Statutory Benefits for

Workers in Industry

Prepared by: Ralch A.

Cuaresma, MBM.
The Labor code of the Philippines was enacted into law
by Presidential Decree No. 442 which was approved on
May 1,1974.
Labor Statutes Classified into:

1. Labor Standards Laws –

those that provide for the pay and
other legal benefits to which the
3. Labor relation Laws–
worker is entitled to receive from his
those intended to stabilize the
employer.
relations of employees and their
employers, adjust differences
2. Welfare Legislation – between them thru collective
those that require payments of bargaining and settle labor disputes
benefits by government agencies to through reconciliation, mediation
the worker or his family while he and arbitration.
cannot work by reason of sickness,
disability, old age, death and similar
hazards.
 Minimum Wage
Republic Act No. 6727 or also known as the “Wage
Rationalization Act” mandates the fixing wages
applicable to different industrial sectors.
Note:
The Regional Wage Orders prescribed 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.
 Holiday Pay
A holiday pay refers to the payment of the regular daily
wage for any unworked regular holiday.

Premium Pay
Premium pay refers to the additional compensation fro
work performed within eight (8) hours on nonworking days, such
as rest days and special days.

Overtime Pay
Overtime pay refers to the additional compensation for
work performed beyond eight ((8) hours a day.
 Night Shift Differential
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 10Pm and 6am.

Service Charges
A fee charged for a particular service often in addition to a
standard or basic fee —called also service fee.

Service Incentive Leave

Every employee who has rendered at least one year of
service is entitled to (SIL) of five days with pay.
Maternity Leave
This benefit is apply to all female employee, whether
married or not. 60 for normal delivery 78 days for caesarian
section delivery
 Paternity Leave
Granted to all married male employees in the private
sector regardless of their status. (7) calendar days with full
pay. (first 4 deliveries)

Parental Leave for Solo Parent

Is granted for solo parents or individual who is left
alone with the responsibility of parenthood.
Leave for Victims of Violence Against
Women and Their Children
Republic Act 9262 refers to any act or series of acts
committed by any person against a woman and children.
 Special Leave for Women
This is under such term an conditions. E.g,. Gynecological
Disorders.

Thirteenth Month Pay

Salary is paid to employees according to different terms of
law or contract of employment. Mostly, it is equivalent to one
full monthly salary and paid in December (the 12th month) around
Christmas and is traditionally called a Christmas bonus.

Separation Pay
Is the payment to a worker who is permanently laid off his
or her job without his or her fault. ... Separation pay as a rule is
paid only in those instances where the severance of employment
is due to factors beyond the control of the employee.
 Retirement Pay
Is equivalent to at least one-half month salary for every
year of service.
A pension; the pay a retired person gets. Social Security
provides retirement pay for all elderly persons who have worked a
minimal number of months during their lives and contributed a
portion of their paycheck (typically matched by their employer) into
a government fund.
Benefits Under the Employees
Compensation Program
The employees Compensation Program is a government
program designed to provide a compensation package to public
and private sector employees or their dependents in the event of
work-related. (PD 626) SSS GSIS.
 Philhealth Benefits
SSS Members and their dependents whereby the
healthy subsidize the sick who may find themselves in need
of financial assistance when they get hospitalized. Republic
Act. 7875
Social Security Benefits RA 1161 as
Amended by RA 8282
A social package of benefits in the event of death,
disability, sickness, maternity and old age.

Pag-Ibig Benefits (RA 9679)

mutual provident saving system for private and
government employees and other earning groups.
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