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Questions and Answers

What is the full name of the act known as the "Wage Rationalization Act"?

  • Republic Act No. 6727 (correct)
  • Republic Act No. 6729
  • Republic Act No. 6728
  • Republic Act No. 6726
  • What does the term "agriculture" encompass, according to the Rules Implementing RA 6727?

    Farming in all its branches, including the cultivation of soil, production of agricultural and horticultural commodities, dairying, livestock and poultry farming, and fish culture. It excludes manufacturing and processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm products.

    The minimum wage rates prescribed under Wage Orders apply to all workers in the private sector, regardless of their position, designation, or status of employment.

    True

    According to the National Wages and Productivity Commission, a company/establishment can be exempted from compliance with a Wage Order for a period of more than one year.

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

    What is the basis of the daily minimum wage rates prescribed by law?

    <p>Normal working hours of eight hours a day.</p> Signup and view all the answers

    Which of these types of employees are paid every day of the month, including unworked rest days, special days, and regular holidays?

    <p>Monthly-paid employees</p> Signup and view all the answers

    What does EEMR stand for, and what is it used for?

    <p>EEMR stands for Estimated Equivalent Monthly Rate. It is used to compute the equivalent annual and monthly salary for monthly-paid and daily-paid employees.</p> Signup and view all the answers

    For those who do not work and are not considered paid on Sundays or rest days, what is the factor used in the EEMR computation?

    <p>313 days/year</p> Signup and view all the answers

    What is the minimum wage for Kasambahay (domestic workers) employed in the National Capital Region (NCR)?

    <p>P2,500.00 a month</p> Signup and view all the answers

    The minimum wage for Kasambahay is reviewed and adjusted annually by the Regional Tripartite Wages and Productivity Boards (RTWPBs).

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

    Which of these is NOT a right or benefit of a Kasambahay?

    <p>Freedom from employers' interference in the disposal of personal property</p> Signup and view all the answers

    When an employer has to reduce the number of working days due to a substantial slump in demand or lack of resources, they can deduct wages for those days without any prejudice to any agreement or company policy.

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

    What Act specifies penalties for employers who refuse or fail to pay the prescribed increases or adjustments in the wage rates?

    <p>Republic Act 8188</p> Signup and view all the answers

    In cases of wage violations by corporations, the penalty of imprisonment is imposed only on the individuals responsible for the violation, not the corporation itself.

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

    Which of these types of companies are exempt from the coverage of the Minimum Wage Law, provided their total assets (excluding land) are less than P3,000,000?

    <p>Barangay Micro Business Enterprises (BMBEs)</p> Signup and view all the answers

    Workers paid by results, such as those working on piece rate, takay, pakyaw, or task basis, are entitled to a prescribed minimum wage rate under which act?

    <p>Republic Act 6727</p> Signup and view all the answers

    What is the minimum wage rate for apprentices and learners in relation to the applicable minimum wage?

    <p>75% of the applicable minimum wage rate</p> Signup and view all the answers

    Minimum wage earners are exempt from income tax, effective July 6, 2008.

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

    Holiday Pay refers to the payment of double the regular daily wage for any unworked regular holiday.

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

    Which of these groups of workers are NOT entitled to holiday pay?

    <p>Managerial employees who meet specific criteria</p> Signup and view all the answers

    A work day that is not considered a regular Holiday but falls on an employee's scheduled rest day still merits at least 200% of the minimum wage if the employee works on it.

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

    A regular holiday that falls on a Sunday is still considered a holiday, even without a proclamation declaring it a special day.

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

    Premium pay is applicable to work performed within eight hours on non-work days such as rest days, but not on special days.

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

    Premium pay is applicable to all employees, including government employees in government-owned and/or controlled corporations.

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

    For work performed on a rest day that is also a special day, the premium pay is 50% of the daily basic rate.

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

    What is the minimum statutory premium pay rate for work performed on a regular holiday that falls on an employee's scheduled rest day?

    <p>260% of the regular holiday rate, based on their daily basic wage.</p> Signup and view all the answers

    Overtime pay rates are the same for all employees in retail or service establishments.

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

    The COLA (Cost of Living Allowance) is included in the computation of overtime pay.

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

    The Night Shift Differential refers to what percentage of an employee's regular wage?

    <p>10%</p> Signup and view all the answers

    Night shift pay is applicable to all employees, including government employees.

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

    The COLA is included in the computation of night shift differential pay.

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

    What is the minimum night shift pay rate for workers in non-agriculture, if their regular wage is P502.00 and they are entitled to a P10.00 COLA?

