. = P47.75 x 2.2 = P105.05 per hour Work shift pay = (P95.50 x 6) + (P105.05 x 2) = P783.10 3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a r e g u l a r h o l i d a y , wi t h o v e r t i m e u n t i l m i d n i g h t Work from 8 a.m. to 5 p.m. = P47.75 x 2 = P95.50 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 2.6 = P124.15 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 2.86 = P136.56 per hour 5 . W o r k o n sp ec i a l d a y s f a l l i n g o n r e s t d a y s 1 ) W o r k s h i f t i s f r o m 1 2 m n . t o 8 a . m . ; w o r k r en d e re d o n a s pe c i a l d a y f a l l i n g o n a r e s t d a y (n i g h t - o f f ) Work from 12 mn. to 6 a.m. = P47.75 x 1.65 = P78.79 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 1.5 = P71.62 per hour Night shift pay = (P78.79 x 6) + (P71.62 x 2) = P615.98
32

2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m i dn i g h t ; w o r k r e n d e r ed o n a s pe c i a l d a y f a l l i n g o n a r e s t d a y Work from 4 p.m. to 10 p.m. = P47.75 x 1.5 = P71.62 per hour Work from 10 p.m. to 12 mn. = P47.75 x 1.65 = P78.79 per hour Work shift pay = (P71.62 x 6) + (P78.79 x 2) = P587.32 3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a s p e c i a l d a y f a l l i n g o n a r e s t d a y , wi t h o v e r t i m e u n t i l m i d n i g h t Work from 8 a.m. to 5 p.m. = P47.75 x 1.5 = P71.62 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 1.95 = P93.11 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 2.145 = P102.42 / hour 6 . W o r k o n re g u l a r h o l i d a y s f a l l i n g o n r es t d a y s 1 ) Ni g h t s h i f t i s f r o m 1 2 mn . t o 8 a . m . ; w o r k r en d e re d on a r e gu l a r h o l i d a y f a l l i n g on a re s t d a y ( n i gh t - o f f ) Work from 12 mn. to 6 a.m. = P47.75 x 2.86 = P136.56 per hour Work from 6 a.m. to 8 a.m. = P47.75 x 2.6 = P124.15 per hour Night shift pay = (P136.56 x 6) + (P124.15 x 2) = P1,067.66 2 ) W o r k s h i f t i s f r o m 4 p . m . t o 12 m n . ; w o r k r e n d e r ed o n a r e gu l a r h o l i d a y f a l l i n g on a re s t d a y

Work from 4 p.m. to 10 p.m. = P47.75 x 2.6 = P124.15 per hour Work from 10 p.m. to 12 mn. = P47.75 x 2.86 = P136.56 per hour Work shift pay = (P124.15 x 6) + (P136.56 x 2) = P1,018.03 3 ) W o r k sh i f t i s f r o m 8 a . m . t o 5 p . m . ( w i t h o n e - h o u r m e a l b r e a k ) ; w o r k r e n d e r e d o n a regular holiday falling on a rest day, with overtime until midnight Work from 8 a.m. to 5 p.m. = P47.75 x 2.60 = P124.15 per hour Overtime from 5 p.m. to 10 p.m. = P47.75 x 3.38 = P161.40 per hour Overtime from 10 p.m. to 12 mn. = P47.75 x 3.718 = P177.53 / hour

ERVICE

6
S
33

C
HARGES
( A r t i c l e 96 ) A . Sh a r i n g All rank-and-file employees of employers collecting service charges are e n t i t l e d t o a n e q u a l s h a r e i n t h e e i g h t y - f i v e p e r c e n t ( 8 5 % ) o f t h e t o t a l o f s u ch c h a r g e s. T h e r e m a i n i n g f i f t e e n p e r c e n t ( 1 5 % ) o f t h e c h a r g e s m a y b e r e t a i n e d b y ma n a g e m e n t t o a n s w e r f o r l o s s e s a n d b r e a k a g e s a n d f o r d i s t r i b u t i o n t o ma n a g e r i a l e m p l o y e e s , a t t h e d i s c r e t i o n o f t h e m a n a g e m e n t i n t h e l a t t e r ca se . S e r v i c e c h a r g e s a r e c o l l e c t e d b y m o s t h o t e l s a n d s o m e r e s t a u r a n t s , n i g h t c l u b s, c o ck t a i l l o u n g e s , a m o n g o t h e r s . B. Paymen ts The shares of the employees in the service charges shall be distributed to t h e m o n ce e v e r y t wo ( 2 ) we e k s o r t w i c e a m o n t h a t i n t e r v a l s n o t e x c e e d i n g s i xt e e n ( 1 6 ) d a y s . Where the company stopped collecting service charges, the average share p r e vi o u s l y e n j o y e d b y t h e e m p l o y e e s f o r t h e p a s t t w e l v e ( 1 2 ) m o n t h s i m m e d i a t e l y p r e ce d i n g s u c h s t o p p a g e s h a l l b e i n t e g r a t e d i n t o t h e i r b a s i c w a g e s . C. 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 c u st o me r s t o i t s e m p l o y e e s , t h e p o o l e d t i p s s h o u l d b e m o n i t o r e d , a c c o u n t e d , a n d d i st r i b u t e d i n t h e s a m e m a n n e r a s t h e s e r v i c e c h a rg e s .

S
34

ERVICE NCENTIVE

EAVE
( A r t i c l e 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. T h i s b en e f i t a p p l i e s t o a l l e m p l o y ee s e x ce p t : 1 . Go ve rn me n t e m p l o y e e s , w h e t h e r e m p l o y e d b y t h e Na t i o n a l Go v e r n m e n t o r a n y o f i t s p o l i t i ca l s u b d i v i s i o n s , i n c l u d i n g t h o s e e m p l o y e d i n g o v e r n m e n t - o w n e d a n d / o r c o n t r o l l e d c o r p o r a t i o n s wi t h o r i g i n a l c h a r t e r s o r c r e a t e d u n d e r s p e c i a l l a ws ; 2 . H o us e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l se r v i c e o f a n o t h e r ; 3 . M an a g e r i a l e m p l o y e es , i f th e y me e t a l l o f t h e f o l l o w i n g conditions: 3.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 3 . 2 T he y cu s t o m a r i l y a n d r eg u l a r l y d i r e c t t h e w o r k o f t w o o r m o r e e mp l o y e e s t h e re i n ; 3 . 3 T he y h a ve t h e au t h o r i t y t o h i r e o r f i r e o t h e r em p l o y e e s of lower rank; or their s ug ge s t i o n s a n d re c o m m e n d a t i o n s a s t o h i ri n g , f i r i n g , a n d p r o m o t i o n , o r a n y o t h e r c h a n g e o f s t a t u s o f o t h e r e m p l o ye e s a r e g i v e n p a r t i c u l a r we i g h t . 4 . O f f i ce r s o r m e m b e rs o f a m a n a g e r i a l s t a f f , i f t h e y pe r f o r m t h e f o l l o w i n g du t i e s a n d r e sp o n s i b i l i t i e s : 4.1 Primarily perform work directly related to management p o l i c i e s o f t h e i r e mp l o y e r ; 4 . 2 C us t o m a r i l y a n d r e gu l a r l y e xe r c i s e d is c r e t i o n an d i n de p en de n t ju d g me n t ; 4 . 3 ( a ) Re g u l a r l y a n d d i r e c t l y a s s i s t a p r o p r i e t o r o r m a n a g e r i a l e m p l o y e e i n t h e ma n a g e m e n t o f t h e e s t a b l i s h m e n t o r s u b d i v i s i o n t h e r e o f i n w h i c h h e o r s h e i s e m p l o ye d ; o r ( b ) e x e c u t e , u n d e r g e n e r a l s u p e r v i s i o n , wo r k a l o n g s p e c i a l i z e d o r t e ch n i c a l l i n e s r e q u i ri n g s p e c i a l t r a i n i n g , e x p e r i e n c e , o r k n o w l e d g e ; o r ( c) execute, u nd e r g en e r a l s up e r v i s i o n , s pe c i a l

a s s i gn m e n t s a n d t a s k s ; an d
35

4 . 4 Do n o t d e v o t e m o r e t h a n t w e n t y p e r c e n t ( 2 0 % ) o f t h e i r h o u r s w o r k e d i n a w o r k we e k t o a c t i v i t i e s w h i c h a r e n o t d i r e c t l y a n d c l o s e l y r e l a t e d t o t h e p e r f o r m a n c e o f t h e wo r k d e s c r i b e d i n p a r a g r a p h s 4 . 1 , 4 . 2 , a n d 4 . 3 a b o v e ; 5 . F i e l d p e rs o n n e l a n d t h o se wh o s e t i m e a n d pe r f o r m a n c e i s u ns up e r v i s ed b y t h e e mp l o y e r ; 6 . T h o se a l r e a d y e n j o y i n g t h i s b en ef i t ; 7 . T h o se en j o y i n g v a c a t i o n l e a v e w i th p a y o f a t l e a s t f i v e ( 5 ) days; and 8 . T h o se em p l o y e d i n es t a b l i s h me n t s r e gu l a r l y em p l o y i n g le s s t h a n t e n ( 1 0 ) e m p l o y ee s . B . M e an i n g o f o n e y e a r o f s e r v i ce T h e p h r a s e o n e y e a r o f s e r v i c e o f t h e e m p l o y e e m e a n s s e r v i c e wi t h i n t w e l v e (12) months, whether continuous or broken, reckoned from the date the employee s t a r t e d wo r k i n g . T h e p e r i o d i n c l u d e s a u t h o r i z e d a b s e n c e s , u n w o r k e d w e e k l y r e st d a ys , a n d p a i d r e g u l a r h o l i d a y s . I f t h r o u g h i n d i v i d u a l o r c o l l e c t i v e a g r e e m e n t , c o mp a n y p r a c t i c e o r p o l i c y , t h e p e r i o d o f t h e wo r k i n g d a y s i s l e s s t h a n t we l v e (12) months, said period shall be considered as one year for the purpose of determining the entitlement to the service incentive leave. C. Usage/Conversion to Cash T h e se r v i c e i n c e n t i v e l e a v e m a y b e u s e d f o r s i c k a n d v a c a t i o n l e a v e p u r p o se s. T h e u n u se d s e r v i c e i n c e n t i v e l e a v e i s c o m m u t a b l e t o i t s m o n e y e q u i v a l e n t a t t h e end of the year. In computing, the basis shall be the salary rate at the date of conversion. T h e u se a n d c o n v e rs i o n o f th i s be n e f i t m a y be on a pr o r a t a basis.4 I l l u s t r a t i o n : An em p l o y e e w a s h i r e d o n 1 J a n u a r y 2 0 0 0 a n d resigned on 1 March 2001. Assuming that he/she has not used or commuted any o f h i s/ h e r a c c r u e d S I L , h e / s h e i s e n t i t l e d t o t h e c o n v e r s i o n o f h i s / h e r a c c r u e d SIL, upon his/her resignation, as follows: S IL e a r ne d a s o f 3 1 D e ce m b e r 2 0 0 0 5 d a ys P r o p o r t i o n a t e SI L f o r J a n u a r y a n d F eb r u a r y 2 0 0 1 (2/12) x 5 days 0.833 day T o t a l a c c ru e d S IL a s o f 1 M a r ch 20 0 1 5.833 days
4B a s e d

on the opinion of DOLE Legal Service.

