Statutory Monetary Benefits 2023

• The handbook provides guidance on workers' statutory monetary benefits as of 2023.
• It is issued by the Department of Labor and Employment, Bureau of Working Conditions in Intramuros, Manila.

Minimum Wage

• Republic Act No. 6727, or the Wage Rationalization Act, mandates minimum wage fixing across various industrial sectors.
• Wage determination depends on the number of workers, capitalization, or annual gross sales in sectors like:
  • Non-agriculture
  • Agriculture plantation
  • Non-plantation
  • Cottage/handicraft
  • Retail/service
• "Agriculture" includes farming, cultivation, growing, and harvesting agricultural or horticultural goods, but excludes processing sugar, coconut, abaca, tobacco, pineapple, or aquatic products.
• A "Retail establishment" is primarily for selling goods to end-users for personal or household use, losing its retail character if it engages in wholesale activities regularly.
• A "Service establishment" mainly sells services to individuals for their own or household use and is generally recognized as such.
• Regional Tripartite Wages and Productivity Boards (RTWPBs) determine daily minimum wage rates in different regions based on established criteria.
• Regional examples:
  • National Capital Region (NCR) or Metro Manila
  • Cordillera Administrative Region (CAR)
  • Region I: Northern Luzon or Ilocos
  • Region II: Cagayan Valley
  • Region III: Central Luzon
  • CALABARZON: Cavite, Laguna, Batangas, Rizal, and Quezon
  • MIMAROPA: Mindoro Oriental, Mindoro Occidental, Marinduque, Romblon, and Palawan
  • Region V: Bicol
  • Region VI: Western Visayas
  • Region VII: Central Visayas
  • Region VIII: Eastern Visayas
  • Region IX: Western Mindanao or Zamboanga Peninsula
  • Region X: Northern Mindanao
  • Region XI: Southern Mindanao or Davao
  • Region XII: Central Mindanao or SOCCSKSARGEN (South Cotabato, North Cotabato, Sultan Kudarat, Sarangani, General Santos)
  • Caraga: Agusan del Norte, Agusan del Sur, Surigao del Norte, and Surigao del Sur
  • Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)
• Regional Wage Orders set daily minimum wage rates per industry and locality, considering worker numbers and enterprise capitalization.
• Establishments can apply for exemption from Wage Order compliance for up to one year through RTWPB, based on NWPC rules.
• Wage Orders apply to all private sector workers and employees receiving daily minimum wage rates, irrespective of position, designation, or employment status.
• Exception: workers of duly registered Barangay Micro Business Enterprises (BMBEs) with a Certificate of Authority under Republic Act No. 10644.

Minimum Wage Rates

• As of July 2023, the Daily Minimum Wage (MW) in the National Capital Region (NCR) is according to Wage Order No. NCR-24.
• In NCR, the minimum wage rates are:
  • Non-agriculture: Current - P570.00, New - P610.00
  • Service/Retail establishments with 15 or fewer workers: Current - P533.00, New - P573.00

Current Regional Daily Minimum Wage Rates (July 2023)

• NCR: PHP 573.00 - 610.00
• CAR: PHP 400.00
• Region I: PHP 372.00 - 400.00
• Region II: PHP 400.00 - 420.00
• Region III: PHP 344.00 - 460.00
• CALABARZON: PHP 350.00 - 470.00
• MIMAROPA: PHP 329.00 - 355.00
• Region V: PHP 365.00
• Region VI: PHP 410.00 - 450.00
• Region VII: PHP 382.00 - 435.00
• Region VIII: PHP 345.00 - 375.00
• Region IX: PHP 338.00 - 351.00
• Region X: PHP 378.00 - 405.00
• Region XI: PHP 428.00 - 443.00
• Region XII: PHP 347.00 - 368.00
• Caraga: PHP 350.00
• BARMM: PHP 306.00 - 341.00
• The National Wages and Productivity Commission updates the summary of current regional daily minimum wage rates monthly, accessible at www.nwpc.dole.gov.ph(under Statistics)

Rules in Determining Compensable Working Hours

• The legal basis for minimum wage rates is the normal working hours of 8 hours a day.
• Compensable Hours Worked:
  • Time when an employee is required to be on duty at the employer's premises
  • Time when an employee is suffered or permitted to work.

Principles in Determining Hours Worked:

• All hours an employee is required to give to the employer, irrespective of the nature of work, count as hours worked.
• An employee's rest period is not counted as working time if they can stop working, rest, and leave the workplace.
• Time spent when the work needs to be performed, or for the benefit of the company, or when an employee can't leave due to lack of replacement will be hours worked with the employer or supervisor's knowledge of the work that needs to be done.
• Time during which an employee is inactive due to interruptions beyond their control is working time if resumption is imminent or the interval is too short to use effectively.

