Minimum Wage PDF

1. MINIMUM WAGE Republic Act No. 6727 “Wage Rationalization Act” - Mandates the fixing of the minimum wages applicable to different industrial sectors. - Rules implementing RA 6727 define the following basis of wage classification: - Agriculture...

1. MINIMUM WAGE Republic Act No. 6727 “Wage Rationalization Act” - Mandates the fixing of the minimum wages applicable to different industrial sectors. - Rules implementing RA 6727 define the following basis of wage classification: - Agriculture - Retail establishment - Service establishment Regional tripartite Wages and Productivity Boards (RTWPBs) - Established to rationalized wage determination by establishing mechanism and proper standards - To determine the daily minimum wage rates in different regions based on established criteria Regional Wage Orders - Prescribe the daily minimum wage rates per industry per locality within the region and in some instances depending on the number C. Rules in Determining Compensable of workers and capitalization of enterprises. Working Hours - Provide the basis and procedure of - Normal working hours of eight (8) hours a application for exemption from compliance day therefrom 1. Hours worked A. Coverage a. All time during which an employee is - The wage increases prescribed under Wage required to be on duty or to be at the Orders apply to all private sector workers employer's premises or to be at a and employees receiving the daily minimum prescribed workplace; and wages rates (or those receiving up to a b. All time during which an employee is certain daily wage ceiling, where applicable) suffered or permitted to work. regardless of their position, designation, or status of employment. 2. Principles in determining hours worked - Except to workers of duly registered a. All hours are hours worked which the Barangay Micro Business Enterprises employee is required to give his employer, (BMBEs) with Certificate of Authority regardless of whether or not such hours are pursuant to Republic Act No. 10644 spent in productive labor or involve physical B. Minimum wage Rates or mental exertion. b. An employee need not leave the premises of the workplace in order that his rest period shall not be counted, it being enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether within or outside the premises of his work place.  c. If the work performed was necessary, or it cases when a meal period of not less than twenty benefited the employer, or the employee (20) minutes may be given by the employer could not abandon his work at the end of his provided that such shorter meal period is credited normal working hours because he had no as compensable hours worked of the employee: replacement, all time spent for such work a. Where the work is non-manual work in shall be considered as hours worked, if the nature or does not involve strenuous work was with the knowledge of his physical exertion; employer or immediate supervisor. b. Where the establishment regularly operates d. The time during which an employee is not less than sixteen (16) hours a day; inactive by reason of interruptions in his c. In case of actual or impending emergencies work beyond his control shall be considered or there is urgent work to be performed on working time either if the imminence of the machineries, equipment or installations to resumption of work requires the employee's avoid serious loss which the employer presence at the place of work or if the would otherwise suffer; interval is too brief to be utilized effectively d. d. Where the work is necessary to prevent and gainfully in the employee's own interest. serious loss of perishable goods. Rest periods or coffee breaks running from five (5) 3. Treatment on waiting time to twenty (20) minutes shall be considered as a. Waiting time spent by an employee shall be compensable working time considered as working time if waiting is an integral part of his work or the employee is D. Monthly Paid Employees and Daily Paid required or engaged by the employer to Employees wait. “Monthly-paid employees” are those who are b. An employee who is required to remain on paid every day of the month, including unworked call in the employer's premises or so close rest days, special days, and regular holidays. there to that he cannot use the time Factor 365 days in a year is used in determining effectively and gainfully for his own purpose the equivalent monthly salary of monthly paid shall be considered as working while on employees. call. An employee who is not required to “Daily-paid employees” are those who are paid leave word at his home or with company on the days they actually worked and on unworked officials where he may be reached is not regular holidays working while on call. E. Computation of the Estimated Equivalent 4. Attendance on lectures, meetings, training Monthly rate (EEMR) of Monthly-Paid and programs, and other similar activities Daily-Paid Employees Attendance at lectures, meetings, training The following factors are based on the declared programs, and other similar activities shall not be regular holidays and special non-working days in counted as working time if all of the following Proc. No. 42-22, as amended by Proc. No. 90-22: conditions are met: (yellow pad) a. Attendance is outside of the employee's regular working hours; F. Subsidized Meals and Snacks b. Attendance is in fact voluntary; - The employer may provide subsidized c. The employee does not perform any meals and snacks to his employees productive work during such attendance. provided that the subsidy shall not be less than 30% of the fair and reasonable value of 5. Meal and Rest Periods such facilities. Every employer shall give his employees, - In such case, the employer may deduct regardless of sex, not less than one (1) hour from the wages of the employees not more time-off for regular meals, except in the following than 70% of the value of the meals and  snacks enjoyed by the employees, pursuant prescribed increases or adjustments in to the Facility Evaluation Order issued by the wage rates made in accordance with the RTWPB concerned. (Sec. 4, Rule VII-A, RA 6727, shall be punished by a fine of not Book III of the Rules Implementing the less than Twenty-five Thousand Pesos Labor Code) (P25,000.00) nor more than One Hundred Thousand Pesos (P100,000.00) or G. Wage of Kasambahay imprisonment of not less than two (2) years nor more than four (4) years, or both such fine and imprisonment at the discretion of the court: Provided, That any person convicted hereof shall not be entitled to the benefits provided for under the Probation Law. - The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided, That payment of indemnity shall not absolve the employer from the criminal liability imposable hereof. - If the violation is committed by a corporation, trust, firm, partnership, H. Wage of Kasambahay who Works as association or any other entity, the penalty Salesclerk of imprisonment shall be imposed upon the - A Kasambahay who works as salesclerk entity’s responsible officers, including, but should receive wage in accordance with the not limited to, the president, vice-president, prescribed minimum wage which is chief executive officer, general manager, applicable in the retail and service managing director or partner. establishments, under existing Wage Orders. K. Barangay Micro Business Enterprises (BMBEs) I. Effect of Reduction of Workdays on Wages - BMBEs or business enterprises engaged in - In situations where the employer has to the production, processing or manufacturing reduce the number of regular working days of products or commodities including to prevent serious losses, such as when agro-processing, trading and services there is a substantial slump in the demand whose total assets, excluding the land on for his/her goods or services or when there which the particular business entity’s office, is lack of raw materials, the employer may plant and equipment are situated are not deduct the wages corresponding to the days more than Three Million Pesos (P3,000,000) taken off from the workweek, consistent with are not covered from the coverage of the the principle of “no work, no pay.” This is Minimum Wage Law: Provided, that all without prejudice to an agreement or employees shall still be entitled to the same company policy which provides otherwise. benefits