Wages and Salaries

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Questions and Answers

How many monthly contributions with the SSS are required for an employee to be entitled to maternity leave?

3 (correct)

What is the duration of paternity leave?

7 days with full pay (correct)

5 days with full pay

15 days with no pay

10 days with half pay

What is the maximum number of deliveries for which a male employee can avail of paternity leave?

Unlimited

4 (correct)

What is the purpose of solo parents' leave?

To enable the performance of parental duties and responsibilities Signup and view all the answers

What is the condition for entitlement to paternity leave that requires the employee to be cohabiting with his spouse?

At the time his wife gives birth or suffers a miscarriage Signup and view all the answers

What is a characteristic of maternity leave?

It is granted in every instance of pregnancy, miscarriage, or emergency termination of pregnancy Signup and view all the answers

Under what circumstances can an employer deduct from an employee's wages?

If the deductions are allowed by the law Signup and view all the answers

What is a permissible deduction from an employee's wages?

A payment to a third person authorized by the employee Signup and view all the answers

Can an employer withhold a part or the entire wage of an employee?

If he/she is allowed under the law Signup and view all the answers

What is a circumstance under which an employer can withhold an employee's wages?

If the employee has completed their clearance procedures Signup and view all the answers

Which of the following is not a permissible deduction from an employee's wages?

A fine for tardiness Signup and view all the answers

What is a prohibited action by an employer regarding an employee's wages?

Withholding wages without legal grounds Signup and view all the answers

What is the entitlement of an employee who is required to work during holidays or special non-working days?

Additional pay such as holiday pay or premium pay Signup and view all the answers

What is the main difference between wages and salary?

Wages are for manual labor, while salary is for higher level employment Signup and view all the answers

What is included in the basic wage?

All remuneration or earnings paid by an employer to a worker for services rendered Signup and view all the answers

What is the principle behind the 'no work, no pay' rule?

Fair day's wage for a fair day's labor Signup and view all the answers

In what form must wages be paid?

Cash, check, or money order Signup and view all the answers

How often must wages be paid?

At least once every two weeks or twice a month Signup and view all the answers

What is the main difference between facilities and supplements?

Facilities are for the benefit of the employee, while supplements are for the benefit of the employer Signup and view all the answers

What is the purpose of the minimum wage law?

To ensure that employees receive a wage that is at least the minimum rate fixed by law Signup and view all the answers

Who is the direct employer in a principal and contractor relationship?

Principal Signup and view all the answers

What is the purpose of the principal and contractor being solidarily liable?

To ensure the full payment of wages Signup and view all the answers

What is one of the management prerogatives that allows the employer to determine who to punish?

Right to discipline Signup and view all the answers

What is an act of gratuity, generosity, or liberality on the part of the employer?

Bonus Signup and view all the answers

What is one of the types of transfer of employees?

Transfer from one position to another of equivalent rank, level or salary Signup and view all the answers

What allows management to reward or discipline employees who surpass or fail to meet productivity standards or quotas?

Productivity standards Signup and view all the answers

What is the purpose of the National Health Insurance Program?

To provide health insurance coverage and ensure affordable health care services Signup and view all the answers

What type of disability benefit is paid when an employee suffers from a permanent partial disability?

Permanent Partial Disability benefit Signup and view all the answers

What is the formula to compute the daily sickness benefit?

Total of 6 highest monthly salary credits / 180 Signup and view all the answers

What is the maximum daily maternity benefit?

P30,000 Signup and view all the answers

What type of benefit is paid when an employee dies?

Death benefit Signup and view all the answers

What type of insurance is provided by the Government Service Insurance System (GSIS)?

Life Endowment Policy (LEP) and Enhanced Life Policy (ELP) Signup and view all the answers

What is the purpose of the post-employment ban?

To prevent unfair competition Signup and view all the answers

What type of benefit is paid to the dependents of an employee who dies?

