Minimum Wage Law Overview
25 Questions
7 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is compensable during waiting time?

  • When employees are free for personal use
  • When waiting occurs outside working hours
  • When waiting is voluntary
  • When the employer requires waiting (correct)

Attendance at voluntary work-related activities is compensable.

False (B)

What is the minimum duration for a meal period to be considered compensable?

20 minutes

Monthly-paid employees are paid for all days in a month, including ____, special days, and holidays.

<p>unworked rest days</p> Signup and view all the answers

Match the following pay structures with their definitions:

<p>Monthly-Paid Employees = Paid for all days including holidays and unworked rest days Daily-Paid Employees = Paid only for days worked and unworked regular holidays Compensable Waiting Time = Required by the employer Non-Compensable Activity = Attendance is voluntary outside of working hours</p> Signup and view all the answers

Which of the following factors is used to determine the Estimated Equivalent Monthly Rate (EEMR) for monthly-paid employees?

<p>365 days in a year (C)</p> Signup and view all the answers

Rest breaks lasting between 5 to 20 minutes are not compensable.

<p>False (B)</p> Signup and view all the answers

What percentage must employers subsidize of the fair value of meals and snacks provided to employees?

<p>30%</p> Signup and view all the answers

What percentage of holiday pay must employees receive if they are on leave with compensation?

<p>The same percentage as their leave benefits (A)</p> Signup and view all the answers

Employees who do not work the day before a holiday will still qualify for holiday pay.

<p>False (B)</p> Signup and view all the answers

What is the minimum overtime pay rate for work performed on ordinary working days?

<p>25% of the hourly rate</p> Signup and view all the answers

Piece-rate employees must receive holiday pay based on their average daily earnings for the last _____ actual workdays before the holiday.

<p>7</p> Signup and view all the answers

Match the types of workers to their holiday pay entitlements:

<p>Piece-Rate Employees = Entitled to holiday pay equivalent to average daily earnings Seasonal Workers = Not entitled to holiday pay in off-season Workers Without Regular Workdays = Entitled to holiday pay despite irregular schedules</p> Signup and view all the answers

What will an employee receive as holiday pay on a regular holiday during a temporary shutdown?

<p>Full holiday pay according to Labor Code (A)</p> Signup and view all the answers

Which of the following types of compensation is exempt from withholding tax?

<p>Holiday Pay (D)</p> Signup and view all the answers

Workers who are absent the day before the first of two consecutive holidays will be paid for both holidays if they do not work on the first holiday.

<p>True (A)</p> Signup and view all the answers

All employees are entitled to Holiday Pay regardless of their employment status.

<p>False (B)</p> Signup and view all the answers

What is the annual compensation limit below which an employee is exempt from withholding tax?

<p>₱250,000</p> Signup and view all the answers

If a worker is on leave with compensation, how is their holiday pay calculated?

<p>Based on the higher of their leave benefits percentage or holiday pay percentage.</p> Signup and view all the answers

Employees who primarily manage and have the authority to hire or fire are considered __________.

<p>managerial employees</p> Signup and view all the answers

Match the following categories of employees with their exemption status regarding Holiday Pay:

<p>Government Employees = Not entitled to Holiday Pay Retail Establishments with less than 10 workers = Not entitled to Holiday Pay Domestic Workers = Not entitled to Holiday Pay Managerial Employees = Conditionally entitled to Holiday Pay</p> Signup and view all the answers

Which of the following compensations are subject to withholding tax?

<p>Commissions (C)</p> Signup and view all the answers

Overtime pay is exempt from withholding tax.

<p>True (A)</p> Signup and view all the answers

Name one condition under which managerial employees may not receive Holiday Pay.

<p>Spending more than 20% of their time on non-management activities.</p> Signup and view all the answers

The Bureau of Workers with Special Concerns handles inquiries about __________ rights and benefits.

<p>domestic workers</p> Signup and view all the answers

Flashcards

Compensable Waiting Time

Waiting time that's part of a job or required by the employer.

Non-Compensable Waiting Time

Waiting time where an employee has free time and can use it for personal purposes.

Compensable Meal Breaks

Meal breaks of at least 20 minutes are compensable if certain conditions are met, e.g., in very long shifts or emergencies.

Compensable Rest Breaks

5-20 minute breaks are compensable.

Signup and view all the flashcards

Monthly-Paid Employee Pay

Paid for all days of the month, including holidays and other days off.

Signup and view all the flashcards

Daily-Paid Employee Pay

Paid only for worked days, excluding regular unworked holidays.

Signup and view all the flashcards

EEMR (Estimated Equivalent Monthly Rate)

Calculation used for minimum wage and related benefits for different employee types.

Signup and view all the flashcards

Employer Meal Subsidy

Employers must provide at least 30% of the reasonable value of meals to their workers.

Signup and view all the flashcards

Hazard Pay Exemption Limitations

Hazard pay not meeting specific criteria is subject to tax withholding.

Signup and view all the flashcards

Exempt Compensation Types

Only specified income types (e.g., SMW, holiday pay, overtime) are exempt from tax; commissions, honoraria, taxable allowances are not exempt.

Signup and view all the flashcards

Annual Compensation Below ₱250,000

Compensation earned under ₱250,000 during the year is exempt from withholding tax.

Signup and view all the flashcards

Holiday Pay Definition

Holiday pay is the regular daily wage for any unworked regular holiday.

