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Accounting for Labor

Book III – Conditions of Employment


• Art. 83. Normal hours of work. The normal hours
of work of any employee shall not exceed eight (8)
hours a day.
• 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.
• Art. 86. Night shift differential. 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.
• Art. 87. Overtime work. Work may be
performed beyond eight (8) hours a day provided
that the employee is paid for the overtime work,
an additional compensation equivalent to his
regular wage plus at least twenty-five percent
(25%) thereof. Work performed beyond eight
hours on a holiday or rest day shall be paid an
additional compensation equivalent to the rate
of the first eight hours on a holiday or rest day
plus at least thirty percent (30%) thereof.
• Art. 88. Undertime not offset by overtime.
Undertime work on any particular day shall not
be offset by overtime work on any other day.
Permission given to the employee to go on leave
on some other day of the week shall not exempt
the employer from paying the additional
compensation required in this Chapter.
• Art. 91. Right to weekly rest day.
- 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.
- 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 and
Employment 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.
• Art. 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.
• Art. 93. Compensation for rest day, Sunday or holiday
work.
- Where an employee is made or permitted to work on his scheduled
rest day, he shall be paid an additional compensation of at least
thirty percent (30%) of his regular wage. An employee shall be
entitled to such additional compensation for work performed on
Sunday only when it is his established rest day.
- When the nature of the work of the employee is such that he has no
regular workdays and no regular rest days can be scheduled, he
shall be paid an additional compensation of at least thirty percent
(30%) of his regular wage for work performed on Sundays and
holidays.
- Work performed on any special holiday shall be paid an additional
compensation of at least thirty percent (30%) of the regular wage of
the employee. Where such holiday work falls on the employee’s
scheduled rest day, he shall be entitled to an additional
compensation of at least fifty per cent (50%) of his regular wage.
- Where the collective bargaining agreement or other applicable
employment contract stipulates the payment of a higher premium
pay than that prescribed under this Article, the employer shall pay
such higher rate.
• Art. 94. Right to holiday pay.
- Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service
establishments regularly employing less than ten (10)
workers;
- The employer may require an employee to work on
any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; and
- As used in this Article, “holiday” includes: New Year’s
Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, the fourth
of July, the thirtieth of November, the twenty-fifth
and thirtieth of December and the day designated by
law for holding a general election.
• Art. 95. Right to service incentive leave.
- Every employee who has rendered at least one year of
service shall be entitled to a yearly service incentive
leave of five days with pay.
- This provision shall not apply to those who are already
enjoying the benefit herein provided, those enjoying
vacation leave with pay of at least five days and those
employed in establishments regularly employing less
than ten employees or in establishments exempted
from granting this benefit by the Secretary of Labor
and Employment after considering the viability or
financial condition of such establishment.
- The grant of benefit in excess of that provided herein
shall not be made a subject of arbitration or any court
or administrative action.
• Art. 96. Service charges. All service charges
collected by hotels, restaurants and similar
establishments shall be distributed at the rate of
eighty-five percent (85%) for all covered
employees and fifteen percent (15%) for
management. The share of the employees shall
be equally distributed among them. In case the
service charge is abolished, the share of the
covered employees shall be considered
integrated in their wages.
• Art. 99. Regional minimum wages. The
minimum wage rates for agricultural and non-
agricultural employees and workers in each and
every region of the country shall be those
prescribed by the Regional Tripartite Wages and
Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).
• Art. 100. Prohibition against elimination or
diminution of benefits. Nothing in this Book
shall be construed to eliminate or in any way
diminish supplements, or other employee
benefits being enjoyed at the time of
promulgation of this Code.
REGION MWR (PHP)
NCR 500.00 - 537.00
CAR 300.00 - 320.00
REGION I 273.00 - 340.00
REGION II 320.00 - 360.00
REGION III 284.00 - 400.00
REGION IV-A 303.00 - 400.00
REGION IV-B 294.00 - 320.00
REGION V 310.00
REGION VI 295.00 - 365.00
REGION VII 313.00 - 386.00
REGION VIII 285.00 - 315.00
REGION IX 303.00 - 316.00
REGION X 331.00 - 365.00
REGION XI 381.00 - 396.00
REGION XII 290.00 - 311.00
REGION XIII 320.00
ARMM 270.00 - 280.00
NEW DAILY BASIC MINIMUM WAGE RATES
Tabuk City, Bangued,
Bontoc, Lagawe, Banaue,
Baguio City & La Trinidad Other Areas in the Region
Buguias, Bauko, Sagada,
Sector/Ind & Tublay
ustry
Under New Under New Under New
Wage Wage Wage
WO No. Minimu WO No. Minimu WO No. Minimu
Increas Increas Increas
RB- m RB- m RB- m
e e e
CAR-18 Wage CAR-18 Wage CAR-18 Wage

All
Industries/
Sectors ₱300.00 ₱20.00 ₱320.00 ₱290.00 ₱25.00 ₱315.00 ₱280.00 ₱20.00 ₱300.00
employing
11 or more

