7wage Protection Provisions and Prohibitions Regarding Wages

Conditions of employment
HOURS OF WORK:
Normal Hours of Work
Art. 83. NORMAL HOURS OF WORK – The normal hours of work of any employee shall not exceed eight
(8) hours a day.
XXX
RA 9231 CHILD LABOR
Sec. 12-A. Hours of Work of a Working Child. - Under the exceptions provided in Section 12 of this Act,
as amended:
(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours
a week: Provided, That the work shall not be more than four (4) hours at any given day;
(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than
eight (8) hours a day, and in no case beyond forty (40) hours a week;
(3) No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the
evening and six o'clock in the morning of the following day and no child fifteen (15) years of age but
below eighteen (18) shall be allowed to work between ten o'clock in the evening and six o'clock in the
morning of the following day."
DO No. 65-04, Series of 2004
Rules and Regulations Implementing RA 9231, Amending RA 7610, as Amended
Section 15. HOURS OF WORK OF A WORKING CHILD – The following hours of work shall be observed for
any child allowed to work under Republic Act No. 9231 and these Rules:
(a) For a child below 15 years of age, the hours of work shall not be more than twenty (20) hours a
week, provided that the work shall not be more than four hours at any given day;
(b) For a child 15 years of age, but below 18, the hours of work shall not be more than eight hours a
day, and in no case beyond 40 hours a week; and
(c) No child below 15 years of age shall be allowed to work between eight o’clock in the evening and
six o’clock in the morning of the following day and no child 15 years of age but below 18 shall be
allowed to work between ten o’clock in the evening and six o’clock in the morning of the
following day.
Sleeping time as well as travel time of a child engaged in public entertainment or information from his or
her residence to his or her workplace shall not be included as hours worked without prejudice to the
application of existing rules on employees’ compensation.
CHED Memorandum Circular 40-08: Private School Teachers and Academic Personnel (Higher
Education)
Dep Ed Order 88-10: Private Schools in Basic Education

House helper
Article 1695. House helpers shall not be required to work more than ten hours a day. Every house helper
shall be allowed four days' vacation each month, with pay.
HOURS WORKED:
Meaning
Art. 84. HOURS WORKED – Hours worked shall include (a) all time during which an employee is required
to be on duty or to be at a prescribed workplace, and (b) all time during which an employee is suffered
or permitted to work.
Rest periods of short durations during working hours shall be counted as hours worked.
IMPLEMENTING RULES OF BOOK III: Rule I
SECTION 4. Principles in determining hours worked. — The following general principles shall govern in
determining whether the time spent by an employee is considered hours worked for purposes of this
Rule:
(a) All hours are hours worked which the employee is required to give his employer, regardless of
whether or not such hours are spent in productive labor or involve physical or mental exertion.
(b) An employee need not leave the premises of the work place in order that his rest period shall not be
counted, it being enough that he stops working, may rest completely and may leave his work place, to go
elsewhere, whether within or outside the premises of his work place.
(c) If the work performed was necessary, or it benefited the employer, or the employee could not
abandon his work at the end of his normal working hours because he had no replacement, all time spent
for such work shall be considered as hours worked, if the work was with the knowledge of his employer
or immediate supervisor.
(d) The time during which an employee is inactive by reason of interruptions in his work beyond his
control shall be considered working time either if the imminence of the resumption of work requires the
employee's presence at the place of work or if the interval is too brief to be utilized effectively and
gainfully in the employee's own interest.
Sec. 5. WAITING TIME – (a) Waiting time spent by an employee shall be considered as working time if
waiting is an integral part of his work or the employee is required or engaged by the employer to wait.
(b) An employee who is required to remain on call in the employer’s premises or so close thereto
that he cannot use the time effectively and gainfully for his own purpose shall be considered as working
while on call. An employee who is merely required to leave word at his home or with company officials
where he may be reached is not working while on call.
 The implementing rules in Book III, Rule I provide the guidelines to determine time worked (therefore
should be paid) or unworked.
 Waiting time spent by an employee is considered working time if waiting time is an integral part of
his work or if the employee is required or engaged by an employer to wait. Whether waiting time
constitutes working time depends upon the circumstances of each particular case and is a question of
fact.
SECTION 6. Lectures, meetings, training programs. — Attendance at lectures, meetings, training

programs, and other similar activities shall not be counted as working time if all of the following
conditions are met:
(a) Attendance is outside of the employee's regular working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive work during such attendance.
Rule X, Sec. 7, 9 & 10 of IRR
SECTION 7. Time records. — Every employer shall keep an individual time record of all his employees
bearing the signature or thumbmark of the employee concerned for each daily entry therein by means
of any of the following methods:
(a) Through the use of bundy clock by means of which an employee can punch in his individual card the
time of arrival and departure from work;
(b) Through the employment of a timekeeper whose duty is to time in and out every employee in a
record book; and
(c) By furnishing the employees individually with a daily time record form in which they can note the
time of their respective arrival and departure from work.
SECTION 9. Time records of executives. — Managerial employees, officers or members of the managerial
staff, as well as non-agricultural field personnel, need not be required to keep individual time records,
provided that a record of their daily attendance is kept and maintained by the employer.
SECTION 10. Records of workers paid by results. — Where the employees are paid on piece, pakiao,
takay, task, commission or other non-time basis, the employer shall keep production records showing
their daily output, gross earnings and the actual number of working hours spent by the employees on
the job, bearing the signature or thumbmark of the employee concerned. Where, however, the
minimum output rates of non-time workers have been fixed by the Department of Labor and
Employment or through certified collective agreements, or are in compliance with the standards
prescribed in Section 8, Rule VII of this Book, the employer may dispense with the keeping of time
records, except the daily production records showing their output or the work accomplished and gross
earnings.
REST PERIODS:
Meal Period
Art. 85. MEAL PERIODS – Subject to such regulations as the Secretary of Labor may prescribe, it shall be
the duty of every employer to give his employees not less than sixty (60) minutes time-off for their
regular meals.
 Under this article the meal period should not be less than 60 minutes, in which case it is time-off or
non-compensable time. The implementing rules Book III, Rule I, Sec 7, allows the meal time to be
less than 60 minutes, under specified cases. But such shortened meal time (say 30 minutes) should
be with full pay, and of course, the time when the employee cannot eat, because he is still working,
should also be paid.
 The employer is required to give his employees not less than 60 minutes or 1 hour for their regular
meals everyday. The LC does not specify as to what specific hour of the day the meal period is to be
given.
 The 60-minute meal period is not compensable because during this time, the worker does not work.
 To shorten meal time to less than 20 minutes is not allowed. If the so called meal time is less than 20
minutes, it becomes only a rest period, and under the same section 7, is considered work time.
Q: Is it possible to reduce the meal period to less than 60 minutes? If so, under what instances?
A: YES, under Section 7, Rule I, Book III.
Shortened Meal Period

Sec. 7. Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for
regular meals, except in the following cases when a meal period of not less than twenty (20) minutes
may be given by the employer provided that such shorter meal period is credited as compensable hours
worked of the employee:
(a) Where the work is non-manual work in nature or does not involve strenuous physical exertion;
(b) Where the establishment regularly operates not less than sixteen hours a day;
(c) In cases of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installation to avoid serious loss which the employer would
otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of perishable goods.
xxx
Coffee Break
Sec. 7. … Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered
as compensable working time.
 Short coffee breaks of 5–20 minutes is compensable. So if the employer gives the employees break in
the morning and in the afternoon, this time is considered compensable.
 Note that the employer is not obliged by law to give this coffee break.
 The employer can lessen the 60-minute meal period into 30 minutes. And this is compensable. Note
that the employer shall pay the Overtime Pay whenever proper. Note that meal periods can be
reduced to less than 60 minutes but not less than 20 minutes, and it is compensable. For example, if
the meal period is reduced to 59 minutes it is compensable.
 The employer cannot prohibit employees from leaving the premises during the meal period of
employees. The law in fact does not require that the 60 minutes be spent in the employer’s premises.
There is no labor code provision to this effect.
WORKWEEK:
Normal and Compressed (DOLE Dept. Advisory No. 2, Series of 2004)

DEPARTMENT ADVISORY NO. 02
Series of 2004
IMPLEMENTATION OF COMPRESSED WORKWEEK SCHEMES
I. PURPOSE AND COVERAGE
This Advisory is being issued to guide employers and workers who may opt to adopt a mutually
acceptable compressed workweek (CWW) scheme suitable to the requirements of the firm.
This Advisory may be used in all establishments except those in the construction industry, in health
services, in occupations requiring heavy manual labor, or in occupations or workplaces in which workers
are exposed to airborne contaminants, human carcinogens, substances, chemicals or noise that exceed
threshold limit values or tolerance levels for an eight-hour workday as prescribed under existing
Occupational Safety and Health Standards (OSHS).
II. POLICY
As a matter of policy, and taking into account the emergence of new technology and the continuing
restructuring and modernization of the work process, the Department of Labor and Employment (DOLE)
encourages employers and workers to enter into voluntary agreements adopting CWW schemes based
on the following objectives:
1. To promote business competitiveness and productivity, improve efficiency by lower operating

costs, and reduce work-related expenses of employees;
2. To give employers and workers flexibility in fixing hours of work compatible with business
requirements and the employees’ need for a balanced work life; and
3. To ensure the safety and health of employees at the workplace at all times.
For purposes of administering or enforcing existing laws and rules on work hours, overtime
compensation and other relevant labor standards, DOLE shall recognize only those CWW schemes that
have been entered into consistent with this Advisory.
III. CONCEPT AND DEFINITION
The Labor Code provides that the normal work hours per day shall be eight hours. Work may be
performed beyond eight hours a day provided the employee is paid for the overtime work. On the other
hand, the normal number of workdays per week shall be six days, or a total of forty-eight (48) hours
based on the normal workday of eight hours. This is without prejudice to firms whose normal workweek
is five days, or a total of forty (40) hours based on the normal workday of eight hours.
For purposes of this Advisory, a CWW scheme is an alternative arrangement whereby the normal
workweek is reduced to less than six days but the total number of normal work hours per week shall
remain at 48 hours. The normal workday is increased to more than eight hours without corresponding
overtime premium. This concept can be adjusted accordingly in cases where the normal workweek of
the firm is five days.
IV. SPECIFIC GUIDELINES
Conditions. DOLE shall recognize CWW schemes adopted in accordance with the following:
1. The CWW scheme is undertaken as a result of an express and voluntary agreement of majority
of the covered employees or their duly authorized representatives. This agreement may be
expressed through collective bargaining or other legitimate workplace mechanisms of
participation such as labor-management councils, employee assemblies or referenda.
2. In firms using substances, chemicals and processes or operating under conditions where there
are airborne contaminants, human carcinogens or noise, prolonged exposure to which may pose
hazards to the employees’ health and safety, there must be a certification from an accredited
health and safety organization or practitioner or from the firm’s safety committee that work
beyond eight hours is within threshold limits or tolerable levels of exposure, as set in the OSHS.
3. The employer shall notify DOLE, through the Regional Office having jurisdiction over the
workplace, of the adoption of the CWW scheme. The notice shall be in DOLE CWW Report Form
attached to this Advisory.
Effects. A CWW scheme which complies with the foregoing conditions shall have the following effects:
1. Unless there is a more favorable practice existing in the firm, work beyond eight hours will not
be compensable by overtime premium provided the total number of hours worked per day shall
not exceed twelve (12) hours. In any case, any work performed beyond 12 hours a day or 48
hours a week shall be subject to overtime premium.
2. Consistent with Articles 85 of the Labor Code, employees under a CWW scheme are entitled to
meal periods of not less than sixty (60) minutes. Nothing herein shall impair the right of
employees to rest days as well as to holiday pay, rest day pays or leaves in accordance with law
or applicable collective bargaining agreement or company practice.
3. Adoption of the CWW scheme shall in no case result in diminution of existing benefits. Reversion
to the normal eight-hour workday shall not constitute a diminution of benefits. The reversion
shall be considered a legitimate exercise of management prerogative, provided that the
employer shall give the employees prior notice of such reversion within a reasonable period of
time.
Administration of CWW Scheme. The parties to the CWW scheme shall be primarily responsible for its
administration. In case of differences of interpretation, the following shall be observed:
1. The differences shall be treated as grievances under the applicable grievance mechanism of the
firm.
2. If there is no grievance mechanism or if this mechanism is inadequate, the grievance shall be

referred to the Regional Office which shall conduct a training and assistance visit (TAV) pursuant
to Section 3 of Department Order No. 57-04.
3. The purpose of the TAV is to ascertain, through the most practical and least litigious way
possible, whether or not the scheme is the result of a voluntary agreement or is supported by
the appropriate certification from an accredited safety and health organization or practitioner.
Where appropriate, the TAV may include the conduct, as may be appropriate, of a referendum or
work environment measurement (WEM) to determine actual work conditions.
To facilitate the resolution of grievances, employers are required to keep and maintain, as part of
their records, the documentary requirements proving that the CWW scheme was voluntarily
adopted and the certification that the scheme is consistent with OSHS.
4. In the absence of proof of voluntary agreement or safety and health certification, the employer
shall pay the employees concerned any overtime pay that may be owing to them as if the CWW
scheme did not exist. If it turns out that work beyond eight hours is not consistent with OSHS,
the parties shall immediately revert to a normal eight-hour workday.
V. PUBLICATION AND POSTING
This Advisory shall be published in two newspapers of general circulation and henceforth shall be part of
the labor education manuals to be developed by DOLE. Every firm adopting a CWW scheme shall ensure
that a copy of this advisory is posted in a conspicuous location in the workplace.
DOLE Dept. Advisory 2-09: Guidelines on the Adoption of Flexible Work Arrangements
Recognizing the desirability and practicability of flexible work arrangements that may be considered by
an employer, after consultation with their employees, as a better alternative to outright termination of
the services of workers or the total closure of the establishment, the Department of Labor and
Employment (DOLE) has issued Department Advisory No. 2, series of 2009. It laid down the guidelines
aimed at assisting and guiding employers and employees in the implementation of various temporary
flexible work arrangements.
The flexible work arrangements that may be considered by employers and employees under the DOLE
Guidelines are as follows:
1. COMPRESSED WORK WEEK. The normal work week is reduced to less than six (6) days but the total
number of work hours of 48 hours per week shall remain. The normal work day is increased to more
than eight (8) hours but not to exceed twelve (12) hours, without corresponding overtime premium. The
concept can be adjusted accordingly depending on the normal work week of the company pursuant to
the provisions of Department Advisory No. 02, series of 2004, dated 2 December 2004 of the
Department of Labor and Employment;
2. REDUCTION OF WORK DAYS. The normal work days per week are reduced but should NOT last for
more than six (6) months;
3. ROTATION OF WORKERS. The employees are rotated or alternately provided work within the work
week;
4. FORCED LEAVE. The employees are required to go on leave for several days or weeks utilizing their
leave credits, if there are any;
5. BROKEN TIME SCHEDULE. The work schedule is not continuous but the work hours within the day
or week remain; and
6. FLEXI HOLIDAY SCHEDULE. The employees agree to avail the holidays at some other days provided
there is no diminution of existing benefits as a result of such arrangement.
DOLE encourages employers and employees under these flexible work arrangements to explore
alternative schemes under any agreement and company policy or practice in order to cushion and
mitigate the effects of the loss of income of the employees.
The employer is required to notify the Regional Office of the DOLE which has jurisdiction over the
workplace of the adoption of any of the above flexible work arrangements prior to its implementation.
The DOLE Regional Office will then conduct an ocular visit to validate whether the adoption of the
flexible work arrangements are in accordance with the guidelines issued by the DOLE.
DOLE Dept Advisory 4-10
Health Personnel
Art. 83. HOURS OF WORK – The normal hours of work of any employee shall not exceed eight (8) hours a
day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000)
or in hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours
for eight (8) hours a day for five (5) days a week, exclusive of time for meals, except where the exigencies
of the service require that such personnel work for six (6) days or forty-eight (48) hours which case they
shall be entitled to an additional compensation of at least thirty percent (30%) of their regular wage for
work on the sixth day. For purposes of this Article, “health personnel” shall include resident physicians,
nurses, nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical
technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.
(Note: interns are not included. They are usually not employees of the hospital)
 Exception to ARTICLE 91 on Weekly Rest Day

 Article 83 does not say that the normal hours of work is or should be eight hours but that it shall not
exceed eight. Therefore part-time work or a day’s work of less than eight hours is not prohibited.
 The eight hour labor law was enacted not only to safeguard the health and welfare of the laborer or
employee, but in a way to minimize unemployment by forcing employers, in cases where more than 8-
hour operation is necessary, to utilize different shifts of laborers or employees working only for 8
hours each.
 The second paragraph applies to health workers in organizations covered by the Code. Health
personnel in government service are excluded from coverage of Articles 82 to 96. Their work hours,
night shift differential, and other employment benefits are defined in RA 7305.
 The customary service requiring resident physician to work for 24 hours a day violates the limitations
prescribed by Article 83 and would not be permissible even if the resident physicians were paid
additional compensation. It cannot override the purpose of the limitation which is to safeguard the
health and interest of hospital workers. However, the forty-hour week will not apply if there is a
training agreement between the resident physician and the hospital, and the training program is duly
accredited or approved by appropriate government agency. In such case there is no employer-
employee relationship on the account of the approved training program. (Book III, Rule X, Sec 15)
WEEKLY REST DAY:

Art. 91. RIGHT TO WEEKLY REST DAY – (a) It shall be the duty of every employer, whether operating for
profit or not, to provide each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days.
(b) The employer shall determine and schedule the weekly rest day of his employees subject to
collective bargaining agreement and to such rules and regulations as the Secretary of Labor may provide.
However, the employer shall respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds.
(to accommodate members of the 7th day Adventists and others)
Rule III, Book III
Section 2. Business on Sundays/Holidays.-All establishments and enterprises may operate or open for
business on Sundays and Holidays provided that the employees are given the weekly rest day and the
benefits due them under the law.
 The rest day need not be a Sunday, because the Blue Sunday Law no longer finds application in the
present.
Section 3. Weekly Rest Day.-Every employer shall give his employees a rest period of not less than 24
hours after every 6 consecutive normal work days.
Sec. 4. Preference of employee. — The preference of the employee as to his weekly day of rest shall
be respected by the employer if the same is based on religious grounds. The employee shall make
known his preference to the employer in writing at least seven (7) days before the desired effectivity of
the initial rest day so preferred.
Where, however, the choice of the employees as to their rest day based on religious grounds will inevitably
result in serious prejudice or obstruction to the operations of the undertaking and the employer cannot
normally be expected to resort to other remedial measures, the employer may so schedule the
weekly rest day of their choice for at least two (2) days in a month.
Q: What happens on the seventh day?