Signup and view all the flashcards

Holiday Pay Exclusions - Government Employees

Government employees, including those in government entities or corporations, are excluded from holiday pay benefits.

Signup and view all the flashcards

Holiday Pay Exclusions - Small Businesses

Employees in retail and service establishments with fewer than 10 workers are excluded from holiday pay.

Signup and view all the flashcards

Holiday Pay Exclusions - Domestic Workers

Domestic workers, kasambahay, and those in personal service are not eligible for holiday pay.

Signup and view all the flashcards

Holiday Pay Exclusions - Managerial Employees

Some managerial employees (meeting specific criteria, like significant management duties and hiring/firing authority) are excluded from holiday pay; these criteria are a key concept for these excluded employees.

Signup and view all the flashcards

Holiday pay for employees on leave

Employees on leave with compensation (e.g., social security benefits) receive the same holiday pay percentage as their leave benefits, whichever is higher.

Signup and view all the flashcards

Non-work days before holidays

Employees with rest days or non-work days the day before a holiday are not considered on leave and excluded from holiday pay calculations. However, if they worked the day before, they are entitled to holiday pay.

Signup and view all the flashcards

Successive holidays

If holidays fall on consecutive days, an employee must work on the first holiday to be paid for both holidays. Absence on the day before the first holiday prevents payment for both.

Signup and view all the flashcards

Piece-rate holiday pay

Piece-rate employees are entitled to holiday pay equivalent to their average daily earnings over the last 7 workdays prior to the holiday, with a minimum wage guarantee.

Signup and view all the flashcards

Seasonal worker holiday pay

Seasonal workers are not eligible for holiday pay during their off-season when they are not working.

Signup and view all the flashcards

Overtime pay definition

Overtime pay is additional compensation for working beyond 8 hours in a day.

Signup and view all the flashcards

Basic Ordinary Working Days overtime rate

For ordinary working days, overtime pay is 25% of an employee's hourly rate for each hour exceeding 8 hours in a day. Calculation depends on the industry.

Signup and view all the flashcards

Overtime pay for retail/service sector

In retail/service positions, the overtime rate is based on a calculation using 25% of the hourly rate calculated from the daily earnings for 8 working hours, this rate is 71,63.

Signup and view all the flashcards

Study Notes

Minimum Wage

  • Republic Act No. 6727 mandates the setting of minimum wages for various industrial sectors.
  • This includes agricultural, plantation, non-plantation, cottage/handicraft, retail/service sectors based on worker numbers or business capitalization.
  • "Agriculture" encompasses cultivation, tillage, production, harvesting, livestock & poultry, fish farming, and activities directly related to farming, excluding manufacturing and processing of farm products.
  • "Retail establishment" is primarily focused on selling goods to consumers for personal/ household use. Wholesale activities negate retail character.
  • "Service establishments" primarily provide services to individuals for personal/household use.

Coverage

  • Wage orders apply to all private sector workers earning minimum wage or below a certain ceiling, regardless of employment status or payment method.
  • Barangay Micro Business Enterprises (BMBE's) with Certificates of Authority are exempt.
  • Temporary establishments may apply for a one-year exemption reviewable by Regional Tripartite Wages and Productivity Boards (RTWPB).

Minimum Wage Rates

  • Minimum wage rates vary by region, industry and the number of employees.
  • The national capital region's non-agricultural minimum wage rate is P610 per day as of July 2023 (with a recent increase of P40).

Working Hours

  • Minimum wage is based on an 8-hour workday.
  • Compensable hours include time spent at work, or directed by an agency, even if it's unplanned or voluntary.
  • Rest periods are not considered hours worked if the employee can fully rest and leave the premises.
  • Unexpected work interruptions that require the employee to remain on-site, or where intervals for personal use are too short for that purpose, are compensable.

Other Important Considerations

  • Employees are entitled to regular benefits, like social security and healthcare coverage, even when minimum wage is adjusted, and
  • Employers are required to subsidize at least 30% of fair and reasonable meal/snack value; employee deductions may not exceed 70%.
  • Regional Tripartite Wages & Productivity Boards (RTWPB) review Kasambahay minimum wages annually.
  • Wage compliance for piece-rate workers (like piecework, takay, pakyaw) must include minimum wage for actual hours worked with prorated amounts for less than 8 hours.
  • Penalties exist for minimum wage non-compliance, including fines or imprisonment.
  • There are specific rules for determining wage rates for employees based on results, like piece work rates, which must provide at least the minimum wage for up to 8 hours or proportionally for less than 8 work hours.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Minimum Wage (PDF)

Description

Explore the key provisions of Republic Act No. 6727, which sets the minimum wage standards across various sectors such as agriculture, retail, and services. This quiz covers important definitions and coverage areas for private sector workers, along with exemptions for certain enterprises.

More Like This

Minimum Wage Increase and Social Perception
4 questions

Minimum Wage Increase and Social Perception

BrilliantTerbium avatar
BrilliantTerbium
Minimum Wage Laws
14 questions

Minimum Wage Laws

ImpressiveSyntax avatar
ImpressiveSyntax
Employment Law: Minimum Wage & Hours
21 questions

Employment Law: Minimum Wage & Hours

RoomyCthulhu avatar
RoomyCthulhu
Minimum Wage and Labor Laws Quiz
16 questions

Minimum Wage and Labor Laws Quiz

ReputableGadolinium avatar
ReputableGadolinium
Use Quizgecko on...
Browser
Open
Browser
Browser