ATERNITY

8
M
36

EAVE
(RA 1161, as amended by RA 8282) A. Coverage T h i s b en e f i t a p p l i e s t o a l l f e m a l e e m p l o y e es , w h e t h e r m a r r i e d o r unmarried. B. Entitlement E v e r y p r eg n a n t e m p l o y e e i n t h e p r i v a t e se c t o r , wh e t h e r m a r r i e d o r u n m a r r i e d , i s en t i t l e d t o m a t e r n i t y l e a v e b en e f i t o f s i x t y ( 6 0 ) d a y s in c a se o f n o r m a l d e l i v e r y o r m i s c a r r i a g e , o r s e ve n t y - e ig h t (78) days , in c a se o f C a e s a r i a n s ec t i o n de l i v e r y , w i t h b en e f i t s e qu i v a l e n t t o o n e h u n d r ed pe r c en t ( 10 0 % ) o f t h e a v e r a g e d a i l y s a l a r y cr e d i t o f t h e e m p l o y ee a s d ef i n ed u n de r t h e l a w . To be entitled to the maternity leave benefit, a female employee should be an SSS member employed at the time of her delivery or miscarriage; she must have g i ve n t h e r e q u i r e d n o t i f i c a t i o n t o t h e S S S t h r o u g h h e r e m p l o y e r ; a n d h e r e m p l o ye r m u s t h a v e p a i d a t l e a s t t h r e e m o n t h l y c o n t r i b u t i o n s t o t h e S S S w i t h i n t h e t w e l ve - m o n t h p e r i o d i m m e d i a t e l y b e f o r e t h e d a t e o f t h e c o n t i n g e n c y ( i . e . , childbirth or miscarriage). T h e m a t e rn i t y l e a v e b e n e f i t , l i k e o t h e r b e n e f i t s g r a n t e d b y t h e S o c i a l S e c u r i t y S y st e m ( S S S ) , i s g r a n t e d t o e m p l o y e e s i n l i e u o f w a g e s . T h u s , t h i s m a y n o t b e i n cl u d e d i n c o m p u t i n g t h e e m p l o y e e s t h i r t e e n t h - m o n t h p a y f o r t h e c a l e n d a r y e a r .

ATERNITY

9
P
37

L
EAVE
(RA 8187) A. Coverage Paternity Leave is granted to all married male employees in the private sector, r e g a r d l e s s o f t h e i r e m p l o y m e n t s t a t u s ( e . g . , p r o b a t i o n a r y , re g u l a r , c o n t r a c t u a l , project basis). 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. G o v e r n m e n t e m p l o y e es a r e a l s o e n t i t l e d t o t h e p a t e r n i t y le a v e b en e f i t . T h e y sh a l l b e g o ve r n ed b y t h e C i v i l S e r v i ce r u le s . B . T he P a t e r n i t y L e a v e Be n e f i t Paternity leave benefit shall apply to the first four (4) deliveries of the employees lawful wife with whom he is cohabiting. For this purpose, cohabiting means the obligation of the husband and wife to live together.

I f t h e s p o u s e s a r e n o t p h y s i c a l l y l i v i n g t o g e t h e r b e c a u s e o f t h e wo r k s t a t i o n o r o c cu p a t i o n , t h e m a l e e m p l o y e e i s s t i l l e n t i t l e d t o t h e p a t e r n i t y l e a v e b e n e f i t . The paternity leave shall be for seven (7) calendar days, with full pay, c o n s i s t i n g o f b a s i c s a l a r y a n d m a n d a t o r y a l l o w a n c e s f i x e d b y t h e Re g i o n a l W a g e B o a r d , i f a n y , p r o v i d e d t h a t h i s p a y s h a l l n o t b e l e s s t h a n t h e m a n d a t e d m i n i mu m wage. Us a g e o f t h e p a t e r n i t y l e a v e s h a l l b e a f t e r t h e d e l i v e r y , wi t h o u t p r e j u d i c e t o a n e mp l o y e r s p o l i c y o f a l l o w i n g t h e e m p l o y e e t o a v a i l o f t h e b e n e f i t b e f o r e o r during the delivery, provided that the total number of days shall not be more than s e ve n ( 7 ) c a l e n d a r d a y s f o r e a c h c o v e r e d d e l i v e r y . C . C o n d i t i o n s f o r En t i t l e m e n t A m a r r i e d m a l e e m p l o y ee sh a l l b e en t i t l e d t o p a t e r n i t y l e a v e b en e f i t p r o v i d e d t h a t h e h a s m e t t h e f o l l o w i n g c o n d i t i o n s : 1 . He i s a n e m p l o y e e a t t h e t i m e o f t h e de l i v e r y o f h i s c h i l d ;
38

2 . He i s c o h a b i t i n g w i t h h i s sp o u se a t th e t i m e t h a t sh e g i v es b i r t h o r s u f fe r s a m i s c a r r i a g e ; 3 . H e h a s a p p l i e d f o r p a t e r n i t y l e a v e w i t h h i s e m p l o y e r w i t h i n a re a s o n a b l e p e r i o d o f t i me f r o m t h e e x p e c t e d d a t e o f d e l i v e r y b y h i s p r e g n a n t s p o u s e , o r wi t h i n s u ch p e r i o d a s m a y b e p r o v i d e d b y c o m p a n y r u l e s a n d re g u l a t i o n s , o r b y c o l l e c t i v e bargaining agreement; and 4 . H i s w i f e h a s g i v en b i r t h o r su f f e re d a m i s c a r r i a g e . D . Ap p l i c a t i o n f o r P a t e r n i t y L ea v e T h e m a r r i e d m a l e e m p l o y e e s h a l l a p p l y f o r p a t e r n i t y l e a v e wi t h h i s e m p l o ye r within a reasonable period of time from the expected date of delivery by his p r e g n a n t s p o u s e , o r wi t h i n s u c h p e r i o d a s m a y b e p r o v i d e d b y c o m p a n y r u l e s a n d regulations, or by collective bargaining agreement. In case of a miscarriage, prior a p p l i ca t i o n f o r p a t e r n i t y l e a v e s h a l l n o t b e r e q u i r e d . E . N o n c on v e r s i o n t o C a s h I n t h e e ve n t th a t t h e p a t e rn i t y l e a v e is n o t a v a i l e d o f , i t sh a l l n o t b e c o n ve r t i b l e t o c a s h a n d s h a l l n o t be cu m u l a t i v e . F. Creditin g of Existin g Benefits 1 . I f t h e e xi s t i n g p a t e r n i t y l e a v e b e n e f i t u n d e r t h e c o l l e c t i v e b a r g a i n i n g a g r e e me n t , c o n t r a ct , o r c o m p a n y p o l i c y i s g r e a t e r t h a n s e v e n ( 7 ) c a l e n d a r d a y s a s p r o v i d e d f o r i n RA 8 1 8 7 , t h e g r e a t e r b e n e f i t s h a l l p r e v a i l . 2 . If t h e e xi s t i n g p a t e r n i t y l e a v e b e n e f i t i s l e s s t h a n t h a t p r o v i d e d i n R A 8 1 8 7 , t h e e m p l o ye r s h a l l a d j u s t t h e e x i s t i n g b e n e f i t t o c o v e r t h e d i f f e r e n c e . W h e r e a c o m p a n y p o l i c y , c o n t r a c t , o r c o l l e c t i v e b a rg a i n i n g a g r e e m e n t p r o vi d e s f o r a n e m e r g e n c y o r c o n t i n g e n c y l e a v e w i t h o u t s p e c i f i c p r o v i s i o n s o n p a t e r n i t y l e a v e , t h e e m p l o y e r s h a l l g r a n t t o t h e e m p l o y e e s e v e n ( 7 ) c a l e n d a r d a ys of paternity leave.