All
Industries/
Sectors ₱285.00 ₱25.00 ₱310.00 ₱280.00 ₱25.00 ₱305.00 ₱270.00 ₱30.00 ₱300.00
employing
10 or less
• Art. 102. Forms of payment. No employer shall pay
the wages of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits, or
any object other than legal tender, even when
expressly requested by the employee.
• Art. 103. Time of payment. Wages shall be paid at
least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on
account of force majeure or circumstances beyond
the employer’s control, payment of wages on or
within the time herein provided cannot be made, the
employer shall pay the wages immediately after such
force majeure or circumstances have ceased. No
employer shall make payment with less frequency
than once a month.
• Art. 113. Wage deduction. No employer, in his
own behalf or in behalf of any person, shall make
any deduction from the wages of his employees,
except:
- In cases where the worker is insured with his consent
by the employer, and the deduction is to recompense
the employer for the amount paid by him as premium
on the insurance;
- For union dues, in cases where the right of the worker
or his union to check-off has been recognized by the
employer or authorized in writing by the individual
worker concerned; and
- In cases where the employer is authorized by law or
regulations issued by the Secretary of Labor and
Employment.
• Computation of Holiday Pay for Employees
Who Didn’t Work
- If you didn’t report for work on a regular holiday, you’ll
still receive your full salary for that day. You shouldn’t
be deducted for work that isn’t performed on a
holiday.
• Computation of Holiday Pay for Employees
Who Worked for 8 Hours
- If you reported for work on a regular holiday, you
should be paid double your salary (basic wage + cost
of living allowance or COLA) for the first eight hours
worked.
- Here’s how to compute your holiday pay:
- Pay for work on a regular holiday (first eight hours) =
(Basic wage + COLA) x 200%
- For example, if your daily rate is PHP 1,000, your
holiday pay should be calculated as follows:
- PHP 1,000 x 2 = PHP 2,000
• Computation of Holiday Pay for Employees
Who Worked Overtime
- If you worked for more than eight hours during a
regular holiday, you should be paid an additional 30%
of your hourly rate.
- Regular holiday pay with overtime work = Hourly
rate x 200% x 130% x number of hours worked
- Let’s say your hourly rate is PHP 125, and you worked
overtime for two hours (for total overtime of 10
hours). Here’s how to calculate your regular holiday
pay:
- PHP 125 x 2 x 1.30 x 10 hours = PHP 3,250
• Computation of Holiday Pay for Employees
Who Worked for 8 Hours During Their Rest Day
- If you worked during a regular holiday that also falls
on your rest day, you must receive 30% of your 200%
salary in addition to 200% of your salary.
- Use this formula for a simpler computation:
- Holiday rest day pay = [(Basic wage + COLA) x 200%]
+ [30% (Basic wage x 200%)]
- For a daily rate of PHP 1,000, the holiday rest day pay is
computed as follows:
- [(PHP 1,000 x 2)] + [0.30 (PHP 1,000 x 2)]
- [PHP 2,000] + [0.30 x PHP 2,000]
- PHP 2,000 + PHP 600 = PHP 2,600
• Computation of Holiday Pay for Employees
Who Worked Overtime During Their Rest Day
- If you worked for more than eight hours on a regular
holiday (which is also your rest day), you’ll get paid an
additional 30% of your hourly rate.
- Holiday rest day pay = Hourly rate x 200% x 130% x
130% x number of hours worked
- Here’s how to compute your holiday pay with
overtime on your rest day:
- PHP 125 x 2 x 1.30 x 1.30 x 10 hours = PHP 4,225
• Computation of Holiday Pay for Employees
Who Didn’t Work
- The no work, no pay rule applies when you don’t
report for work on a special non-working day, unless
your employer has a policy or collective bargaining
agreement (CBA) that requires payment on such a
holiday.
• Computation of Holiday Pay for Employees
Who Worked for 8 Hours
- If you work during a special non-working day, you
must receive an additional 30% of your basic wage on
the first eight hours worked.
- Here’s how to compute your holiday pay:
- Pay for work performed on a special non-working
day = (Basic Wage x 130%) + COLA
- If your daily rate is PHP 1,000 (no COLA), your holiday
pay is computed as follows:
- PHP 1,000 x 1.30 = PHP 1,300
• Computation of Holiday Pay for Employees
Who Worked Overtime
- If you worked overtime, you’ll get an additional 30% of
your hourly rate.
- Pay for work performed on a special non-working
day with overtime = Hourly rate of the basic wage x
130% x 130% x number of hours worked
- With an hourly rate of PHP 125 and two hours of
overtime work, here’s how to calculate your pay
during a special non-working day:
- PHP 125 x 1.30 x 1.30 x 10 hours = PHP 2,112.50
• Computation of Holiday Pay for Employees
Who Worked for 8 Hours on Their Rest Day
- If you worked on a special non-working day that also
falls on your rest day, you’ll get an additional 50% of
your basic wage for the first eight hours.
- For a simpler computation, use this formula:
- Special non-working rest day pay = (Daily rate ×
150%) + COLA
- For a daily rate of PHP 1,000 (no COLA), your holiday
pay is computed as follows:
- PHP 1,000 x 1.50 = PHP 1,500
• Computation of Holiday Pay for Employees
Who Worked Overtime on Their Rest Day
- If you worked overtime on a special non-working day
(which is also your rest day), you’ll get paid an
additional 30% of your hourly rate.
- Special non-working rest day pay with overtime
= Hourly rate of the basic wage x 150% x 130% x
number of hours worked
- Here’s how to compute your holiday rest day pay with
overtime of two hours:
- PHP 125 x 1.50 x 1.30 x 10 hours = PHP 2,437.50