Survivorship benefit Signup and view all the answers

What is the purpose of the Employees' Compensation?

To provide work-related benefits Signup and view all the answers

What is the formula to compute the daily maternity benefit?

Average daily salary credit x 90% Signup and view all the answers

Study Notes

Wages vs. Salary

Wages: compensation for manual, skilled, or unskilled labor
Salary: compensation for higher or superior level of employment

Payment of Wages

Basic Wage: all remuneration or earnings paid by an employer to a worker for services rendered on normal working days and hours
Minimum Wage: lowest basic wage rate fixed by law that an employer can pay his/her employees
Payment method: must be in the form of cash, check, or money order
Time of payment: at least once every two weeks or twice a month at intervals not exceeding 16 days

Facilities vs. Supplements

Facilities: articles or services for the benefit of the employee or his/her family, but does not include tools of the trade or articles or services for the benefit of the employer
Supplements: additional compensation or benefits provided to employees

Prohibitions Regarding Wages

Allowed deductions: insurance premiums, union dues, union services fees, agency fees, loss or damage to tools, materials, or equipment, payment to third persons, deductions for facilities, SSS, GSIS, PhilHealth, Pag-IBIG premiums, withholding tax, debt of employee to employer, deductions ordered by a court
Withholding of wages: only allowed under certain circumstances, such as when an employee resigns and has not completed clearance procedures

Maternity Leave

Conditions for entitlement: employee must have at least three monthly contributions with the SSS within a 12-month period immediately preceding the semester of childbirth, miscarriage, or emergency termination with notice to the employer
Frequency of availment: granted in every instance of pregnancy, miscarriage, or emergency termination of pregnancy

Paternity Leave

Definition: paid leave granted to a married male employee allowing him to lend support to his lawful wife during her period of recovery and/or nursing their newborn child, including miscarriage
Coverage: all male employees, regardless of employment status
Duration: 7 days with full pay after the delivery
Conditions for entitlement: employee must be an employee at the time of delivery, cohabiting with his spouse, apply for paternity leave with his employer, and his wife has given birth or suffered a miscarriage
Frequency of availment: granted only to the first four deliveries of the employee's lawful wife with whom he is cohabiting

Solo Parents Leave

Definition: 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

Management Prerogatives

Right to discipline: covers the right to discipline, dismiss, determine who to punish, promulgate company rules and regulations, impose penalty, and choose penalty to impose
Transfer of employees: includes transfer from one position to another of equivalent rank, level, or salary, transfer from one office to another, and reorganization, promotion, or demotion
Productivity standards: allows management to reward or discipline employees who surpass or fail to meet productivity standards or quotas
Bonus: an act of gratuity, generosity, or liberality on the part of the employer, which the employee has no right to demand as a matter of right
Post-employment bans: covers non-compete, confidentiality, and non-disclosure clauses, non-solicitation, non-recruitment, and inventions assignment clauses

Eligibility: requires 12 months of contributions within the 12-month period immediately preceding the semester of contingency
Sickness benefits: computed based on the average daily salary credit, with a maximum of P30,000
Maternity benefits: computed based on the average daily salary credit, with a maximum of P30,000
Disability benefits: permanent partial disabilities, permanent total disabilities, and other cases as determined and approved by the SSS

Government Service Insurance System (GSIS) Law

Life Endowment Policy (LEP)
Enhanced Life Policy (ELP)
Retirement
Separation
Unemployment
Disability
Survivorship
Funeral

Employees' Compensation

Key word: "work-related"
Medical benefits
Disability benefits
Carer's allowance
Rehabilitation benefits
Death benefits
Funeral benefits

National Health Insurance Act (PhilHealth)

Established to provide health insurance coverage and ensure affordable, acceptable, available, and accessible health care services for all citizens of the Philippines.

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Description

This quiz covers the key concepts of wages and salaries, including payment, facilities, supplements, and prohibitions. Test your understanding of the differences between wages and salaries, as well as computations of pay.