A: It becomes the rest day. It is mandatory on the part of the employer because it is provided for under
Article 91. That is how we arrive at a 48-hour work week.
Q: Will the seventh day be considered always and at all times the rest day?
A: YES.
Q: Does the LC tell us what specific day of the week will the employees rest day be?
A: NO.
 Of course, under the BLUE SUNDAY LAW, the employees’ rest day was imposed every Sunday. But
when the Labor Code took effect in 1974, it gave more flexibility on the part of the employer to
determine what rest day will be best for his business. There are certain types of establishments that
derive more money during Sundays and Saturdays. Example: Malls, Department Stores. And on the
other hand, there may be some establishments that are not productive during Sundays. In those
establishments, it will be possible to schedule the employees’ rest day on days other than Sunday.
 The employer has the prerogative to determine the employee’s rest day. When it does, the employer
can change the employees’ rest day only after giving a NOTICE, and the change will take effect 1 week
after such notice.
(a) The employer has to notify the employees of any change in the rest day.
(b) The change will have to take effect at least 7 days after the change of schedule.
This is so as not to cause inconvenience on the part of the employees who may expect to be
enjoying their rest day on a particular day. If the employer decides to change it because that is his
prerogative, he still has to inform his employees of the change in advance.
Q: The choice of rest day rests upon the employer, is there an instance when the employer will have to
give some deference to the employees’ choice of their rest day?
A: YES. Under Article 91 (b), based on religious grounds. The employer has to respect such employees’
preference.
(b) The employer shall determine and schedule the weekly rest day of his employees subject to
collective bargaining agreement and to such rules and regulations the SOLE may provide. However,
the employer shall respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds.
EXCEPTION TO THE EXCEPTION
Under the implementing rules, when it will cause serious obstruction or prejudice to the operations or
undertaking of the employer, the employer shall schedule the rest day of their choice for at least 2 days
in a month.
 But of course, customarily in the Philippines, the employer gives respect to the employees’ choice of
rest day if the same is based on religious grounds.
DOES THE 6 CONSECUTIVE DAYS WORKWEEK APPLY TO ALL EMPLOYERS OR EMPLOYEES?
NO, it does not apply to:
(a) Health personnel in cities or municipalities with a population of 1 million or

(b) Hospitals with a bed capacity of at least 100.
 The population requirement and the bed capacity need not go together. They are to be taken
separately.
 Remember that the bed capacity is not required to be occupied as long as the requirement of at least
a hundred is met OR you belong in a municipality or city with at least 1 million in population.
 In this case, the normal workweek consists of 5 consecutive workdays. In effect, the rest day consists
of 2 days. The law does not tell us the specific days when the rest days will fall. They have 40-hour
workweek and they will enjoy 2 rest days. This is due to the nature of their job or activities involving
more strenuous type of work compared to other establishments.
HEALTH PERSONNEL – shall include:
(a) Resident physicians,

(b) Nurses,
(c) Nutritionists,
(d) Dietitians,
(e) Pharmacists,
(f) Social workers,
(g) Laboratory technicians,
(h) Paramedical technicians,
(i) Psychologists,
(j) Midwives,
(k) Attendants, and
(l) All other hospital or clinic personnel.
Policy Instruction No. 54

[issued by Franklin Drilon]
It says in effect that those health personnel will have to be considered paid 7 days a week. Is this
valid?
NO, this was held to be void in the case of San Juan de Dios Hospital Employees Association vs. NLRC, GR
126383 (November, 28, 1997). This is because it contravenes the LC because the LC does not say that
these 2 days off shall be paid, but rather, it only says that there will be 30% which will be added to the
regular wage if they work on the 6th day.
The LC does not give them a full 7 days with pay but rather, only additional compensation.
San Juan de Dios Hospital Employees Association vs. NLRC
G.R. No. 126383 November, 28, 1997
A cursory reading of Article 83 of the Labor Code betrays petitioners’ position that “hospital employees”
are entitled to “a full weekly salary with paid 2 days’ off if they have completed the 40-hour/5day
workweek.
”What Article 83 merely provides are:
(1) The regular office hours of 8 hours a day, 5 days a week for health personnel; and
(2) Where the exigencies of service require that health personnel work for 6 days or 48 hours, then
such health personnel shall be entitled to an additional compensation of at least 30% of their
regular wage for work on the sixth day.
There is nothing in the law that supports then SOLE’s assertion that “personnel in subject hospitals and
clinics are entitled to a full weekly wage for 7 days if they have completed the 40-hour/5-day workweek
in any given workweek.” Needless to say, the SOLE exceeded his authority by including a 2 days off with
pay in contravention of the clear mandate of the statute. Such an act the Court shall not countenance.
Administrative interpretation of the law, we reiterate, is at best merely advisory, and the Court will not
hesitate to strike down an administrative interpretation that deviates from the provision of the statute.
Policy Instruction 54 to our mind unduly extended the statute. It being inconsistent with and repugnant
to the provision of Article 83, as well as to RA 5901, PI 54 is declared VOID.
Q: Can the employees be compelled to work during rest day?

A: Article 92.
Article 92. When employer may require work on a rest day. The employer may require his employees to
work on any day:
In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake,
epidemic or other disaster or calamity to prevent loss of life and property, or imminent danger to public
safety;
In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious
loss which the employer would otherwise suffer;
In the event of abnormal pressure of work due to special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
To prevent loss or damage to perishable goods;
Where the nature of the work requires continuous operations and the stoppage of work may result in
irreparable injury or loss to the employer; and
Under other circumstances analogous or similar to the foregoing as determined by the Secretary of
Labor and Employment.
The general rule is that under normal circumstances, the employer cannot compel his employee to work
on the latter’s scheduled rest day against his will. The general rule however admits of certain exceptions,
and these are found in Article 92 of the Labor Code and Section 6 Rule III of the Omnibus Rules.
Section 6. When work on rest day authorized.-An employer may require any of his employees to work on
his scheduled rest day for the duration of the following emergencies and exceptional conditions:
1. In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic, or other disaster or calamity, to prevent loss of life or property, or in case
of force majeure or imminent danger to public safety;
2. In case of urgent work to be performed on machineries, equipment or installations to avoid
serious loss which the employer would otherwise suffer;
3. In the event of abnormal pressure or work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measures;
4. To prevent serious loss of perishable goods;
5. Where the nature of the work is such that the employees have to work continuously for 7 days in
a week or more, as in the case of the crew members of a vessel to complete a voyage and in
other similar cases;
6. When the work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
No employee shall be required against his will to work on his scheduled rest day except under the
circumstances provided. Provided, however, that where an employee volunteers to work on his rest
day under other circumstances, he shall express such desire in writing.
 If the employee works on his rest day, he is entitled to additional compensation and this is called
PREMIUM PAY. This is not the same as overtime pay. This is additional compensation for the work of
the employee for not more than 8 hours during his rest day.
METHODS OF FIXING COMPENSATION:
Art 97. DEFINITION –
(f) “Wage” paid to any employee shall mean the remuneration or earnings, however designated,
capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or
commission basis, or other method of calculating the same, which is payable by an employer to an
employee under a written contract of employment for work done or to be done, or for services rendered
or to be rendered and includes the fair and reasonable value, as determined by the Secretary of Labor, of
board, lodging and other facilities customarily furnished by the employer to the employee. “Fair and
reasonable value” shall not include any profit to the employer or to any person affiliated with the
employer.
*Facilities vs. Supplements

Facilities – include articles or services (such as board and lodging) for the benefit of the employee and
his family. But the term does not include tools of the trade or articles or services primarily for the
benefit of the employer or necessary for the conduct of the employer’s business.
- are wage deductible