10
P
ARENTAL LEAVE FOR
39

OLO

P
ARENTS
(RA 8972) A. 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. Giving birth as a result of rape or, as used by the law, other c r i m e s a g a i n s t ch a s t i t y ; 2 . De a t h o f sp o u s e ; 3 . Sp o u se i s d et a i n e d o r i s s e r v i n g se n te n ce f o r a c r i m i n a l c o n v i c t i o n f o r a t l e a s t on e ( 1 ) ye a r ; 4 . P h y s i c a l an d / o r m e n t a l i n c a p a c i t y o f s p ou se a s c e r t i f i e d b y a p ub l i c m ed i c a l p r a c t i t i o n e r ; 5 . L e g a l s e p a r a t i o n o r d e f a c t o s e p a r a t i o n f r o m s p o u s e f o r a t l e a s t o n e ( 1 ) ye a r : P r o v i d e d t h a t h e / s h e i s e n t r u s t e d wi t h t h e c u s t o d y o f t h e c h i l d r e n ; 6 . D e cl a r a t i o n o f n u l l i t y o r a n n u l m e n t o f m a r r i a g e a s d e c r e e d b y a c o u r t o r b y a c h u r c h : P r o v i d e d , t h a t h e / s h e i s e n t r u s t e d w it h t h e c u s t o d y o f t h e c h i l d r e n ; 7 . Ab a n d o n m en t o f sp o u s e f o r a t l e a s t o n e ( 1 ) ye a r ; 8. Unmarried father/mother who has preferred to keep and rear his/her child/children, instead of having others care for them or give them up to a welfare i n st i t u t i o n ; 9 . An y o t h e r p e r s o n w h o s o l e l y p r o v i d e s p a r e n t a l c a r e a n d s u p p o rt t o a c h i l d o r c h i l d r e n : P ro v i d e d , t h a t h e / s h e i s d u l y l i c e n s e d a s a f o s t e r p a r e n t b y t h e Department of Social Welfare and Development (DSWD) or duly appointed legal guardian by the court; and 10. Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance, or prolonged absence of the parents or solo parent: Provided, that such abandonment, disappearance, or prolonged absence lasts for at least one (1) year. B. Definition of Terms P a r e n t a l l e a v e s h a l l m e a n l e a v e b e n e f i t s g r a n t e d t o a s o l o p a r e n t t o e n a b l e h i m/ h e r t o p e r f o r m p a r e n t a l d u t i e s a n d r e s p o n s i b i l i t i e s w h e r e p h y s i c a l p r e s e n c e i s required.
40

Child refers to a person living with and dependent on the solo parent for support. He/she is unmarried, unemployed, and below eighteen (18) years of age,

or even eighteen (18) years old and above but is incapable of self-support because he/she is mentally- a n d / o r p h y s i c a l l y - c h a l l e n g e d . C. The Parental Leave Benefit The parental leave, in addition to leave privileges under existing laws, shall be for seven (7) work days every year, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his/her pay shall not be l e s s t h a n t h e m a n d a t e d m i n i m u m wa g e . D. Conditions for Entitlement A so l o p a r e n t e m p l o y ee sh a l l b e en t i t l e d t o t h e p a r en t a l l e a v e , provided that: 1 . He / s h e h a s r en d e re d a t l e a s t o n e (1 ) y e a r o f s e r v i ce , w he t h e r c o n t i n u o u s o r b r o k en ; 2 . He / s h e h a s n o t i f i e d h i s / h e r e mp l o y e r t h a t h e / sh e w i l l a v a i l h i m s e l f / h e r s e l f o f i t , w i t h i n a r e a s on a b l e pe r i o d o f t i m e ; a n d 3 . H e / s h e h a s p r e s e n t e d t o h i s / h e r e m p l o y e r a S o l o P a r e n t I d e n t i f i c a t i o n Ca r d , w h i ch ma y b e o b t a i n e d f r o m t h e D S W D o f f i c e o f t h e c i t y o r m u n i c i p a l i t y w h e r e h e / s h e r e s i d e s. E . N on c o n v e rs i o n t o C a s h I n t h e e ve n t th a t t h e p a r en t a l l e a v e is n o t a v a i l e d o f , i t sh a l l n o t b e c o n ve r t i b l e t o c a s h , u n l es s s pe c i f i c a l l y a g r e ed o n p re v i o u s l y . F. Crediting of Existing Leave I f t h e re i s a n e x i s t i n g o r s i m i l a r b e n e f i t u n d e r a c o m p a n y p o l i c y o r a c o l l e c t i v e b a r g a i n i n g a g r e e m e n t , t h e s a m e s h a l l b e c r e d i t e d a s s u c h . I f t h e s a m e i s g re a t e r t h a n t h e s e v e n ( 7 ) d a y s p r o v i d e d f o r i n RA 8 9 7 2 , t h e g r e a t e r b e n e f i t s h a l l p r e v a i l . E me r g e n c y o r c o n t i n g e n c y l e a v e p r o v i d e d u n d e r a c o m p a n y p o l i c y o r a c o l l e ct i ve b a r g a i n i n g a g r e e m e n t s h a l l n o t b e c r e d i t e d a s c o m p l i a n c e w i t h t h e parental leave provided for under RA 8972.
41

G. Termin ation of the Benefit A ch a n g e i n t h e s t a t u s o r c i rc u m s t a n c e o f t h e p a r e n t c l a i m i n g t h e b e n e f i t u n d e r t h e l a w , s u c h t h a t h e / s h e i s n o l o n g e r l e f t a l o n e wi t h t h e r e s p o n s i b i l i t y o f parenthood, shall terminate his/her eligibility for this benefit. H. Protection Against Work Discrimination No e m p l o y e r s h a l l d i s c r i m i n a t e a g a i n s t a n y s o l o p a r e n t e m p l o y e e w i t h r e s p e c t t o t e r ms a n d c o n d i t i o n s o f e m p l o y m e n t o n a c c o u n t o f h i s / h e r b e i n g a s o l o p a r e n t .

IOLENCE AGAINST

11
L

EAVE FOR

V V
42

ICTIMS OF

W
OMEN AND

T
HEIR

HILDREN
(RA 9262) A . De f i n i t i o n V i o l e n c e a g a i n s t wo m e n a n d t h e i r c h i l d r e n , a s u s e d i n Re p u b l i c A c t 9 2 6 2 (the Anti-Violence Against Women and Their Children Act of 2004), refers to a n y a ct o r a s e r i e s o f a c t s c o m m i t t e d b y a n y p e r s o n a g a i n s t a w o m a n w h o i s h i s w i f e , f o r m e r w i f e , o r a g a i n s t a wo m a n w i t h w h o m t h e p e r s o n h a s o r h a d a s e xu a l or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which will result in or is likely to result in physical, sexual, psychological harm or suffering, o r e c o n o m i c a b u s e i n c l u d i n g t h r e a t s o f s u c h a c t s , b a t t e r y , a s s a u l t , c o e r ci o n , h a r a s sm e n t o r a r b i t r a r y d e p r i v a t i o n o f l i b e r t y . B . C o v e r a g e a n d P u r p os e P r i va t e s e c t o r wo m e n e m p l o y e e s wh o a re v i c t i m s a s d e f i n e d i n RA 9 2 6 2 sh a l l be entitled to the paid leave benefit under such terms and conditions provided herein. T h e l e a v e b en e f i t s h a l l c o v e r t h e d a y s t h a t t h e w o m a n e m p l o y e e h a s t o a t t e n d t o m ed i c a l a n d l e g a l c on ce r n s . C . Re q u i re m e n t f o r E n t i t l e m e n t To be entitled to the leave benefit, the only requirement is for the victime m p l o ye e t o p r e s e n t t o h e r e m p l o y e r a c e r t i f i c a t i o n f r o m t h e b a r a n g a y c h a i r ma n ( P u n o ng B a r a n g a y ) o r b a r a n g a y c o u n c i l o r ( b a r a n g a y k a g a w a d ) o r p r o s e cu t o r or the Clerk of Court, as the case may be, that an action relative to the matter is pending.
43

D . T he Be n e f i t I n a d d i t i o n t o o t h e r p a i d l e a v e s u n d e r e x i s t i n g l a b o r l a w s , c o m p a n y p o l i ci e s, a n d / o r co l l e c t i v e b a r g a i n i n g a g r e e m e n t s , t h e q u a l i f i e d v i c t i m - e m p l o y e e s h a l l b e

e n t i t l e d t o a l e a v e o f u p t o t e n ( 1 0 ) d a y s w i t h f u l l p a y , c o n s i s t i n g o f b a s i c sa l a r y a n d ma n d a t o r y a l l o w a n c e s f i x e d b y t h e Re g i o n a l W a g e B o a r d , i f a n y . T h e sa i d l e a v e s h a l l b e e x t e n d e d wh e n t h e n e e d a r i s e s , a s s p e c i f i e d i n t h e protection order issued by the barangay or the court. E . Us a g e o f t h e Be n e f i t The usage of the ten-day leave shall be at the option of the woman employee. I n t h e e ve n t t h a t t h e l e a v e b e n e f i t i s n o t a v a i l e d o f , i t s h a l l n o t b e c o n v e r t i b l e i n t o c a sh a n d s h a l l n o t b e c u m u l a t i v e .

-M T

12
HIRTEENTH
44

ONTH

P
AY
(PD 851) A. Coverage A l l e m p l o y e r s a r e r e q u i r e d t o p a y t h e i r r a n k a n d f il e e m p l o y e e s t h i r t e e n t h mo n t h p a y , r e g a r d l e s s o f t h e n a t u r e o f t h e i r e m p l o y m e n t a n d i r r e s p e c t i v e o f t h e me t h o d s b y w h i c h t h e i r wa g e s a r e p a i d , p r o v i d e d t h e y wo r k e d f o r a t l e a s t o n e ( 1 ) mo n t h d u r i n g a c a l e n d a r y e a r . T h e t h i r t e e n t h - m o n t h p a y s h o u l d b e g i v e n t o t h e e m p l o ye e s n o t l a t e r t h a n De c e m b e r 2 4 o f e v e r y y e a r . B . D e f in i t i o n o f R a n k - a n d - F i l e E m p l o y e es The Labor Code, as amended, distinguishes a rank-and-file employee from a ma n a g e r i a l e m p l o y e e . A m a n a g e r i a l e m p l o y e e i s o n e w h o i s v e s t e d w i t h p o w e r s or prerogatives to lay down and execute management policies and/or to hire, t r a n sf e r , s u s p e n d , l a y o f f , r e c a l l , d i s c h a rg e , a s s i g n , o r d i s c i p l i n e e m p l o y e e s , o r t o e f f e c t i v e l y re c o m m e n d s u c h m a n a g e r i a l a c t i o n s . A l l e m p l o y e e s n o t f a l l i n g w i t h i n t h i s d e f i n i t i o n a r e c o n s i d e r e d r a n k - a n d - f il e e m p l o y e e s . 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. C. Minimum Amount T h e t h i r t ee n t h - m o n t h p a y sh a l l n o t b e l es s t h a n on e - t w e l f th ( 1 / 1 2 ) o f t he t o t a l b a s i c s a l a r y e a r n ed b y a n e m p l o y e e i n a c a l en d a r y e a r . T h e " b a s i c s a l a r y " o f a n e m p l o y e e f o r t h e p u r p o s e o f c o m p u t i n g t h e t h i rt e e n t h mo n t h p a y s h a l l i n c l u d e a l l r e m u n e r a t i o n s o r e a r n i n g s p a i d b y h i s o r h e r e m p l o ye r f o r se r vi c e s r e n d e r e d . I t d o e s n o t i n c l u d e a l l o w a n c e s a n d m o n e t a r y b e n e f i t s w h i ch a r e n o t c o n s i d e r e d o r i n t e g r a t e d a s p a r t o f t h e r e g u l a r o r b a s i c s a l a r y , s u c h a s t h e ca s h e q u i v a l e n t o f u n u s e d v a c a t i o n a n d s i c k l e a v e c r e d i t s , o v e r t i m e ,

p r e mi u m, n i g h t s h i f t d i f f e r e n t i a l a n d h o l i d a y p a y , a n d c o s t o f l i v i n g a l l o w a n ce ( C OL A ) . H o w e v e r , t h e s e s a l a r y - r e l a t e d b e n e f i t s s h o u l d b e i n c l u d e d a s p a r t o f t h e b a si c s a l a r y i n t h e c o m p u t a t i o n o f t h e t h i r t e e n t h - m o n t h p a y i f t h e s e a r e t r e a t e d a s part of the basic salary