given to regular employees such as social security and health care benefits. J. Penalty and Double Indemnity for Violation of - The DTI, through the Negosyo Center in the the Prescribed Increases or Adjustments in the city or municipality level, shall have the sole Wage Rates (RA 8188) power to issue the Certificate of Authority - Any person, corporation, trust, firm, for BMBEs to avail of the benefits provided partnership, association or entity which by R.A. No. 9178, otherwise known as the refuses or fails to pay any of the  “Barangay Micro Business Enterprises 1. Compensation income of Minimum Wage (BMBE’s) Act of 2002”. Earners (MWEs) who work in the private sector and being paid the Statutory L. Wage of Workers Paid by Results Minimum Wage (SMW), as fixed by - All workers paid by results, including Regional Tripartite Wage and Productivity homeworkers and those who are paid on Board (RTWPB)/National Wages and piecework, takay, pakyaw or task basis, Productivity Commission (NWPC), shall receive not less than the prescribed applicable to the place where he/she is minimum wage rates under the Regional assigned. Wage Orders for the normal working hours Additional compensation such as which shall not exceed eight (8) hours a commissions, honoraria, fringe benefits, day, or a proportion thereof for work less benefits in excess of the allowable statutory than the normal working hours. amount of ₱90,000.00, taxable allowances, and other taxable income given to an MWE M. Wage of Apprentices, Learners, and Persons by the same employer other than those with disability which are expressly exempt from income - Wage of apprentices and learners shall in tax shall be subject to withholding tax using no case be less than seventy-five (75%) the withholding tax table. percent of the applicable minimum wage 2. Compensation during the year not rates. exceeding Two hundred fifty thousand - Apprentices and learners are those who are pesos (₱250,000.00) covered by apprenticeship and learnership agreements duly approved by the Technical 2. HOLIDAY PAY (Article 94) Education and Skills Development Authority - Refers to the payment of the regular (TESDA) daily wage for any unworked regular - A qualified employee with disability shall be holiday subject to the same terms and conditions of employment and the same compensation, B. Coverage privileges, benefits, fringe benefits or This benefit applies to all employees except: allowances as a qualified able-bodied 1. Government employees, whether employed person. by the National Government or any of its political subdivisions, including those employed N. Annual Establishment Report on Wages in government-owned and/or controlled (AERW) corporations with original charters or created under - all private establishments are required to special laws; 2. Those of retail and service submit an annual report on “a verified establishments regularly employing less than ten itemized listing of their labor component, (10) workers; specifying the names of their workers and 3. Kasambahay and persons in the personal employees below the managerial level, service of another; including learners, apprentices and 4. Managerial employees, if they meet all of the disabled/handicapped workers who were following conditions: hired under the terms prescribed in the 4.1 Their primary duty is to manage the employment contracts, and their establishment in which they are employed corresponding salaries and wages.” or of a department or subdivision thereof; 4.2 They customarily and regularly direct O. Coverage from Income Tax the work of two or more employees therein; - Exempted from the requirement of and withholding tax on compensation 4.3 They have the authority to hire or fire other employees of lower rank; or their  suggestions and recommendations as to - Bonifacio Day hiring, firing, and promotion, or any other - Christmas Day change of status of other employees are - Rizal Day given particular weight. 5. Officers or members of a managerial staff, if D. Holiday Pay Rates they perform the following duties and - Every employee covered by the Holiday Pay responsibilities: Rule is entitled to the minimum wage rate. 5.1 Primarily perform work directly related to - Work performed on that day merits at least management policies of their employer; twice (200%) the daily wage of the 5.2 Customarily and regularly exercise employee. discretion and independent judgment; 5.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b) execute, under general - Where the holiday falls on the scheduled supervision, work along specialized or rest day of the employee, work performed technical lines requiring special training, on said day merits at least an additional experience, or knowledge; or (c) execute, 30% of the employee’s regular holiday rate under general supervision, special of 200% or a total of at least 260% assignments and tasks; and 15 - When a regular holiday falls on a Sunday, 5.4 Do not devote more than twenty percent the following Monday shall not be a holiday, (20%) of their hours worked in a workweek unless a proclamation is issued declaring it to activities which are not directly and a special day. closely related to the performance of the - When Araw ng Kagitingan falls on the same work described in paragraphs 5.1, 5.2, and day as Maundy Thursday or Good Friday, a 5.3 above. covered employee is entitled to at least two 6. Field personnel and other employees whose hundred percent (200%) of his/her daily time and performance is unsupervised by the wage even if said day is unworked. Where employer, including those who are engaged on the employee is required to work on that task or contract basis, purely commission basis or day, he/she is entitled to an additional 100% those who are paid a fixed amount for performing of the daily wage. work irrespective of the time consumed in the performance thereof. E. Absences 1. If an employee is on paid leave the day C. Regular Holidays before a holiday, they will still get their Pursuant to Proclamation No. 42 s. 2022, as holiday pay. If an employee is on unpaid amended by Proclamation No. 90 s. 2022, the leave the day before a holiday and they following are the twelve (12) regular holidays for don’t work on the holiday itself, they won’t the year 2023: get holiday pay. - New Year’s Day 2. If employees are on leave and receiving - Maundy Thursday benefits like employee’s compensation or - Good Friday social security, employers must give them - Araw ng Kagitingan holiday pay. The amount of holiday pay - Eidul Fitr - Movable Date should be the same percentage as the - Labor Day higher of these two benefits. - Independence Day 3. Non-Work Day or Rest Day Before a - Eidul Adha - Movable Date Holiday: If the day before a holiday is a - National Heroes Day non-work day (like a weekend) or the  employee’s scheduled rest day, it doesn’t 3. PREMIUM PAY (Article 91-93) count as a leave of absence. - Refers to the additional compensation Entitlement to Holiday Pay: In this case, for work performed within 8 hours on the employee will still get holiday pay if they rest days and special days. worked on the last working day before the non-work day or rest day. B. Coverage This benefit applies to all employees except: F. Successive Regular Holidays 1. Government employees, whether employed by - Where there are two (2) successive regular the National Government or any of its political holidays, like Maundy Thursday and Good subdivisions, including those employed in Friday, an employee may not be paid for government-owned and/or controlled corporations both holidays if he/she absents with original charters or created under special laws; himself/herself from work on the day 2. Managerial employees, if they meet all of the immediately preceding the first holiday, following conditions: unless he/she works on the first holiday, in 2.1 Their primary duty is to manage the which case he/she is entitled to his/her establishment in which they are employed holiday pay on the second holiday. or of a department or subdivision thereof; 2.2 They customarily and regularly direct G. Temporary or Periodic Shutdown/Cessation the work of two or more employees therein; of Work and - In cases of temporary or periodic shutdown 2.3 They have the authority to hire or fire and temporary cessation of work of an other employees of lower rank; or their