Treatment on Waiting Time:

• Waiting time is working time if integral to the job or if the employee is required to wait.
• On-call time is working time when an employee is required to stay on the employer's premises or close enough to be unable to use the time effectively.
• Employees who can leave word at home or with company officials are not considered working while on call.
• Attending lectures, meetings, or training programs doesn't count as working time if attendance is outside regular hours, voluntary, and doesn't involve productive work

Meal and Rest Periods:

• Employers must provide employees with at least one hour off for regular meals.
• Exceptions: a 20-minute meal period may be given if credited as compensable hours worked in cases of non-manual work, establishments operating 16+ hours a day, emergencies, or to prevent perishable goods loss.
• Rest periods or coffee breaks (5-20 minutes) are considered compensable working time.

Monthly-Paid and Daily-Paid Employees:

• Monthly-paid employees are paid every day of the month, including unworked rest days and holidays, using a factor of 365 days per year for equivalent monthly salary calculation. Daily-paid employees are paid only for days worked and unworked regular holidays.

Computation of the Estimated Equivalent Monthly Rate (EEMR):

• The declared regular holidays and special non-working days in Proc. No. 42-22, as amended by Proc. No. 90-22, defines the basic factors on which this calculation is made:
  • For monthly-paid employees: EEMR = (Applicable Daily Rate x 365) / 12
    • 365 days is composed of:293.0 ordinary working days, 52.0 rest days, 12.0 regular holidays, and 8.0 special non-working days.
  • For daily-paid employees: EEMR is calculated based on whether they work every day or not, including Sundays, special days, and regular holidays:
    • Working every day: EEMR = (Applicable Daily Rate x 395.0) / 12
      • 395.0 days is composed of: 293.0 ordinary working days, 67.6 rest days (52 x 1.3), 24.0 regular holidays (12 x 2), and 10.4 special non-working days (8 x 1.3)
    • Not working/not paid on Sundays or rest days: EEMR = (Applicable Daily Rate x 313) / 12
      • 313 days is composed of: 293.0 ordinary working days, 12.0 regular holidays, and 8.0 special non-working days (10.4 if worked)
    • Not working/not paid on Saturdays or Sundays: EEMR = (Applicable Daily Rate x 261) / 12
      • 261 days is composed of: 241 ordinary working days, 12 regular holidays, and 8 special non-working days (10.4 if worked)
  • These formulas are suggestions, serving as guides for determining minimum wage rates, and do not override company policies or agreements.

Subsidized Meals and Snacks:

• The employer may provide subsidized meals and snacks, provided that the subsidy is not less than 30% of the facilities' fair value.
• The employer is allowed to deduct up to 70% of the value of meals and snacks from the wages of the employees, compliant with the Facility Evaluation Order from the RTWPB.

Wage of Kasambahay:

• Minimum wage rates for Kasambahay will be reviewed and adjusted periodically by the RTWPBs, which must conduct consultations/hearings with stakeholders prior to the issuance of a wage order.
• Minimum Monthly Wage for Kasambahay (July 2023 Example):
  • NCR: P6,000.00
  • CAR: P4,500.00
  • Region I and II: P5,000.00
  • Region III and CALABARZON: P5,000.00 (cities and 1st class municipalities),P4,500 and P4,000 (other municipalities)
  • The National Wages and Productivity Commission has monthly updates for the wages of Kasambahay.

Wage for Kasambahay as Salesclerk

• A Kasambahay doing the job of a salesclerk should be paid the minimum wage as per the retail and service establishments as per the existing Wage Orders.

Effect of Reduction of Workdays on Wages

• Employers may deduct wages for days not worked due to reduced workdays (e.g., slump in demand), following the "no work, no pay" rule, unless an agreement or company policy states otherwise.

Penalties for Wage Violations (RA 8188):

• Refusal to pay prescribed wage increases results in:
  • Fine: P25,000.00 - P100,000.00
  • Imprisonment: 2-4 years
  • Both fine and imprisonment, at the court’s discretion
  • Convicted individuals are not eligible for probation.
• Employers must pay double the unpaid benefits to employees.
• Payment of indemnity does not absolve the employer's criminal liability.
• For corporations, trusts, firms, or associations, penalties are imposed on responsible officers like the president, VP, CEO, or general manager.

Barangay Micro Business Enterprises (BMBEs):

• BMBEs with total assets not more than P3,000,000 are not covered by the Minimum Wage Law.
• All employees are still entitled to regular benefits, like social security and healthcare.
• The DTI has the sole power to issue Certificates of Authority for BMBEs.
• BMBE workers shall agree on the accepted wage rates based on the wage advisories by the RTWPBs.

Wage of Workers Paid by Results

• Workers paid by results must receive at least the minimum wage for normal working hours (8 hours/day), or a proportional amount for less work.
• Fair wage rates are determined through time and motion studies or consultations with employer and worker representatives.
• For piece-rate work, the DOLE Regional Director shall issue a Piece-Rate Order based on the RTWPB's recommendation that is based on the results of the time and motion study done in the workplace.
• Piece rates should be adjusted according to each new Wage Order.

Wage of Apprentices, Learners, and Persons with Disability

• The minimum percentage of the apprentice/learner wages, in relation to the minimum wage rate should be 75%
• Apprentices and learners must be covered by the agreements by TESDA
• Qualified disabled employees are subject to the same conditions and compensation as qualified able-bodied ones.