45

o f t he e mp l o y e e s , t h r o u gh i n d i v i d u a l o r c o l l ec t i v e a g r ee m e n t , c o m p a n y p r a c t i ce o r po l i c y . D . E x e m p t ed E m p l o y e r s T h e f o l l o w i n g em p l o y e r s a r e n o t c o v e r e d b y P D 8 51 : 1 . T h e g o ve rn m e n t a n d a n y o f i t s p o l i t i c a l s u b d i v i s i o n s , i n c l u d i n g g o v e r n m e n t - o w n e d a n d - co n t r o l l e d c o r p o r a t i o n s , e x c e p t t h o s e c o r p o r a t i o n s o p e r a t i n g e s s e n t i a l l y a s p r i va t e su b s i d i a r i e s o f t h e g o v e r n m e n t ; 2 . E mp l o y e r s w h o a re a l r e a d y p a y i n g t h e i r e m p l o y e e s t hi r t e e n t h - m o n t h p a y o r mo r e i n a ca l e n d a r y e a r o r i t s e q u i v a l e n t a t t h e t i m e o f t h e i s s u a n c e o f P D 8 5 1 ; 3 . E m p l o y e r s o f h o u s e h e l p e rs a n d pe r s o n s i n t h e pe r s o n a l s e r v i ce o f a n o t h e r in re l a t i o n t o s u c h w o r k e r s ; a n d 4 . E mp l o ye r s o f t h o s e w h o a r e p a i d o n p u re l y c o m m i s s i o n , b o u n d a r y o r t a s k b a s i s , a n d t h o s e w h o a r e p a i d a f i x e d a m o u n t f o r p e r f o r m i n g s p e c i f i c wo r k , i r r e s p e ct i ve o f t h e t i me c o n s u m e d i n t h e p e r f o r m a n c e t h e r e o f ( e x c e p t t h o s e w o r k e r s w h o a r e paid on piece-rate basis, in which case their employer shall grant them thirteenthmo n t h p a y ) . A s u s e d h e r e i n , w o r k e r s p a i d o n p i e c e - r a t e b a s i s s h a l l re f e r t o t h o s e wh o a r e p a i d a s t a n d a r d a m o u n t f o r e v e r y p i e c e o r u n i t o f wo r k p r o d u c e d t h a t i s m o r e o r l e s s r e g u l a r l y r e p l i c a t e d , w it h o u t re g a r d t o t h e t i m e s p e n t i n p ro d u c i n g t h e s a me . T h e t e r m " it s e q u i v a l e n t " a s u s e d i n i t e m D . 2 a b o v e s h a l l i n c l u d e Ch r i st ma s b o n u s, mi d y e a r b o n u s , c a s h b o n u s e s , a n d o t h e r p a y m e n t s a m o u n t i n g t o n o t l e ss t h a n o n e - t w e l f t h ( 1 / 1 2 ) o f t h e b a s i c s a l a r y b u t s h a l l n o t i n c l u d e c a s h a n d st o ck d i vi d e n d s , c o s t o f l i v i n g a l l o w a n c e , a n d a l l o t h e r a l l o w a n c e s r e g u l a rl y e n j o y e d b y t h e e m p l o y e e , a s w e l l a s n o n m o n e t a ry b e n e f i t s . E . T i m e o f P a y m e n t o f T h i r t e en t h - M on t h P a y The thirteenth-month pay shall be paid not later than December 24 of every year. An employer, however, 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. The frequency of payment of this monetary benefit may be the subject of an agreement between
46

t h e e m p l o y e r a n d t h e r e c og n i z e d / c o l l e c t i v e b a r g a i n i n g a ge n t o f t h e e m p l o y e es . F. Thirteenth -M onth Pay for Certain Types of Employees 1 . E m p l o y e e s w h o a r e p a i d o n p i ec e w o r k b as i s a r e en t i t l e d t o t h e t h i r t ee n t h - m o n t h p a y . 2 . E mp l o y e e s w h o a r e p a i d a f i x e d o r g u a r a n t e e d w a g e p l u s c o m m i s s i o n a r e a l so entitled to the thirteenth-month pay, based on their earnings during the calendar year (i.e., on both their fixed or guaranteed wage and commission).

I n t h e c o n s o l i d a t e d c as e s o f B o i e T a k e d a C h e m i c a l s , I n c . v s . D i o n i s i o d e l a S er n a , G.R. No. 92174 December 10, 1993, a n d P h i l i p p i n e F u j i X e r o x C o r p o r a t i o n v s . C r e s en c i a n o B . T r a j a n o a n d P h i l i pp i n e F u j i Xe r o x E m p l o y e e s Un i o n , G.R. No. 1 0 2 5 5 2 D e c e m b e r 1 0 , 1 9 9 3 , t h e S u p r e m e C o u r t r u l e d t h a t c o m m i s s i o n s , wh i l e i n cl u d e d i n t h e g e n e r i c t e r m w a g e , a re n o t p a r t o f " b a s i c s a l a r y / w a g e " a n d t h e r e f o r e s h o u l d n o t b e i n c l u d e d i n c o m p u t i n g t h e t h i r t e e n t h - m o n t h p a y . T h u s:
In remunerative schemes consisting of a fixed or guaranteed wage plus commission, the fixed or guaranteed wage is patently the "basic salary" for this is what the employee receives for a standard work period. Commissions are given for extra efforts exerted in consummating sales or other related transactions. They are, as such, additional pay, which this Court has made clear do not form part of the "basic salary" (228 SCRA 329 [1993]).

3. Employees with multiple employers Go ve r n m e n t e m p l o y e e s w o r k i n g p a r t - t i m e i n a p r i v a t e e n t e r p r i s e , i n c l u d i n g p r i va t e e d u c a t i o n a l i n s t i t u t i o n s , a s we l l a s e m p l o y e e s w o r k i n g i n t w o o r mo re p r i va t e f i r m s , wh e t h e r o n f u l l - t i m e o r p a r t - t i m e b a s i s , a r e e n t i t l e d t o t h e thirteenth- month pay from all their private employers, regardless of their total earnings from each of their employers. G . T h i r t e en t h - M o n th P a y o f Re s i gn ed o r Se p a r a t e d E m p l o y e e A n e mp l o y e e w h o h a s r e s i g n e d o r wh o s e s e r v i c e s a r e t e r m i n a t e d a t a n y t i me before the time of payment of the thirteenth-month pay is entitled to this mo n e t a r y b e n e f i t i n p r o p o r t i o n t o t h e l e n g t h o f t i m e h e o r s h e h a s w o r k e d d u r i n g the year, reckoned from the time he or
47

she has started working during the calendar year up to the time of his or her r e s i g n a t i o n o r t e r m i n a t i o n f r o m t h e s e r v i c e . T h u s , i f h e o r s h e w o r k e d o n l y f ro m J a n u a r y t o S e p t e m b e r, h i s o r h e r p r o p o r t i o n a t e t h i r t e e n t h - m o n t h p a y s h o u l d b e e q u a l t o o n e - t we l f t h (1 / 1 2 ) o f h i s o r h e r t o t a l b a s i c s a l a ry e a r n e d d u r i n g t h a t period. H. Non-inclusion in Regu lar Wage T h e ma n d a t e d t h i r t e e n t h - m o n t h p a y n e e d n o t b e c r e d i t e d a s p a r t o f t h e r e g u l a r wage of employees for purposes of determining overtime and premium payments, fringe benefits, as well as contributions to the State Insurance Fund, Social S e c u r i t y S y s t e m , N a t i o n a l H e a l t h I n s u r a n c e P r o g r a m , a n d p r i v a t e r e t i r e me n t plans.