establishment, as when a yearly inventory suggestions and recommendations as to or when the repair or cleaning of hiring, firing, and promotion, or any other machineries and equipment is undertaken, change of status of other employees are the regular holidays falling within the period given particular weight. shall be compensated in accordance with 3. Officers or members of a managerial staff, if the Rules Implementing the Labor Code, as they perform the following duties and amended. responsibilities: 3.1 Primarily perform work directly related to H. Holiday Pay of Certain Employees management policies of their employer; 1. Where the covered employee is paid on 3.2 Customarily and regularly exercise piece-rate basis, his / her holiday pay shall discretion and independent judgment; not be less than his/her average daily 3.3 (a) Regularly and directly assist a earnings for the last seven (7) actual work proprietor or managerial employee in the days preceding the regular holiday; management of the establishment or provided, however, that in no case shall the subdivision thereof in which he or she is holiday pay be less than the applicable employed; or (b) execute, under general statutory minimum wage rate. supervision, work along specialized or 2. Seasonal workers may not be paid the technical lines requiring special training, required holiday pay during off-season experience, or knowledge; or (c) execute, when they are not at work. under general supervision, special 3. Workers who do not have regular working assignments and tasks; and days, such as stevedores, shall be entitled 3.4 Do not devote more than twenty percent to this benefit. (20%) of their hours worked in a workweek to activities which are not directly and 19 closely related to the performance of the work described in paragraphs 3.1, 3.2, and 3.3 above. 4. Kasambahay and persons in the personal the employee works on a special day falling service of another; on his rest day, he/she shall be entitled to 5. Workers who are paid by results, including an additional compensation of at least fifty those who are paid on piece rate, takay, pakyaw, percent (50%) of his/her basic wage or a or task basis, and other non-time work, if their total of one hundred fifty percent (150%). 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 6. 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. C. Special Days 1. Special (Non-Working) Days Pursuant to Proclamation No. 42 s. 2022, as amended by Proclamation No. 90 s. 2022, the following are the 4. OVERTIME PAY eight (8) special (non-working) days for the year - Refers to the additional compensation for 2023: work performed beyond eight (8) hours a - Additional Special (Non-Working) Day - 02 day. January (Monday) - The coverage of Overtime Pay is same as - EDSA People Power Revolution those covered under Premium Pay Anniversary - 25 February (Saturday) - Black Saturday - 08 April (Saturday) C. Overtime Pay Rates - Ninoy Aquino Day - 21 August (Monday) Calculation: - All Saints’ Day - 01 November (Wednesday) ADP/8 = rate per hour - Additional Special (Non-Working) Day - 02 November (Thursday) Rate per hour X percentage X No. of hours of - Feast of the Immaculate Conception of overtime Mary - 08 December (Friday) Percentages: - Last Day of the Year Ordinary working day - 125% (1.25) 2. Special (Working) Days Scheduled rest day or special day - 130% For work performed on a declared Special (1.3) (Working) Day, an employee is entitled only to Work performed on a special day which falls his/her daily wage. No premium pay is required on a scheduled rest day - 150% (1.5) x since work performed on said day is considered 130% (1.3) work on an ordinary workday. Regular holiday - 200% (2) x 130% (1.3) Regula holiday which falls on a scheduled D. Premium Pay Rates rest day - 260% (2.6) x 130% (1.3) - The “no work, no pay” principle applies during special days and on such other D. Stipulated Overtime Rates special days as may be proclaimed by the When employees work on rest days, special days, President or by Congress. or holidays, they get extra pay (premium pay). This - work performed on special days merits extra pay is included in their regular rate when additional compensation of at least thirty calculating overtime pay. If the employer pays only percent (30%) of the basic wage or a total of the minimum overtime rates required by law, this one hundred thirty percent (130%). Where rule applies. Employees and employers can agree to higher overtime rates through their collective agreements. So, the extra pay for working on special days is part of the regular rate used to calculate overtime. However, they can agree on higher rates if they want. 5. NIGHT SHIFT DIFFERENTIAL - Refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10pm and 6am B. Coverage - Same as covered in 3 and 4 C. Night Shift Differential Rate Calculation: ADP/8 X 110% = rate per hour Rate per hour X 110% X no. of hours work 6. SERVICE CHARGES (Article 96, as amended by RA No. 11360) D. Guide Computations for Holiday Pay, - refer to the amount collected by Premium Pay, Overtime Pay, and Night Shift establishments, such as hotels, restaurants Differential and other similar establishments, that is added to the bills for work or services rendered. B. Coverage This applies to all employees, except managerial employees as defined by law, under the direct employ of the establishment, regardless of their positions, designations or employment status, and irrespective of the method by which their wages are paid. C. Distribution of Service Charges All service charges actually collected shall be distributed completely and equally, based on actual hours or days of work or service rendered, among the covered employees, including those already receiving the benefit of sharing in the service charges. D. Frequency of Distribution The service charges collected shall be distributed and paid to the covered employees once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. E. Increase in Minimum Wage In the event that the minimum wage is increased by 8. MATERNITY LEAVE (RA 8282, as law or wage order, the service charges paid to the amended by RA 11210) employees shall not be considered in determining - refers to the paid leave granted to a female the establishment’s compliance with the increased employee for every instance of pregnancy, minimum wage miscarriage, and emergency termination of pregnancy, regardless of frequency, 7. SERVICE INCENTIVE LEAVE (Article 95) providing her an ample transition time to - refers to the paid leave of five (5) days regain health and overall wellness and to granted to an employee who has rendered assume maternal roles. at least one (1) year of service that may be used for sick, vacation, and other leave B. Coverage purposes This benefit applies to female employees, regardless of civil status, employment status, and B. Coverage the legitimacy of her child. C. Meaning of “one year of service” C. Duration The phrase “one year of service” of the employee The maternity leave shall be for one hundred five means service within twelve (12) months, whether (105) days with full pay, and additional fifteen (15) continuous or broken, reckoned from the date the days with full pay in case the female employee employee started working. qualifies as a solo parent under RA 8972, as amended by RA 11861. In cases of live childbirth, D. Conversion an additional maternity leave of thirty (30) days The employee may choose to either use his/her without pay, can be availed of, at the option of the leave credits or commute it to its monetary female employee, provided that the employer shall equivalent if not exhausted at the end of the year. If be given due notice. Further, this leave benefit may the employee does not use or commute the service also be credited as combinations of prenatal and incentive leave, he/she is entitled upon his/her postnatal leave as long as it does not exceed one resignation or separation from work to the hundred five (105) days and provided that commutation of the same. In computing, the basis compulsory postnatal leave shall not be less than shall be the salary rate at the date of conversion. sixty (60) days. The use and conversion of this benefit may be on a In case of miscarriage or emergency termination of pro rata basis. pregnancy, the maternity leave shall be