Philippine Workers' Statutory Monetary Benefits 2024

Workers' Statutory Monetary Benefits 2024 Handbook

• Features the latest updates and significant developments in labor standards, rules, and regulations.
• Provides current information and guidance on workers' wages and related benefits.
• Integrates important updates from DOLE Department Order 242, Series of 2024, revises the Rules and Regulations of Article 96 of the Labor Code of the Philippines, as amended by Republic Act No. 11360, expanding coverage and distribution of service charges.
• Offers a summary of statutory benefits and addresses frequently asked questions, providing clarity on eligibility, duration, and computation.
• Includes updated contact details of the DOLE-Regional Offices for easy reference for public inquiries.

Compliance Guide

• Minimum Wage: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Holiday Pay: N/A for retail and service establishments that employ 1 to 5 workers and 1 to 9 workers and checkmark for Agriculture
• Premium Pay: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers, and Agriculture
• Overtime Pay: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Night Shift Differential: N/A for retail and service establishments and agriculture
• Service Charges: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Service Incentive Leave: N/A for retail and service establishments that employ 1 to 5 workers and 1 to 9 workers , and checkmark for Agriculture
• Maternity Leave: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Paternity Leave: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Parental Leave: N/A for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Leave for VAWC: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Special Leave for Women: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• 13 Month Pay: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Separation Pay: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Retirement Pay: N/A for retail and service establishments
• ECC Benefits: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• PhilHealth Benefits: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• SSS Benefits: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture
• Pag-IBIG Benefits: Checkmark for retail and service establishments that employ 1 to 5 workers, 1 to 9 workers and Agriculture

Compliance Guide Computations

• Ordinary Day: 1 or 100%
• Rest day or Sunday: 1x1.3 = 1.3 or 130%
• Special (Non-working) Day: 1x1.3 = 1.3 or 130%
• Special (Non-working) day falling on a rest day: 1x1.5= 1.5 or 150%
• Double special (Non-working) Day: 1x1.5 = 1.5 or 150%
• Double special (Non-working) day falling on a rest day: 1x1.95 = 1.95 or 195%
• Regular Holiday: 1x2 = 2 or 200%
• Regular Holiday falling on a rest day: 1x2.6 = 2.6 or 260%
• Double Holiday: 1x3 = 3 or 300%
• Double Holiday falling on a rest day: 1x3.9 = 3.9 or 390%
• Overtime (OT) - Ordinary day: 1x1.25 = 1.25 or 125%
• Overtime (OT) - Rest day: 1.3x1.3 = 1.69 or 169%
• Night Shift Ordinary: 1x1.1 = 1.1 or 110%

Summary of Statutory Leave Benefits

• Service Incentive Leave: An employee has rendered at least one year of service, 5 days paid leave is enacted
• Maternity Leave: Provided the female employee has at least three monthly contributions to the SSS in the 12-month period immediately preceding the semester of childbirth and has notified her employer about her pregnancy and the probable date of her childbirth, she can avail of 105 days paid sick leave or 60 days for miscarriage
• Paternity Leave: Provided at the time delivery of the child the married male employee 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, he can avail of 7 days paid sick leave
• Parental Leave: An employee has rendered at least six months of service, whether continuous or broken, at the time of the effectivity of Republic Act No. 11861, has notified his/her employer of the availment thereof within a reasonable time, and has presented a valid Solo Parent Identification Card (SPIC), he can avail 7 days paid sick leave
• Leave For Victims of Violence Against Women and Their Children: Provided the employee victim presents to employer a certification from the barangay chairman, barangay councilor, prosecutor, or Clerk of Court, as the case may be, that an action related to VAWC is pending, the employee can avail of 10 days sick leave
• Special Leave For Women: Provided the female employee has rendered at least six months continuous aggregate employment service for the last 12 months prior to surgery, has filed an application for special leave with her employer within a reasonable period of time from the expected date of surgery or within such period as may be provided by company rules and regulations or collective bargaining agreement: and has undergone surgery due to gynecological disorders as certified by a competent physician, the employee can avail of 60 days sick leave