- are items of expense necessary for the laborer’s and his family’s existence and subsistence,
so that by express provision of law, they form part of the wage and when furnished by the
employer are deductible therefrom, since if they are not furnished, the laborer would spend
and pay for them just the same.
Supplements – constitute extra remuneration or special privileges or benefits given to or received by the
laborers over and above their ordinary earnings or wages.
- are not wage deductible
HANDBOOK ON
WORKERS’ STATUTORY
MONETARY BENEFITS
BUREAU OF WORKING CONDITIONS
DEPARTMENT OF LABOR AND EMPLOYMENT
INTRAMUROS, MANILA
2010
3
Handbook (2010 ed.) Project Team
Lourdes M. Trasmonte
Undersecretary
Brenda L. Villafuerte
Director IV
Nicanor V. Bon
Chief - LEO
Editorial Staff
Emila T. de Guzman
Romeo J. Santos
Expectacion D. Ruivivar
This Handbook is published by
the Bureau of Working Conditions (BWC),
Department of Labor and Employment (DOLE)
3rd Floor DOLE Bldg., Intramuros, Manila
Tel. No. 527-3000 locals 301, 308
Telefax: 536-8975
email: bureauofworkingconditions@gmail.com
website: www.bwc.dole.gov.ph
A l l r ights reserved. Thi s Handbook, or any par t t hereof, may not be
reproduced for commer c i al purposes w i thout the w r i tt en permi s s i on
of the Bureau of Wor k i ng Condi t i ons, Department of Labor and
Employmen t .
Acknowledgment
Heartfelt appreciation is due the following individuals for providing us
valuable technical support in the preparation of this 2010 Edition: ARD
Alex V. Avila, ARD Joffrey M. Suyao, DOLE-NCR; Atty. Welma T.
Sicangco, NWPC, and Atty. Marissa C. Mapalo, Legal Service.
4
FOREWORD
The Handbook on Workers’ Statutory Monetary Benefits 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
standards and their applications.
This 2010 edition incorporates, among others, recent updates
on the regional wage rates, PhilHealth and social security benefits.
It also explains the use of factors or divisors in the computation of
estimated monthly rates of employees pursuant to Republic Act No.
9492, or an “Act Rationalizing the Celebration of National Holidays.”
This Handbook 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 this Handbook will be very useful for any one who wishes
to have a better understanding and appreciation of labor standards
and their applications in the world of work.
MARIANITO D. ROQUE
Secretary
4 January 2010
5
CONTENTS
1. MINIMUM WAGE
A. Coverage 2
B. Minimum Wage Rates 3
C. Basis 5
D. Monthly-Paid and Daily-Paid Employees 5
E. Computation of the Estimated Equivalent Monthly Rate 5
(EEMR) of Monthly-Paid and Daily-Paid Employees
F. Minimum Wage of Workers Paid by Results 7
G. Minimum Wage of Apprentices, Learners, and
Disabled Workers 8
H. Minimum Wage of Househelpers (RA 7655) 8
I. Effect of Reduction of Workdays on Wages 9
J. Penalty and Double Indemnity for Violation of the
Prescribed Increases or Adjustments in the Wage Rates
(RA 8188) 9
2. HOLIDAY PAY (Article 94)
A. Definition 10
B. Coverage 10
C. Regular Holidays 11
D. Muslim Holidays 12
E. Absences 13
F. Successive Regular Holidays 14
G. Temporary or Periodic Shutdown/Cessation of Work 14
H. Holiday Pay of Certain Employees 14
3. PREMIUM PAY (Articles 91-93)
A. Definition 15
B. Coverage 15
C. Special Days 16
D. Premium Pay Rates 17
4. OVERTIME PAY (Article 87)
A. Definition 18
B. Coverage 18
C. Overtime Pay Rates 18
D. Stipulated Overtime Rates 19
5. NIGHT SHIFT DIFFERENTIAL (Article 86)
A. Definition 20
B. Coverage 20
C. Computation of Night Shift Differential 21
6
6. SERVICE CHARGES (Article 96)
A. Sharing 26
B. Payments 26
C. Tips 26
7. SERVICE INCENTIVE LEAVE (Article 95)
A. Coverage 27
B. Meaning of “one year of service” 28
C. Usage/Conversion to Cash 28
8. MATERNITY LEAVE (RA 1161, as amended by RA 8282)
A. Coverage 29
B. Entitlement 29
9. PATERNITY LEAVE (RA 8187)
A. Coverage 30
B. The Paternity Leave Benefit 30
C. Conditions for Entitlement 30
D. Application for Paternity Leave 31
E. Nonconversion to Cash 31
F. Crediting of Existing Benefits 31
10. PARENTAL LEAVE FOR SOLO PARENTS (RA 8972)
A. Coverage 32
B. Definition of Terms 32
C. The Parental Leave Benefit 33
D. Conditions for Entitlement 33
E. Nonconversion to Cash 33
F. Crediting of Existing Leave 33
G. Termination of the Benefit 34
H. Protection Against Work Discrimination 34
11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN
AND THEIR CHILDREN (RA 9262)
A. Definition 35
B. Coverage and Purpose 35
C. Requirement for Entitlement 35
D. The Benefit 36
E. Usage of the Benefit 36
12. THIRTEENTH-MONTH PAY (PD 851)
A. Coverage 37
B. Definition of Rank-and-File Employees 37
C. Minimum Amount 37
D. Exempted Employers 38
E. Time of Payment of Thirteenth-Month Pay 38
7
F. Thirteenth-Month Pay for Certain Types of Employees 39
G. Thirteenth-Month Pay of Resigned
or Separated Employee 39
H. Non-inclusion in Regular Wage 40
13. SEPARATION PAY (Articles 283-84)
A. One-Half Month Pay per Year of Service 41
B. One-Month Pay per Year of Service 42
C. Notice of Termination 42
D. Basis of Separation Pay 42
E. Inclusion of Regular Allowance in the Computation 42
14. RETIREMENT PAY (Article 287, as amended by RA 7641)
A. Coverage 43
B. Amount of Retirement Pay 43
C. Retirement Benefits under a Collective Bargaining
Agreement / Applicable Contract 44
D. Retirement Benefits of Workers who are Paid by Results 44
E. Retirement Benefit of Part-time Workers 44
F. Retirement Benefit of Underground Mine Employees
under Republic Act 8558 45
G. Other Benefits upon Retirement 45
15. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION
PROGRAM (PD 626)
A. The Employees’ Compensation Program 46
B. Coverage 46
C. The Benefits 46
D. Kinds of Disability 47
E. Filing of Claims 47
F. Obligations/Responsibilities of Employers 48
16. PHILHEALTH BENEFITS (RA 7875, as amended by RA 9241)
A. The National Health Insurance Program 49
B. Coverage 49
C. The Benefits 50
17. SOCIAL SECURITY BENEFITS (RA 1161, as amended by
RA 8282)
A. The Social Security Program 54
B. Coverage 54
C. The Benefits 54
APPENDIX Directory of DOLE Regional Offices 57
Directory of DOLE-NCR Field Offices 58
The Bureau of Working Conditions 59
8
1
MINIMUM WAGE
Republic Act No. 6727 (also known as the “Wage Rationalization
Act”) mandates the fixing of the minimum wages applicable to
different industrial sectors, namely, non-agriculture, agriculture
plantation, and nonplantation, cottage/handicraft, and retail/service,
depending on the number of workers or capitalization or annual
gross sales in some sectors.
The Rules Implementing RA 6727 define the industrial sectors as
follows:
“Agriculture” refers to farming in all its branches and, among
others, includes the cultivation and tillage of the soil,
production, cultivation, growing and harvesting of any
agricultural or horticultural commodities, dairying, raising of
livestock or poultry, the culture of fish and other aquatic
products in farms or ponds, and any activities performed by a
farmer or on a farm as an incident to or in conjunction with
such farming operations, but does not include the
manufacturing and/or processing of sugar, coconut, abaca,
tobacco, pineapple, aquatic or other farm products.
“Plantation Agricultural Enterprise” is one engaged in
agriculture with an area of more than 24 hectares in a locality
or which employs at least 20 workers. Any other agricultural
enterprise shall be considered as “Non-plantation Agricultural
Enterprise.”
“Retail Establishment” is one principally engaged in the sale of
goods to end-users for personal or household use.
“Service Establishment” is one principally engaged in the sale
of service to individuals for their own or household use and is
generally recognized as such.
“Cottage/Handicraft Establishment” is one engaged in an
economic endeavor in which the products are primarily done in
the home or such other places for profit which requires manual
dexterity and craftsmanship and whose capitalization does not
9
exceed P500,000.00, regardless of previous registration with
the defunct NACIDA.
The said law rationalized wage determination by establishing the
mechanism and proper standards through the creation of Regional
Tripartite Wages and Productivity Boards (RTWPBs) authorized to
determine the daily minimum wage rates in the following different
regions based on established criteria:
National Capital Region (NCR) or Metro Manila
Cordillera Administrative Region (CAR)
Region 1 - Northern Luzon or Ilocos
Region 2 - Cagayan Valley
Region 3 - Central Luzon
Region 4-A - CALABARZON (Cavite, Laguna, Batangas,
Rizal, Quezon)
Region 4-B - MIMAROPA (Mindoro, Marinduque, Romblon,
Palawan)
Region 5 - Bicol
Region 6 - Western Visayas
Region 7 - Central Visayas
Region 8 - Eastern Visayas
Region 9 - Western Mindanao or Zamboanga Peninsula
Region 10 - Northern Mindanao
Region 11 - Southern Mindanao or Davao
Region 12 - Central Mindanao or SOCCSKSARGEN (South
Cotabato, North Cotabato, Sultan Kudarat,
- Sarangani, General Santos)
Region 13 - Caraga
Autonomous Region in Muslim Mindanao (ARMM).
The Regional Wage Orders prescribe the daily minimum wage
rates per industry per locality within the region and in some
instances depending on the number of workers and the
capitalization of enterprises. The Wage Orders likewise provide the
basis and procedure for application for exemption from compliance
therefrom. Some Wage Orders grant allowances instead of wage
increases.
A. Coverage
A.1 The wage increases prescribed under Wage Orders apply to
all private sector workers and employees receiving the daily
minimum wage rates or those receiving up to a certain daily wage
ceiling, where applicable, regardless of their position, designation,
10
or status, and irrespective of the method by which their wages are
paid, except the following:
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. Minimum Wage Rates
DAILY MINIMUM WAGE
National Capital Region
As of January 2010
Cities/Municipality
Caloocan, Las Piñas, 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.
b Effectivity date is on 14 June 2008.
c Integration of P5.00 COLA into the basic wage on 28 August 2008.
11
CURRENT REGIONAL DAILY MINIMUM WAGE RATES
(As of January 2010)*
Region WO No./Date of Effect ivi t y Non-agricul ture
Agricul ture
Plantat ion Nonplantation
NCR a/ WO 14/14 Jun 2008 382.00 345.00 345.00
CAR b/ WO 13/16 Jun 2008 243.00 - 260.00 226.00 - 242.00 226.00 - 242.00
1 c/ WO 13/22 Jun 2008 220.00 - 240.00 220.00 195.00
2 d/ WO 13/15 Jun 2008 227.00 - 235.00 215.00 - 223.00 215.00 - 223.00
3 e/ WO 14/16 Jun 2008 251.00 - 302.00 236.00 - 272.00 216.00 - 256.00
4-A f/ WO 13/1 Jun 2008 236.00 - 320.00 216.00 - 295.00 196.00 - 275.00
4-B g/ WO 4/19 Jun 2008 240.00 - 252.00 198.00 - 207.00 178.00 - 187.00
5 h/ WO 13/1 July 2008 196.00 - 239.00 207.00 - 217.00 187.00 - 197.00
6 i / WO 16/6 July 2008 208.00 - 250.00 218.00 208.00
7 j/ WO 14/16 Jun 2008 222.00 - 267.00 202.00 - 249.00 202.00 - 249.00
8 k / WO 15/16 Jun 2008 238.00 219.00 219.00
9 l / WO 15/3 July 2008 240.00 215.00 195.00
10 m/ WO 14/1 Jun 2008 241.00 - 256.00 229.00 - 244.00 229.00 - 244.00
11 n / WO 15/16 Jun 2008 265.00 255.00 255.00
12 o / WO 15/16 Jun 2008 245.00 225.00 220.00
CARAGA p/ WO 9 /20 Jun 2008 233.00 223.00 203.00
ARMM q/ WO 11/ Jul y 2008 210.00 210.00 210.00
a / G ranted a P20/day co n s i s t ing o f P15 basic wage & P5 COLA/day. The COLA sha l l be i n tegrated i
n t o the basic wage o n
28 August 2008.
b / Grant ed P10 & 15 COLA/day depending on the area and i n d ustry c lassi f i cat ion.
c/ Granted P10 COLA/ day.
d / Grant ed P12 basic wage/day a nd in tegrated P8 COLA under WO No. RTWPB-I I -09 i n t o the basi c
wage.
e / Grant ed P15/day co nsis t ing o f P5 bas ic wage & P10 COLA; integrated the P9 COLA under WO No.
RB I I I - 1 3 into the basi c
wage.
f / Granted P12-20 wage/day a s fol lows: P16-20 (Growth Cor r idor Area) , P14 ( Emerging Growth
Area) , P12 (Resource-Based Area) .
g / Grant ed P10 wage/day t o a ll minimum wage workers & P5 COLA to non-agr icu l ture se cto r o nly.
h / Grant ed P13 COLA/ day, the P6 f rom P13 COLA sh a l l be integrat e d into the basic wage on 1
January 2009.
i / G ranted P15 Emergency Rel ief Al l o wance (ERA) /day unt i l 15 October 2008.
j / G ranted P17 wage/day.
k/ Granted P10 COLA/ day.
l / G ranted P15 wage/day consi s t ing o f P5 basic wage and P10 COLA f o r a per i od of three months;
ther eafter , P5 out o f the
P20 COLA under WO No. IX-14 sh a l l b e integrated i n t o the bas ic wage.
m/ Grant ed P12 COLA & integr ated the P16 COLA under WO No. RX-12 i n t o the basi c wage. The P10
COLA under WO No. RX-13
sh a l l be integrated i n t o the bas ic wage on 16 November 2008.
n / G ranted P15 COLA & integr ated the P16 COLA under WO No. RTWPB XI-13 i n t o the bas i c wage.
The P10 COLA under WO No.
RX-14 shal l be i n tegrat e d into the basic wage on 16 September 2008.
o / G ranted P7-10.5 0 wage/day & P3-5 COLA/day, depending on the industry c las s i f ication.
p / G ranted P13/day co nsist i ng of P8 basic wage & P5 COLA.
q / G ranted P10 wage/day.
*For updates on the amount of appl icable minimum wage rates and/or a l lowances, pls. contact the
National Wages and
Product i v i ty Commission (NWPC) located at 11/F, G. E. Antonino Bldg., J. Bocobo St . cor T. M. Kal
aw S t ., Ermi ta, Mani la
Telefax: 627-5155 and 400-6765, or your Regional Tripart i te Wages and Product i v ity Board (RTWPB)
. Pls. also vi si t
www.nwpc.gov.ph
12
C. Basis
The basis of the minimum wage rates prescribed by law shall be
the normal working hours of eight (8) hours a day.
D. Monthly-Paid Employees and Daily-Paid Employees
Monthly-paid employees are those who are paid every day of the
month, including unworked rest days, special days, and regular
holidays.
Daily-paid employees are those who are paid on the days they
actually worked and on unworked regular holidays.
E. Computation of the Estimated Equivalent Monthly Rate
(EEMR) of Monthly-Paid and Daily-Paid Employees
For monthly-paid employees:
Factor 365 days in a year is used in determining the equivalent
annual and monthly salary of monthly-paid employees. To compute
their Estimated Equivalent Monthly Rate (EEMR), the procedure is
as follows:
Applicable Daily Rate x 365 = EEMR
12
where 365 days/year = 299 ordinary working days
52 rest days1
11 regular holidays
3 special days
____
365 Total equivalent no. of days in a year
1For 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
holiday previously observed on the last Sunday of August, will now be observed
on the last Monday of August.
13
For daily-paid employees:
The following factors and formula may be used in computing the
EEMR of different groups of daily-paid employees for purposes of
entitlement to minimum wages and allied benefits under existing
laws.
1. For those who are required to work everyday, including
Sundays or rest days, special days, and regular holidays
Applicable Daily Rate x 392.50 = EEMR
12
where 392.50 days/year = 299 ordinary working days
22 eleven regular holidays x 200%
67.60 52 rest days x 130%
3.90 three (3) special days x 130%
______
392.50 Total equivalent number
of days in a year
2. For those who do not work and are not considered paid on
Sundays or rest days
12
11 regular holidays
3 special days (if considered paid; if
actually worked, this is equivalent
to 3.9 days)
____
313 Total equivalent number of days
in a year2
3. For those who do not work and are not considered paid on
Saturdays and Sundays or rest days
2Factor 310 may be used instead of 313, if the two (2) special days under EO
203 and one (1) special day under RA 9256 are not considered paid.
14
12
11 regular holidays
3 special days (if considered
paid; if actually worked, this
is equivalent to 3.9 days)
____
261 Total equivalent number
of days in a year3
F. Minimum Wage of Workers Paid by Results
All workers paid by results, including homeworkers and those who
are paid on piece rate, takay, pakyaw, or task basis, shall receive
not less than the prescribed minimum wage rates under the
Regional Wage Orders for normal working hours which shall not
exceed eight (8) hours a day, or a proportion thereof.
The wage rates of workers who are paid by results shall continue
to be established in accordance with Article 101 of the Labor Code
of the Philippines, as amended, and its implementing regulations.
This will be done through:
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.
3Factor 258 may be used if the two (2) special days under EO 203 and one (1)
special day under RA 9256 (Ninoy Aquino Day) are not worked and not
considered paid.
15
The adjustment in the wage rates by reason of mandatory wage
increase for workers paid by results shall be computed in
accordance with the following steps:
1. Amount of increase in Applicable Minimum Wage (AMW)
rate ÷ Previous AMW x 100 = % increase
3. Existing rate/piece x % increase = Increase in rate/piece
4. Existing rate/piece + increase in rate/piece = Adjusted
rate/piece
G. Minimum Wage of Apprentices, Learners, and Disabled
Workers
Wages of apprentices and learners shall in no case be less than
seventy-five percent (75%) of the applicable minimum wage rates.
Apprentices and learners are those who are covered by
apprenticeship and learnership agreements duly approved by the
Technical Education and Skills 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 benefits or allowances as a qualified able
bodied person (Sec. 5 of RA 7277 or the Magna Carta for Disabled
Persons).
H. Minimum Wage of Househelpers (RA 7655)
The minimum compensation of eight hundred pesos (P800.00) a
month is required for househelpers in the cities of Caloocan, Las
Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina,
Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon, San Juan,
Taguig, Valenzuela, and in the municipality of Pateros.
Meanwhile, a compensation of six hundred fifty pesos (P650.00)
a month is required for househelpers in other chartered cities—cities
other than Manila, Pasay, Quezon, and Caloocan—highly urbanized
cities, and first-class municipalities.
On the other hand, a compensation of five hundred fifty pesos
(P550.00) a month is required for househelpers in other
municipalities.
Househelpers who are receiving at least one thousand pesos
(P1,000.00) a month shall be covered by the Social Security System
and shall be entitled to all the benefits provided therein.
16
Employers shall review the employment contracts of their
househelpers every three (3) years with the end in view of improving
the terms and conditions thereof.
I. Effect of Reduction of Workdays on Wages
In situations where the employer has to reduce the number of
regular working days to prevent serious losses, such as when there
is a substantial slump in the demand for his/her goods or services or
when there is lack of raw materials, the employer may deduct the
wages corresponding to the days taken off from the workweek,
consistent with the principle of “no work, no pay.” This is without
prejudice to an agreement or company policy which provides
otherwise.
J. Penalty and Double Indemnity for Violation of the Prescribed
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 (P25,000.00) nor more than One Hundred Thousand Pesos
(P100,000.00) or imprisonment of not less than two (2) years nor
more than four (4) years, or both such fine and imprisonment at the
discretion of the court: Provided, That any person convicted hereof
shall not be entitled to the benefits provided for under the Probation
Law.
The employer concerned shall be ordered to pay an amount
equivalent to double the unpaid benefits owing to the employees:
Provided, That payment of indemnity shall not absolve the employer
from the criminal liability imposable hereof.
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 entity’s responsible
officers, including, but not limited to, the president, vice-president,
chief executive officer, general manager, managing director or
partner.
17
2
HOLIDAY PAY
(Article 94)
A. Definition
Holiday pay refers to the payment of the regular daily wage for
any unworked regular holiday.
B. Coverage
This benefit applies to all employees except:
1. Government employees, whether employed by the National
Government or any of its political subdivisions, including those
employed in government-owned and/or controlled corporations
with original charters or created under special laws;
2. Those of retail and service establishments regularly employing
less than ten (10) workers;
3. Househelpers and persons in the personal service of another;
4. Managerial employees, if they meet all of the following
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 They customarily and regularly direct the work of two or
more employees therein;
4.3 They have the authority to hire or fire other employees
of lower rank; or their suggestions and
recommendations as to hiring, firing, and promotion, or
any other change of status of other employees are
given particular weight.
5. Officers or members of a managerial staff, if they perform the
following duties and responsibilities:
5.1 Primarily perform work directly related to management
policies of their employer;
5.2 Customarily and regularly exercise discretion and
independent judgment;
5.3 (a) Regularly and directly assist a proprietor or
managerial employee in the management of the
establishment or subdivision thereof in which he or she
is employed; or (b) execute, under general supervision,
work along specialized or technical lines requiring
18
special training, experience, or knowledge; or (c)
execute, under general supervision, special
assignments and tasks; and
5.4 Do not devote more than twenty percent (20%) of their
hours worked in a workweek to activities which are not
directly and closely related to the performance of the
work described in paragraphs 5.1, 5.2, and 5.3 above.
6. Field personnel and other employees whose time and
performance is unsupervised by the employer, including
those who are engaged on task or contract basis, purely
commission basis or those who are paid a fixed amount for
performing work irrespective of the time consumed in the
performance thereof.
C. Regular Holidays
Every employee covered by the Holiday Pay Rule is entitled to
his/her daily basic wage. This means that the employee is entitled
to at least 100% of his/her basic wage even if he/she did not report
for work, provided he/she is present or is on leave of absence with
pay on the work day immediately preceding the holiday.
Work performed on that day merits at least twice (200%) the
basic wage of the employee.
Illustration: Using the NCR minimum wage rate of P382.00 per day
for the non-agricultural sector, effective 28 August 2008 under Wage
Order No. NCR-14.
For work within eight (8) hours:
Plus 100% of the daily basic rate of 100% or a total of 200%
P382.00 + 100% thereof = P382.00 + P382.00 = P764.00 .00
or
200% of P382.00 = 2.00 x P382.00 = P764.00
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 employee’s regular holiday rate of 200% or a total of at
least 260% (Please see 3. Premium Pay).
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
Executive Order No. 292, as amended by Republic Act 9492:
New Year’s Day January 1
Maundy Thursday Movable Date
Good Friday Movable Date
Araw ng Kagitingan Monday nearest April 9
Labor Day Monday nearest May 1
Independence Day Monday nearest June 12
National Heroes’ Day Last Monday of August
Eidl Fitr Movable Date
Bonifacio Day Monday nearest November 30
Christmas Day December 25
Rizal Day Monday nearest December 30
When Araw ng Kagitingan falls on the same day as Maundy
Thursday or Good Friday, a covered employee is entitled to at least
two hundred percent (200%) of his/her basic wage even if said day
is unworked. Where the employee is required to work on that day,
he/she is entitled to an additional 100% of the basic wage.
D. Muslim Holidays
Presidential Decree No. 1083 (Code of Muslim Personal Laws of
the Philippines), as amended, recognizes the four (4) Muslim
holidays, namely:
1. ‘Ămun Jadid (New Year), which falls on the first day of the
lunar month of Muharram;
2. Maulid-un-Nabi (Birthday of the Prophet Muhammad), which
falls on the twelfth day of the third lunar month of Rabi-ul-
Awwal;
3. Lailatul Isrā Wal Mi’rāj (Nocturnal Journey and Ascension of
the Prophet Muhammad), which falls on the twenty-seventh
day of the seventh lunar month of Rajab;
4. ‘Īd-ul-Adhā (Hari Raha Haji), which falls on the tenth day of
the twelfth lunar month of Dhū’l-Hijja.
These official holidays shall be observed in the provinces of
Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North
Cotabato, Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte
and Zamboanga del Sur and in the cities of Cotabato, Iligan,
20
Marawi, Pagadian, and Zamboanga, and in such other Muslim
provinces and cities as may be created by law. Upon proclamation
by the President of the Philippines, Muslim holidays may also be
officially observed in other provinces and cities.
The dates of Muslim holidays shall be determined by the Office of
the President of the Philippines in accordance with the Muslim Lunar
Calendar (Hijra).
Presidential Proclamation No. 1198 (26 October 1973) provides:
“All private corporations, offices, agencies and entities or
establishments 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 during the observance of the Muslim
holidays as recognized by law without diminution or loss of
wages during the said period xxx.”
Considering that all private corporations, offices, agencies, and
entities or establishments operating within the designated Muslim
provinces and cities are required to observe Muslim holidays, both
Muslims and Christians working within the Muslim areas may not
report for work on the days designated by law as Muslim holidays.
E. Absences
1. All covered employees shall be entitled to holiday pay when
they are on leave of absence with pay on the workday
immediately preceding the regular holiday. Employees who are
on leave of absence without pay on the day immediately
preceding a regular holiday may not be paid the required
holiday pay if they do not work on such regular holiday.
2. Employers shall grant the same percentage of the holiday pay
as the benefit granted by competent authority in the form of
employee’s compensation or social security payment,
whichever is higher, if the employees are not reporting for
work while on such leave benefits.
3. Where the day immediately preceding the holiday is a nonwork
day in the 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
the holiday pay if he/she worked on the day immediately
preceding the nonwork day or rest day.
F. Successive Regular Holidays
Where there are two (2) successive regular holidays, like Maundy
Thursday and Good Friday, an employee may not be paid for both
holidays if he/she absents himself/herself from work on the day
immediately preceding the first holiday, unless he/she works on the
first holiday, in which case he/she is entitled to his/her holiday pay
on the second holiday.
G. Temporary or Periodic Shutdown/Cessation of Work
In cases of temporary or periodic shutdown and temporary
cessation of work of an establishment, as when a yearly inventory or
when the repair or cleaning of machineries and equipment is
undertaken, the regular holidays falling within the period shall be
compensated in accordance with the Rules Implementing the Labor
Code, as amended.
H. Holiday Pay of Certain Employees
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 work days preceding the
regular holiday; provided, however, that in no case shall the
holiday pay be less than the applicable statutory minimum
wage rate.
2. Seasonal workers may not be paid the required holiday pay
during off-season when they are not at work.
3. Workers who do not have regular working days, such as
stevedores, shall be entitled to this benefit.
22
3
PREMIUM PAY
(Articles 91-93)
A. Definition
Premium pay refers to the additional compensation for work
performed within eight (8) hours on nonwork days, such as rest days
and special days.
B. Coverage
conditions:
2.2 They customarily and regularly direct the work of two
or more employees therein;
23
work described in paragraphs 3.1, 3.2, and 3.3 above.
5. Workers who are paid by results, including those who are paid