for sixty (60) days with full pay. In both cases, employers from the private sector shall pay for the difference between the full salary and the actual cash benefits received from the SSS. Nothing in RA 11210 and its IRR shall be construed as to diminish existing maternity benefits currently enjoyed whether or not these are granted under collective bargaining agreements (CBA) or present laws, if the same are more beneficial to the female worker. Any other working arrangement which the female worker shall agree to, during the additional maternity leave period, shall be allowed: Provided, that this shall be consented to in writing by the female worker and shall primarily uphold her maternal functions and the requirements of postnatal care. D. Conditions for Entitlement shall be adjusted to the extent of the To qualify for the maternity leave, the female difference. employee must have at least three (3) monthly However, where a contract, company policy or contributions to the SSS in the twelve-month period collective bargaining agreement provides for an immediately preceding the semester of childbirth, emergency or contingency leave without specific miscarriage, or emergency termination of provisions on paternity leave, the paternity leave as pregnancy,w and she shall have notified her provided in RA 8187 shall apply in full. employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted D. Conditions for Entitlement to SSS in accordance its rules and regulations. A married male employee shall be entitled to paternity leave benefit provided that he has met the E. Frequency of Availment following conditions: Maternity leave shall be granted to a qualified 1. He is an employee at the time of delivery of his female worker in every instance of pregnancy, child; miscarriage or emergency termination of pregnancy 2. He is cohabiting with his spouse at the time that regardless of frequency. she gives birth or suffers a miscarriage; 3. He has applied for paternity leave with his 9. PATERNITY LEAVE employer within a reasonable period of time from - refers to the paid leave granted to a married the expected date of delivery by his pregnant male employee allowing him to lend support spouse, or within such period as may be provided to his lawful wife during her period of by company rules and regulations or by collective recovery and/or in nursing of their newborn bargaining agreement, provided that prior child, including miscarriage. application for leave shall not be required in case of miscarriage; and B. Coverage 4. His wife has given birth or suffered a This benefit applies to all married male employees, miscarriage. For this purpose, “cohabiting” means regardless of their employment status (e.g., the obligation of the husband and wife to live probationary, regular, contractual, project basis). together. If the spouses are not physically living together because of the workstation or occupation, C. Duration the male employee is still entitled to the paternity The paternity leave grants male employees his full leave benefit. pay for the seven (7) days during which he is allowed not to report for work. E. Frequency of Availment This is granted to an employee after the delivery by Paternity leave benefit shall apply to the first four his wife, without prejudice to an employer allowing (4) deliveries of the employee’s lawful wife with an employee to avail of the benefit before or during whom he is cohabiting. the delivery; Provided, that the total number of days shall not exceed seven (7) days for each delivery. 10. PARENTAL LEAVE FOR SOLO PARENTS In the event that the paternity leave is not availed (RA 8972, as amended by RA 11861) of, said leave shall not be convertible to cash. - refers to the paid leave granted to a Where a male employee is already enjoying the qualified solo parent to enable the paternity leave benefits by reason of contract, performance of parental duties and company policy or collective bargaining agreement, responsibilities where physical presence is the following rules shall apply: required or beneficial to the child. a. If the existing paternity leave benefit is greater than the benefit herein provided, the B. Coverage greater benefit shall prevail; and This benefit applies to all employees who belong to b. If the existing paternity leave is less than the following categories of solo parents: that provided herein, such existing benefit 1. A parent who provides sole parental care and unmarried, or unemployed and twenty two (22) support of the child or children due to – years old or below, or those twenty-two (22) years a. Birth as a consequence of rape, even without old or over but who are unable to fully take care or final conviction: Provided, That the mother has the protect themselves from abuse, neglect, cruelty, sole parental care and support of the child or exploitation, or discrimination because of a physical children: Provided, further, That the solo parent or mental disability or condition, they shall be under this category may still be considered a solo entitled to the benefits of RA 8972, as amended in parent under any of the categories in this section; addition to the benefits granted to them by Republic b. Death of the spouse; Act No. 9257, otherwise known as the ‘Expanded c. Detention of the spouse for at least three (3) Senior Citizens Act of 2003’; or months or service of sentence for a criminal 6. A pregnant woman who provides sole parental conviction; care and support to the unborn child or children. d. Physical or mental incapacity of the spouse as certified by a public or private medical practitioner; For the purpose of this leave benefit, the following e. Legal separation or de facto separation for at terms shall mean: least six (6) months, and the solo parent is “Child” or “dependents” refer to those living with entrusted with the sole parental care and support of and dependent upon the solo parent for support the child or children; who are unmarried, unemployed and twenty-two f. Declaration of nullity or annulment of marriage, as (22) years old or below, or those over twenty-two decreed by a court recognized by law, or due to (22) years old but who are unable to fully take care divorce, subject to existing laws, and the solo or protect themselves from abuse, neglect, cruelty, parent is entrusted with the sole parental care and exploitation, or discrimination because of a physical support of the child or children; or or mental disability or condition. g. Abandonment by the spouse for at least six (6) “Parental care and support” refer to the acts of months; providing for the basic needs, health care, mental 2. Spouse or any family member of an Overseas and physical safety, emotional support and Filipino Worker (OFW), or the guardian of the child formation of the personality of the child or children of an OFW: Provided, That the said OFW belongs to the low/semi-skilled worker C. Duration category and is away from the Philippines for an In addition to leave privileges under existing laws, a uninterrupted period of twelve (12) months: forfeitable and noncumulative parental leave of not Provided, further, That the OFW, his or her spouse, more than seven (7) working days with pay every family member, or guardian of the child or children year shall be granted to any solo parent employee, of an OFW falls under the requirements of this regardless of employment status, who has section; rendered service of at least six (6) months. 