    <p>P62.75 x 110% x the number of hours worked.</p> Signup and view all the answers

    Service charges are shared equally by all rank-and-file employees of employers who collect such charges.

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

    The shares of employees in service charges are distributed at intervals not exceeding sixteen days.

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

    Tips received by employees in restaurants and establishments that do not officially collect service charges are exempt from being monitored, accounted, and distributed like service charges.

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

    Service Incentive Leave (SIL) is applicable to all employees, including government employees.

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

    The entitlement to SIL is based on the continuous service of one year.

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

    Service Incentive Leave can be converted to cash at the end of the year but not on a pro rata basis.

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

    What is the maximum entitlement for Maternity leave under RA 1161, as amended by RA 8282, in case of a Cesarean section delivery?

    <p>78 days</p> Signup and view all the answers

    The Maternity Leave benefit provided by the law is considered as part of the employee's 13th-month pay.

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

    Paternity Leave is applicable to all married male employees in the private sector, regardless of their employment status.

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

    The paternity leave benefit is applicable for all deliveries, including adoption.

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

    The paternity leave benefit cannot be converted into cash and is cumulative, meaning the unused leave can be carried over to the next year.

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

    Parental Leave is granted to any solo parent, regardless of the reason or circumstance that led to their sole responsibility for their child.

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

    A solo parent employee needs to have at least three years of continuous service to be eligible for Parental Leave.

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

    A solo parent employee who is unable to avail themselves of the Parental Leave can convert it into cash, with prior agreement from the employer.

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

    Emergency or contingency leave provided under a company policy is considered as compliance with the Parental Leave requirement.

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

    A change in circumstances that removes the sole responsibility of parenthood for a solo parent automatically terminates their eligibility for Parental Leave.

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

    An employer is prohibited from discriminating against a solo parent employee in terms and conditions of employment due to their status as a single parent.

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

    The term "Violence against women and their children" in the context of RA 9262 refers only to physical violence.

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

    A woman employee who is a victim of violence is entitled to a paid leave for a maximum of five days.

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

    To be eligible for the leave benefit for victims of violence, the woman employee must present a court order specifying the violence and requiring her employer to provide the leave.

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

    The Special Leave benefit for Women is applicable to all female employees, regardless of age or marital status.

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

    The Special Leave benefit can be availed before the surgery, but the employee's pay will only be granted after the surgery has been performed.

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

    The Special Leave benefit is cumulative, meaning unused leave can be carried over to the next year.

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

    The 13th-month pay is mandatory for all employees, regardless of their employment status, provided they have worked for at least one month during the calendar year.

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

    The term "basic salary" for the purpose of calculating the 13th-month pay includes allowances and other monetary benefits.

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

    Government employees are NOT entitled to the 13th-month pay.

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

    Employees who are paid on piece-rate are NOT entitled to the 13th-month pay.

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

    Employees working part-time in a private enterprise are entitled to the 13th-month pay from their private employers, but not from any government employers.

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

    Employees who resign or are separated from their employment before the time of payment of the 13th-month pay are entitled to a proportionate amount of the benefit, based on their period of work in the calendar year.

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

    The 13th-month pay is considered as part of an employee's regular wage and applicable for computing overtime and premium payments.

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

    The 13th-month pay is exempt from income tax up to P82,000.00.

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

    Separation pay is always payable to employees who have been terminated for just cause.

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

    Which of these is NOT a ground for authorized termination of employment that makes an employee eligible for separation pay?

    <p>Employee's deliberate and gross negligence of duty</p> Signup and view all the answers

    The minimum separation pay for authorized termination is one month pay per year of service.

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

    The employer must provide formal written notice to both the employee and the Department of Labor and Employment, one month in advance, before terminating an employee for authorized causes.

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

    The computation of separation pay for an employee should be based on their last salary rate.

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

    Separation pay due to retrenchment, redundancy, or cessation of business operations is exempt from income tax.

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

    Retirement pay is applicable to all employees who reach the age of sixty.

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

    A worker's "one-half month salary" for retirement pay includes their basic salary, service incentive leave, and 13th-month pay.

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

    The COLA is included in the computation of retirement pay.

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

    Any employee can be retired by their employer upon reaching the retirement age outlined in the CBA or other applicable agreements.

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

    If retirement benefits under a CBA are less than the mandated retirement pay under RA 7641, the employer is obligated to pay the difference.

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

    Retirement benefits for workers paid by results are calculated based on their average daily salary, derived from their total salary or earnings for the last 15 days.

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

    Part-time workers are not entitled to retirement pay.

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

    The retirement age for underground or surface mine employees has been reduced to 50 years.

