Philippines Labor Laws and Regulations

Exemptions from Compliance with Wage Order

• An establishment may be exempted from compliance with a Wage Order for a period not to exceed one (1) year based on documentation and other requirements in accordance with applicable rules and regulations issued by the National Wages and Productivity Commission (NWPC).

Minimum Wage Rates

• The National Capital Region (NCR) has a daily minimum wage rate of ₱570.00 for non-agriculture and ₱533.00 for agriculture (plantation and non-plantation) and service/retail establishments employing 15 workers or less as of July 2023.
• The daily minimum wage rate in other regions varies, with the lowest rate in BARMM (₱306.00 - ₱341.00) and the highest rate in NCR (₱573.00 - ₱610.00) as of July 2023.

Piece-Rate Order or Production Standard Order

• A Piece-Rate Order or Production Standard Order shall be issued by the DOLE Regional Director to ensure the payment of fair and reasonable wage rates to workers who are paid by results.
• The order shall be adjusted every time a new Wage Order is issued to ensure that piece rates correspond to the applicable minimum wage.

Wage of Apprentices, Learners, and Persons with Disability

• The wage of apprentices and learners shall not be less than 75% of the applicable minimum wage rates.
• A qualified employee with disability 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.

Annual Establishment Report on Wages (AERW)

• All private establishments are required to submit an annual report on their labor component, specifying the names of their workers and employees below the managerial level, including learners, apprentices, and disabled/handicapped workers, and their corresponding salaries and wages.

Exclusions from Wage Order

• Officers or members of a managerial staff who perform certain duties and responsibilities are excluded from the Wage Order.
• Kasambahay and persons in the personal service of another are excluded from the Wage Order.
• Workers who are paid by results, including those who are paid on piece rate, takay, pakyaw, or task basis, and other non-time work, are excluded from the Wage Order.
• Field personnel who regularly perform their duties away from the principal or branch office or place of business of the employer are excluded from the Wage Order.

Special Days

• Managerial employees who meet certain conditions are entitled to special days.
• Officers or members of a managerial staff who perform certain duties and responsibilities are entitled to special days.
• Field personnel and those whose time and performance are unsupervised by the employer are entitled to special days.
• Those already enjoying this benefit, those enjoying vacation leave with pay of at least five (5) days, and those employed in establishments regularly employing less than ten (10) employees are entitled to special days.

Paternity Leave

• A male employee is entitled to paternity leave of seven (7) days with full pay to enable him to perform his paternal duties and responsibilities.
• The male employee must have applied for paternity leave with his employer within a reasonable period of time from the expected date of delivery by his pregnant spouse.
• The male employee's wife must have given birth or suffered a miscarriage.

Paternity Leave Benefit

• The paternity leave benefit applies to the first four (4) deliveries of the employee's lawful wife with whom he is cohabiting.
• Cohabiting means the obligation of the husband and wife to live together, even if they are not physically living together due to the workstation or occupation.

Parental Leave for Solo Parents

• Parental leave refers to the paid leave granted to a qualified solo parent to enable the performance of parental duties and responsibilities where physical presence is required or beneficial to the child.
• A solo parent is a parent who provides sole parental care and support of the child or children due to the death of the spouse, or other circumstances.