3. Unmarried mother or father who keeps and rears the child or children; D. Conditions for Entitlement 4. Any legal guardian, adoptive or foster parent who A solo parent shall be entitled to the parental leave solely provides parental care and support to a child provided that: or children; 1. They have rendered at least six (6) months of 5. Any relative within the fourth (4th) civil degree of service, whether continuous or broken, at the time consanguinity or affinity of the parent or legal of the effectiveness of RA 11861y ; guardian who assumes parental care and support 2. They have notified their employer of the of the child or children as a result of the death, availability thereof within a reasonable time; and abandonment, disappearance or absence of the 3. They have presented a valid Solo Parent parents or solo parent for at least six (6) months: Identification Card (SPIC). Provided, That in cases of solo grandparents who Qualified solo parents may apply for their SPIC at are senior citizens but who have the sole parental the Social Welfare and Development Officer of the care and support over their grandchildren who are city or municipality of their residence. E. Frequency of Availment chairman (punong barangay), barangay councilor The parental leave of seven (7) working days with (barangay kagawad), prosecutor, or Clerk of Court, pay shall be granted every year. When a solo as the case may be, that an action relative to the parent ceases to be such by reason of change of matter is pending status and circumstances, the said solo parent shall be ineligible to avail of the solo parent benefits. E. Frequency of Availment The usage of the ten-day leave shall be at the 11. LEAVE FOR VICTIMS OF VIOLENCE option of the woman employee. In the event that AGAINST WOMEN AND THEIR the leave benefit is not availed of, it shall not be CHILDREN (VAWC) (RA 9262) convertible into cash and shall not be cumulative. - refers to the paid leave granted to a female employee who is a victim of violence 12. SPECIAL LEAVE FOR WOMEN (RA 9710) against women and their children allowing - refers to the paid leave granted to a her to attend to medical and legal concerns female employee allowing her to at any time during the application of any recuperate following surgery caused protection order, investigation, prosecution by gynecological disorders for a and/or trial of the criminal case. period of up to two (2) months. B. Coverage B. Coverage This benefit applies to all female employees who This benefit applies to all qualified female are victims of VAWC. VAWC, as used in RA 9262, employees, regardless of age and civil status, who “refers to any act or a series of acts committed by have undergone surgery due to gynecological any person against a woman who is his wife, disorders. former wife, or against a woman with whom the person has or had a sexual or dating relationship, C. Duration or with whom he has a common child, or against Under the Magna Carta of Women, a female her child whether legitimate or illegitimate, within or employee having rendered continuous aggregate without the family abode, which result in or is likely employment service of at least six (6) months for to result in physical, sexual, psychological harm or the last twelve (12) months shall be entitled to a suffering, or economic abuse including threats of special leave benefit of two (2) months with full pay such acts, battery, assault, coercion, harassment or based on her gross monthly compensation arbitrary deprivation of liberty.” following surgery caused by gynecological disorders. C. Duration “Gynecological disorders” refers to disorders that In addition to other paid leaves under existing labor would require surgical procedures such as, but not laws, company policies, and/or collective limited to dilatation and curettage and those bargaining agreements, the qualified victim involving female reproductive organs such as the employee shall be entitled to a leave of up to ten vagina, cervix, uterus, fallopian tubes, ovaries, (10) days with full pay, consisting of basic salary breast, adnexa and pelvic floor, as certified by a and mandatory allowances fixed by the Regional competent physician. It shall also include Wage Board, if any. The said leave shall be hysterectomy, ovariectomy and mastectomy. extended when the need arises, as specified in the The special leave shall be non-cumulative and protection order issued by the barangay or the non-convertible to cash unless otherwise provided court. by a collective bargaining agreement (CBA). D. Conditions for Entitlement D. Conditions for Entitlement To be entitled to the leave benefit, the only 1. She has rendered at least six (6) months requirement is for the victim employee to present to continuous aggregate employment service for the her employer a certification from the barangay last twelve (12) months prior to surgery; 2. She has filed an application for special leave with C. Amount her employer within a reasonable period of time The thirteenth-month pay shall not be less than from the expected date of surgery or within such one-twelfth (1/12) of the total basic salary earned period as may be provided by company rules and by an employee in a calendar year regulations or collective bargaining agreement; and 3. She has undergone surgery due to gynecological D. Computation disorders as certified by a competent physician. E. Frequency of Availment The special leave may be available for every instance of surgery due to gynecological disorder for a maximum total period of two (2) months or sixty (60) calendar days per year. 13. THIRTEENTH MONTH PAY (PD 851) - refers to one-twelfth of the total basic salary earned by an employee within a calendar. B. Coverage All employers are required to pay their rank-and-file employees thirteenth-month pay, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during a calendar year. The following employers are not covered by PD 851: 1. The government and any of its political E. Time of Payment subdivisions, including government-owned and The thirteenth-month pay shall be paid not later controlled corporations, except those corporations than December 24 of every year. An employer, operating essentially as private subsidiaries of the however, may give to his or her employees one-half government; (1/2) of the thirteenth-month pay before the opening 2. Employers who are already paying their of the regular school year and the remaining half on employees a thirteenth month pay or more in a or before December 24 of every year. calendar year or its equivalent at the time of the issuance of PD 851; F. Thirteenth-Month Pay for Certain Types of 3. Employers of household helpers and persons in Employees the personal service of another in relation to such 1. Employees who are paid on piecework workers; and basis are entitled to the thirteenth-month 4. Employers of those who are paid on purely pay. commission, boundary, or task basis, and those 2. Employees who are paid a fixed or who are paid a fixed amount for performing specific guaranteed wage plus commission are also work, irrespective of the time consumed in the entitled to the thirteenth-month pay, based performance thereof, except where the workers on their earnings during the calendar year who are paid on piece-rate basis in which case the (i.e., on both their fixed or guaranteed wage employer shall grant them thirteenth-month pay to and commission). such workers. 3. Employees with multiple employers G. Thirteenth-Month Pay of Resigned or government and private offices, including the Separated Employee Additional Compensation Allowance (ACA) granted An employee who has resigned or whose services and paid to all officials and employees of the are terminated at any time before the time of National Government Agencies (NGAs) including payment of the thirteenth-month pay is entitled to State Universities and Colleges (SUCs), this monetary benefit in proportion to the length Government-Owned and/or Controlled of time he or she has worked during the year, Corporations (GOCCs), Government Financial reckoned from the time he or she has started Institutions (GFIs) and Local Government Units working during the calendar year up to the time of (LGUs). his or her resignation or termination from the service. Thus, if he or she worked only from K. No Exemption or Deferment January to September, his or her proportionate No request or application for exemption from thirteenth-month pay should be equal to one-twelfth payment of 13th-month pay, or for deferment of the (1/12) of his or her total basic salary earned during payment thereof shall be accepted and allowed. that period. L. Report of Compliance H. Thirteenth-Month Pay of Female Employee Employers shall make a report of their compliance who is on Maternity Leave via online through the DOLE Establishment Report The salary differential shall be included as part of System at https://reports.dole.gov.ph/ not later than the basic salary for purposes of computation of the January 15 of the following year. 13th-month pay of the rank-and-file employee The report shall conform substantially with the following: I. Non-inclusion in Regular Wage 1. Name of establishment The thirteenth-month pay is not part of the regular 2. Address wage of employees for purposes of determining 3. Principal product of business overtime and premium payments, fringe benefits, 4. Total employment contributions to the State Insurance Fund, Social 5. Total number of workers benefited Security System, National Health Insurance 6. Amount granted per employee Program, and private retirement plans. 