on piece rate, takay, pakyaw, or task basis, and other nontime
work, if their output rates are in accordance with the standards
prescribed in the regulations, or where such rates have been
fixed by the Secretary of Labor and Employment;
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
observed in the Philippines:
Ninoy Aquino Day Monday nearest August 21
All Saints Day November 1
Last Day of the Year December 31
The “no work, no pay” principle applies during special days and
on such other special days as may be proclaimed by the President
or by Congress.
Workers who are not required or permitted to work on special
days are not entitled to any compensation. This, however, is without
prejudice to any voluntary practice or provision in the Collective
Bargaining Agreement (CBA) providing for payment of wages and
other benefits for days declared as special days even if unworked.
On the other hand, work performed on special days merits
additional compensation of at least thirty percent (30%) of the basic
pay or a total of one hundred thirty percent (130%). Where the
employee works on a special day falling on his rest day, he/she shall
be entitled to an additional compensation of at least fifty percent
24
(50%) of his/her basic wage or a total of one hundred fifty percent
(150%).
2. Special Work Days
For work performed on a declared Special Work Day, an
employee is entitled only to his/her daily wage rate. No premium pay
is required since work performed on said day is considered work on
an ordinary workday.
D. Premium Pay Rates
The minimum statutory premium pay rates are as follows:
1. For work performed on rest days or on special days:
Plus 30% of the daily basic rate of 100% or a total of 130%.
2. For work performed on a rest day which is also a special day:
Plus 50% of the daily basic rate of 100% or a total of 150%.
3. For work performed on a regular holiday which is also the
employee’s rest day (not applicable to employees who are not
covered by the holiday-pay rule).
Plus 30% of the regular holiday rate of 200% based on his/her
daily basic wage rate or a total of 260%.
Illustration: Using P382.00 as daily basic rate (DBR)
1. P382.00 + (30% of P382.00)
P382.00 + P114.60 = P496.60
or
130% of P382.00 = 1.3 x P 382.00 = P496.60
2. P382.00 +(50% of P382.00)
P382.00 + P191.00 = P573.00
or
150% of P382.00 = 1.5 x P382.00 = P573.00
3. (200% of P382.00) + 30% (200% of P382.00)
P764.00 + .3 x (2 x P382.00)
P764.00 + (.3 x P764.00)
P764.00 + P 229.20 = P993.20
or
130% of 200% of P382.00
= 1.30 x 2 x P382.00 = P993.20
25
4
OVERTIME PAY
(Article 87)
A. Definition
Overtime pay refers to the additional compensation for work
performed beyond eight (8) hours a day.
B. Coverage
Same as those covered under 3. Premium Pay.
C. Overtime Pay Rates
The minimum overtime pay rates vary according to the day the
overtime work is performed, as follows:
1. For work in excess of eight (8) hours performed on ordinary
working days: Plus 25% of the hourly rate.
2. For work in excess of eight (8) hours performed on a
scheduled rest day, a special day, and a regular holiday: Plus
30% of the hourly rate on said days.
Illustration: Using P382.00 as basic daily rate and P47.75 as basic
hourly rate.
1. Overtime pay on an ordinary day
P47.75 +(25% of P47.75) = P47.75 + (0.25 x P47.75)
P47.75 + P11.93 = P59.68 OT/hour
or
125% of P47.75 = 1.25 x P47.75 = P59.68 OT/hour
2. Overtime pay on rest day or on special day
130% of P47.75 + 30% of (130% of P47.75)
P62.07 + P18.62 = P80.69 OT/hr.
or
26
130% of (130% of P47.75) = 1.3 x (1.3 x P47.75)
= 1.3 x P62.07 = P80.69 OT/hr.
3. Overtime pay on a rest day which falls on a special day
150% of P47.75 + 30% of (150% of P47.75)
P71.62 + P21.48 = P93.10 OT/hour
or
130% of (150% of P47.75) = 1.3 x (1.5 x P47.75)
= 1.3 x P71.62 = P93.10 OT/hour
4. Overtime pay on a regular holiday
200% of P47.75 + 30% of (200% of P47.75)
= P95.50/hr + P28.65 = P124.15 OT/hour
or
130% of (200% of P47.75) = 1.3 x (2.0 x P47.75)
= 1.3 x P95.50 = P124.15 OT/hour
5. Overtime pay on a rest day which falls on a regular holiday
260% of P47.75 + 30% of (260% of P47.75)
= P124.15/hr + P37.24 = P161.39 OT/hour
or
130% of (260% of P47.75) = 1.3 x (2.6 x P47.75)
= 1.3 x P124.15 = P161.39 OT/hour
D. Stipulated Overtime Rates
Generally, the premium pay for work performed on rest days,
special days, or regular holidays is included as part of the regular
rate of the employee in the computation of overtime pay for overtime
work rendered on said days, especially if the employer pays only the
minimum overtime rates prescribed by law.
The employees and employer, however, may stipulate in their
collective agreement the payment for overtime work at rates higher
than those provided by law.
27
5
NIGHT SHIFT DIFFERENTIAL
(Article 86)
A. Definition
Night Shift Differential (NSD) refers to the additional
compensation of ten percent (10%) of an employee’s regular wage
for each hour of work performed between 10 p.m. and 6 a.m.
B. Coverage
2. Househelpers and persons in the personal service of
another;
conditions:
28
work described in paragraphs 4.1, 4.2, and 4.3 above;
5. Field personnel and those whose time and performance are
unsupervised by the employer.
C. Computation of Night Shift Differential
The table below may be used to guide computations:
Work on: Pay equals x P47.75 8 Hours
(hourly rate)
Regular day 100% or 1 P47.75 P382.00
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 night shift pay, using P47.75 as the basic hourly rate
(P382.00 divided by 8):
1. Work on regular days
1) Night shift is from 10 p.m. to 6 a.m.
Work from 10 p.m. to 6 a.m. = P47.75 x 1.1 = P52.52 per hour
Night shift pay = P52.525 x 8 = P420.20
Overtime after 6 a.m. = P47.75 x 1.375 = P65.66 per hour
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
Work from 6 a.m. to 8 a.m. = P47.75 per hour
Night shift pay = (P52.52 x 6) + (P47.75 x 2) = P410.65
3) Work shift is from 4 p.m. to 12 midnight
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 = (P47.75 x 6) + (P52.52 x 2) = P391.55
4) Work shift is from 8 a.m. to 5 p.m. (with one-hour meal
break), with overtime until midnight
Work from 8 a.m. to 5 p.m. = P47.75 per hour
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 (nights-off)
Night shift employees are entitled to a weekly night-off (usually
Saturday evening) or a weekly rest period of twenty-four (24) hours
beginning at the start of the night shift. This period may be called
their “rest day” or night-off.
1) Night shift is between 10 p.m. and 6 a.m.; work rendered on
a rest day (night-off)
Work from 10 p.m. to 6 a.m. = P47.75 x 1.43 = P68.28 per hour
Night shift pay = P546.26
Overtime after 6 a.m. = P47.75 x 1.69 = P80.70 per hour
30
2) Work shift is from 12 mn. to 8 a.m.; work rendered on a rest
day (night-off)
Work from 6 a.m. to 8 a.m. = P47.75 x 1.3 = P62.08 per hour
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 shift pay = P62.08 x 6 + P68.28 x 2 = P509.02
4) Work shift is from 8 a.m. to 5 p.m. [with one-hour meal
break]; work rendered on 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 10 p.m. to 12 mn. = P47.75 x 1.859 = P88.77 / hour
3. Work on special days
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 holidays–shall begin on the
night before a calendar day. In that case, the computations above
(for rest days) will apply.
1) Work shift is from 12 midnight to 8 a.m.; work rendered on a
special day
2) Work shift is from 4 p.m. to 12 midnight; work rendered on a
special day
31
break); work rendered on a special day, with overtime until
midnight
Overtime from 10 p.m. to 12 mn. = P47.75 x 1.859 = P88.77 per hour
4. Work on regular holidays
Holidays are reckoned as calendar days which start at midnight
and end at the next midnight. Hence, the night shift pay changes at
midnight.
1) Work shift is from 12 mn. to 8 a.m.; work rendered on a
regular holiday
Work from 6 a.m. to 8 a.m. = P47.75 x 2 = P95.50 per hour
2) Work shift is from 4 p.m. to 12 mn.; work rendered on a
regular holiday
Work from 4 p.m. to 10 p.m. = P47.75 x 2 = P95.50 per hour
break); work rendered on a regular holiday, with overtime
until midnight
Work from 8 a.m. to 5 p.m. = P47.75 x 2 = P95.50 per hour
Overtime from 10 p.m. to 12 mn. = P47.75 x 2.86 = P136.56 per hour
5. Work on special days falling on rest days
1) Work shift is from 12 mn. to 8 a.m.; work rendered on a
special day falling on a rest day (night-off)
32
2) Work shift is from 4 p.m. to 12 midnight; work rendered on a
special day falling on a rest day
break); work rendered on a special day falling on a rest
day, with overtime until midnight
6. Work on regular holidays falling on rest days
1) Night shift is from 12 mn. to 8 a.m.; work rendered on a
regular holiday falling on a rest day (night-off)
Night shift pay = (P136.56 x 6) + (P124.15 x 2) = P1,067.66
2) Work shift is from 4 p.m. to 12 mn.; work rendered on a
regular holiday falling on a rest day
Work shift pay = (P124.15 x 6) + (P136.56 x 2) = P1,018.03
break); work rendered on a regular holiday falling on a rest
day, with overtime until midnight
33
6
SERVICE CHARGES
(Article 96)
A. Sharing
All rank-and-file employees of employers collecting service
charges are entitled to an equal share in the eighty-five percent
(85%) of the total of such charges. The remaining fifteen percent
(15%) of the charges may be retained by management to answer for
losses and breakages and for distribution to managerial employees,
at the discretion of the management in the latter case. Service
charges are collected by most hotels and some restaurants,
nightclubs, cocktail lounges, among others.
B. Payments
The shares of the employees in the service charges shall be
distributed to them once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days.
Where the company stopped collecting service charges, the
average share previously enjoyed by the employees for the past
twelve (12) months immediately preceding such stoppage shall be
integrated into their basic wages.
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 customers to its employees, the
pooled tips should be monitored, accounted, and distributed in the
same manner as the service charges.
34
7
SERVICE INCENTIVE LEAVE
(Article 95)
A. Coverage
Every employee who has rendered at least one (1) year of
service is entitled to Service Incentive Leave (SIL) of five (5) days
with pay.
conditions:
35
hours worked in a workweek to activities which are
not directly and closely related to the performance of
the work described in paragraphs 4.1, 4.2, and 4.3
above;
5. Field personnel and those whose time and performance is
unsupervised by the employer;
6. Those already enjoying this benefit;
7. Those enjoying vacation leave with pay of at least five (5)
days; and
8. Those employed in establishments regularly employing less
than ten (10) employees.
B. Meaning of “one year of service”
The phrase “one year of service” of the employee means service
within twelve (12) months, whether continuous or broken, reckoned
from the date the employee started working. The period includes
authorized absences, unworked weekly rest days, and paid regular
holidays. If through individual or collective agreement, company
practice or policy, the period of the working days is less than twelve
(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
The service incentive leave may be used for sick and vacation
leave purposes. The unused service incentive leave is commutable
to its money equivalent at the end of the year. In computing, the
basis shall be the salary rate at the date of conversion.
The use and conversion of this benefit may be on a pro rata
basis.4
Illustration: An employee was hired on 1 January 2000 and
resigned on 1 March 2001. Assuming that he/she has not used or
commuted any of his/her accrued SIL, he/she is entitled to the
conversion of his/her accrued SIL, upon his/her resignation, as
follows:
SIL earned as of 31 December 2000 5 days
Proportionate SIL for January and February 2001
(2/12) x 5 days 0.833 day
Total accrued SIL as of 1 March 2001 5.833 days
4Based on the opinion of DOLE Legal Service.
36
8
MATERNITY LEAVE
(RA 1161, as amended by RA 8282)
A. Coverage
This benefit applies to all female employees, whether married or
unmarried.
B. Entitlement
Every pregnant employee in the private sector, whether married
or unmarried, is entitled to maternity leave benefit of sixty (60)
days in case of normal delivery or miscarriage, or seventy-eight
(78) days, in case of Caesarian section delivery, with benefits
equivalent to one hundred percent (100%) of the average daily
salary credit of the employee as defined under the law.
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 given the required notification to the
SSS through her employer; and her employer must have paid at
least three monthly contributions to the SSS within the twelve-month
period immediately before the date of the contingency (i.e.,
childbirth or miscarriage).
The maternity leave benefit, like other benefits granted by the
Social Security System (SSS), is granted to employees in lieu of
wages. Thus, this may not be included in computing the employee’s
thirteenth-month pay for the calendar year.
37
9
PATERNITY LEAVE
(RA 8187)
A. Coverage
Paternity Leave is granted to all married male employees in the
private sector, regardless of their employment status (e.g.,
probationary, regular, contractual, 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.
Government employees are also entitled to the paternity leave
benefit. They shall be governed by the Civil Service rules.
B. The Paternity Leave Benefit
Paternity leave benefit shall apply to the first four (4) deliveries
of the employee’s lawful wife with whom he is cohabiting. For this
purpose, “cohabiting” means the obligation of the husband and wife
to live together.
If the spouses are not physically living together because of the
workstation or occupation, the male employee is still entitled to the
paternity leave benefit.
The paternity leave shall be for seven (7) calendar days, with full
pay, consisting of basic salary and mandatory allowances fixed by
the Regional Wage Board, if any, provided that his pay shall not be
less than the mandated minimum wage.
Usage of the paternity leave shall be after the delivery, without
prejudice to an employer ’s policy of allowing the employee to avail
of the benefit before or during the delivery, provided that the total
number of days shall not be more than seven (7) calendar days for
each covered delivery.
C. Conditions for Entitlement
A married male employee shall be entitled to paternity leave
benefit provided that he has met the following conditions:
1. He is an employee at the time of the delivery of his child;
38
2. He is cohabiting with his spouse at the time that she gives
birth or suffers a miscarriage;
3. He has applied for paternity leave with his employer within a
reasonable period of time from the expected date of delivery
by his pregnant spouse, or within such period as may be
provided by company rules and regulations, or by collective
bargaining agreement; and
4. His wife has given birth or suffered a miscarriage.
D. Application for Paternity Leave
The married male employee shall apply for paternity leave with
his employer within a reasonable period of time from the expected
date of delivery by his pregnant spouse, or within such period as
may be provided by company rules and regulations, or by collective
bargaining agreement. In case of a miscarriage, prior application
for paternity leave shall not be required.
E. Nonconversion to Cash
In the event that the paternity leave is not availed of, it shall not
be convertible to cash and shall not be cumulative.
F. Crediting of Existing Benefits
1. If the existing paternity leave benefit under the collective
bargaining agreement, contract, or company policy is greater
than seven (7) calendar days as provided for in RA 8187, the
greater benefit shall prevail.
2. If the existing paternity leave benefit is less than that provided
in RA 8187, the employer shall adjust the existing benefit to
cover the difference.
Where a company policy, contract, or collective bargaining
agreement provides for an emergency or contingency leave
without specific provisions on paternity leave, the employer
shall grant to the employee seven (7) calendar days of
paternity leave.
39
10
PARENTAL LEAVE FOR SOLO PARENTS
(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
crimes against chastity;
2. Death of spouse;
3. Spouse is detained or is serving sentence for a criminal
conviction for at least one (1) year;
4. Physical and/or mental incapacity of spouse as certified by a
public medical practitioner;
5. Legal separation or de facto separation from spouse for at
least one (1) year: Provided that he/she is entrusted with the
custody of the children;
6. Declaration of nullity or annulment of marriage as decreed by
a court or by a church: Provided, that he/she is entrusted with
the custody of the children;
7. Abandonment of spouse for at least one (1) year;
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 institution;
9. Any other person who solely provides parental care and
support to a child or children: Provided, that he/she is duly
licensed as a foster parent by the Department of Social
Welfare and Development (DSWD) or duly appointed legal
guardian by the court; 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
“Parental leave” shall mean leave benefits granted to a solo
parent to enable him/her to perform parental duties and
responsibilities where physical presence is required.
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 mentallyand/
or physically-challenged.
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
less than the mandated minimum wage.
D. Conditions for Entitlement
A solo parent employee shall be entitled to the parental leave,
provided that:
1. He/she has rendered at least one (1) year of service,
whether continuous or broken;
2. He/she has notified his/her employer that he/she will avail
himself/herself of it, within a reasonable period of time; and
3. He/she has presented to his/her employer a Solo Parent
Identification Card, which may be obtained from the DSWD
office of the city or municipality where he/she resides.
E. Nonconversion to Cash
In the event that the parental leave is not availed of, it shall not
be convertible to cash, unless specifically agreed on previously.
F. Crediting of Existing Leave
If there is an existing or similar benefit under a company policy or
a collective bargaining agreement, the same shall be credited as
such. If the same is greater than the seven (7) days provided for in
RA 8972, the greater benefit shall prevail.
Emergency or contingency leave provided under a company
policy or a collective bargaining agreement shall not be credited as
compliance with the parental leave provided for under RA 8972.
41
G. Termination of the Benefit
A change in the status or circumstance of the parent claiming the
benefit under the law, such that he/she is no longer left alone with
the responsibility of parenthood, shall terminate his/her eligibility for
this benefit.
H. Protection Against Work Discrimination
No employer shall discriminate against any solo parent employee
with respect to terms and conditions of employment on account of
his/her being a solo parent.
42
11
LEAVE FOR VICTIMS OF VIOLENCE
AGAINST WOMEN
AND THEIR CHILDREN
(RA 9262)
A. Definition
“Violence against women and their children,” as used in Republic
Act 9262 (the “Anti-Violence Against Women and Their Children Act
of 2004”), “refers to any act or a series of acts committed by any
person against a woman who is his wife, former wife, or against a
woman with whom the person has or had a sexual 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, or economic abuse including
threats of such acts, battery, assault, coercion, harassment or
arbitrary deprivation of liberty.”
B. Coverage and Purpose
Private sector women employees who are victims as defined in
RA 9262 shall be entitled to the paid leave benefit under such terms
and conditions provided herein.
The leave benefit shall cover the days that the woman employee
has to attend to medical and legal concerns.
C. Requirement for Entitlement
To be entitled to the leave benefit, the only requirement is for the
victim-employee to present to her employer a certification from the
barangay chairman (Punong Barangay) or barangay councilor
(barangay kagawad) or prosecutor or the Clerk of Court, as the case
may be, that an action relative to the matter is pending.
43
D. The Benefit
In addition to other paid leaves under existing labor laws,
company policies, and/or collective bargaining agreements, the
qualified victim-employee shall be entitled to a leave of up to ten
(10) days with full pay, consisting of basic salary and mandatory
allowances fixed by the Regional Wage Board, if any.
The said leave shall be extended when the need arises, as
specified in the protection order issued by the barangay or the
court.
E. Usage of the Benefit
The usage of the ten-day leave shall be at the option of the
woman employee. In the event that the leave benefit is not availed
of, it shall not be convertible into cash and shall not be cumulative.
44
12
THIRTEENTH-MONTH PAY
(PD 851)
A. Coverage
All employers are required to pay their rank and file employees
thirteenth-month pay, regardless of the nature of their employment
and irrespective of the methods by which their wages are paid,
provided they worked for at least one (1) month during a calendar
year. The thirteenth-month pay should be given to the employees
not later than December 24 of every year.
B. Definition of Rank-and-File Employees
The Labor Code, as amended, distinguishes a rank-and-file
employee from a managerial employee. A managerial employee is
one who is vested with powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend,
layoff, recall, discharge, assign, or discipline employees, or to
effectively recommend such managerial actions. All employees not
falling within this definition are considered rank-and-file employees.
The above distinction shall be used as guide for the purpose of
determining who are rank-and-file employees entitled to the
thirteenth-month pay.
C. Minimum Amount
The thirteenth-month pay shall not be less than one-twelfth (1/12)
of the total basic salary earned by an employee in a calendar year.
The "basic salary" of an employee for the purpose of computing
the thirteenth-month pay shall include all remunerations or earnings
paid by his or her employer for services rendered. It does not
include allowances and monetary benefits which are not considered
or integrated as part of the regular or basic salary, such as the cash
equivalent of unused vacation and sick leave credits, overtime,
premium, night shift differential and holiday pay, and cost of living
allowance (COLA). However, these salary-related benefits should
be included as part of the basic salary in the computation of the
thirteenth-month pay if these are treated as part of the basic salary
45
of the employees, through individual or collective agreement,
company practice or policy.
D. Exempted Employers
The following employers are not covered by PD 851:
1. The government and any of its political subdivisions, including
government-owned and -controlled corporations, except those
corporations operating essentially as private subsidiaries of
the government;
2. Employers who are already paying their employees thirteenthmonth
pay or more in a calendar year or its equivalent at the
time of the issuance of PD 851;
3. Employers of househelpers and persons in the personal
service of another in relation to such workers; and
4. Employers of those who are paid on purely commission,
boundary or task basis, and those who are paid a fixed amount
for performing specific work, irrespective of the time consumed
in the performance thereof (except those workers who are paid
on piece-rate basis, in which case their employer shall grant
them thirteenth-month pay).
As used herein, “workers paid on piece-rate basis” shall refer to
those who are paid a standard amount for every piece or unit of
work produced that is more or less regularly replicated, without
regard to the time spent in producing the same.
The term "its equivalent" as used in item D.2 above shall include
Christmas bonus, midyear bonus, cash bonuses, and other
payments amounting to not less than one-twelfth (1/12) of the basic
salary but shall not include cash and stock dividends, cost of living
allowance, and all other allowances regularly enjoyed by the
employee, as well as nonmonetary benefits.
E. Time of Payment of Thirteenth-Month Pay
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
the employer and the recognized/collective bargaining agent of the
employees.
F. Thirteenth-Month Pay for Certain Types of Employees
1. Employees who are paid on piecework basis are entitled to
the thirteenth-month pay.
2. Employees who are paid a fixed or guaranteed wage plus
commission are also 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).
In the consolidated cases of Boie Takeda Chemicals, Inc.
vs. Dionisio de la Serna, G.R. No. 92174 December 10, 1993,
and Philippine Fuji Xerox Corporation vs. Cresenciano B.
Trajano and Philippine Fuji Xerox Employees Union, G.R. No.
102552 December 10, 1993, the Supreme Court ruled that
commissions, while included in the generic term wage, are
not part of "basic salary/wage" and therefore should not be
included in computing the thirteenth-month pay. Thus:
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
Government employees working part-time in a private
enterprise, including private educational institutions, as well
as employees working in two or more private firms, whether
on full-time or part-time basis, are entitled to the thirteenthmonth
pay from all their private employers, regardless of
their total earnings from each of their employers.
G. Thirteenth-Month Pay of Resigned or Separated Employee
An employee who has resigned or whose services are terminated
at any time before the time of payment of the thirteenth-month pay
is entitled to this monetary benefit in proportion to the length of time
he or she has worked during the year, reckoned from the time he or
47
she has started working during the calendar year up to the time of
his or her resignation or termination from the service. Thus, if he or
she worked only from January to September, his or her
proportionate thirteenth-month pay should be equal to one-twelfth
(1/12) of his or her total basic salary earned during that period.
H. Non-inclusion in Regular Wage
The mandated thirteenth-month pay need not be credited as part
of the regular wage of employees for purposes of determining
overtime and premium payments, fringe benefits, as well as
contributions to the State Insurance Fund, Social Security System,
National Health Insurance Program, and private retirement plans.
48
13
SEPARATION PAY
(Articles 283-84)
Separation pay is given to employees in instances covered by
Articles 283 and 284 of the Labor Code of the Philippines. An
employee’s 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 On the other hand, where the
termination is for authorized causes, separation pay is due.
A. One-Half (1/2) Month Pay per Year of Service
An employee is entitled to receive a separation pay equivalent to
one-half (1/2) month pay for every year of service, a fraction of at
least six (6) months being considered as one (1) whole year, if
his/her separation from the service is due to any of the following
authorized causes:
1. Retrenchment to prevent losses (i.e., reduction of personnel
effected by management to prevent losses);
2. Closure or cessation of operation of an establishment not due
to serious losses or financial reverses; and
3. When the employee is suffering from a disease not curable
within a period of six (6) months and his/her continued
employment is prejudicial to his/her health or to the health of
his/her co-employees.
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 six (6) months.
Thus, if an employee had been in the service for at least six (6)
months but less than a year, he/she is entitled to one (1) full
5The Supreme Court has ruled in certain cases that separation pay shall be
granted the workers.