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

    Kasambahay (domestic workers) and persons in the personal service of another are entitled to retirement benefits separately under Department Order No. 20, series of 1994.

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

    Retirement benefits under RA 7641 and the SSS are combined into one comprehensive package.

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

    Upon retirement, employees are entitled to the proportionate 13th-month pay for the calendar year, but not to the cash equivalent of accrued leave benefits.

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

    Retirement benefits received by employees of private firms, based on a reasonable private benefit plan, are exempt from income tax if the employee has been in service for at least ten years and is 50 years of age.

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

    The Employees' Compensation Program (ECP) is a government-funded program that primarily provides compensation to:

    <p>Both government and private sector employees</p> Signup and view all the answers

    ECP coverage begins upon confirmation of an employee's permanent position within an organization.

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

    Private sector employees who are not members of the Social Security System (SSS) are not eligible for ECP benefits.

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

    Loss of income benefit is a cash benefit provided only to employees who cannot work due to temporary disability.

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

    Medical benefits provided under the ECP include the reimbursement of medical expenses but not the cost of appliances or supplies.

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

    Carer's allowance is provided to employees who suffer from a work-connected permanent total disability but not a work-connected permanent partial disability.

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

    Death benefits are provided only to the beneficiaries of an employee who has died due to a work-connected incident, not to those whose death is a natural consequence of a permanent total disability

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

    Temporary Total Disability (TTD) benefits are paid to employees who are unable to work for a continuous period not exceeding 120 days.

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

    Permanent Partial Disability (PPD) benefits are paid to employees who have lost a body part and/or the use of that body part.

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

    Permanent Total Disability (PTD) benefits are paid to employees who are unable to work for a continuous period exceeding 240 days but less than 365 days.

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

    An employee is eligible for PTD benefits if they have lost both eyes, but not if they have lost two limbs at or above the ankles or wrists.

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

    An employee can file a claim for ECP benefits for any type of sickness, injury, or death, regardless of whether it is work-connected or not.

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

    An employee can only file their ECP claim through their employer, and they cannot file it directly with the GSIS or SSS.

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

    An employee must file their ECP claim within one year of the incident.

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

    The employer is obligated to contribute to a State Insurance Fund (SIF) in behalf of their employees, from which payments for benefits are drawn.

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

    Employers are required to register with either the GSIS or SSS, but employees do not have to be registered.

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

    Employers are required to take necessary precautions to prevent work-related disabilities or deaths and keep a logbook to record the details of any such incidents.

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

    The employer must report ALL work-connected incidents to the GSIS or SSS within five days of the incident.

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

    Existing medical services provided by the employer are NOT required to be maintained and continued for employees, as long as they are provided with EC Benefits.

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

    The National Health Insurance Program (NHIP), formerly known as Medicare, is only applicable to SSS members and their dependents.

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

    The Philippine Health Insurance Corporation (PhilHealth) acts as the mandated administrator for the program, responsible only for handling the claims processing.

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

    Study Notes

    Handbook on Workers' Statutory Monetary Benefits

    • Handbook published by the Bureau of Working Conditions (BWC), Department of Labor and Employment (DOLE) in 2017.
    • The handbook includes guidelines on workers' monetary benefits.
    • Comprehensive material on recent developments in Philippine labor laws and regulations.

    Project Team

    • Ma. Teresita S. Cucueco, Alvin B. Curada, Catherine Legados-Parado, Nicanor V. Bon, Emila T. de Guzman, Lalaine M. Familara, Julienne C. Recamara, Euniz Johanne M. Garcia and other BWC staff.

    All Rights Reserved

    • Handbook cannot be reproduced for commercial purposes without written permission from the BWC, DOLE.

    Minimum Wage

    • Coverage: Daily-paid and monthly-paid employees. This includes Kasambahays, those paid by results (i.e., piece rate, takay, pakyaw/task basis), apprentices and learners are covered by specific minimum wage rules.
    • Minimum Wage Rates: Vary according to industry, geographic region, and number of employees in a business.
    • Effect of Reduction of Workdays: Employers may deduct wages for days taken off from the workweek, consistent with the principle of “no work, no pay” unless there is a specific agreement in place.
    • Penalty for Non-Compliance: Penalties include fines and/or imprisonment for those who refuse to pay or fail to pay minimum wage increases/adjustments.
    • Barangay Micro Business Enterprises (BMBEs): BMBEs are exempt from the minimum wage law, provided they have met the requirements under the law.