7. Total amount of benefits granted 8. Name, position and telephone number of person J. Coverage from Income Tax of giving information Thirteenth-Month Pay and Other Benefits Pursuant to Section 2.78.1(B)(11) of BIR 14. SEPARATION PAY Revenue Regulation No. 2-98, as amended, - Separation pay is a compensation given among other income payments, the following are to an employee who is terminated from exempted from the requirement of withholding tax employment due to authorized causes on compensation but may be subject to income tax provided in Articles 298 and 299 of the depending on the nature/sources of income earned Labor Code of the Philippines, as by the individual recipient renumbered (a) Thirteenth-month pay equivalent to the mandatory one (1) month basic salary of official B. Coverage and employees of the government (whether This benefit applies to an employee in instances of national or local), including government-owned or authorized termination of employment covered by controlled corporations, and/or private offices Articles 298 and 299 of the Labor Code of the received after the twelfth month pay; and Philippines. An employee’s entitlement to (b) Other benefits such as Christmas bonus, separation pay depends on the reason or ground productivity incentives, loyalty award, gift in cash or for the termination of his or her services. Where the in kind, and other benefits of similar nature actually termination is for authorized causes, separation pay received by officials and employees of both is due. C. Amount D. Computation 1. One-Half (1/2) Month Pay per Year of Service The computation of separation pay of an employee An employee is entitled to receive a separation pay shall be based on his/her latest salary rate. equivalent to one-half (1/2) month pay for every year of service, a fraction of at least six (6) months E. Notice of Termination being considered as one (1) whole year, if his/her The employer may terminate the employment of an separation from the service is due to any of the employee due to the above-mentioned authorized following authorized causes: causes by serving a written notice on the employee a. Retrenchment to prevent losses (i.e., reduction and the Department of Labor and Employment of personnel effected by management to prevent through its regional office having jurisdiction over losses); the place of business at least one (1) month before b. Closure or cessation of operation of an the intended date thereof. establishment not due to serious losses or financial reverses; F. Coverage from Income Tax of Separation Pay c. When the employee is suffering from a disease Pursuant to Section 32(B)(6)(b) of the Tax Code not curable within a period of six (6) months and of 1997, as amended, any amount received by an his/her continued employment is prejudicial to official or employee or by his heirs from the his/her health or to the health of his/her employer as a consequence of separation of such co-employees; official or employee from the service of the d. Lack of service assignment of security guard for employer due to death, sickness or other physical a continuous period of six (6) months; and disability or for any cause beyond the control of the e. Lack of service assignment of a worker in a said official or employee shall not be included in the contracting or subcontracting arrangement for a gross income and shall be exempt from taxation continuous period of three (3) months. under Title II of the same Code. 2. One-Month Pay per Year of Service 15. RETIREMENT PAY An employee is entitled to separation pay - refers to the compensation given to a equivalent to his/her one month pay for every year retiring employee pursuant to Article 302 of of service, a fraction of at least six (6) months being the Labor Code of the Philippines, as considered as one whole year, if his/her separation renumbered. from service is due to any of the following: a. Installation by employer of labor-saving devices; B. Coverage b. Redundancy, as when the position of the Employees shall be retired upon reaching the age employee has been found to be excessive or of sixty (60) years or more but not beyond sixty-five unnecessary in the operation of the enterprise; (65) years old [and have served the establishment c. Impossible reinstatement of the employee to his for at least five (5) years]. or her former position or to a substantially This benefit applies to all employees except: equivalent position for reasons not attributable to 1. Government employees; and the fault of the employer, as when the 2. Employees of retail, service and agricultural reinstatement ordered by a competent authority establishments/ operations regularly employing not cannot be implemented due to closure or cessation more than ten (10) employees. of operations of the establishment/employer, or the position to which he or she is to be reinstated no C. Amount longer exists and there is no substantially The minimum retirement pay shall be equivalent to equivalent position in the establishment to which he one-half (1/2) month salary for every year of or she can be assigned; and service, a fraction of at least six (6) months being d. Lack of service assignment of security guard by considered as one (1) whole year. reason of age. D. Computation For the purpose of computing retirement pay, following conditions precedent for optional "one-half month salary" shall include all of the retirement: following: (a) there is no retirement plan between the 1. Fifteen (15) days salary based on the latest employer and the employee and salary rate; (b) the employee should have reached the age of 2. Cash equivalent of five (5) days of service sixty (60) years, and should have rendered at least incentive leave; and five (5) years of service with the employer. 3. One-twelfth (1/12) or 2.5 days of the thirteenth-month pay. Thus, “one-half month salary” H. Retirement Benefit of Underground or is equivalent to 22.5 days. Surface Mine Employees under Republic Act The COLA shall not be included in the computation No. 8558, as amended by Republic Act No. of retirement pay. 10757 The retirement age of underground or surface mine Formula: employees has been reduced to a much lower age. Minimum Retirement Pay = Daily Rate x 22.5 days In the absence of a retirement plan or other x # of years in service applicable agreement providing for retirement benefit of underground mine employees in the E. Retirement Benefit under a Collective establishment, an employee may retire upon Bargaining Agreement or Applicable Contract reaching the compulsory retirement age of sixty (60) years or upon optional retirement at the age of Any employee may retire or be retired by his or her fifty (50) years, provided he/she has served for at employer upon reaching the retirement age least five (5) years as an underground mine established in the collective bargaining agreement employee or in underground mine of the (CBA) or other applicable agreement/contract and establishment. shall receive the retirement benefit granted therein; Provided, however, that such retirement benefit I. Retirement Benefit of Racehorse Jockeys shall not be less than the retirement pay required The compulsory retirement age of professional under RA 7641, and Provided further that if such racehorse jockeys who are duly licensed by the retirement benefit under the agreement is lesser, Philippine Racing Commission (PHILRACOM) is the employer shall pay the difference. fifty-five (55) years old, provided that he/she has served for at least five (5) years as racehorse F. Retirement Benefit of Workers who are Paid jockey and has paid additional premium to the SSS. by Results For covered workers who are paid by results and J. Other Benefits upon Retirement do not have a fixed monthly salary rate, the basis The retirement benefits under RA 7641 and RA for the determination of the salary for fifteen (15) 8558 are separate and distinct from those granted days shall be their average daily salary (ADS). The by