Annual Establishment Report on Wages (AERW)

• ALL private establishments are required to submit an annual report that contains the details:
  • Workers/Employees below the manager level
  • Learners and Apprentices
  • Disabled/Handicapped workers
  • Corresponding salaries and wages
• Log into the online AERW portal.
  • The report has to be submitted by the indicated deadline.
  • Establishments without online access may seek help from the RTWPB.

Coverage from Income Tax:

• Following income payments are exempted from withholding tax, starting January 1, 2018
  • Minimum Wage Earners' (MWEs) who earn the Statutory Minimum Wage (SMW) and also work in the private sector
  • All holidays and hazard pays as earned by MWEs
• All hazard pays should mean employees are assigned in dangerous areas that will expose them to danger, contagion, or peril to life.
• Hazards that do not meet the defined qualifications, will be subject to income tax.
• Any earned commissions, honoraria, allowances and fringe benefits that are more than the statutory amount of P90,000 will be subject to withholding income tax.

Information for Wage and Domestic Worker Questions

• For questions regarding minimum wage rates, contact THE NATIONAL WAGES AND PRODUCTIVITY COMMISSION:
  • 2F & 3F, DY Intl., Building, San Marcelino corner Gen. Malvar Streets, Malate, Manila
  • Telephone numbers: (02) 8527-8014 or (02) 8527-5171
  • Website: https://nwpc.dole.gov.ph
  • Facebook: www.fb.com/dole.nwpc
  • For questions regarding domestic workers, contact the BUREAU OF WORKERS WITH SPECIAL CONCERNS: - DOLE Annex Building, Cabildo Street corner Muralla Street, Intramuros, Manila - Telephone number: (02) 8527-5858 - Website: https://bwsc.dole.gov.ph - Facebook: www.fb.com/BWSC.DOLE

Holiday Pay

• HOLIDAY PAY
  • HOLIDAY PAY is the payment of the regular daily wage for any unworked holiday
  • All employees are entitled to Holiday Pay unless they are:
    • Government workers
    • Retail service workers
    • Kasambahays
    • Managerial Employees
    • Field personnel
  • The list of the 12 regular holidays for 2023 are:
    • New Year's Day - January 1 (Sunday)
    • Maundy Thursday - April 6 (Thursday)
    • Good Friday - April 7 (Friday)
    • Araw ng Kagitingan - April 10 (Monday nearest 9)
    • Labor Day - May 1 (Monday)
    • Independence Day - June 12 (Monday)
    • National Heroes Day - August 28 (Monday)
    • Bonifacio Day - November 27 (Monday)
    • Christmas Day - December 25 (Monday)
    • Rizal Day - December 30 (Saturday)
  • If you are covered by the Holiday Pay, you are entitled if you are working for a minimal wage, where if you do not report to work, provided you were present the day before the holiday
  • There has to be a 200% daily wage to be paid on a holiday that marks work performed
• How Holiday falls on scheduled days, work performed means at least 30% of the wage
• When Kagitingan falls onMaundy Thursday/Good Friday, employees get 200% daily wage whether worked that day or not
• There is an additional of 100% if needed

Absences

• All employees would need holiday pay when they are on leave on the day work preceding holidays
• Employers grant the percentage of holiday pay for workers social security
• If immediately preceding holiday, they do not work so this won't be on leave of the day, that will entitle holiday if they have worked, on the day preceding of day to rest

Regular Holidays

• The employee will not be provided if absent
• Inventory shut down are to rules and implementation

Certain employees

• average rates that are worked for if holidays pay in seven
• Workers that are season can’t be given holidays

Premium Pay

• PREMIUM PAY- an additional compensation that performs work on days of rest
• Some Employees that are not in paid Premium pay:
  • Goverment
  • Managerial
  • Kasambahay
  • Field personnel
• the following days will be implemented to special days:

Special non-working holidays

• New Years

• EDSA Revolution

• Black Saturday

• Aquino day

• ALL Saints

• Immaculate Day

• Last Day

• For working days, employees pay for every day.

Premium Pay Rates

For special days, the principle is applies to special day. For workers to need requirements/benefits, they need a CBA

Overtime Pay

• OVERTIME is for extra work 8 per day
• Some are not covered under the plan for premium work

Overtime pay

For special days and workers with rest: It’s the hourly pay rate on those days

Stipulated rates

if employers pay limited in those terms on law. Stipulated work is to payments that provide those higher

NIght Shift Differential

Night Shift pay Is for additional 10% employees receive.

The following are not accepted:

• Goverment
• Kasambahays
• Managerial

night Shift differential

The minimum is varied according to the day of which work is happening is being performed Pay:

• Value to substitutes and be depending

Holiday Pay and night shit differential

Equivalent computations will vary for overtime and what not

Maternity leave

• Entitled for the female worker with options to extend
• To be provided to transition
• That provide health for maternal
• Status will have no matter
• Maternity granted with 105 days
• If you solo mom, added more you can extend without pay 30
• All benefits shall be received from SSS.