Minimum Wage

• Republic Act No. 6727 mandates the fixing of minimum wages applicable to different industrial sectors, such as non-agriculture, agriculture plantation, non-plantation, cottage/handicraft, and retail/service.
• “Agriculture” refers to farming in all its branches, including cultivation, production, dairying, raising livestock, culture of fish, and activities incident to farming, excluding processing sugar, coconut, abaca, tobacco, pineapple, or aquatic products.
• “Retail establishment” is principally engaged in the sale of goods to end-users for personal or household use, losing its retail character if regularly engaged in wholesale activities.
• "Service establishment" is principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.
• Wage determination was rationalized by establishing the Regional Tripartite Wages and Productivity Boards (RTWPBs) to determine daily minimum wage rates.
• Wage increases apply to all private sector workers receiving daily minimum wage rates or those receiving up to a certain daily wage ceiling.
• Workers of duly registered Barangay Micro Business Enterprises (BMBEs) with a Certificate of Authority are exempt from the wage orders under Republic Act No. 10644.
• Retail/service establishments regularly employing not more than ten workers and establishments affected by natural calamities may be granted a one-year exemption from the wage order, upon application and as determined by an RTWPB.
• The Regional Wage Orders prescribe the daily minimum wage rates per industry per locality, sometimes depending on the number of workers.

Coverage, Current Regional Daily Minimum Wage Rates & Rules for Compensable Working Hours

• Current Regional Daily Minimum Wage Rates (MWR) can be found at specified websites for each region.

Rules in Determining Compensable Working Hours

• The normal working hours are eight hours a day.
• Compensable hours include all time an employee is required to be on duty or at the employer's premises and all time the employee is suffered or permitted to work.
• Hours counted as worked include all hours the employee is required to give to the employer and time when the employee cannot abandon work or has no replacement. Waiting Time:
• Waiting time spent by an employee is considered working time if waiting is an integral part of that person's work or the employee is required by the employer to wait.

Attendance at lectures, meetings, training programs, and other similar activities:

• Is not counted as working time under certain conditions. Rest or Meal time
• Every employer shall give to his employees, not less than one (1) hour time-off for regular meals, except a meal period of not less than twenty (20) minutes may be given by the employer.
• Rest periods or coffee breaks that range from five (5) to twenty (20) minutes are considered compensable working time.

Monthly Paid Employees & Wage of Kasambahay

• “Monthly-paid employees” are those paid every day of the month, including unworked rest days, special days, and regular holidays; factor 365 days in a year is used to determine their equivalent monthly salary.
• “Daily-paid employees” are those paid only for the days they actually worked and on unworked regular holidays.

Computation of the Estimated Equivalent Monthly Rate (EEMR)

• Follows specific formulas for monthly-paid and daily-paid employees, considering whether they work every day or not paid on Sundays/rest days.
• The employer may provide subsidized meals and snacks if the subsidy is at least 30% of the fair value; deductions from wages cannot exceed 70% of the value of meals and snacks.
• Kasambahays: Regional Tripartite Wages and Productivity Boards (RTWPBs) are mandated to review and determine the minimum wage rates of Kasambahays.
• To access links to monthly minimum wage rates of Kasambahays are available on the National Wages and Productivity Commission website.

Wage Reductions, Penalties, And Apprentices Wages

• Reduced Workdays: Employers may deduct wages for days taken off due to reduced workdays, consistent with “no work, no pay,” unless agreed otherwise.

Penalty and Double Indemnity for Wage Violations:

• Any entity refusing to pay prescribed wage increases faces fines and imprisonment.

BMBEs (Barangay Micro Business Enterprises):

• Are exempt from minimum wage laws.

Wage for Workers Paid by Results:

• Must receive no less than the prescribed minimum wage rates.

Wage of Apprentices, Learners, and Persons with Disability:

• Shall be no less than 75% of the applicable minimum wage rates. Annual Establishment Report on Wages (AERW):
• All private establishments must submit an annual report with itemized listing their labor component and salaries
• Effective 01 January 2018, compensation income of Minimum Wage Earners (MWEs) who work in the private sector will not be subjected to taxation
• Holiday Pay is paid on any unworked regular holiday.
• The Holiday pay rate for any employee who does not work is 100% of the employee's wage for that day.

2. Holiday Pay

Definition:

• Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.