EPARATION

13
S
48

P
AY
( A r t i c l e s 2 8 3 - 84 ) Separation pay is given to employees in instances covered by Articles 283 and 284 of the Labor Code of the Philippines. An employees entitlement to separation pay depends on the reason or ground for the termination of his or her services. An employee may be terminated for just cause (i.e., gross and habitual neglect of duty, fraud, or commission of a crime), and other similar causes as enumerated under Article 282 of the Labor Code and, generally, may not be entitled to separation pay. 5 O n t h e o t h e r h a n d , w h e r e t h e t e r m i n a t i o n i s f o r a u t h o r i z e d c a u s e s , separation pay is due. A . On e - H a l f (1 / 2 ) M on t h P a y pe r Ye a r o f S er v i c e A n e m p l o y e e i s e n t i t l e d t o re c e i v e a s e p a r a t i o n p a y e q u i v a l e n t t o o n e - h a l f ( 1 / 2 ) mo n t h p a y f o r e v e r y y e a r o f s e r v i c e , a f r a c t i o n o f a t l e a s t s i x ( 6 ) m o n t h s b e i n g c o n s i d e r e d a s o n e ( 1 ) wh o l e y e a r , i f h i s / h e r s e p a r a t i o n f r o m t h e s e r v i ce i s due to any of the following authorized causes: 1 . Re t r e n ch m e n t t o p r e ve n t l o s s es ( i . e . , r e du c t i o n o f p e rs o n n e l e f fe c t e d b y m a n a g e m en t t o p re v e n t l o s s es ) ; 2 . C l o s u r e o r ce s s a t i o n o f o p e r a t i o n o f a n es t a b l i s h m en t n o t d u e t o s e r i o u s l o ss e s o r f i n a n c i a l r e v e r se s ; a n d 3. When the employee is suffering from a disease not curable within a period of six ( 6 ) mo n t h s a n d h i s / h e r c o n t i n u e d e m p l o y m e n t i s p r e j u d i c i a l t o h i s / h e r h e a l t h o r t o the health of his/her co-employees. In no case will an employee get less than one (1) month separation pay if the separation is due to the above stated causes, and he/she has served for at least s i x (6 ) mo n t h s . T h us , i f a n e m p l o y ee h ad be en in th e s e r v i c e f o r a t le a s t s i x ( 6 ) m o n t h s b u t l es s th a n a y e a r , h e / sh e i s en t i t l e d t o o n e ( 1 ) f u l l
5

The Supreme Court has ruled in certain cases that separation pay shall be

granted the workers.

months pay as his/her separation pay if his/her separation is due to a n y o f t h e c a u se s e n u m e r a t e d a b o v e . B. One-Month Pay per Year of Service An employee is entitled to separation pay equivalent to his/her one-month pay f o r e ve r y y e a r o f s e r v i c e , a f r a c t i o n o f a t l e a s t s i x ( 6 ) m o n t h s b e i n g c o n s i d e r e d a s o n e wh o l e y e a r , i f h i s / h e r s e p a ra t i o n f r o m s e r v i c e i s d u e t o a n y o f t h e f o l l o w i n g : 1 . I ns t a l l a t i o n b y e m p l o y e r o f l a b o r - s a v i n g de v i c es ; 2. Redundancy, as when the position of the employee has been found to be e x ce ss i v e o r u n n e c e s s a r y i n t h e o p e r a t i o n o f t h e e n t e r p r i s e ;

49

3 . I mp o s si b l e r e i n s t a t e m e n t o f t h e e m p l o y e e t o h i s o r h e r f o r m e r p o s i t i o n o r t o a substantially equivalent position for reasons not attributable to the fault of the e m p l o ye r , a s w h e n t h e re i n s t a t e m e n t o r d e r e d b y a c o m p e t e n t a u t h o r i t y c a n n o t b e i m p l e me n t e d due to closure or cessation of operations of the e s t a b l i s h m e n t / e m p l o y e r , o r t h e p o s i t i o n t o wh i c h h e o r s h e i s t o b e r e i n s t a t e d n o longer exists and there is no substantially equivalent position in the establishment to which he or she can be assigned.6 C. 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 a n d t h e D e p a r t m e n t o f L a b o r a n d E m p l o y m e n t t h r o u g h i t s r e g i o n a l o ff i c e h a v i n g j u r i sd i c t i o n o v e r t h e p l a c e o f b u s i n e s s a t l e a s t o n e ( 1 ) m o n t h b e f o r e t h e i n t e n d e d date thereof. D. Basis of Separation Pay T h e c o m p u t a t i o n o f s ep a r a t i o n p a y o f a n e m p l o y ee sh a l l b e b a se d o n hi s / h e r l a t e s t s a l a r y r a t e . E . In c l u s i o n o f Re gu l a r A l l o w a n c e i n th e C o m p u t a t i o n I n t h e c o m p u t a t i o n o f s e p a r a t i o n p a y , i t wo u l d b e e r r o r n o t t o i n t e g r a t e t h e a l l o w a n ce wi t h t h e b a s i c s a l a r y . T h e s a l a r y b a s e p r o p e r l y u s e d i n c o m p u t i n g t h e separation pay should include not just the basic salary but also the regular a l l o w a n ce s t h a t a n e m p l o y e e h a s b e e n r e c e i v i n g . 7
6 7

Gaco vs. NLRC, et al., G.R. No. 104690, February 23, 1994. Planters Products, Inc. vs. NLRC, G.R. No. 78524, January 20, 1989.

ETIREMENT

14
R
50

P
AY
( A r t i c l e 28 7 , a s a m e n de d b y RA 76 4 1 ) A. Coverage 1 . E mp l o ye e s s h a l l b e r e t i r e d u p o n r e a c h i n g t h e a g e o f s i x t y ( 6 0 ) y e a r s o r m o r e b u t not beyond sixty-five (65) years old [and have served the establishment for at l e a s t f i ve (5 ) y e a r s ] . 2 . T h i s be n e f i t a p p l i es t o a l l e mp l o y e e s e x ce p t : 1 ) go v e r n m en t e mp l o y e e s ; 2 ) e m p l o ye e s o f r e t a i l , s e r v i c e a n d a g r i c u l t u r a l e s t a b l i s h - m e n t s / o p e r a t i o n s r e g u l a r l y e m p l o yi n g n o t m o r e t h a n t e n ( 1 0 ) e m p l o y e e s . B . A m o u n t o f Re t i r e m e n t P a y The minimum retirement pay shall be equivalent to one-half (1/2) month salary f o r e ve r y y e a r o f s e r v i c e , a f r a c t i o n o f a t l e a s t s i x ( 6 ) m o n t h s b e i n g c o n s i d e r e d a s one (1) whole year.

F o r th e p u rp o s e o f c o m pu t i n g r e t i r e m e n t p a y , " o n e - h a l f m o n t h s a l a r y " sh a l l i n c lu d e a l l o f t h e f o l l o w i n g : 1 . F i ft e e n ( 1 5 ) d a y s s a l a r y b a s e d o n t h e l a t e s t s a l a ry r a t e ; 2. Cash equivalent of five (5) days of service incentive leave; 3 . O n e - t we l f t h ( 1 / 1 2 ) o f t h e t h i r t e e n t h - m o n t h p a y . ( 1 / 1 2 x 3 6 5 / 1 2 = . 0 8 3 x 30 . 4 1 = 2 . 5 2 ) Thus, one-half month salary is equivalent to 2 2 . 5 days (Capitol Wireless, Inc. vs. Honorable Secretary Ma. Nieves R. Confesor, G. R. No. 117174, November 13, 1996). Illustration: Minimum Retirement Pay = Daily Rate x 22.5 days x number of years in service Ot h e r b e n e f i t s m a y b e i n c l u d e d i n t h e c o m p u t a t i o n o f t h e r e t i r e m e n t p a y u p o n a g r e e m e n t o f t h e e m p l o y e r a n d t h e e m p l o y e e o r i f p r o v i d e d i n t h e Co l l e ct i ve B a r g a i n i n g A g r e e m e n t (C B A ) .
51

C . R e t i r e m en t B en e f i t s u n d e r a C o l l e c t i v e B a r g a i n i n g Ag r e e me n t o r A pp l i c a b l e C o n t r a c t A n y e m p l o y e e m a y re t i r e o r b e r e t i r e d b y h i s o r h e r e m p l o y e r u p o n r e a c h i n g t h e r e t i r e m e n t a g e e s t a b l i s h e d i n t h e c o l l e c t i v e b a r g a i n i n g a g r e e m e n t (C B A ) o r other applicable agreement/contract and shall receive the retirement benefits granted therein; provided, however, that such retirement benefits shall not be l e ss t h a n t h e r e t i r e m e n t p a y r e q u i r e d u n d e r R A 7 6 4 1 , a n d p r o v i d e d f u r t h e r t h a t i f s u ch r e t i r e m e n t b e n e f i t s u n d e r t h e a g r e e m e n t a r e l e s s , t h e e m p l o y e r s h a l l p a y the difference. Where both the employer and the employee contribute to a retirement fund p u r su a n t t o t h e a p p l i c a b l e a g r e e m e n t , t h e e m p l o y e r ' s t o t a l c o n t r i b u t i o n s a n d t h e a c cr u e d i n t e r e s t t h e r e o f s h o u l d n o t b e l e s s t h a n t h e t o t a l r e t i r e m e n t b e n e f i t s t o w h i ch t h e e m p l o y e e w o u l d h a v e b e e n e n t i t l e d h a d t h e r e b e e n n o s u c h r e t i r e m e n t b e n e f i t s f u n d . I f s u c h t o t a l p o r t i o n f r o m t h e e m p l o y e r i s l e s s , t h e e m p l o y e r sh a l l pay the deficiency. D. Retiremen t Benefits of Workers wh o are Paid by Resu lts F o r co v e r e d w o r k e r s wh o a r e p a i d b y r e s u l t s a n d d o n o t h a v e a f i x e d m o n t h l y salary rate, the basis for the determination of the salary for fifteen (15) days shall b e t h e i r a v e r a g e d a i l y s a l a r y ( AD S ) . T h e A DS i s d e r i v e d b y d i v i d i n g t h e t o t a l s a l a r y o r e a r n i n g s f o r t h e l a s t t w e l v e m o n t h s r e c k o n e d f r o m t h e d a t e o f r e t i r e me n t by the number of actual working days in that particular period, provided that the determination of rates of payment by results are in accordance with the established regulations. E . R e t i r e m en t B en e f i t o f P a r t - t i m e W o r ke r s Part-time workers are also entitled to retirement pay of one- month 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, and should have rendered at least five (5) years of service with the employer.

A p p l yi n g t h e f o r e g o i n g p r i n c i p l e , t h e c o m p o n e n t s o f r e t i r e m e n t b e n e f i t o f p a r t t i me w o r k e r s m a y l i k e w i s e b e c o m p u t e d a t l e a s t i n p r o p o r t i o n t o t h e s a l a r y a n d related benefits due them.