the Social Security System. Under the law, upon ADS is derived by dividing the total salary or optional or compulsory retirement, the employee is earnings for the last twelve months reckoned from also entitled to the proportionate thirteenth-month the date of retirement by the number of actual pay for the calendar year and to the cash working days in that particular period, provided that equivalent of accrued leave benefits. the determination of rates of payment by results are in accordance with the established regulations. K. Coverage from Income Tax of Retirement Pay Exempted from taxation are the retirement benefits G. Retirement Benefit of Part-time Workers received under RA 7641 (now Article 302 herein) Part-time workers are also entitled to retirement and those received by officials and employees of pay of “one-half month salary” for every year of private firms, whether individual or corporate, in service under RA 7641 after satisfying the accordance with a reasonable private benefit plan maintained by the employer: Provided, That the retiring official or employee has been in the service 2. Compensable Injuries of the same employer for at least ten (10) years An injury is considered compensable when the and is not less than fifty (50) years of age at the same takes place within the period of employment, time of his retirement: Provided, further, That the at a place where the employee may reasonably be benefits granted under this subparagraph shall be in the performance of his duties, and while he is availed of by an official or employee only once. fulfilling those duties or engaged in doing something incidental thereto, or where he is 16. EMPLOYEES’ COMPENSATION PROGRAM engaged in the furtherance of the employer’s (PD 626) business. - Is a government program that provides a package of benefits to all workers and/or No compensation will be allowed to an employee or their beneficiaries in the event of a the dependents if the injury, sickness, disability or work-related sickness, injury, disability or death is due to: death. The ECP is implemented by the 1. Intoxication; Employees’ Compensation Commission 2. Willful intention to injure or kill himself or another; (ECC), a government corporation attached or to the Department of Labor and 3. Notorious negligence. Employment for policy coordination and guidance. D. Benefits The following are the benefits under the EC B. Coverage The ECP covers the following Program: workers: 1. Sickness/disability benefits – Under the ECP, it is 1. Private sector workers who are compulsory the disability, or the incapacity to work, which is members of the Social Security System (SSS) being compensated and not the illness or the injury. including sea-based Overseas Filipino Workers There are three types of loss of income benefit, (OFWs) and kasambahays. Employees shall be namely: covered starting on the first day of their a. Temporary total disability (TTD) – For a employment. disability that prevents an employee 2. Government sector employees who are from performing his work for a mandatory members of the Government Service continuous period not exceeding 120 Insurance System (GSIS), including uniformed days. The amount of daily income benefit personnel from the Armed Forces of the shall be ninety percent (90%) of the Philippines, Philippine National Police (PNP), employee’s average daily salary credit as Bureau of Jail and Management Penology (BJMP), determined by the Systems. Bureau of Fire Protection (BFP), and Philippine b. Permanent total disability (PTD) – A Coast Guard (PCG). monthly income benefit granted for 3. Active self-employed members of the SSS disabilities, such as, but not limited to, complete loss of sight of both eyes, loss C. Conditions of Compensability and function loss of both limbs, and 1. Compensable Diseases brain injury resulting to imbecility or A sickness is considered compensable if the same insanity. The amount of monthly income is included in the ECC’s List of Occupational benefit for PTD shall be determined by the Diseases and the conditions for its compensability Systems based on the average monthly are met. If the conditions were not satisfied and/or salary credit or average monthly the claimed ailment is not included in the list, proof compensation (AMSC/AMC). must be shown that the risk of contracting the c. Permanent partial disability (PPD) – A disease is increased by the working conditions. monthly income benefit is granted for This is known as the increased-risk theory. disabilities that result in physical loss (amputation) or functional loss of a body  part. The number of monthly pensions is 6. Funeral benefit – An amount of ₽30,000 may be based on the corresponding body part loss granted for the private and public sectors upon the or functional loss, as provided under Article death of an employee who died as a result of a 193 of PD No. 626, as amended, and EC work-related accident or disease. For workers who schedule of compensation. contracted COVID-19 may avail of the following benefits: 2. Medical benefits – It includes reimbursement of 1. Sickness/disability benefit; the cost of medicines for the illness or injury, 2. Medical benefit; payment to providers of medical care, hospital care, 3. Death benefit; and surgical expenses, and the costs of rehabilitation 4. Funeral benefit. appliances and supplies. The medical services are limited to ward services of hospitals duly accredited E. Notification and Filing of Claims by the Department of Health (DOH). The employer should be notified of the employee’s sickness, injury or death within five days from the 3. Carers’ allowance – A supplemental pension of occurrence of the contingency. Notice is not P1,000/month is provided to pensioners under the necessary if the contingency occurred during ECP who suffer from work connected PPD and working hours, at the place of work and with the PTD. knowledge of the employer or representative. 4. Rehabilitation services/KaGabay Program F. Contribution (Katulong at Gabay sa Manggagawang May Kapansanan) – Provision of remedial treatment, Employers pay for the EC contributions of their vocational assessment and preparation which is employees. For a covered employee in the private designed to meet the individual needs of each sector, his or her employer shall remit to the SSS a handicapped employee to restore him to suitable monthly contribution in accordance with the employment and to help each person with following schedule work-related disability (PWRD) to develop his/her mental, vocational or social potential. Rehabilitation services may be in the form of any of the following: a. Medical-surgical management; b. Hospitalization; 17. PHILHEALTH BENEFITS (RA 7875, as c. Necessary appliances and supplies; amended by RA 9241 and RA 10606) d. Physical restoration; - The National Health Insurance Program e. Psychosocial counseling; (NHIP) is a compulsory health insurance f. Psychiatric evaluation; program of the government established to g. Skills training; provide universal health insurance coverage h. Entrepreneur training; and ensure affordable, acceptable, available i. Hearing impairment evaluation; and accessible health care services for all j. Visual impairment evaluation; and citizens of the Philippines. k. Job referral. B. Coverage 5. Death benefit – The beneficiaries of the The NHIP covers all Filipinos pursuant to Republic deceased employee are entitled to an income Act No. 11223 or the Universal Health Care benefit if the employee died as a result of a (UHC) Act. work-related injury or sickness. They shall receive an income benefit paid at the beginning of the C. Benefits month of death of the member and will continue for 1. Inpatient Benefits as long as they are entitled thereto. 2. Outpatient Benefits 3. Z Benefits member who becomes permanently disabled, 4. SDG Related either partially or totally. 5. Death – a cash benefit granted—either as a D. Contribution monthly pension or a lump sum amount—to the Pursuant to PhilHealth Circular No. 2020-0005, beneficiaries of a deceased member or pensioner. below is the premium contribution table for direct 6. Funeral – a cash benefit given to whoever paid contributors: for the burial expenses of the deceased member or pensioner. 