Coverage

• This benefit applies to all employees except:
• Government employees.
• Retail and service establishments regularly employing less than ten workers.
• Kasambahay and persons in the personal service of another.
• Managerial employees, if they meet all of the conditions
• Field personnel and other employees whose time and performance is unsupervised by the employer
• The President of the Philippines issues a Proclamation annually declaring specific dates as regular holidays to be observed nationwide

Holiday Pay Rates

• Work performed on that day merits at least twice (200%) the daily wage of the employee.
• If the employee does not work, the employer shall pay 100% of the employee's wage for that day
• For work done during the regular holiday, the employer shall pay a total of 200% of the employee's wage for that day for the first eight hours
• If the employee does not work on a double regular holiday, the employer shall pay 200% of the employee's wage for that day.
• For work done during a double regular holiday, the employer shall pay a total of 200% of the employee's wage for that day for the first eight hours.

3. Premium Pay

Definition

• Premium pay refers to the additional compensation for work performed within eight hours on rest days and special days.

Coverage

• This benefit applies to all employees except:
• Government employees.
• Managerial employees, or members of a managerial staff, they perform certain duites
• Kasambahay and persons in the personal service of another.
• Workers who are paid by results, including those who are paid on piece rate, takay, pakyaw, or task basis, and other non-time 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; and
• 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.

Special (Non-Working) Days¹

• Unless otherwise modified by law, order or proclamation, the following special (non-working) days shall be observed in the country.
• Ninoy Aquino Day
• All Saints' Day
• Feast of the Immaculate Conception of Mary
• Last Day of the Year
• The following are also traditionally declared as additional special (non-working) days.
• Chinese New Year
• Black Saturday
• All Souls Day
• Christmas Eve
• Annually, the President of the Philippines issues a Proclamation declaring specific dates as special (non-working) days to be observed nationwide.
• "Workers who are not required or permitted to work on special days are not entitled to any compensation"

Premium Pay Rates

• If the employee does not work, the “no work, no pay” principle shall apply .
• For work done during a special (non-working) day, the employer shall pay the employee an additional 30% of the basic wage on the first eight hours of work.
• For work done during a special (non-working) day that also falls on the employee's rest day, the employer shall pay the employee an additional 50% of the basic wage on the first eight hours of work.

4. Overtime Pay

Definition

• Overtime pay refers to the additional compensation for work performed beyond eight hours a day.

Coverage

• Same as those covered under Premium Pay.

Overtime Pay Rates

• For work done in excess of eight hours on an ordinary working day, the employer shall pay the employee an additional 25% of the hourly rate on said day.
• For work done in excess of eight hours on a special (non-working) day or scheduled rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day.
• For work done in excess of eight hours on a special (non-working) day that also falls on the employee's rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day
• For work done in excess of eight hours on a regular holiday, the employer shal pay the employee an additional 30% of the hourly rate on said day.
• For work done in excess of eight hours on a regular holiday that also falls on the employee's rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day.

5. Night Shift Differential

Definition

• Night Shift Differential (NSD) refers to the additional compensation of 10% of an employee's regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. of the following day.

Coverage

• Same with that stipulated for premium pay
• The minimum night shift differential varies according to the day the night shift work is performed
• • For work performed between 10:00p.m. and 6:00 a.m. the following day, the employer shall pay the employee an additional 10% of the corresponding hourly rate for the night shift work

6. Service Charge

• Service charge refers to the amount that is added to the bill for work or service rendered
• Applies to all employees of covered establishments, except managerial employees, regardless of level
• The service charges collected shall be distributed completely and equally, based on actual hours or days of work or service rendered, among the covered employees.
• The collection to be distributed and paid not less than once every 2 weeks
• Increase in minumum wage does not mean service charges paid are to be considered when determining the establishment compliance with an increased minimum wage

7. Service Incentive Leave (SIL)

Definition

• Service incentive leave (SIL) refers to the paid leave of five days granted to an employee who has rendered at least one year of service that may be used for sick, vacation, and other leave purpose

Coverage

• This benefit applies to every employee who has rendered at least one year of service , except the following:
• Government employees.
• Workers in the personal service of another
• Managerial employees, if they meet all of the conditions
• Officers or members of a managerial staff, if they perform the following duties and responsibilities:
• Field personnel and those whose time and performance is unsupervised by the employer,
• Those already enjoying this benefit *Those enjoying vacation leave with pay of at least five days; andThose employed in establishments regularly employing less than ten employees.