49
month’s pay as his/her separation pay if his/her separation is due to
any of the causes enumerated above.
B. One-Month Pay per Year of Service
An employee is entitled to separation pay equivalent to his/her
one-month pay for every year of service, a fraction of at least six (6)
months being considered as one whole year, if his/her separation
from service is due to any of the following:
1. Installation by employer of labor-saving devices;
2. Redundancy, as when the position of the employee has been
found to be excessive or unnecessary in the operation of the
enterprise;
3. Impossible reinstatement of the employee to his or her former
position or to a substantially equivalent position for reasons
not attributable to the fault of the employer, as when the
reinstatement ordered by a competent authority cannot be
implemented due to closure or cessation of operations of the
establishment/employer, or the position to which he or she is
to be reinstated no longer exists and there is no substantially
equivalent position in the establishment to which he or she can
be assigned.6
C. Notice of Termination
The employer may terminate the employment of any employee
due to the above-mentioned authorized causes by serving a written
notice on the employee and the Department of Labor and
Employment through its regional office having jurisdiction over the
place of business at least one (1) month before the intended date
thereof.
D. Basis of Separation Pay
The computation of separation pay of an employee shall be based
on his/her latest salary rate.
E. Inclusion of Regular Allowance in the Computation
In the computation of separation pay, it would be error not to
integrate the allowance with the basic salary. The salary base
properly used in computing the separation pay should include not
just the basic salary but also the regular allowances that an
employee has been receiving.7
6Gaco vs. NLRC, et al., G.R. No. 104690, February 23, 1994.
7Planters’ Products, Inc. vs. NLRC, G.R. No. 78524, January 20, 1989.
50
14
RETIREMENT PAY
(Article 287, as amended by RA 7641)
A. Coverage
1. Employees shall be retired upon reaching the age of sixty (60)
years or more but not beyond sixty-five (65) years old [and
have served the establishment for at least five (5) years].
2. This benefit applies to all employees except:
1) government employees;
2) employees of retail, service and agricultural establishments/
operations regularly employing not more than ten
(10) employees.
B. Amount of Retirement Pay
The minimum retirement pay shall be equivalent to one-half (1/2)
month salary for every year of service, a fraction of at least six (6)
months being considered as one (1) whole year.
For the purpose of computing retirement pay, "one-half month
salary" shall include all of the following:
1. Fifteen (15) days salary based on the latest salary rate;
2. Cash equivalent of five (5) days of service incentive leave;
3. One-twelfth (1/12) of the thirteenth-month pay.
(1/12 x 365/12 = .083 x 30.41 = 2.52)
Thus, “one-half month salary” is equivalent to 22.5 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
Other benefits may be included in the computation of the
retirement pay upon agreement of the employer and the employee or
if provided in the Collective Bargaining Agreement (CBA).
51
C. Retirement Benefits under a Collective Bargaining Agreement
or Applicable Contract
Any employee may retire or be retired by his or her employer
upon reaching the retirement age established in the collective
bargaining agreement (CBA) or other applicable agreement/contract
and shall receive the retirement benefits granted therein; provided,
however, that such retirement benefits shall not be less than the
retirement pay required under RA 7641, and provided further that if
such retirement benefits under the agreement are less, the employer
shall pay the difference.
Where both the employer and the employee contribute to a
retirement fund pursuant to the applicable agreement, the
employer's total contributions and the accrued interest thereof
should not be less than the total retirement benefits to which the
employee would have been entitled had there been no such
retirement benefits’ fund. If such total portion from the employer is
less, the employer shall pay the deficiency.
D. Retirement Benefits of Workers who are Paid by Results
For covered workers who are paid by results and do not have a
fixed monthly salary rate, the basis for the determination of the
salary for fifteen (15) days shall be their average daily salary (ADS).
The ADS is derived by dividing the total salary or earnings for the
last twelve months reckoned from the date of retirement by the
number of actual working days in that particular period, provided
that the determination of rates of payment by results are in
accordance with the established regulations.
E. Retirement Benefit of Part-time Workers
Part-time workers are also entitled to retirement pay of “onemonth
salary” for every year of service under RA 7641 after
satisfying the following conditions precedent for optional retirement:
(a) there is no retirement plan between the employer and the
employee and (b) the employee should have reached the age of
sixty (60) years, and should have rendered at least five (5) years of
service with the employer.
Applying the foregoing principle, the components of retirement
benefit of part-time workers may likewise be computed at least in
proportion to the salary and related benefits due them.
52
F. Retirement Benefit of Underground Mine Employees under
Republic Act 8558
The retirement age of underground mine employees has been
reduced to a much lower age. For this purpose, an underground
mine employee refers to any person employed to extract mineral
deposits underground or to work in excavations or workings such as
shafts, winzes, tunnels, drifts, crosscuts, raises, working places
whether abandoned or in use beneath the earth’s surface for the
purpose of searching for and extracting mineral deposits.
In the absence of a retirement plan or other applicable agreement
providing for retirement benefits of underground mine employees in
the establishment, an employee may retire upon reaching the
compulsory retirement age of sixty (60) years or upon optional
retirement at the age of fifty (50) years, provided he/she has served
for at least five (5) years as an underground mine employee or in
underground mine of the establishment.
G. Other Benefits upon Retirement
The retirement benefits under RA 7641 and RA 8558 are separate
and distinct from those granted by the Social Security System.
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.
53
15
BENEFITS UNDER THE EMPLOYEES’
COMPENSATION PROGRAM
(PD 626)
A. The Employees’ Compensation Program
The Employees’ Compensation Program (ECP) is a government
program designed to provide a package of benefits for public and
private sector employees and their dependents in the event of workrelated
contingencies such as sickness, injury, disability, or death.8
B. Coverage
The ECP covers all workers in the formal sector.
Coverage in the ECP starts on the first day of employment.
Employees in the private sector who are registered members of
the Social Security System (SSS), except self-employed workers
and voluntary members of the SSS.
C. The Benefits
Loss of income benefit or a cash benefit given to a worker to
compensate for lost income due to his or her inability to work.
Medical benefits which include the reimbursement of the cost of
medicine for the illness or injury, payments to providers of medical
care, hospital care, surgical expenses, and the costs of appliances
and supplies where necessary. The medical services are limited to
ward services of an accredited hospital.
Rehabilitation services include physical therapy, vocational
training, and special assistance provided to employees who sustain
8For 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: ecc_mail@info.com.ph. Website: www.ecc.gov.ph
54
a disability as a result of sickness or injury arising out of
employment. The objective is to develop the workers’ mental,
vocational, and social potential and to help them remain as
productive members of society.
Carer’s allowance which is provided to an employee who suffers
a permanent total disability (PTD) arising out of employment the
extent of which is such that he or she could not on his or her own
attend to his or her basic personal needs.
Death benefits which are granted to beneficiaries of an
employee who dies as a result of sickness or injury arising out of
employment. When a worker on PTD status dies, his or her primary
beneficiaries shall receive eighty percent (80%) of his or her
monthly income benefit plus ten percent (10%) for every dependent
child but not exceeding five (5).
D. Kinds of Disability
There are three (3) types of loss of income benefits:
Temporary Total Disability (TTD) benefit which is given to an
employee who is unable to work for a continuous period not
exceeding 120 days.
Permanent Partial Disability (PPD) benefit which is given to a
worker who loses a body part and consequently the loss of the use
of that body part.
Permanent Total Disability (PTD) benefit which is given if the
employee’s inability to work lasts for more than 240 days. PTD
benefit can be claimed in the following cases:
1. complete loss of vision;
2. loss of two limbs at or above the ankles or wrists;
3. permanent and complete paralysis of two limbs, and
4. brain injury resulting in incurable imbecility or insanity, if
caused by work.
E. Filing of Claims
Employees can claim only for work-connected sickness, injuries,
or death.
55
Who may file: The claimant or his/her representative may file an
appropriate claim with the GSIS, in case of public sector
claimant, or with the SSS, in case of private sector claimant.
When: A claim may be filed within three (3) years from the date
of the occurrence of the contingency (i.e., sickness, injury, or
death).
How: Fill in the prescribed forms supplied by the GSIS or SSS
and attach the supporting documents required for every
contingency.
Where: A claim may be filed at any GSIS branch office, for
government employees, or at any SSS branch office, for
employees in the private sector.
Period of Appeal. The claimant shall file with the GSIS or the SSS,
as the case may be, a notice of appeal within thirty (30) calendar
days from receipt of the decision.
F. Obligations/Responsibilities of Employers
1. Contribution to the State Insurance Fund (SIF). – The
employer shall contribute in behalf of his or her employees to
the SIF, from which payments for benefits are drawn.
2. Registration. – Every employer (and every employee as well)
shall be registered with the GSIS or SSS by accomplishing the
prescribed forms.
3. Safety Devices. – The employer shall comply with health and
safety laws and shall take the necessary precautions for the
prevention of work-related disability or death.
4. Employer’s Logbook. – 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. Deprivations Clause. – No contract, regulation, or device
whatsoever shall operate to deprive the employee or his/her
dependents of any part of the ECP compensation package.
56
16
PHILHEALTH BENEFITS
A. The National Health Insurance Program
The National Health Insurance Program (NHIP), formerly known
as Medicare, is a health insurance program for SSS members and
their dependents whereby the healthy subsidize the sick who may
find themselves in need of financial assistance when they get
hospitalized.
The Philippine Health Insurance Corporation or PhilHealth is the
mandated administrator of the Medicare program (now known as
NHIP) under the National Health Insurance Act of 1995 (Republic
Act 7875).9
B. Coverage
The program covers the following:
1. Employed Members – all those employed in the
government and private sector.
2. Individually Paying Members – self-employed, overseas
Filipino workers, professionals in private practice (doctors,
lawyers, dentists, etc.)
3. Non-paying Members – the following are entitled to lifetime
coverage:
� Retirees and pensioners of the GSIS and SSS
(including permanent total disability and survivorship
pensioners of the SSS) prior to the effectivity of RA
7875 on March 4, 1995.
9For 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 637-9999. You may also visit the PhilHealth website at
http://www.philhealth.gov.ph.
57
� Members who have reached the retirement age and
have paid at least 120 monthly contributions.
Optional Retirees (under RA1616, PD 1146 or PD
1184) are not yet entitled to lifetime coverage until
they reach the age of retirement (60 years old).
4. Indigent Members – under the indigent component of the
NHIP.
C. The Benefits
A unified benefit package for all PhilHealth members is being
implemented which includes the following categories of personal
health services:
1. Inpatient hospital care:
• Room and board;
• Services of health care professionals;
• Diagnostic, laboratory, and other medical examination
services;
• Use of surgical or medical equipment and facilities;
• Prescription drugs and biologicals, subject to the limitations
stated in Section 37 of RA 7875; and
• Inpatient education packages.
2. Outpatient care:
• Services of health care professionals;
• Diagnostic, laboratory, and other medical examination
services;
• Personal preventive services;
• Prescription drugs and biologicals, subject to the
limitations described in Section 37 of RA 7875; and
• Emergency and transfer services.
58
The New PhilHealth Inpatient Benefit Schedule
Effective April 5, 2009
HOSPITAL CATEGORIES
Levels 3 & 4 Hospitals (Tertiary)
Benefit Item Case Type
ABCD
Room and Board∗ P500/day P500/day P800/day P1,100/day
Drugs and Medicines∗ ∗ P 4,200 P 14,000 P 28,000 P 40,000
X-ray, Lab. and Others** P 3,200 P 10,500 P 21,000 P 30,000
Operating Room
For procedures with RVU 30 & below = P1,200
For procedures with RVU 31 to 80 = P1,500
For procedures with RVU 81 to 600: RVU x PCF 20
(Minimum = P3,500)
Professional Fees
a. Daily visits
General Practitioner (Groups 1, 5, and 6)
Per Day P300 P400 P500 P600
Maximum per confinement P1,200 P2,400 P4,000 P6,000
Specialist (Groups 2, 3, and 4)
Per Day P500 P600 P700 P800
Maximum per confinement P2,000 P3,600 P5,600 P8,000
b. Surgery
For RVU 500 and below For RVU 501 and above
Surgeon Ane s . thesiol ogis
t
Surgeon Anesthesiologi s t
General Practitioner
First Tier
(Group 1)
RVU x PCF 40
= PF1
Max. of P3,200
40% of
surgeon’s fee
(PF1) Max. of
P1,280
RVU x PCF 40
= PF1
Max. of P3,200
40% of
surgeon’s fee
(PF1) Max. of
P1,280
With training
Second Tier
(Groups 5 and 6)
RVU x PCF 48
= PF2
48% of
surgeon’s fee
(PF1)
RVU x PCF 48
= PF2
48% of
surgeon’s fee
(PF1)
Diplomate/fellow
Third Tier
(Groups 2, 3, and 4)
RVU x PCF 56
= PF3
56% of
surgeon’s fee
(PF1)
RVU x PCF 80
= PF4
40% of
surgeon’s fee
(PF4)
∗Maximum of 45 days per year.
∗∗ per single period of confinement.
59
Level 2 Hospitals (Secondary)
Benefit Item
Case Type
ABC
Room and Board* P 400/day P 400/day P 600/day
Drugs and Medicines** P 3,360 P 11,200 P 22,400
X-ray, Laboratory and Others** P 2,240 P 7,350 P 14,700
Operating Room
For procedures with RVU 30 & below = P750
For procedures with RVU 31 to 80 = P1,200
For procedures with RVU 81 to 600
RVU x PCF 15
(Minimum = P2,200 and Maximum = P7,500)
Professional Fees
a. Daily visits
Per Day P300 P400 P500
Maximum per confinement P1,200 P2,400 P4,000
Per Day P500 P600 P700
Maximum per confinement P2,000 P3,600 P5,600
b. Surgery (for Case Types A, B and C) Surgeon Anesthesiologist
First tier
(Group 1)
RVU x PCF 40
= PF1
Maximum of P3,200
40% of surgeon’s fee
(PF1)
Maximum of P1,280
With training
Second tier
(Groups 5 and 6)
RVU x PCF 48
= PF2
(PF1)
Diplomate/fellow
Third tier
RVU x PCF 56
= PF3
(PF1)
Level 1 Hospitals (Primary)
Benefit Item Case Type
AB
Room and Board* P300/day P300/day
Drugs and Medicines** P2,700 P 9,000
X-ray, Laboratory and Others** P1,600 P 5,000
Operating Room P500
Professional Fees
a. Daily visits
Per Day P300 P400
Maximum per confinement P1,200 P2,400
60
Per Day P500 P600
Maximum per confinement P2,000 P3,600
b. Surgery (for Case Types A and B) Surgeon Anesthesiologist
First Tier
(Group 1)
RVU x PCF 40
= PF1
(PF1)
With training
Second Tier
(Groups 5 and 6)
RVU x PCF 48
= PF2
(PF1)
Diplomate/fellow
Third Tier
RVU x PCF 56
= PF3
(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 hospital’s
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 like Maternity
Care Package, SARS, Peritoneal Dialysis,
and Avian Flu.
61
17
SOCIAL SECURITY BENEFITS
A. The Social Security Program
The Social Security Program provides a package of benefits in
the event of death, disability, sickness, maternity, and old age.
Basically, the Social Security System (SSS) provides for a
replacement of income lost on account of the aforementioned
contingencies.10
B. Coverage
• A private employee, whether permanent, temporary or
provisional;
• A household helper earning at least P1,000 a month is
subject to compulsory coverage starting September 1, 1993.
C. The Benefits
C.1 Sickness
The sickness benefit is a daily cash allowance paid for the
number of days a member is unable to work due to sickness or
injury.
A member is qualified to avail himself/herself of this benefit if:
1. he/she is unable to work due to sickness or injury and is
thus confined either in the hospital or at home for at
least four days;
2. he/she has paid at least three monthly contributions
within the 12-month period immediately before the
semester of sickness;
10For 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), 917-
7777 (machine-assisted; press your SSS no. and wait for instructions) or visit
its website at www.sss.gov.ph or e-mail it at member_relations@sss.gov.ph.
62
3. he/she has used up all current company sick leaves with
pay for the current year; and
4. he/she has notified his/her employer.
The amount of an employee’s sickness benefit is computed as:
the daily sickness allowance times the approved number of days.
Effective May 24, 1997, the daily sickness allowance is 90
percent of the average daily salary credit (Section 14 of Republic
Act 8282).
C.2. Maternity (see 8. Maternity Leave)
C.3. Disability
It is a cash benefit paid to a member who becomes
permanently disabled, either partially or totally.
A member who suffers partial or total permanent disability,
with at least one (1) contribution paid to the SSS prior to the
semester of contingency, is qualified.
The complete and permanent loss of use of any of the
following parts of the body under permanent partial disability:
one thumb sight of one eye one big toe
one index finger hearing of one ear one hand
one middle finger hearing of both ears one arm
one ring finger one foot one ear
one little finger one leg both ears
The following fall under permanent total disability:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury causing insanity; and
5. Other cases as determined and approved by the SSS.
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. The lump sum amount which is granted to those who
have not paid the required 36 monthly contributions.
C.4. Retirement
63
It is a cash benefit paid to a member who can no longer work
due to old age.
A member is qualified to avail himself of this benefit if:
b. He/she is 60 years old and unemployed and has paid
at least 120 monthly contributions prior to the
semester of retirement.
b. he/she is 65 years old, whether employed or not. If
employed he/she should have paid 120 monthly
contributions prior to the semester of retirement,
whether employed or not.
The types of retirement benefits are:
a. the monthly pension, and
b. the lump sum amount.
The monthly pension is a lifetime cash benefit paid to a retiree
who has paid at least 120 monthly contributions to the SSS prior to
the semester of retirement.
The lump sum amount is granted to a retiree who has not paid
the required 120 monthly contributions.
C.5. Death & Funeral
The death benefit is a cash paid to the beneficiaries of a
deceased member.
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 member’s
record will be the recipient.
The types of death benefits are:
1. the monthly pension; and
2. the lump sum amount.
The monthly pension is granted only to the primary beneficiaries
of a deceased member who had paid 36 monthly contributions
before the semester of death.
The lump sum is the amount granted to the primary
beneficiaries of a deceased member who had paid less than 36
monthly contributions before the semester of death.
64
Directory of DOLE Regional Offices
National Capi tal Region (NCR)
DOLE-NCR Bldg . ,
967 Maligaya St. , Malate,
1004 Manil a
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 Off ices
Cordi llera Administrative Region (CAR)
Cabinet Hil ls,
2600 Baguio City
Tel . # (074) 442-2447
Tel efax : (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@digi telone.com
Region 2
Tur ingan Bldg. , Car itan Cent r o,
Tuguegarao City, 3500 Cagayan
Telephones: ( 078) 844-1364 /
844-1383 & 844-5516
Tel efax : (078) 844-1553
ad_services_ro2@yahoo.com
Region 3
SWTLC Bldg. , Regional Gov’ t Cente r ,
Maimpis, San Fernando City,
2000 Pampanga
Tel . # (045) 961-1305
Telefax : (045) 961-2195
Dolero3@mai l . irnet.net.ph
Region 4 -A CALABARZON
3/F & 4/F, Andenson Bldg. I I ,
Barangay Par ian, Calamba City,
4027 Laguna
Tel . # (049) 545-7357
Tel efax : (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@paci f ic.net.ph;
dolemimaropa@paci f ic.net .ph
Region 5
Doña Aurora St . , Old Albay,
4500 Legaspi City
Tel . # (052) 480-5831
Tel efax : (052) 820-4806
dolero5@yahoo.com
Region 6
2/F & 3/F, St . Clemens Bldg. ,
Luna St. , La Paz,
5000 I l oilo 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 Mar t i rez 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. , Cor rales Avenue,
9000 Cagayan de Oro Ci ty
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
Tel efax : (082) 226-2671
dole11davao@yahoo.com
Region 12
102 Acepal Bldg., Mabi n i Extension,
Koronadal Ci ty,
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 Ci ty
Tel . # (085) 342-9606
Tel efax : (085) 225-3229
dolexiii@sky.net
65
Directory of DOLE-NCR Field Offices
CAMANAVA Field Off ice (CFO)
5/F, Araneta Square Cent e r ,
Monumento Circl e
1400 Cal oocan City
Telefax : (02) 323-7466 & 362-3187
Jur isdict ion: C i t ies of Caloocan,
Malabon, Navotas, and Valenzuela
MUNTAPARLAS Field Office (MFO)
3/F, Susana Arcade
Alabang-Zapote Road, A lmanza I
1750 Las Piñas City
Tel ephones: 800-1538
Jurisdict ion: Cit ies of Muntinlupa,
Taguig, Parañaque, and Las Piñas
Mani la Field Office (MFO)
G/F, DOLE-NCR Bldg.,
( formerly Wasmiya Bldg. )
967 Maligaya St. , Malate
1004 Manil a
Tel ephones: 338-7830 /
339-2014 & 400-3002
PAMAMARISAN Field Of f ice (PFO)
6/F, Semicon Bldg. ( near Salve Regina
Hospi t al ) Marcos Highway
1600 Pasig Ci ty
Telephone: 408-9614
Jurisdict ion: Pateros and the cities
of Mandaluyong, Mar ikina, Pasig,
and San Juan
Makat i -Pasay Field Of f ice (MPFO)
2/F, Employees Compensat ion
Commission (ECC) Bldg.,
355 Sen. Gi l Puyat Avenue Extension
1200 Maka t i City
Tel ephones: 328-8815 & 338-5865
Quezon City Field Of f ice (QCFO)
4/F, Arcadia Bldg.
Quezon Avenue
1100 Quezon C i ty
Tel ephones: 497-3002
376-5983 & 414-4471
66
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.
In May 1982, the Bureau of Labor Standards, which was created
in June 1957 under Reorganization Plan No. 20-A, was renamed the
Bureau of Working Conditions. The BWC performs all functions in
relation to the formulation of policies and enforcement of labor
standards performed by the then Wage Administrative Service and
the Industrial Safety Division of the Bureau of Labor.
Vision
Well-guided employers and workers committed to a safe,
healthful, and productive work environment, adaptive to industry
trends and developments, and equitably enjoying the gains of joint
endeavors.
Mission
• Formulate policies and initiate legislations on labor standards,
based on relevant information culled from monitoring,
consultations, networking, and researches.
• Standardize the use of enforcement instruments and to clothe
the inspectorate system with strong enforcement authority to
ensure compliance with laws and regulations.
• Develop and sustain the capability of enterprises toward selfmanagement
of safety and health in workplaces, thus,
upholding the principle of shared responsibility between
workers and employers.
• 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 and health, and on innovative work
practices or arrangements.
MANUAL
ON
LABOR STANDARDS
Bureau of Working Conditions
Intramuros, Manila
2004
Table of Contents
Title Page
Introduction
I. Legal Bases …………………………………………. 1
II. Scope of Labor Standards ………………………………………….. 1
III. Checklist on Compliance with Labor Standards ……….……….... 1
IV. Checklist Users ………………………………….………. 2
V. Procedural Requirements ………………………………….………. 2
A. On Self-Assessment ………………………………….………. 2
1. Distribution of Checklist on Compliance with
Labor Standards ………………….………. 2
2. Conduct of Self-Assessment ………………….………. 2
3. Accomplishment of the Checklist ………………….…. 3
4. Submission of Checklist ………………….. 3
5. Validation of the Checklist …………………………….. 4
6. Spot Check Procedures ……………………………. 4
7. Disposition of Labor Standards Violations………………… 5
B. On Inspection …..………………………………………… 5
C. On Training and Advisory Services …………………… 5
Checklist for Self-Assessment on Compliance with Labor Standards ……… 6
Guide in Accomplishing the Checklist …………………………………… 10
Annex “A” Letter Request for Assistance in Self-Assessment ….……. 31
Annex “B” Authority to Assist in Self-Assessment ……………….…… 32
1
Manual
On
Labor Standards
I. Legal Bases
This Manual on Labor Standards is issued pursuant to Administrative Order
No. 296, series of 2003 and Department Order No.57 - 2004. These
issuances refer to the Labor Standards Enforcement Framework that provides
for the approaches, strategies and mechanisms to ensure voluntary
compliance with labor standards by all establishments, workplaces and
worksites through partnership with labor and employers’ organization, as well
as with other government agencies and professional organizations that also
have a stake on the welfare and protection of our workers.
II. Scope of Labor Standards
Labor standards refers to the minimum requirements that an employer shall
provide to the workers pursuant to provisions of the Labor Code of the
Philippines, as amended, the Occupational Safety and Health Standards
(OSHS), and other applicable laws, rules and regulations. These include the
general labor standards that deal on the wages, hours of work and other nonmonetary
benefits, as well as the general occupational safety and health
standards that provide protection to all workers in the workplaces, worksites
or establishments including the provision of welfare and health services.
Excluded in this Manual are the standards on and guidelines on the
delegation and conduct of Technical Safety Inspections, as they are covered
by a separate Manual.
III. Checklist on Compliance with Labor Standards
This refers to the instrument that shall be utilized in assessing compliance
with the General Labor Standards including Occupational Safety and Health.
It contains basic information of an establishment, workplace or worksite as
well as the list of these standards that covers them, thus likewise serves as a
guide to determine whether or not they comply with the standard, the required
correction, if any and the timetable for the correction to be made. In all cases,
it is mandatory that the Checklist and the results of the assessment or the
findings be explained to the owner/manager of the establishments,
workplaces or worksites and workers’/union’s representative therein.
2
IV. Checklist Users
The Checklist shall be utilized by the DOLE Labor Inspectors in the conduct
of inspection; by representatives of workers/union and employer in their
conduct of Self-Assessment and by micro-entrepreneurs covered in Trainings
and Advisory Services. In the case of the latter, and the Barangay Micro
Business Enterprises (BMBEs) the Checklist shall be used to determine the
plan of Action for their commitment to comply with applicable labor standards.
The users shall refer to the corresponding Guide in Accomplishing the
Checklist.