52

F . Re t i r e m e n t B e n e f i t o f Un de r g r o u n d M i n e E m p l o y e e s u n d e r R ep u b l i c A c t 8 5 5 8 T h e r e t i r e m e n t a g e o f u n d e rg r o u n d m i n e e m p l o y e e s h a s b e e n r e d u c e d t o a mu ch l o we r a g e . F o r t h i s p u r p o s e , a n u n d e r g r o u n d m i n e e m p l o y e e r e f e r s t o a n y p e r so n e m p l o y e d t o e x t r a c t m i n e r a l d e p o s i t s u n d e r g r o u n d o r t o wo r k i n e x ca va t i o n s o r wo r k i n g s s u c h a s s h a f t s , wi n z e s , t u n n e l s , d r i f t s , c r o s s c u t s , r a i se s , w o r k i n g p l a c e s wh e t h e r a b a n d o n e d o r i n u s e b e n e a t h t h e e a r t h s s u r f a c e f o r t h e purpose of searching for and extracting mineral deposits. In the absence of a retirement plan or other applicable agreement providing f o r re t i r e m e n t b e n e f i t s o f u n d e r g r o u n d m i n e e m p l o y e e s i n t h e e s t a b l i s h m e n t , a n e m p l o ye e m a y r e t i r e u p o n r e a c h i n g t h e c o m p u l s o r y r e t i r e m e n t a g e o f s i x t y ( 6 0 ) years or upon optional retirement at the age of fifty (50) years, provided he/she h a s se r ve d f o r a t l e a s t f i v e ( 5 ) y e a r s a s a n u n d e r g r o u n d m i n e e m p l o y e e o r i n u n d e rg r o u n d m i n e o f t h e e s t a b l i s h m e n t . G . O th e r B e n e f i t s u p o n R e t i r e me n t T h e r e t i r e m en t be n e f i t s u n de r RA 7 64 1 a n d RA 85 5 8 a r e s ep a r a t e a n d d i s t i n c t f r o m t h o se g r a n te d b y th e S o c i a l S ec u r i t y S ys t e m . Under the law, upon optional or compulsory retirement, the employee is also entitled to the proportionate thirteenth-month pay for the calendar year and to the cash equivalent of accrued leave benefits.

15
B
ENEFITS

U
NDER THE
53

MPLOYEES

C
OMPENSATION

ROGRAM
(PD 626) A . T h e E m p l o y e e s C o m p en s a t i o n P r o g r a m The Employees Compensation Program (ECP) is a government program d e si g n e d t o p r o v i d e a p a c k a g e o f b e n e f i t s f o r p u b l i c a n d p r i v a t e se ct o r e m p l o ye e s a n d t h e i r d e p e n d e n t s i n t h e e v e n t o f w o rk - re l a t e d c o n t i n g e n c i e s su c h a s s i ck n e s s , i n j u r y , d i s a b i l i t y , o r d e a t h . 8 B. Coverage T h e E C P c o v e r s a l l w o r ke r s in th e f o r m a l s ec t o r . C o v e r a g e i n t h e E C P s t a r t s o n t h e f i r s t d a y o f em p l o y m e n t . E mp l o y e e s i n t h e p r i v a t e s e c t o r wh o a r e r e g i s t e r e d m e m b e r s o f t h e S o c i a l Security System (SSS), except self-employed workers and voluntary members of the SSS. C. The Benefits L o ss o f i n c o m e b en e f i t o r a c a s h b en ef i t g i v en t o a w o r k e r t o c o m p en s a t e f o r l o s t i n c o m e d u e t o h i s o r h e r in a b i l i t y t o w o r k . M ed i c a l be n e f i t s wh i c h i n c lu d e t h e r e i m bu r s e me n t o f t h e c o s t o f me d i ci n e f o r t h e i l l n e s s o r i n j u r y , p a y m e n t s t o p r o v i d e r s o f m e d i c a l c a r e , h o sp i t a l c a r e , su r g i c a l e x p e n s e s , a n d t h e c o s t s o f a p p l i a n c e s a n d s u p p l i e s wh e r e n e ce ss a r y . T h e m e d i c a l s e r v i c e s a r e l i m i t e d t o wa r d s e r v i c e s o f a n a c c r e d i t e d h o sp i t a l . R eh a b i l i t a t i o n se r v i c e s i n c lu d e p h ys i c a l t h e r a p y , v o c a t i o n a l t r a i n i n g , a n d sp e c i a l a ss i s t a n c e p r o v i d ed t o em p l o y e e s wh o s u s t a i n
8F o r

more information, please write or call the Employees Compensation Commission (ECC), Information and Public Assistance Division, located at 355 Sen. Gil Puyat Avenue, Makati City. Telephone Nos. 899-4251 to 52 locals 227 and 228; Fax: 897-7597. Public Assistance Center (PAC) Telephone No. 899- 4251. Email:e c c _ m a i l @ i n f o . c o m . p h. Website:w w w . e c c . g o v. p h
54

a d i s a b i l i t y a s a r es u l t o f s i c kn e ss o r in j u r y a r i s i n g o u t o f employment. The objective is to develop the workers mental, vocational, and s o ci a l p o t e n t i a l a n d t o h e l p t h e m r e m a i n a s p r o d u c t i v e m e m b e r s o f s o c i e t y . C a r e r s a l l o w a n c e wh i c h i s p r o v i d e d t o a n e m p l o y e e wh o s u f f e r s a p e r ma n e n t t o t a l d i s a b i l i t y ( P T D ) a r i s i n g o u t o f e m p l o y m e n t t h e e x t e n t o f w h i ch i s su c h t h a t h e o r s h e c o u l d n o t o n h i s o r h e r o wn a t t e n d t o h i s o r h e r b a s i c p e r so n a l n e e d s . Death benefits w h i ch a r e g r a n t ed t o be n e f i c i a r i e s o f a n e m p l o ye e w h o d i e s a s a r e s u l t o f s i c k n e s s o r i n j u r y a r i s i n g o u t o f e m p l o y me n t . W h e n a w o r k e r o n P T D s t a t u s d i e s , h i s o r h e r p ri m a r y b e n e f i c i a r i e s s h a l l r e c e i ve eighty percent (80%) of his or her monthly income benefit plus ten percent (10%) for every dependent child but not exceeding five (5). D . K i nd s o f D i s a b i l i t y T h e re a r e t h r ee ( 3 ) t y p es o f l o s s o f i n c o m e b en e f i t s : Temporary Total Disability ( T T D ) b en e f i t w h i ch i s g i v en t o an e m p l o y e e wh o i s u n a b le t o w o r k f o r a c on t i n u o u s pe r i o d n o t e x ce e d in g 1 2 0 d a y s .

P e r m a n e n t P a r t i a l D i s a b i l i t y ( P P D ) b en e f i t w h i ch i s g i v en t o a w o r k e r wh o l o se s a b o d y p a r t a n d c o n s e qu en t l y t h e l o s s o f t h e u s e of that body part. Permanen t Total Disability ( P T D ) b en e f i t wh i c h i s g i v en i f t h e employees inability to work lasts for more than 240 days. PTD b en e f i t c a n be c l a i m e d in th e f o l l o w i n g c a se s : 1 . co mp l e t e l o s s o f v i s i o n ; 2 . l o ss o f t w o l i m b s a t o r a b o v e t h e a n k l e s o r w ri s t s ; 3 . p e rm a n e n t a n d c o m p l e t e p a r a l y s i s o f t w o l i m b s , a n d 4 . b r a i n i n j u r y re s u l t i n g in i n c u r a b l e i m b e c i l i t y o r i n s a n i t y , i f c a u se d b y w o r k . E. Filing of Claims E m p l o y e e s c a n c l a i m on l y f o r w o r k - c o n n e c te d s i c kn e ss , i n j u r i es , o r d e a th .
55

W h o m a y f i le : T h e c l a i m a n t o r h is / h e r re p r es e n t a t i v e m a y f i l e a n a p p r o p r i a t e c l a i m w i t h t h e G S I S , i n c as e o f p u b l i c s ec t o r c l a i m a n t , o r w i t h t h e SS S , in c as e o f p r i v a t e se c t o r c l a i m a n t . W he n : A c l a i m m a y b e f i l ed w i t h in t h re e ( 3 ) ye a r s f r o m t h e d a t e o f t he o cc u r r e n c e o f t h e c on t i n ge n c y ( i . e . , s ic k n e s s , in j u r y , o r death). H o w : F i l l in th e p r e sc r i b e d f o r m s su pp l i e d b y th e G S I S o r S SS a n d a t t a c h t h e su pp o r t i n g d oc u m en t s re q u i r ed f o r ev e r y contingency. W he r e : A c l a i m m a y b e f i l ed a t a n y G S I S b r a n ch o f f i c e , f o r g o v e r n m en t e mp l o y e e s , o r a t a n y SS S b r a n ch o f f i ce , f o r e m p l o y e es in t h e pr i v a t e s ec t o r . P e r i o d o f Ap pe a l . T h e c l a i m a n t s h a l l f i le w i t h t h e G S I S o r t h e SS S , a s th e c a s e m a y b e , a n o t i c e o f a pp e a l w i t h i n t h i r t y ( 30 ) c a l en d a r d a y s f r o m re c e i p t o f t h e de c is i o n . F . Ob l i g a t i o n s / R e sp o n s i b i l i t i e s o f E m p l o y e r s 1 . C o n t r i b u t i o n t o t h e S t a t e I n s u r a n ce F u n d ( S I F ) . T h e e m p l o y e r sh a l l c o n t r i b u t e i n b e h a l f o f h i s o r h e r e m p l o y e e s t o t h e S I F , f r o m wh i c h p a y m e n t s f o r benefits are drawn. 2.R e g i s t r a t i o n . Every employer (and every employee as well) shall be r e g i s t e r e d wi t h t h e GS I S o r S S S b y a c c o m p l i s h i n g t h e p r e s c r i b e d f o r m s . 3 . S a fe t y De v i c es . T h e e m p l o y e r s h a l l c o m p l y wi t h h e a l t h a n d s a f e t y l a ws a n d shall take the necessary precautions for the prevention of work-related disability or death. 4. E m p l o y e r s L o gb o o k . The employer is required to maintain a logbook to contain his or her employees sickness, injuries, disabilities, and deaths. Notification of such contingencies to the GSIS or SSS shall be made within five (5) days from the date of contingency. 5 . De p r i v a t i o n s C l a u s e . N o c o n t r a c t , r e g u l a t i o n , o r d e v i c e wh a t s o e v e r sh a l l o p e r a t e t o d e p r i v e t h e e m p l o y e e o r h i s / h e r d e p e n d e n t s o f a n y p a r t o f t h e E CP c o mp e n s a t i o n p a c k a g e .