    Holiday Pay (Article 94)

    • Definition: Payment of regular daily wage for any unworked regular holiday.
    • Coverage: Applies to all employees except government employees, retail and service establishments with less than 10 employees, kasambahays, and particular managerial employees.
    • Regular Holidays: Enumerates specific regular holidays, and details the provisions for when holidays fall on rest days (e.g., a second holiday will not receive additional pay for the second day).
    • Absences: Defines conditions under which an employee is still entitled to holiday pay. This includes leave of absence with pay on the work day before the holiday.

    Premium Pay (Articles 91-93)

    • Definition: Additional compensation for work performed during special days, like rest days and special days.
    • Coverage: Applies to all employees except government employees, managerial employees, officers, and members of a managerial staff who perform certain duties.
    • Special Days: Details the special days that are covered: in addition to regular holidays, other special days (e.g., Holy/All Saints' days) are described.

    Overtime Pay (Article 87)

    • Definition: Additional compensation for work performed beyond 8 hours a day.
    • Coverage: Applies to all employees, excluding specific employee groups (e.g., government employees)

    Night Shift Differential (Article 86)

    • Definition: Additional compensation of 10% of an employee's regular wage for each hour of work between 10 p.m. and 6 a.m.
    • Coverage: Applies to all employees, except those in certain specific industries (e.g., small retail establishments) and certain types of employees (e.g., managerial employees).

    Service Charges (Article 96)

    • Sharing: Rank-and-file employees receive 85% of total service charges.
    • Payments: Distributions should occur twice per month with a maximum time interval of 16 days between payments.
    • Tips: Where service charges are not formally collected, tips given voluntarily by customers should be pooled and distributed.

    Service Incentive Leave (Article 95)

    • Coverage: Applies to those with at least one year of service. Five days with pay.

    Maternity Leave (RA 1161, amended by RA 8282)

    • Coverage: This benefit applies to all female employees.
    • Entitlement: Sixty days of leave with pay for normal childbirth or miscarriage, 78 for cesarean sections.
    • Conditions: Employee must be a member of SSS and have made 3 monthly contributions in the past year.

    Paternity Leave (RA 8187)

    • Coverage: Applies to all married male employees in the private sector
    • Entitlement: Seven days of full pay upon childbirth.
    • Conditions for entitlement: Must be cohabitating with spouse, applied for paternity leave within a reasonable span of time, and wife gave birth to or suffered miscarriage.
    • Non-conversion to cash: Cannot be convertible to cash, nor is it cumulative.

    Parental Leave for Solo Parents (RA 8972)

    • Definition: Leave benefits for solo parents who are the sole caregivers of a child(ren).

    Leave for Victims of Violence Against Women and Their Children (RA 9262)

    • Definition: Leave for victims of violence, including threats, battery, assault, coercion, harassment, and arbitrary deprivation of liberty.
    • Coverage: Applies to all women employees.
    • Requirement for Entitlement: Certification from barangay chairman.
    • The Benefit: Up to 10 days with pay

    Special Leave for Women (RA 9710)

    • Applies to women with gynecological disorders.
    • Employees are entitled to 2 months of leave.

    Thirteenth-Month Pay (PD 851)

    • Coverage: Covers all rank-and-file employees, provided they worked for at least one month of the calendar year.
    • Definition of Rank-and-File Employees: Employees not in managerial positions or those who do not handle management tasks.
    • Minimum Amount: Minimum 1/12th of the yearly basic salary.

    Separation Pay (Articles 298-299)

    • One-Half (1/2) Month Pay per Year of Service: Applies when employee is terminated by establishment closure, redundancy, financial issues. One month's pay applies in cases of termination due to employee inability to work or serious sickness of the employee.

    Retirement Pay (Article 302)

    • Coverage: Employees reaching 60 years of age.
    • Amount of Retirement Pay: One-half (1/2) month salary per year of service; at least one month's pay for those aged 65.
    • Retirement Benefits: Includes basic salary, service incentive leave cash equivalent, and 1/12th of the 13th-month pay.

    Benefits Under the Employees' Compensation Program (PD 626)

    • Coverage: Covers workers in the formal sector.

    PhilHealth Benefits (RA 7875, amended by RA 9241)

    • Coverage: Covers employees in the formal and informal economy, dependent and sponsored members, and lifetime members, indigent and senior citizens.

    Social Security Benefits (RA 1161, amended by RA 8282)

    • Coverage: Covers private sector employees.
    • Sickness Benefits: Daily cash allowance for days unable to work due to illness or injury.

    Pag-IBIG Benefits (RA 9679)

    • Mandatory Membership: Almost all employees, (excluding certain groups, like some government workers)

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