V. Procedural Requirements
I. On Self-Assessment – the following shall apply:
Self-Assessment shall be undertaken by employers of establishments
employing at least two hundred (200) workers and unionized
establishments with certified Collective Bargaining Agreements regardless
of the number of workers employed.
In all cases, Regional Offices shall comply with the following activities and
specific time frame provided:
1. Distribution of Checklist for Self-Assessment on Compliance with
Labor Standards
1.1. Checklist shall be distributed within the First Quarter of every
year to all covered employers.
1.2. Checklist shall be distributed either by personal delivery or by
registered mail.
a. Personal Delivery – Distribution by personal delivery shall
include the Manual on Labor Standards. Receipt of the
Checklist and the Manual shall be signed by the employer or
his duly authorized representative.
b. Registered Mail - Where Checklists are sent through
registered mail, the Regional Director shall indicate the
schedule of Orientation that will be conducted to guide
employers in accomplishing the Checklist who will conduct
Self-Assessment, the procedure and the period when to
submit the Checklist.
3
2. Conduct of Self-Assessment – the following shall apply:
2.1. Self-Assessment shall be jointly conducted by the
representative of the employer and the representative of the
workers/union or the representatives of the Labor Management
Committee or Health and Safety Committee.
2.2. Self – Assessment shall be undertaken within one (1) month
from the receipt of the Checklist or from the date of the conduct
of Orientation, as the case may be.
2.3. Self-Assessment shall include verification of employment
records and assessment of work premises.
2.4. Assistance to accomplish the Checklist for Self-Assessment
maybe requested from the appropriate Regional Office within
the period of one (1) month from the receipt of the Checklist or
from the date of the conduct of Orientation.
2.5 Self-Assessment shall be undertaken at least once a year.
3. Accomplishment of the Checklist. The following shall apply:
3.1. Checklist shall be accomplished in triplicates, one (1) copy to be
submitted to the Regional Office, one (1) copy to the
workers/union, and the remaining copy for the employer’s file.
3.2. The representatives who shall undertake the Self-Assessment
shall refer to the Guide in Accomplishing the Checklist.
3.3. Accomplishment of the Checklist is the basic responsibility of
the employer or his/her duly authorized representative.
4. Submission of the Checklist. The following shall apply:
4.1. When Checklist is submitted:
a. Checklist shall be submitted within five (5) days from the
conduct of Self-Assessment.
b. Checklist shall be submitted by the employer or his/her duly
authorized representative.
c. Checklist shall be submitted either by personal delivery or
through registered mail
4
d. Employer shall submit documents to support the Checklist
such as: the Authority of the Owner’s representative and the
workers/union’s representative to conduct Self-Assessment,
restitution payroll or document to prove correction, whenever
applicable.
4.2 When Checklist is not submitted – Covered establishment
whose owner failed to submit the Checklist within the period
prescribed shall be recommended for the conduct of inspection.
4.3. Where a complaint is filed against the employer covered by
Self-Assessment within the period of Self-Assessment but prior
to the prescriptive period for submission of the Checklist, the
conduct of Self-Assessment shall continue. The complaint shall
be the basis for immediate spot check after submission of the
Checklist but the same shall be held in abeyance unless the
complaint is based on a notice of a hazard or condition in the
place of employment that falls within the category of imminent
danger investigation.
5. Validation of the Checklist. The Regional Monitoring and Evaluation
Team shall apply the following:
5.1. Determine compliance within the prescribed period for
submission.
5.2. Validate the Checklist within five (5) days upon submission, in
particular, the following:
a. Authenticity of the documents submitted in support to the
Checklist.
b. Authority of the Owner’s representative and the
workers/union’s representative
c. Completeness and accuracy of documentation.
6. Spot Check Procedures. The following shall apply:
6.1 Spot Check partakes the nature of the conduct of inspection,
hence, Spot Check shall be conducted by labor inspectors and
the procedure shall be in accordance to the provisions of the
Revised Inspection Manual.
6.2 The Regional Monitoring and Evaluation Team shall
recommend that Spot Check be conducted in establishments
covered by Self-Assessment in the following cases:
5
a. Upon validation of the Checklist submitted based on:
a.1 inaccurate findings, documentation,
correction/restitution stated
a.2 unauthorized personnel who conducted the Self-
Assessment
a.3 documents submitted appears not to be authentic
a.4 where there is partial compliance of restitution and/or
partial correction of indicators or standards of health
and safety that refer to physical hazards and the
covered establishment is classified as hazardous.
7. Disposition of Labor Standards Violations
Any violation of labor standards unearthed during the conduct of Self-
Assessment that failed to be corrected after the time frame indicated in
the Schedule of Restitution/Correction and violation of labor standards
unearthed during the conduct of Spot Check shall be disposed in
accordance with the Revised Guidelines in the Disposition of Labor
Standards Violations/Labor Standards Cases.
II. On Inspection
The procedure in the conduct of inspection is provided in the Revised
Inspection Manual.
III. On Training and Advisory Services
The conduct of training and advisory visits (TAVs) is provided in the
Manual on the Conduct of Assistance/Advisory Services.
This Checklist shall be accomplished jointly by a representative each of the owner/employer and the
workers in organized establishments and/or those
employing 200 workers and above. Please refer to the Manual on Labor Standards where necessary.
Accomplished Checklist shall be submitted to the
DOLE Regional Director not later than ______________________.
Name of Establishment Address GEO Code
Owner/Manager/President Kind of Business/Economic Activity/Principal Product PSIC Code
No. of Apprentices/Learners Authorized Capitalization Name of Union
Age Group Female Total (as of date of Audit)
Below 15 No. of aliens Employed Total Assets
15 - 17 yrs (as of date of Audit) CBA Duration
18 - 30 yrs From:
Above 30 No. of Shifts Type of Workplace highly hazardousTo:
Total hazardous non-hazardous
Not
Complying Complying
Wages
Minimum Wages (r efer to attached list on applicable
Minimum Wage
Payment of Wages (see attached Manual)
Workers paid by result (see attached Manual)
Apprentices/Learners ( 75% of minimum wage)
ECOLA (refer to attached list on applicable ECOLA)
13th Month Pay ( not less than 1/12 of total basic salary earned
within calendar year. Does not include COLA and other
benefits not integrated as part of basic salary. To be paid
not later than 24 December of each year.
Overtime Pay (additional 25% of hourly rate for work
performed on ordinary day; Additional 30% for rest day,
special or regular holiday)
Night Shift Differential (not less than 10% of regular wage
for each hour of work performed bet 10pm - 6am)
Regular Holiday Pay (with pay even if unworked; work on
regular holiday shall be paid additional 100% of daily
rate; work on regular holiday falling on employee rest
day shall be paid 200% plus 30% thereof)
Special Day (no work no pay; work on special days
shall be paid regular wage plus at least 30%; speical
day work falling on employee's scheduled rest day shall
be paid additional 50% of daily rate)
Rest Day Work (additional 30% of daily rate for work performed
on rest days; additional 50% for work performed on a rest
day which is also a special day; additional 30% of the
regular holiday rate of 200%)
Service Charges (collected by most hotels, restaurants and
similar establishments. 85% shall be distributed
equally among the rank-and-file employees and 15%
for management to answer for losses and breakages
and for distribution to managerial employees at the
discretion of management)
6
or not) (state the number of workers
affected and amount of required
restitutions will be made
GENERAL INFORMATION
GENERAL LABOR STANDARDS
Republic of the Philippines
Checklist For Self-Assessment on Compliance with Labor Standards
Regional Office No. _________
Correction
Findings Required
Employment
Labor Standards (check whether complying
Schedule of
Correction
state date necessary
corrections/restitutions
Not
Complying Complying
Meal Period (not less than one hour time-off for regular meals,
which is not compensable. Shorter meal period of not less
than 20 minutes may be given provided that is credited as
compensable hours of work and subject to certain conditions)
Service Incentive Leave (five days with pay per year for
those with at least one year of service; commutable to its
money equivalent if not used within one year.)
Weekly Rest Periods (not less than 24 consecutive hours
after every six (6) consecutive normal workdays)
Paternity Leave (seven days with pay including allowance
for the first 4 deliveries; not convertible to cash)
Maternity Leave (60 days for normal delivery/78 days for
ceasarian section; benefit for first 4 deliveries,
abortion/miscarriage)
Solo Parent Leave (not more than 7 working days every year)
Anti-Sexual Harrassment Law
Posting/dissemination of RA 7877
Create Committee on decorum
Company Policy
Social Amelioration Program Bonus (all millers, except
refineries and all sugar planters
Retirement Pay - RA 7641 (distinct and separate from SSS benefits
Payroll/Daily Time Records/Employment Permi (keep
at workplace; at least 3 years-period)
Registration of Contractor/Subcontractor (Dept. Order 18.02)
Registration with SSS
Certificate of Remittance to SSS
Registration with Pag-ibig
Certificate of Remittance to Pag-ibig
Coverage/Remittance with PHILHEALTH
Alien Employment Permit
Apprenticeship/Learnership Program (duly approved by TESDA)
Work Permit (Child Labor)
List of Labor Component (list of employees, length one
status of employment and salary)
Compressed Workweek Scheme
7
Findings Required Schedule of
(state the number of workers (state date necessary
affected /benefited corrections will be made
Labor Standards (check whether complying or not) Correction Correction
Not
Complying Complying
Registration of Establishments (Rule 1020, OSHS)
Adequate Aisles/Passageways (sufficient width and
and height and with signs and markings)
Good Housekeeping (conditions of floors, walls and
storage rooms)
Emergency Exits (2 per floor)
Materials handling & Storage (appropriate labels, dotting
and storage)
Waste Disposal System (waste receptacle and its removal;
drainage system
Adequate Lighting (in Work Areas/in aisles, passageway)
Noise Pollution Control (provide appropriate PPE or
isolation of work area)
Proper Ventillation (provision of natural or artificail air supply)
Radiation Exposure Control (provide PPE, Examination
of work area)
Airborne Contaminant Control (provide PPE, improve
technical process, Improve ventilation)
Personal Protective Equipment (provision and appropriate trng)
Fire Protecting Equipment/Facilities (water tank, fire
extinguisher, conduct of fire drill)
Provide Machine Guarding (railing or casing on moving parts)
Proper Office Spacing (between workers & machines)
No Imminent Danger Situation (condition that could
cause death or serious physical harm)
Personal Facilities (separate toilet, supply of potable water,
washing facilities, etc.
Safety Officer/Accredited Safety Practitioner (number
depends on number of workers employed
Health and Safety Organization (according to number of
employees
Health Personnel (First-Aider, nurse, physician, dentist)
Medical Facilities (Treatment room, clinic)
Emergency Medicines
Administrative Reports on Health and Safety
a. Minutes of Meeting of HSC
b. Employee's Work Accident/Illness Exposure Data
(for every accident)
c Annual Work Accident/Illness Exposure Data
(whether or not threre's accident
d. Annual Medical Report (health record of program and activities)
HIV/AIDS Program (education and information)
Drug-Free Workplace Policy/Program (D.O. 53-03)
DOLE Approved Construction Safety and Health Program
Construction Safety Signages
Construction Heavy Equipment (CHE)
Construction Heavy Equipment Operators
Construction Worker's Skills Certificate
Continuing Training related to occupational health and safety
8
OCCUPATIONAL SAFETY AND HEALTH STANDARDS
Findings Required Schedule of
Standards (check whether complying or not) Correction Correction
(state the number of workers (state date necessary
affected /benefited corrections will be made
SELF- ASSESSMENT CONDUCTED BY: OWNER'S STATEMENT:
1. will correct all noted violations. Report on corrections/restitutions
Name & Signature of Owner's Representative shall be submitted to Regional Office not later than
__________
requests guidance from the DOLE Regional Office in accom-
2. Name & Signature of Workers/Union's Representative plishing Checklist
request training in the following areas:
Date:
others:
Owner/Manager Date
Self-Assessment Report Evaluated by: Noted by:
Section Chief Date Chief, Labor Standards Division Date
Findings/Recommendations: Findings/Recommendations:
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FOR REGIONAL OFFICE USE ONLY
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Guide in Accomplishing
the
CHECKLIST
Wages
1. The applicable Minimum Wage. (See Annexes)
2. Payment of Wages
* Wages shall be paid in cash, legal tender at or near the place of work.
* Payment shall be made directly to the employees.
* Wages shall be given not less than once every two weeks or twice within a
month at intervals not exceeding 16 days.
Recommended Computation of Wages:
a. For monthly-paid employees
1. Recommended Computation of the Equivalent Monthly Rate (EMR) of
Monthly-Paid Employees
Applicable Daily Rate X 365 = EMR
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where:
301 = number of ordinary working days
51 = no. of rest days for those whose rest days falls on Sunday
since the last Sunday of August is a regular holiday
11 = no. of regular holidays
2 = no. of special days
365 = Total equivalent no. of days in a year
b. For daily-paid employees
b.1. For those who are required to work everyday including Sundays or rest
days, special days and regular holidays
Applicable Daily Rate X 392.50 = EMR
12
where:
301 = no. of ordinary working days
2.60 = ten regular holidays X 200 plus one regular
holiday (last Sunday of August) * X 260
66.30 = 51 rest days x 130%
2.60 = 2 special days X 130%
392.50 = Total equivalent no. of days in a year
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• For purposes of computation, said holiday although still a rest day, is
included in the eleven regular holidays. For workers whose rest days do not
fall on Sundays, the number of rest day is 52 days as there are 52 weeks in a
year.
b.2 For those who do not work and are not considered paid on their rest days
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where:
11 = no. of regular holidays
2 = no. of special days (if paid; if actually worked,
this is equivalent to 2.6 days)
314 = Total equivalent no. of days in a year; BUT if the 2
special days are not paid, the total equivalent no. of
days in a year is 312 days.
b.3. For those who do not work and are not considered paid on Saturdays and
Sundays.
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where:
11 = no of regular holidays
2 = no. of special days (if paid; if actually
worked, this is equivalent to 2.6 days)
262 = Total equivalent no. of days in a year; but if the
2 special days are not paid, the total equivalent
no. of days in a year is 260 days.
3. The applicable Minimum Wage of Workers Paid by Results
All workers paid by results including those who are paid on piecework, takay,
pakyaw or task basis shall receive not less than applicable minimum wages rates
prescribed under the Regional Wage Orders for normal working hours, or a
proportion thereof for work of less than the normal working hours.
The adjustments in the wage rates by reason of wage increases shall be computed
as follows:
a. Amount of increase in Applicable Minimum Wage ÷ Previous AMW X
100= % increase
b. Existing rate/piece x % increase = Increase in rate/piece
c. Existing rate/piece + increase in rate/piece = ADJUSTED RATE/PIECE
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4. Minimum Wage of Apprentices and Learners
a. Apprentices and learners are those who are covered by Apprenticeship/
Learnership Program duly approved by the Technical Education and Skills
Development Authority (TESDA).
b. The applicable minimum wage shall in no case be less than seventy-five
percent (75%) of the applicable statutory wage rates
c. Apprentices without compensation, however are allowed in accordance to
Article 72 (LCP).
ECOLA - (See Annex)
13th Month Pay (PD 851, as amended by Memorandum Order No. 28 issued by
President Corazon C. Aquino on August 13, 1986)
1. Minimum Amount
The minimum amount shall not be less than 1/12 of the total “basic salary” earned within
a calendar year.
The “basic salary” includes all remunerations/earnings paid by his employer for services
rendered. It does not include cost-of-living allowances and other benefits which are not
considered or integrated as part of the regular or basic salary such as the cash equivalent
of unused leave credits, overtime, premium, night shift differential and holiday pay
UNLESS these salary-related benefits are considered as part of the basic salary by
individual or collective agreement, company practice or policy.
It shall be paid not later than December 24 of each year. HOWEVER, the frequency of
payment may be subject of an agreement between the employer and employees, such that
½ of the amount may be given before the opening of the regular school year.
Overtime Work
The overtime pay rates depend upon the day the overtime work is performed.
1. An additional 25% of the hourly rate for work performed on an ordinary day.
2. An additional 30% on top of the hourly rate for rest day, special day or regular holiday
if the work is performed on said days.
Illustration: Using P250.00 as daily rate, the hourly rate is P31.25
On an ordinary day:
P31.25 + (25% of P31.25) = P31.25 + (0.25 X P31.25)
= P31.25 + P7.81
= P39.06 overtime rate/hour
On a rest day or on a special day:
130% of P31.25 + 30% of (130% of P31.25)
= P40.62+ P12.19
= P52.81 overtime rate /hour
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On a rest day which falls on a special day:
150% of P31.25 + 30% of (P150% of P31.25)
= P46.88 + P14.06
On a regular holiday:
200% of P31.25 + 30% of (200% of P31.25)
= P62.50 + P18.75
On a rest day which falls on a regular holiday:
260% of P31.25 + 30% of (P260% of P31.25)
= P81.25 + P24.38
Night Shift Differential
1. Every employee shall be paid a night shift differential of not less than ten percent (10%)
of his regular wage for each hour of work performed between ten o’clock in the evening
and six o’clock in the morning.
a. Where night shift falls on a regular work schedule
a.1 Work schedule on an ordinary day
An additional 10% of the basic hourly rate or a total of 110% of the basic hourly rate.
Illustration: Using P250.00 as daily rate
P250.00 + 10% of P250 = P250.00 + P25.00
= P275.00
a.2 Work schedule on a rest day
An additional 10% of the hourly rate on a rest day or a total of 110% of the hourly
rate of such day.
Illustration: Using P250.00 as daily rate
(130% of P250.00) + 10% of (130% of P250.00)
= P325.00 + .10 x (1.3 x P250.00)
= P325.00 + P32.50
= P375.50
Special days and regular holidays are calendar days (i.e. from 12 midnight to 12
midnight of the following day or 24 hour period), the night shift is either cut-off
or starts only at midnight hence, the night shift for such days shall be determined
by the hour or the hourly rate.
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a.3 Work schedule on a special day
An additional 10% of the hourly rate on that day or a total of 110% of the hourly
rate of such day.
Illustration: Using P250.00 as daily rate or P31.25 hourly rate
130 % of P31.25 +10% of (130% of P31.25)
= (1.3 X P31.25) + 10 X (1.3 X P31.25)
= P40.62 + P4.06
= P44.68/ hour
a.4 Work schedule on a regular holiday
An additional of 10% of the hourly rate on that day or a total of 110% of the
regular hourly rate of such day.
200% of P31.25 + 10% of (200% of P31.25)
= (2.0 X P31.25) + 10% (2.0 X P31.25
= P62.50 + P6.25
= P68.75
b. Where night shift work is overtime work
The compensation is computed on the basis of hourly rate since overtime work is not
usually for 8 hours
b.1 Work schedule on an ordinary day
An additional of 10% of 125% of basic hourly rate or a total of110% of 125% of
basic hourly rate.
Illustration: Using P 31.25 as the hourly rate
(125% of P31.25) + 10% of (125% of P 31.25)
= (1.25 x P 31.25)+ .10 x (1.25 x P 31.25)
= P 39.06 + P 3.91
= P 42.97/hour
b.2 Work schedule is on a rest day or special day
An additional of 10% of 130% of hourly rate on a rest day or special day or
110% of 130% of the hourly rate.
130% (130% of P 31.25) + 10% (130% of 130% of P 31.25)
= 1.3 x (1.3 x P 31.25) + 10% (1.3 x 1.3 x P 31.25)
= 1.3 x P 40.63 + .10 x P 52.81
= P 52.82 + P 5.28
= P 58.10/ hour
b.3 Work schedule is on a special holiday falling on rest day
130% (150% of P31.25) + 10% (130% of 150% of P31.25)
= P 60.93 + P 6.09
= P 67.02/ hour
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b.4 Work schedule is on a regular holiday
130% ( 200% of P 31.25) + 10% (130% of 200% of P31.25)
= 1.3 x (2.0 x P 31.25) + .10 x (1.3 x 2.0 x P 31.25)
= 1.3 x P 62.5 + .10 x P 81.25
= P 81.25 + P 8.13
= P 89.38/ hour
b.5 Work schedule is on a regular holiday falling on rest day
130% (260% of 31.25) + 10% (130% if 260% of 31.25)
= P 105.62 + P 10.56
= P 116.18/hour
Holiday
1. Regular and National Special Days
a. Regular Holidays as provided under E.O No. 203, as amended by RA 9177
New Year’s Day - January 1
Maundy Thursday - movable date
Good Friday - movable date
Araw ng Kagitingan - April 9
Labor Day - May 1
Independence Day - June 12
National Heroes Day - Last Sunday of August
Bonifacio Day - November 30
Christmas Day - December 25
Rizal Day - December 30
‘Id-ul-Fitr(End of Ramadan) - movable date (R.A.9177)
National Special Days
All Saints Day - November 1
Last Day of the Year - December 31
b. Muslim Regular Holidays as provided under P.D. 1083 (Code of Muslim Personal
Laws of the Philippines)
b.1 Official Muslim Holidays
1. Amun Jadid (New Year) - falls on the first day of the lunar month of Muharram;
2. Maulid-un-Nabi ( Birthday of the Prophet Muhammad ) – falls on the twelfth day
of the lunar month of Rabi-ul-Awwal.
3. Lailatul Isra Wal Mi’raj (Nocturnal Journey and Ascencion of the Prophet
Muhammad)– falls on the twenty-seventh day of the seventh lunar month of
Rajah
4. ‘Id-ul-Adha (Hari Raya Haji) – falls on the tenth day of the twelfth lunar month
of Dhu’l – Hijja.
b.2. Where officially observe
Muslim holidays shall be officially observed in the Provinces of Basilan,
Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato, Sultan
Kudarat, Sulu, Tawi-tawi, Zamboanga del Norte, Zamboanga del Sur and in
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the cities of Cotabato, Iligan, Marawi, Pagadian, and Zamboanga and in such
other provinces and cities as may be proclaimed by the President of the
Philippines.
b.3. Presidential Proclamation No. 1198 provides :
“All private corporations, offices, agencies and entities or establishments
operating within the enumerated provinces and cities 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 during the observance of the Muslim holidays as recognized by law
without diminution or loss of wages during the said period.
Considering that all private establishments in the designated places are
required to observe Muslim holidays, both Muslim and Christians working in
said areas may not report for work on those Muslim holidays.
2. Computation of Payment on Regular Holidays
Illustration : Using P 250.00 as daily rate
a. The covered employee is entitled to at least 100% of his daily rate even if he
did not report for work during the regular holiday.
P 250.00 = daily rate
b. The covered employee who reported to work:
An additional 100% of the daily rate or 200%
P 250.00 + 100% thereof = P 250.00 + P 250.00
= P 500.00 (rate on that day)
c. The covered employee who reported to work on a regular holiday which falls
on his rest day.
An additional 30% of the regular holiday rate of 200% or a total of at least
260%
200% of P 250.00 + 30% (200% of P250.00)
= P 500.00 + P 150.00
= P 650.00
d. During two (2) regular holidays falling on the same day, the covered employee
is entitled to at least 200% of his daily rate even if he did not report for work
on such double holidays.
200% of P250.00 = 2.0 X P250.00
= P500.00 (rate on that day)
e. If the employee reported for work during double regular holidays, he is
entitled to at least 300% of his daily rate which is the total of 200% holiday
pay plus 100% of the daily rate.
Illustration: P250.00 rate per day
(200% of P250.00) + 100% of daily rate
= 2.00 X P250.00 + P250.00
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= P500.00 + P250.00
If the employee reported for work during double holidays and it is also the
employee’s rest day, he is entitled to an additional 30% based on the rate of
300% for that day.
Illustration: P250.00 rate per day
300% + (30% of 300%) = P750.00 + ( 30% of P750.00)
= P750.00 + P225.00
= P975.00
3. Computation of Payment on Special Days
a. During special days (Nov. 1 and Dec. 31) the principle of “no work, no pay”
applies and on such other days as may be proclaimed by the President or
Congress.
b. Work on special days entitles the employee on additional 30% of the daily rate or
a total of 130%.
Illustration : Using P250.00 as daily rate
P250.00 + (30% of P250.00)
= P250.00 + (0.3 x P250.00)
= P250.00 + P75.00
c. Work on special days which is also the employee’s rest day entitles the employee
an additional 50% o the daily rate.
Illustration : Using P250.00 as daily rate
P250.00 + (50% of P250.00)
= P250.00 + (0.5 x P250.00)
Rest Day
1. The Premium Pay Rates are as follows:
a. For work performed on rest days
- an additional 30% of the daily rate or a total of 130%.
b. For work performed on a rest day which is also a special day
- an additional of 50% of the daily rate or a total of 150%
c. For work performed on a regular holiday which is also the employee’s rest day:
- an additional 30% of the regular holiday rate of 200% or a total of 260%
Illustration: Using P250.00 as the rate per day
a. 30% of P250.00 = .3 X P250.00 = P75.00
P250.00 + P75.00 = P325.00
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b. 50% of P250.00 = .5 X P250.00 = P125.00
P250.00 + P125.00 = P375.00
c. 30% of P500.00(200% of daily rate) = .3 X P500.00=P150.00
P500.00 + P150.00 = P650.00
Service Charges
a. Collected by most hotels, restaurants and similar establishments.
b. It shall be distributed at the rate of 85% equally among the rank-and-file employees
and the 15% for the management to answer for losses and breakages and for
distribution to managerial employees at the discretion of the management.
Meal Period
1. Every employer shall give his employees regardless of sex not less than one (1) hour
time-off for regular meals.
2. The one (1) hour time-off is not compensable.
3. Meal period of not less than twenty (20) minutes may be given by the employer provided
that such shorter meal period is credited as compensable hours of work of the employee
in the following cases:
a. Where work is non-manual in nature or does not involve strenuous physical exertion;
b. Where the establishment regularly operates not less than sixteen (16) hours a day;
c. In case of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installations to avoid serious loss which the employer
would otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable goods. Rest periods
or coffee break breaks running from five (5) to twenty (20) minutes shall be
considered as compensable working time.
The opinion of Secretary of Labor & Employment Franklin M. Drilon dated 27
November 1989 relative to the request of Kodak Philippines Inc. on shortened meal
period, read in part as follows:
“While as a general rule, the right to overtime pay as a result of a “compensable shorter
meal period” cannot be waived under existing laws, this Office will not interpose any
objection to the request of the employees provided the following conditions are met:
1. The employees voluntarily agree in writing to a shortened meal period of 30 minutes
and are willing to waive the overtime pay for such shortened meal period;
2. There will be no diminution whatsoever in the salary and other fringe benefits of the
employees existing before the effectivity of the shortened meal period;
3. The work of the employees does not involve strenuous physical exertion and they are
provided with adequate “coffee breaks” in the morning and afternoon;
4. The value of the benefits derived by the employees from the proposed work
arrangement is equal to or commensurate with the compensation due them for the
shortened meal period as well as the overtime pay for 30 minutes as determined by
the employees concerned;
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5. The overtimes pay of the employees will become due and demandable if ever they are
permitted or made to work beyond 4:30; and
The effectivity of the proposed working time arrangement shall be of temporary
duration as determined by the Secretary of Labor and Employment.
Service Incentive Leave (SIL)
All employees who has rendered at least one (1) year of service shall be entitled to a yearly
service incentive leave of five (5) days with pay.
Weekly Rest Period
All employees are entitled to one (1) day (24 consecutive hours) after working for six (6)
consecutive days.
Paternity Leave
1. All married male employees regardless if they are not living together physically with
their wife because of location of work station, and regardless of employment status
shall be entitled to paternity leave benefit of seven (7) days with pay including
allowance.
2. The paternity leave applies to the first four (4) deliveries or miscarriages of his legal
wife.
3. The male employee should notify his employer of the pregnancy of his wife and her
expected delivery. Prior application for leave shall not be required in case of
miscarriage.
4. If this benefit is not availed of, it is not convertible to cash.
5. If there is an existing paternity leave under the collective bargaining agreement,
contract or policy greater than seven (7) days, the greater benefit shall prevail. On the
other hand, if the paternity leave is lesser than seven (7) days, the employer shall
adjust the existing benefit to the extent of the difference.
6. A company policy, contract or collective bargaining agreement which provides for an
emergency or contingency leave without specific provision on paternity leave does
not exempt the employer to grant full seven (7) days paternity leave to covered
employees.
Maternity Leave
Granted to every pregnant employee whether married or unmarried for her first four (4)
normal or caesarian deliveries, abortion or miscarriages.
a. The days of entitlement are as follows:
a.1. 60 days for normal delivery, abortion, or miscarriage.
a.2. 78 days for caesarian section delivery
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b. To qualify for the maternity leave benefits:
b.1 The employee must have paid at least three (3) months contributions within the
twelve (12) month period immediately before the date of such delivery, abortion
or miscarriage
b.2 The employee must notify the SSS through her employer her pregnancy.
c. The qualified female employee shall be entitled to the maternity leave benefits
equivalent to one hundred percent (100%) of the average daily salary credit of the
employee as defined under the SSS law which the employer must advance subject to
reimbursement from the SSS.
Benefits and Privileges to Solo Parents
As provided for under RA 8972 employer shall ensure that solo parents as defined shall
ensure that the provisions of the law on flexible work schedule where applicable and the
grant of parental leave of not more than seven (7) working days every year.
On Anti-sexual Harassment Law - shall post/disseminate RA 7877, create a
committee on decorum and investigation and adopt its own policy/rules and regulations.
Coverage under the Social Amelioration Program (SAP)
All millers, except refineries and all sugar planters, affiliated or not.
Retirement Pay
The retirement benefits pursuant to Art. 287 of the Labor Code, as amended under RA 7641
and RA 8558 are distinct and separate from the benefits provided by the Social Security
System (SSS) Law.
For the purpose of computing retirement pay, ONE-HALF MONTH SALARY shall
include all of the following:
a. 15 days salary based on the latest salary
b. cash equivalent of 5 days of service incentive leave
c. one-twelfth (1/12) of the 13th month pay
Or a total of 22.5 days (Capitol) Wireless, Inc. vs. Hon. Secretary Ma. Nieves
Confesor.
Other benefits may be included in the computation of the retirement pay upon agreement
of the employee and the employer or if provided in the Collective Bargaining Agreement
(CBA).
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Payroll and Daily Time Records/Employment Permit
1. The payroll must show the names, sex, wage or salary, allowances and other salary
related benefits such as overtime pay, premium pay, deductions for withholding tax,
SSS premium, Pag-ibig premium and other legal deductions, and the signature of the
employees.
2. Payroll and Daily Time records must be kept for a period of at least three (3) years.
Registration of Contractor/Sub-Contractor (Department Order 18 – 02 )
Issuance governing contracting and sub contracting arrangements. These rules apply to all
parties of contracting and sub-contracting arrangements where employer-employee
relationship exists. D. O. 18-02 requires registration of contractors and sub-contractors for
purposes of establishing effective labor market information and monitoring.
Coverage under the Social Security System and the Employees’
Compensation Program
All employers must remember that their employees are members of the SSS from the first
day of employment, hence they must keep copies of Registration of Employees at the
workplace.
All employers must grant maternity leave benefit to every pregnant employee whether
married of unmarried for her first four (4) normal or caesarian deliveries, abortion or
miscarriages.
a. The days of entitlement are as follows:
a.1 60 days for normal delivery, abortion, or miscarriage
a.2 78 days for caesarian section delivery
b. To qualify for the maternity leave benefits:
b.1.The employee must have paid at least three (3) months contributions within the
twelve (12)- month period immediately before the date of such delivery, abortion
or miscarriage
b.2. The employee must notify the SSS through her employer her pregnancy
c. The qualified female employee shall be entitled to the maternity leave benefits
equivalent to one hundred percent (100%) of the average daily salary credit of the
employee as defined under the SSS law which the employer must advance subject to
reimbursement from the SSS.
All employers who failed to register their employees with the SSS will deprive their
employees the benefits due them other than the maternity leave, such as:
a. Cash income benefits for Temporary Total Disability, Permanent Partial and
Permanent Total Disability.
b. Sickness benefit
c. Lifetime monthly pensions of members and dependent (not exceeding 5
dependents) in case of death of member
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d. Death benefit
e. Funeral benefit
f. Entitlement to salary loan
g. Entitlement to housing loan
h. Entitlement to calamity loan
All employers must keep a logbook to record contingencies such as work-related
sickness, injuries or death. They must notify the System regarding the said
contingencies.
All employers must remember that their failure to register their employees to the
SSS and to remit the corresponding premiums of said employees will make them
criminally liable under the SSS law.
Certificates or Documents on Remittances to SSS
Pag-ibig and BIR and PhilHealth
Coverage under the Pag-ibig Fund Program
All employers shall remit to the Pag-ibig Fund Office the required contribution to the Pagibig
Fund Office as provided by law.
Copy of Alien Permit of Employment, if employing aliens shall be kept at the
workplace if employing alien.
Copy of Apprenticeship/Learnership Program duly approved by the Technical
Education and Skills Development Authority (TESDA)
Copy of Work Permit, if employing children less than 15 years of age in family
enterprises and in the entertainment industry.
List Of Labor Component – pursuant to RA 6727 employers are required to submit to
the National Wages and Productivity Board a list of their employees and the corresponding
of information like length of employment, status of employment and the corresponding
salary.
Compressed Workweek - is a scheme where the generally observed six (6) days
workweek of eight (8) hours per day is shortened to five (5) days only. The Saturday or 6th
day work may either be evenly distributed over the five working days from Monday to
Friday.
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Conditions for Implementation:
In the adoption of the compressed workweek, the following concurring conditions
should be met:
1. The employees voluntarily agree to work more than eight (8) hours a day the total in
a week of which shall not exceed their normal weekly hours of work, prior to
adoption of the compressed workweek arrangements.
2. There will not be any diminution whatsoever in the weekly or monthly take-home
pay and fringe benefits of the employee.
3. If an employee is permitted or required to work in excess of his normal weekly hours
of work prior to the adoption of the compressed workweek scheme, all such excess
hours shall be considered overtime work and shall be compensated in accordance
with the provisions of the Labor Code or applicable Collective Bargaining
Agreement (CBA).
4. Appropriate waivers with respect to overtime premium pay for work performed in
excess of eight (8) hours a day may be devised by the parties to the agreement.
5. The effectivity and implementation of the new working time arrangement shall be by
agreement of the parties.
Employers adopting the compressed workweek scheme provided herein shall submit
a report to Department of Labor and Employment or to its nearest Regional Office
not later than ten (10) days from the adoption of the scheme.
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II. OCCUPATIONAL HEALTH AND SAFETY
Registration of Establishment – The Certificate is issued by the Regional Office having
jurisdiction of the establishment.
1. Registration is free and made only once except if there is a change of name of the
establishment, its location, its ownership or reopening after previous closing;
2. Submit a layout plan of the place of work floor by floor, in a scale of 1:100 meters
showing physical features of the workplace including storage, exits, aisles,
machinery, clinic and fire extinguisher.
3. Submit location plan.
4. Establishments employing less than ten (10) workers, and classified as not hazardous,
may utilize legal size bond paper for the lay-out plan and location plan showing the
name and signature of the owner at the bottom of the page.
Premises - include the physical conditions or fixed worksites where workers habitually
work, the building(s) and inside the building(s), structures, workplaces and yards.
1. Adequate Aisles and Passageways – Appropriate signs and markings should be made
of designated permanent walkways, roadways for vehicles, parking area, railings and
toe boards for ladders and headroom. Aisles and Passageways should be of sufficient
width and height.
2. Good Housekeeping – the condition of the workplace where tools, equipment,
supplies and materials are stored or placed in its appropriate area with appropriate
signs and markings, good condition of floors and walls to achieve a wholesome
working environment.
3. Emergency Exits – provision of at least two (2) appropriate exits of sufficient width
in every floor with clear visible signs and which should be free of obstacles.
4. Materials Handling and Storage – provision of appropriate storage for hazardous
substances with proper label on the category of hazard, the chemical or trade name,
description of risks involve and first aid measures to be taken. This includes
provision of appropriate clothing for the workers, training on handling and
installation of shower room and special fountain for flushing chemicals out from the
eyes.
5. Waste Disposal System – includes provision of waste receptacles in the workplace,
the frequency of removal of solid and liquid waste and proper drainage system for
wastewater and other liquid.
6. Adequate Lighting – provision of appropriate lighting in aisles and passageways and
in the work area to make it suitable for the type of work. Includes installation of
emergency lighting in appropriate location in case of failure of the general lighting
system.
7. Noise Pollution Control – isolate the source of noise. Reduce noise by technically
changing the machinery producing noise. Provide the workers ear muffs or earplugs
where necessary and reduce their exposure to prevent adverse effect on their hearing
and normal speech.
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8. Proper Ventilation – provide natural or artificial ventilation to have adequate air
supply where appropriate. However, avoid too fast air draft of cold or heated airflow
directly hitting the workers. Insulate heat producing objects or equipment.
9. Radiation Exposure Control – isolate work area if possible. Reduce exposure by
providing appropriate clothing, personal protective equipment, reduce exposure time
and provide periodic examination of the work area and institute protective program
for employees.
10. Airborne Contaminant Control (dusts, particulates, fumes, vapors, etc.) – isolate
work area, change the technical process or substitute chemicals used to reduce
emission, improve exhaust ventilation and provide appropriate personal protective
equipment to the workers.
11. Provide Personal Protective Equipment – provide workers with appropriate personal
protective equipment such as, helmets or caps, safety goggles or shields, clothing or
gloves, safety footwear, earmuffs or earplugs, masks, safety belts in adequate in
number. Qualified personnel should train the workers on the use and proper care of
the Personal Protective Equipment. Appropriate penalties should be meted for nonusing
said equipment.
12. Installation of Fire Protecting Equipment/Facilities – provide an adequate private
water tank if connection from the public water supply system is not possible. Provide
in proper location portable fire extinguishers appropriate to the specific classes or
hazards even in work areas where automatic-sprinkler system is installed. Buildings
at least two (2) stories in height shall install alarm system. Organize a properly
trained fire brigade in the workplace to take charge with fires and related
emergencies including the periodic conduct of fire drill.
13. Provide Machine Guarding – provide all moving parts of prime movers, transmission
equipment and all dangerous parts of driven machinery with effective guards such as,
shields, standards railings, covers, casings, unless the machines are so constructed or
located to prevent any person or object from coming or brought into contact with
them.
14. Proper Office Spacing – provide space for appropriate number of workers in a work
area with adequate space between the workers and machines given the tasks they are
performing.
15. Imminent Danger Situation - this is a condition or practice that could reasonably be
expected to cause death or serious physical harm before abatement under the
enforcement procedures can be accomplished.
16. Personal Facilities –like
a. Adequate number of separate toilet facilities for males and females should be
provided near the work area.
b. Washing facilities should be installed in the toilet room or immediately adjacent
to it.
c. Separate washroom with washbasins and showers with clean running water
should be provided in workplaces where workers are handling hazardous
chemical substances.
d. Provide an adequate supply of potable water accessible to the work area, etc.
26
Safety Officer/Accredited Safety Practitioner – engage trained personnel on
occupational health and safety who takes charge of the safety of the establishment including
coordination of safety training program for employees and employers. The required number
of safety officer depends on the number of workers employed and the type of workplace, as
follows:
1. Hazardous
No. of Workers Min. No. of S.O.
Hazardous
Highly Hazardous
1 - 50 One (1) Part Time One (1) Full Time
51 - 200 One (1) Full Time One (1) Full Time and
One Part Time
201 - 250 One (1) Full Time and
One (1) Part Time
Two (2) Full Time
Every add’l 500 or fraction
thereof
One (1) Add’l Full Time
thereof
One (1) Add’l Full
Time
2. Non-Hazardous
No. of Workers
Min. No of Safety Officer
1 - 250 One (1) Part Time
251 – 500 Two (2) Part Time
501 – 750 One (1) Full Time
751 – 1000 Two (2) Full Time
thereof
One (1) add’l Full Time
Health and Safety Committee – a group of employees and management that plans and
makes policies in all matters of safety and health in the workplace. The Committee shall be
organized according to the number of workers in a workplace, as follows:
1. Type A (more than 400 workers)
Chairman - Manager or his authorized representative who must be a top operating
official
Members - Two (2) department heads
Four (4) workers (union members, if organized)
The company physician
Secretary - The safety man
27
2. Type B (over 200 to 400 workers)
Chairman - Manager or his authorized representative who must be a top
operating official
Members - One (1) supervisor
Three (3) workers (union members, if organized)
The company physician or the company nurse
Secretary - The safety man
3. Type C (100 to 200 workers)
Chairman - Manager or his authorized representative
Members - One (1) foreman
The nurse
4. Type D (less than 100 workers)
Chairman - Manager
Members - One (1) foreman
The nurse/first aider
Secretary - The Part- time safety man
5. Type E (Joint Committee consisting of two (2) or more establishments within the
same building)
Chairman - The Chairman of the establishment committee
Members - Two (2) supervisors from two (2) different establishments
Two (2) workers from two (2) different establishments (union
members, if organized)
Secretary - Appointed by the Chairman who shall be the Building Administrator in
a high rise building.
Subject to the approval of the Secretary of Labor and Employment or his duly
authorized representative, the employer may establish in his place or employment
the line or staff type of health and safety organization, defined as follows:
1. Line Type - a form of organization where the general manager or head of the
establishment directs the health and safety programs and assumes overall
responsibility for the safety in the establishment. He in turn delegates the
application of health and safety programs to plant personnel occupying line
positions.
2. Staff Type – Staff safety organization or safety engineer type consists of a line
organization with specialized personnel employed to advise and assist
management in all matters of safety. Said personnel are responsible to the top
executive exercising staff functions, serve all departments in an advisory capacity
and supervise the application of the health and safety program in the workplace.
28
Health Services – these are basic preventive services necessary to establish and maintain
a safe and healthy workplace with contented and productive workers. These include:
1. Health Personnel – these are personnel with additional qualifications required by the
Occupational Health and Safety Standards, engaged by the employer to provide
health services through formulation of an Occupational Health Program based on the
industrial classification of the establishment and the number of workers. See Annex
a. First Aider
b. Nurse
c. Physician (permanent or part-time)
d. Dentist (permanent or part-time)
2. Medical Facilities – the facilities depend upon the industrial classification of the
establishment and the number of workers.
a. For Hazardous Workplaces
No. of
Workers
Treatment Room Emergency Clinic
1-50
51-99 X
100-199 X
200 - 600 X
601-2000 X
2,001-Above
b. For Non-Hazardous Workplaces
No. of
Workers
Treatment Room Emergency Clinic
1-50
51-99 X
100-199 X
200 – 600 X
601-2000 X
2,001-Above X
3. Provision of Emergency Medicines – adequate quantity depends upon the need of the
workers as determined by the health personnel of the establishment. Any medicine,
supply or equipment prescribed maybe substituted with one of comparable
effectiveness, and shall be replaced with the same quantity immediately after use or
consumption.
29
4. Submission of the following Administrative Reports on Health and Safety to DOLERegional
Office:
a. Minutes of Meeting of Health and Safety Committee – The Organization must be
constituted or organized within one (1) month from the start of business and must
be re-organized every January of the following year. The Report of the Health
and Safety Organization must include the health and safety program of the
establishments. The Minutes of the Meeting of the Organization/Committee must
be submitted to the DOLE not later than tenth (10th) day after the reference
quarter.
b. Employee’s Work Accident/Illness Report (DOLE/BWC/OHSD/IP-6) – this
Report shall be used for every accident or illness and be submitted on or before
the 20th day of the month following the date of occurrence.
c. Annual Work Accident/Illness Exposure Data Report (DOLE/BWC/OHSD/IP-6b)
– this shall be accomplished whether or not there were accident/illness occurring
during the year and shall be submitted not later than the 30th day of the month
following the end of each calendar year.
d. Annual Medical Report Form (DOLE/BWC/OHSD/OH-47-A) - this is the health
record of the program and activities in the establishment shall be submitted on or
before the last day of March after the reference year.
5. HIV/AIDS Program – in compliance with RA 8504, the employer shall provide
education and information program for the workers consisting of lectures and
materials, brochures, booklets on HIV/AIDS including policy adopted. HIV/AIDS
Program – provision of the program includes confidentiality of the results undertaken
6. Drug-Free Workplace Policy/Program (D.O. 53-03) – the minimum requirement for
establishment employing at least 10 workers in accordance with RA 9165.
7. BWC Approved Construction Safety and Health Program - refers to a set of detailed
rules to cover the processes and pracices that shall be utilized in a specific
construction project site in conformity with the OSHS including the personnel
responsible and the penalties for violations thereof.
8. Construction Safety Signages (Section 9, D.O. 13, s. of 1998) - Construction safety
signages must be provided to warn the workers and the public of hazards existing in
the workplace. Signages must be posted in prominent positions at strategic locations
and, as far as practicable, e in the language understandable to most of the workers
employed in the construction site. Signages should be regularly inspected and
maintained in good and legible condition. Damaged signs or hose that no longer
apply should be immediately removed or replaced as the workplace condition
warrants.
30
9. Construction Heavy Equipment (CHE) –(Section 10, D.O. 13, Rule 1410, OSHS) –
All construction equipment having a gross operating weight of at least 1000 kg and
power rating of at least 10HP must be certified as fit for operation by DOLE or its
accredited construction Heavy Equipment Testing Organization. No CHE shall be
used within construction sites without a valid Certificate of Inspection.
10. Construction Heavy Equipment Operators (Section 10, D.O. 13, Rule 1410) – Only
duly certified operators shall be allowed or authorized to operate construction heavy
equipment. Certification shall be in accordance with TESDA standards for skills
certification.
11. Construction Worker’s Skills Certificate (Section 15, D.O. 13) - All construction
workers performing critical occupations shall undergo a mandatory skills testing for
certification by TESDA. An occupation is considered critical if any of the following
is satisfied:
a. the performance of the job affects and endanger people’s lives and limbs;
b. the job involves the handling of power tools, equipment and supplies;
c. the job requires a relatively long period of education and training; and
d. the performance of the job may compromise the safety, health and environmental
concerns within the immediate vicinity of the construction site.
12. Continuing Training related to occupational health and safety (Section 13, D.O. 13)
- The employer must provide for at least sixteen (16) hours of training per year for all
of its full time safety personnel.
13. Workers Welfare Facilities (Section16, D.O. 13) - The employer shall provide for :
a. adequate supply of safe drinking water for the workers in the project site;
b. suitable drinking areas, drinking water containers which should be cleaned and
disinfected at intervals not exceeding fifteen (15) days;
c. adequate sanitary and washing facilities based on the requirements of the DOH;
d. adequate facilities for changing, storing and drying of working clothes;
e. suitable living accommodation for workers, as may be applicable, for their
families; and
f. separate sanitary, washing and sleeping facilities for male and female workers.
14. Emergency Health Provider (Section 8, D. O. 13) – In the absence of hospital
facilities on site where the number of workers exceeds 300, a valid contract with an
Emergency Health Provider (EHP) may be allowed. An EMP means any person or
organization who is certified or recognized by the department of Health and who can
provide the same or equivalent emergency health service as an emergency hospital,
including emergency transport and care during transport of injured workers to the
nearest hospital, with adequate personnel, supplies and facilities for the complete
immediate treatment of injuries or illnesses.
31
Annex “A”
Letter Request for Assistance in Self Assessment
Date ________________
Director __________________
Regional Office No. _________
Department of Labor & Employment
Address ____________________
Dear Director ________________,
Greetings!
This refers to the conduct of Self-Assessment in our establishment.
May we request for assistance in the conduct of Self-Assessment and/or
Guidance in accomplishing the Checklist on ___________________ .
Thank you.
Very truly yours,
_______________________________________
Name and Signature of Owner/
Authorized Representative
Name of Establishment:
Address:
Tel. No.:
32
Annex “B”
Republic of the Philippines
Regional Office No.______
AUTHORITY TO ASSIST IN THE CONDUCT OF SELF-ASSESSMENT
Authority No. _________________________
Date Issued : _______________
To: ____________________
Position
You are hereby directed to assist establishments listed below on
_______________________ in its conduct of Self-Assessment/assist in
accomplishing the Checklist.
NAME OF ESTABLISHMENT ADDRESS
____________________________ _______________________________
____________________________ _______________________________
____________________________ _______________________________
____________________________ _______________________________
This Authority to Assist shall be attached in the Checklist upon its
submission to the Regional Office.
__________________________
LSED Chief
Approved by:
_____________________
Regional Director
DOLE Dept Advisory 1-10