H P

16
HIL
56

EALTH

B
ENEFITS
(RA 7875, as amended by RA 9241) A . T h e N a t i o n a l H e a l t h I n s u r a n ce P r o g r a m T h e N a t i o n a l H e a l t h I n s u r a n c e P r o g r a m ( N H I P ) , f o r m e r l y k n o w n a s M e d i ca r e , 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 a s si st a n c e w h e n t h e y g e t h o s p i t a l i z e d . T h e P h i l i p p i n e He a l t h I n s u r a n c e Co r p o r a t i o n o r P h i l H e a l t h i s t h e m a n d a t e d a d mi n i s t r a t o r o f t h e M e d i c a r e p r o g r a m ( n o w k n o w n a s N H I P ) u n d e r t h e N a t i o n a l Health Insurance Act of 1995 (Republic Act 7875).9 B. Coverage The program covers the following: 1 . E m p l o y e d M e m be r s a l l t h o s e e m p l o y ed i n t h e g o v e r n m en t a n d p r i v a t e s ec t o r . 2 . I n d i vi d u a l l y P a y i n g M e m b e rs s e l f - e m p l o y e d , o v e r s e a s F i l i p i n o w o r k e r s , p r o f e s si o n a l s i n p ri v a t e p r a c t i c e (d o c t o r s , l a w y e r s , d e n t i s t s , e t c . ) 3 . N o n - p a y i n g M e m be r s t h e f o l l o w i n g a r e e n t i t l ed t o l i f e t i m e coverage:

R e t i r e e s a n d p e n s i o n e r s o f t h e GS I S a n d S S S ( i n c l u d i n g p e r m a n e n t t o t a l d i sa b i l i t y a n d s u r v i v o r s h i p p e n s i o n e r s o f t h e S S S ) p r i o r t o t h e e f f e c t i v i t y o f RA 7875 on March 4, 1995.

9

For inquiries on NHIP coverage, benefits and procedures for SSS members,

you may visit the Philippine Health Insurance Corporation (PhilHealth) at the Citystate Centre Bldg., 709 Shaw Blvd., Barangay Oranbo, Pasig City or call telephone number 6379999. You may also visit the PhilHealth website at http://www.philhealth.gov.ph .
57

Me mb e r s w h o h a v e r e a c h e d t h e r e t i r e m e n t a g e a n d h a v e p a i d a t l e a s t 1 2 0 mo n t h l y c o n t r i b u t i o n s . Op t i o n a l R e t i r e e s ( u n d e r R A 1 6 1 6 , P D 1 1 4 6 o r P D 1 1 8 4 ) are not yet entitled to lifetime coverage until they reach the age of retirement (60 years old). 4 . I nd i g e n t M em b e r s u n de r t h e in d i ge n t c o m p on e n t o f t h e NHIP. C. The Benefits

A unified benefit package for all PhilHealth members is being implemented w h i ch i n c l u d e s t h e f o l l o w i n g c a t e g o r i e s o f p e r s o n a l h e a l t h s e r v i c e s : 1. Inpatien t hospital care:

Room and board; S e r v i ce s o f h e a l t h c a r e p r o f e ss i o n a l s ; D i a g n o s t i c , l a b o r a t o r y , a n d o t h e r m e d i c a l ex a m i n a t i o n s e r v i ce s ;

U se o f s u r g ic a l o r m e d i c a l eq u ip m e n t a n d f a c i l i t i e s ; P r e s c r i p t i o n d r u g s an d bi o l o g i c a l s , su b je c t t o t h e l i m i t a t i o n s s t a t e d i n S ec t i o n 3 7 o f R A 7 87 5 ; a n d

I n p a t i en t ed u c a t i o n p a c k a g es . 2. Outpatien t care:

S e r v i ce s o f h e a l t h c a r e p r o f e ss i o n a l s ; D i a g n o s t i c , l a b o r a t o r y , a n d o t h e r m e d i c a l ex a m i n a t i o n s e r v i ce s ;

P e r s o n a l p re v e n t i v e s er v i c e s ; P r e s c r i p t i o n d r u g s an d bi o l o g i c a l s , su b je c t t o t h e l i m i t a t i o n s de sc r i b e d i n S ec t i o n 3 7 o f RA 78 7 5 ; a n d

E m e r g en c y a n d t r a n s fe r se r v i c e s .

60

S p e c i a l i s t (Groups 2, 3, and 4)
Per Day P 500 P 600 Maximum per confinement P 2,000 P 3,600 b. Surgery (for Case Types A and B)

Surgeon Anesthesiologist First Tier (Group 1)

General Practitioner RVU x PCF 40 = PF1 40% of surgeons fee (PF1) With training

Second Tier (Groups 5 and 6)

RVU x PCF 48 = PF2

48% of surgeons fee (PF1) Diplomate/fellow

Third Tier (Groups 2, 3, and 4)

RVU x PCF 56 = PF3 56% of surgeons fee (PF1) Max. of P2,000 per confinement Max. fee computed as percentage of P2,000 The following are also included in your PhilHealth benefits:

Outpatient Malaria Package starting 01

December 2008

Normal Spontaneous Delivery up to fourth childbirth starting 01 January 2009 Voluntary Surgical Contraception Procedures starting 01 October 2008 Cataract Package starting 01 May 2009 A(H1N1) Package starting 01 May 2009 Additional Update In compliance to PhilHealth Circular Nos.
22, s. 2007 and 11, s. 2008, the hospitals Statement of Account (SA) or Billing Statement (BS) should be attached to a claim application.

No need to attach an SA or BS to claim

applications for packages likeMa t e r n i t y

Care Package, SARS, Peritoneal Dialysis,

and Avian Flu .

17
S
61

OCIAL ECURITY

ENEFITS
(RA 1161, as amended by RA 8282) A. T h e S o c i a l Se cu r i t y P r o g r a m The Social Security Program provides a package of benefits in the event of death, disability, sickness, maternity, and old age. Basically, the Social Security S y st e m ( S S S ) p r o v i d e s f o r a r e p l a c e m e n t o f i n c o m e l o s t o n a c c o u n t o f t h e a f o r e m e n t i o n e d c o n t i n g e n c i e s . 10 B. Coverage

A pr i v a t e e m p l o y ee , w h e t h e r p e r m a n e n t , t e m p o r a r y o r provisional;

A ho u se h o l d h e lp e r e a r n i n g a t l e a s t P 1 , 0 0 0 a m o n t h i s s ub j e c t t o c o m p u ls o r y c o v e r a g e s t a r t i n g Se p te m b e r 1 , 1 9 93 . C. T h e B en e f i t s C . 1 S i c kn e ss 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. A me m b e r i s qu a l i f i e d t o a v a i l h i m se l f / h e r se l f o f th i s be n e f i t i f : 1 . h e / sh e i s u n a b l e t o w o r k d u e t o s i c k n e s s o r i n j u r y a n d i s t h u s c o n f i n e d e i t h e r i n t h e h o sp i t a l o r a t h o m e f o r a t l e a s t f o u r d a y s ; 2 . h e / s h e h a s p a i d a t l e a s t t h re e m o n t h l y c o n t r i b u t i o n s wi t h i n t h e 1 2 - m o n t h p e r i o d i m me d i a t e l y b e f o r e t h e s e m e s t e r o f s i c k n e s s ;
10F o r

inquiries on SSS benefits and other related matters, you may visit the

Social Security System (SSS) at the SSS Building, East Avenue, Diliman, Quezon City or its nearest branch office. You may also call telephone numbers 920-6401 (operator-assisted), 920-6446 (Member Relations Department), 9177777 (machine-assisted; press your SSS no. and wait for instructions) or visit its website atw w w . s s s . g o v. p h or e-mail it atm e m b e r _ r e l a t i o n s @ s s s . g o v. p h .
62

3 . he / s he h as u s ed u p a l l c u r r en t c o m p a n y s i c k l e a v e s w i t h p a y f o r th e c u r r en t y e a r ; a n d 4 . he / s he h as n o t i f i ed h is / h e r e m p l o y e r . T h e a m o u n t o f a n em p l o y e e s s i c kn e ss be n e f i t i s c o m p u te d a s : t h e d a i l y s i ck n es s a l l o w a n c e t i m e s t h e a pp r o v e d n u m be r o f d a ys . Effective May 24, 1997, the daily sickness allowance is 90 percent of the a v e r a g e d a i l y s a l a r y c r e d i t ( Se c t i o n 1 4 o f R e p u b l i c A c t 8 2 8 2 ) . C . 2 . M a t e r n i t y (s e e 8 . M a t e rn i t y L e a ve ) C.3.D i s a b i l i t y I t i s a c a sh be n e f i t p a i d t o a me m b e r wh o be c o m es p e r m a ne n t l y d is a b l e d , ei t h e r p a r t i a l l y o r t o t a l l y . A member who suffers partial or total permanent disability, with at least one (1) contribution paid to the SSS prior to the s e m e s t e r o f c o n t i n g e n c y , i s q u a l i f i e d . T h e c o m p l e te a n d pe r m a n e n t l o s s o f u se o f a n y o f t h e f o l l o w i n g p a r t s o f t h e b od y u n de r pe r m a n e n t p a r t i a l di s a b i l i t y : o n e t hu m b s i gh t o f on e e y e one big toe o n e i n de x f in g e r h e a r i ng o f o n e e a r o n e h a nd one middle finger h e a r i ng o f b o t h ea r s one arm o n e r i n g f i n ge r one foot one ear one little finger

one leg both ears The following fall under permanent total disability: 1. Complete loss of sight of both eyes; 2 . L o ss o f t w o l i m b s a t o r a b o v e t h e a n k l e o r w r i s t s ; 3. Permanent complete paralysis of two limbs; 4. Brain injury causing insanity; and 5 . Ot h e r c a s e s a s d e t e r m i n e d a n d a p p r o v e d b y t h e SS S . Types of disability benefits: 1. The monthly pension which is paid to a disabled member who has paid at least 36 monthly contributions to the SSS; and 2 . T he lu m p su m a m o u n t w h i ch i s g r a n te d t o t h o s e w h o h a v e n o t p a i d t h e r eq u i r ed 36 m o n t h l y c o n t r i b u t i o n s . C.4.R e t i r e m e n t
63