8. Maternity Leave

• entitled An Act Increasing the Maternity Leave Period to One Hundred Five (105) Days for FemaleWorkers with an Option to Extend for an Additional Thirty (30) Days Without Pay, and Granting anAdditional Fifteen (15) Days for Solo Mothers, and for Other Purposes
• Enacted on 20 February 2019
• Published in the Manila Bulletin on 23 February 2019 A) Definition
• Maternity leave refers to the paid leave granted to a female employee for every instance of pregnancy, miscarriage, and emergency termination of pregnancy, to regain health and assume maternal roles B) Coverage
• The act applies to female employees, regardless of civil status, employment status, and Legitimacy of the child B) Conditions of Entitlement
• She has at least three monthly contributions to the SSS in the 12-month period immediately preceding the semester of childbirth, miscarriage, or emergency termination of pregnancy
• She has notified her employer about her pregnancy and the probable date of her childbirth. C) Availment
• "Maternity leave shall be granted to a qualified female worker in every instanceof pregnancy, miscarriage or emergency termination of pregnancy regardless offrequency.

9. Paternity Leave

• Republic Act No. 8187
• Definition:
• Paternity leave: the paid leave granted to a married male employee to lend support to his lawful wife.
• Coverage:
• Applies to all married male employees, whether probationary, regular, or contractual.
• Duration:
• Gives male employees his full pay for seven days.
• The married male employee has appled for leave within a reasonable time.

10. PARENTAL LEAVE FOR SOLO PARENTS

• Republic Act No. 8972, as amended by Republic Act No. 11861
• “Expanded Solo Parents Welfare Act.” Enacted on 04 June 2022

Definition

• Parental leave refers to the paid leave granted to a qualified solo parent.

Coverage

• Applies to all employees who belong to the following categories of solo parents:
• Any legal guardian, adoptive or foster parent who solely provides parental care and support to a child or children;
• Any relative has assumed the parental care for the minor.

11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR CHILDREN

(VAWC)

• (Republic Act No. 9262)*

Definition

• A type of Paid leave granted to a female employee who is a vicitim of violence, allowing her to attendmedical and legal concerns.
• The law refers to any acts committed by any person against a women

Coverage Requirements

• Employee must provide her a certification from the barangay chairman (punong barangay), barangay councilor (barangay kagawad), prosecutor, or Clerk of Court.*

DURATION

• 10 days with full pay

12. SPECIAL LEAVE FOR WOMEN

• Republic Act No. 9710
• To help women recover form gyencelogical disorders

Coverage

• Applies to all qualified female employees, regardless of age and who have undergone a surgery

Requirements

She must be employee for 6 months and file with the the employeer

Duration

• 2months with basic pay

13. THIRTEENTH-MONTH PAY

• (Presidential Decree No. 851)*
• To be paid not later than december 24
• All employers are required to pay their rank-and-file employees thirteenth- month pay, regardless of the nature of their employment provided they worked for at least one (1)month during a calendar year."*

14. SEPARATION PAY

applies to to employee terminated

• An employee is entitled to recieve a separation pay quivalent to one half month salary for every year of service, when terminated
• due to Retrenchment
• the employees is suffering a condition
• lack of security gaurd assignment
• one month pay every year due to redundancy

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15. RETIREMENT PAY

• Article 302aaa
• The retirement pay is equivalent to the compensated given to a retiring employee

Coverage Requirements

• Those reaching over the age age of 60 and have served five years

AMOUNTS

equivalent to one-half (1/2) month Salary, "bbb for every year of service, a fraction of at least six months being considered as one whole year. .

16. EMPLOYEES' COMPENSATION PROGRAM

Coverage Requirements

• Private sector workers who are members of the social security system
• Governement sector employess

Conditions of Compensability:

• The employer is responsible for the EC contributions of their employees

ECC benefits

17. PHILHEALTH BENEFITS

(RA 7875, as amended by RA 9241 and RA 10606)

• All citizen in the philppines are entitled/ covered to this

Beneficiaries Types

• *Employees Household employees self earning
• Monthly premium payments

18. SOCIAL SECURITY BENEFITS

#(RA 1162)

Coverage

• Applies to all citizens under 60 and the company

Benefits includes

• sick leave death Unemployment etc**

19: PAG-IBIG BENEFITS

A) Definition

• is government aid that provides access to secured savings and affordable home finishing
• *The coverage, all employess are required to have a pag-big account for the sakes of social security and insurance
• The fund offers members provident earning / and short-term loans