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Conditions of employment

Normal Hours of Work

RA 9231 CHILD LABOR

DO No. 65-04, Series of 2004

Rules and Regulations Implementing RA 9231, Amending RA 7610, as Amended

Dep Ed Order 88-10: Private Schools in Basic Education

IMPLEMENTING RULES OF BOOK III: Rule I

SECTION 6. Lectures, meetings, training programs. — Attendance at lectures, meetings, training

(a) Attendance is outside of the employee's regular working hours;

(b) Attendance is in fact voluntary; and

Rule X, Sec. 7, 9 & 10 of IRR

A: YES, under Section 7, Rule I, Book III.

Shortened Meal Period

IMPLEMENTING RULES OF BOOK III: Rule I

IMPLEMENTING RULES OF BOOK III: Rule I

Normal and Compressed (DOLE Dept. Advisory No. 2, Series of 2004)

IMPLEMENTATION OF COMPRESSED WORKWEEK SCHEMES

I. PURPOSE AND COVERAGE

1. To promote business competitiveness and productivity, improve efficiency by lower operating

III. CONCEPT AND DEFINITION

IV. SPECIFIC GUIDELINES

2. If there is no grievance mechanism or if this mechanism is inadequate, the grievance shall be

V. PUBLICATION AND POSTING

 Exception to ARTICLE 91 on Weekly Rest Day

WEEKLY REST DAY:

(to accommodate members of the 7th day Adventists and others)

Rule III, Book III

Q: What happens on the seventh day?

DOES THE 6 CONSECUTIVE DAYS WORKWEEK APPLY TO ALL EMPLOYERS OR EMPLOYEES?

NO, it does not apply to:

(a) Health personnel in cities or municipalities with a population of 1 million or

HEALTH PERSONNEL – shall include:

(a) Resident physicians,

Policy Instruction No. 54

San Juan de Dios Hospital Employees Association vs. NLRC

G.R. No. 126383 November, 28, 1997

”What Article 83 merely provides are:

Q: Can the employees be compelled to work during rest day?

To prevent loss or damage to perishable goods;

METHODS OF FIXING COMPENSATION:

Art 97. DEFINITION –

*Facilities vs. Supplements

- are wage deductible

- are not wage deductible

DOLE Dept Advisory 1-10

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