I t i s a c a sh be n e f i t p a i d t o a me m b e r wh o c an n o l o n ge r w o r k d ue t o o l d a ge . A me m b e r i s qu a l i f i e d t o a v a i l h i m se l f o f t h i s b en e f i t i f : b . H e/ sh e i s 6 0 y e a r s o l d a n d u n e m p l o y e d a n d h a s p a i d a t l e a s t 1 2 0 m o n t h l y contributions prior to the semester of retirement. b . h e / sh e i s 6 5 y e a r s o l d , wh e t h e r e m p l o y e d o r n o t . I f e m p l o y e d h e / s h e s h o u l d h a v e p a i d 1 2 0 m o n t h l y c o n t r i b u t i o n s p r i o r t o t h e s e m e s t e r o f r e t i r e m e n t , wh e t h e r e m p l o ye d o r n o t . T h e t yp e s o f re t i r e m e n t b e n e f i t s a r e : a. the monthly pension, and b. the lump sum amount. T h e mo n t h l y p e n s i o n i s a l i f e t i m e c a s h b e n e f i t p a i d t o a r e t i r e e w h o h a s p a i d a t l e a st 1 2 0 m o n t h l y c o n t r i b u t i o n s t o t h e S S S p ri o r t o t h e s e m e s t e r o f r e t i r e me n t . T h e l u m p s u m a m o u n t is g r a n te d t o a r e t i r ee wh o h a s n o t p a i d t h e r eq u i r e d 1 2 0 m o n t h l y c on t r i b u t i o n s . C.5.Death & Funeral T h e d e a th be n e f i t i s a c a sh p a i d t o t h e be n e f i c i a r i e s o f a d ec e a se d me m b e r . The primary beneficiaries are the legitimate dependent spouse until he or she remarries and legitimate, legitimated, legally adopted or illegitimate dependent children of the member. In the absence of primary beneficiaries, the secondary beneficiaries are the dependent parents of the member. In their absence, the person designated by the member as beneficiary in his/her members r e c o r d w i l l b e the recipient. T h e t yp e s o f d e a t h b e n e f i t s a r e : 1. the monthly pension; and 2. the lump sum amount. The monthly pension is granted only to the primary beneficiaries of a d e ce a s e d m e m b e r w h o h a d p a i d 3 6 m o n t h l y c o n t r i b u t i o n s b e f o r e t h e s e m e s t e r o f death.

T h e l u m p s u m i s t h e a m o u n t g r a n t e d t o t h e p r i m a ry b e n e f i c i a r i e s o f a d e ce a s e d m e m b e r w h o h a d p a i d l e s s t h a n 3 6 m o n t h l y c o n t r i b u t i o n s b e f o r e t h e s e me st e r o f d e a t h .
64

D i r e c t o r y o f DO L E R e g i o n a l O f f i c es
National Capital Region (NCR) DOLE-NCR Bldg., 967 Maligaya St., Malate, 1004 Manila Telephones: 339-2013 & 339-2017 / 523-2677 & 400-6011 Fax: (632) 400-6241 dolencr_planning@yahoo.com See next page for the Directory of DOLE-NCR Field Offices Cordillera Administrative Region (CAR) Cabinet Hills, 2600 Baguio City Tel. # (074) 442-2447 Telefax: (074) 443-5339 dolecar88@pldtdsl.net; dole-car@pldtdsl.net Region 1 ARNEL Bldg., Mabini St., Catbangen, San Fernando City, 2500 La Union Telefax: (072) 700-2520 dolero1@digitelone.com Region 2 Turingan Bldg., Caritan Centro, Tuguegarao City, 3500 Cagayan Telephones: (078) 844-1364 / 844-1383 & 844-5516 Telefax: (078) 844-1553 ad_services_ro2@yahoo.com Region 3 SWTLC Bldg., Regional Govt Center, Maimpis, San Fernando City, 2000 Pampanga Tel. # (045) 961-1305 Telefax: (045) 961-2195 Dolero3@mail.irnet.net.ph Region 4-A CALABARZON 3/F & 4/F, Andenson Bldg. II, Barangay Parian, Calamba City, 4027 Laguna Tel. # (049) 545-7357 Telefax: (049) 545-7360 imsd@mozcom.com Region 4-B MIMAROPA

7/F, Ben-Lor Bldg., 1184 Quezon Avenue, 1100 Quezon City Tel. # (632) 374-7972 Telefax: (632) 374-7974 doleregion4b@pacific.net.ph; dolemimaropa@pacific.net.ph Region 5 Doa Aurora St., Old Albay, 4500 Legaspi City Tel. # (052) 480-5831 Telefax: (052) 820-4806 dolero5@yahoo.com Region 6 2/F & 3/F, St. Clemens Bldg., Luna St., La Paz, 5000 Iloilo City Tel. # (033) 320-6904 Telefax: (033) 320-8026 doleregion6@yahoo.com.ph Region 7 2/F, GMC Plaza Bldg., M. J. Cuenco Avenue cor. Legaspi St., 6000 Cebu City Telephones: (032) 253-0638 & (032) 254-5156 dolero7@cvis.net.ph Region 8 Trece Martirez St., 6500 Tacloban City Tel. # (053) 325-2237 Telefax: (053) 325-5236 Dolero8@mail.evis.net Region 9 Wee Agro Bldg., Veterans Avenue, 7000 Zamboanga City Tel. # (062) 993-1877 Telefax: (062) 991-2672 & 991-2673 dole_region_9@yahoo.com; dole9zam@pldtdsl.net Region 10 2/F, Gonzalo Go Bldg., Corrales Avenue, 9000 Cagayan de Oro City Tel. # (088) 857-1931 Telefax: (088) 857-2218 Fax: (08822) 72-7682 dole10@websprinter.net Region 11 LDL Bldg., F. Bangoy St., 8000 Davao City Tel. # (082) 227-8772 Telefax: (082) 226-2671 dole11davao@yahoo.com

Region 12 102 Acepal Bldg., Mabini Extension, Koronadal City, 9506 South Cotabato Telephones: (083) 520-0125 & 228-4920 Telefax: (083) 228-2190 dolexii@cotabato.mozcom.com Region 13 CARAGA Regional Office 3/F, Nimfa Tiu Bldg., J. T. Rosales Avenue, 8600 Butuan City Tel. # (085) 342-9606 Telefax: (085) 225-3229 dolexiii@sky.net

65

D i r e c t o r y o f DO L E - N C R F i e l d Of f i c es
CAMANAVA Field Office (CFO) 5/F, Araneta Square Center, Monumento Circle 1400 Caloocan City Telefax: (02) 323-7466 & 362-3187 Jurisdiction: Cities of Caloocan, Malabon, Navotas, and Valenzuela MUNTAPARLAS Field Office (MFO) 3/F, Susana Arcade Alabang-Zapote Road, Almanza I 1750 Las Pias City Telephones: 800-1538 Jurisdiction: Cities of Muntinlupa, Taguig, Paraaque, and Las Pias Manila Field Office (MFO) G/F, DOLE-NCR Bldg., (formerly Wasmiya Bldg.) 967 Maligaya St., Malate 1004 Manila Telephones: 338-7830 / 339-2014 & 400-3002 PAMAMARISAN Field Office (PFO) 6/F, Semicon Bldg. (near Salve Regina Hospital) Marcos Highway 1600 Pasig City Telephone: 408-9614 Jurisdiction: Pateros and the cities of Mandaluyong, Marikina, Pasig, and San Juan Makati-Pasay Field Office (MPFO) 2/F, Employees Compensation Commission (ECC) Bldg., 355 Sen. Gil Puyat Avenue Extension

1200 Makati City Telephones: 328-8815 & 338-5865 Quezon City Field Office (QCFO) 4/F, Arcadia Bldg. Quezon Avenue 1100 Quezon City Telephones: 497-3002 376-5983 & 414-4471

Vision 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, occupational safety and health, and other conditions of employment. I n Ma y 1 9 8 2 , t h e B u r e a u o f L a b o r S t a n d a r d s , w h i c h wa s c r e a t e d i n J u n e 1 9 5 7 u n d e r R e o r g a n i z a t i o n P l a n N o . 2 0 - A , w a s r e n a m e d t h e B u r e a u o f W o r ki n g Conditions. The BWC performs all functions in relation to the formulation of policies and enforcement of labor standards performed by the then Wage A d m i n i st r a t i v e S e r v i c e a n d t h e I n d u s t r i a l S a f e t y D i v i s i o n o f t h e B u r e a u o f L a b o r .
66

Well-guided employers and workers committed to a safe, healthful, and p r o d u c t i v e wo r k e n v i r o n m e n t , a d a p t i v e t o i n d u s t r y t r e n d s a n d d e v e l o p m e n t s , a n d equitably enjoying the gains of joint endeavors.

Mission

F o r mu l a t e p o l i c i e s a n d i n i t i a t e l e g i s l a t i o n s o n l a b o r s t a n d a r d s , b a s e d o n r e l e va n t i n f o r m a t i o n c u l l e d f r o m m o n i t o r i n g , c o n s u l t a t i o n s , n e t wo r k i n g , a n d r e s e a r c h e s.

Standardize the use of enforcement instruments and to clothe the inspectorate s ys t e m w it h s t r o n g e n f o r c e m e n t a u t h o r i t y t o e n s u r e c o m p l i a n c e w it h l a w s a n d regulations.

Develop and sustain the capability of enterprises toward self- management of safety and health in workplaces, thus, upholding the principle of shared r e s p o n si b i l i t y b e t w e e n wo r k e r s a n d e m p l o y e r s .

Enhance the capability of small enterprises in implementing practical and efficient methods of improving working conditions and productivity.

Inform and advise the public on labor standards, including occupational safety a n d h e a l t h , a n d o n i n n o v a t i v e wo r k p r a c t i c e s o r a r r a n g e m e n t s .

Philippine Dole Handbook 2009

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