7. Unemployment – a cash benefit granted to eligible employees – including househelpers and OFWs – who were involuntarily unemployed or separated from employment. D. Contribution Pursuant to SSS Circular No. 2022-033 dated 12 18. SOCIAL SECURITY BENEFITS (RA 1161, as December 2022, the minimum monthly salary credit amended by RA 11199) (MSC) was increased to P4,000 and the maximum - Social security benefits are composed of a MSC to P30,000, effective January 2023. package of benefits under the Social Security Program in the event of death, 19. PAG-IBIG BENEFITS (RA 9679) disability, sickness, maternity, old age and - The Home Development Mutual Fund unemployment. Work-related death, (HDMF), also known as Pag-IBIG disability and sickness also receive benefits (Pagtutulungan sa Kinabukasan: Ikaw, under the Employees' Compensation (EC) Bangko, Industriya at Goberyno) Fund, is Programs. Basically, social security a Government-Owned and Controlled provides replacement for income lost on Corporation (GOCC) that provides the account of the aforementioned Filipino workers access to a secured contingencies. savings and affordable home financing to improve the quality of their lives. B. Coverage The Social Security System covers all employees B. Coverage including kasambahays or domestic workers not Pag-IBIG membership is mandatory for all over sixty (60) years of age and their employer. ccc employees covered by the Social Security System (SSS) and the Government Service C. Benefits Insurance System (GSIS); uniformed members of If you are regularly paying your contributions, you the Armed Forces of the Philippines, the Bureau of will be entitled to these social security benefits: Fire Protection, the Bureau of Jail Management and 1. Sickness – a daily cash allowance paid for the Penology, and the Philippine National Police; and, number of days a member is unable to work due to Filipinos employed by foreign-based employers. sickness or injury. 2. Maternity – a daily cash allowance granted to a C. Programs and Benefits female who is unable to work due to childbirth or The Fund offers its members the following miscarriage/emergency termination of pregnancy programs and benefits: (ETP). 1. Provident Savings 3. Retirement – a cash benefit granted—either as a. Pag-IBIG Regular Savings – The Pag-IBIG a monthly pension or a lump sum amount—to a Regular Savings, or the monthly mandatory member who can no longer work due to old age. membership savings, is a savings facility that gives 4. Disability – a cash benefit granted—either as a members high annual dividend earnings. Members monthly pension or a lump sum amount—to a who are formally employed contribute a minimum of P100 from their monthly income, while their i. Pag-IBIG Housing Loan – Allows employers also match their contributions with a Pag-IBIG members to borrow up to P6 share of P100. Self-employed members can million at low interest rates with borrower contribute for as low as P100 per month. Members friendly terms, and a maximum repayment can withdraw their Pag-IBIG Savings and its period of up to 30 years. dividend earnings upon retirement, or after 20 ii. Pag-IBIG Affordable Housing Loan for years, or equivalent to 240 monthly contributions. Minimum-Wage Earners – Designed for b. Modified Pag-IBIG 2 (MP2) Savings – A special minimum-wage and low-income members voluntary savings facility that is open to all active who earn up to P15,000 a month within the Pag-IBIG Members who wish to save more and National Capital Region (NCR), and earn up earn higher dividends, in addition to their Pag-IBIG to P12,000 per month outside the NCR. Regular Savings. The MP2 Savings is an easy and Under the loan program, Pag-IBIG Fund flexible savings program with a 5-year maturity offers a subsidized rate of of 3% per annum period. Members can start saving for as low as for home loans up to P580,000 in socialized P500 per remittance, making it more accessible. subdivision projects and special low rates The dividends earned in the MP2 Savings are for home loans of up to P750,000 for tax-free and can be withdrawn annually or after the socialized condominium projects. 5-year maturity period iii. Pag-IBIG Home Equity Appreciation Loan (HEAL) – A low interest loan available 2. Short-Term Loans to all members with updated payments for a. Pag-IBIG Multi-Purpose Loan – An affordable their Pag-IBIG Housing Loan. With the and easily accessible cash loan program offered by Pag-IBIG HEAL, eligible members can Pag-IBIG Fund. Qualified members can borrow up borrow an amount based on the net value of to 80% of their total Pag-IBIG Regular Savings, their mortgaged property with Pag-IBIG which includes their monthly contributions, Fund to help them fund their life goals – employer's contributions, and accumulated such as to renovate their homes, buy a car dividends earned. The loan proceeds can be used or purchase furniture and appliances. to pay for tuition fees, medical expenses, minor iv. Pag-IBIG Home Saver Programs – home improvements, travel, or even as a capital for Provides options to PagIBIG Housing Loan a small business. The loan is payable in 24 or 36 borrowers who have missed payments to monthly installments at a low interest rate of 10.5% update their accounts and save their homes per year. from foreclosure. b. Pag-IBIG Calamity Loan – The Pag-IBIG Calamity Loan aims to provide immediate financial b. Institutional assistance to Pag-IBIG members who have been i. Direct Developmental Loan [DDL] – affected by calamities and are residing in areas Provides loan financing for declared under a State of Calamity. Eligible property/real-estate developers/proponents members may borrow up to 80% of their total to develop residential subdivisions or Pag-IBIG Savings, which consist of their monthly medium-rise residential buildings, and contributions, the counterpart employer’s housing units eligible for mortgage financing contributions, and accumulated dividends earned. under PagIBIG Housing Loan. Pag-IBIG Calamity Loan is offered at a rate of ii. Direct Developmental Loan Program 5.95% per annum, the lowest rate in the market for the Pambansang Pabahay Para sa and is payable over a period of up to three years, Pilipino Housing (4PH) Program with a grace period of three months. [DDLP4PH] – Encourages public-private partnership by providing access to 3. Home Financing affordable financing mechanism for property a. Retail developers, Local Government Units (LGUs), contractors, and joint venture  entities for the development of residential Fund’s services, such as keeping track of their subdivision/condominium housing projects, savings and loan records, and online payments for and construction of housing units. Aims to their dues. support the national government and the Department of Human Settlements and D. Membership Contribution Urban Development (DHSUD) to reduce the 6 million housing backlog of the country. iii. Rental Housing Construction Loan [RHCL] – A financing facility which may be “Monthly Compensation” shall refer to the basic used to fund the site development and salary and other allowances, where basic salary construction of residential units meant for includes, but is not limited to, fees, salaries, wages, rental housing, which may include staff and similar items received in a month. houses, dormitories, and other similar dwellings. This program is open to employers, whether private or from the government sector. 4. Other Programs and Benefits a. Pag-IBIG Loyalty Card Plus – The Pag-IBIG Loyalty Card Plus is a discounts and rewards card that allows members to enjoy exclusive offers from more than 380 Loyalty Card partner establishments nationwide. Members can get discounts and reward points on their grocery purchases, furniture upgrades, tuition fees, hospital bills, fuel expenses, and many more. The Loyalty Card Plus can also be used as a Savings Account, and a means for members to receive their savings claims and loan proceeds more conveniently. b. Virtual Pag-IBIG for Members – An online platform that allows members to access Pag-IBIG services 24/7, anytime, anywhere. It also includes a 24/7 chat service where members can go to for their inquiries and concerns. c. Virtual Pag-IBIG for Developers – An online facility that aids partner-developers in evaluating borrowers’ eligibility. Through the Virtual Pag-IBIG for Developers, Pag-IBIG Fund is able to digitize and expedite housing loan applications. d. Virtual Pag-IBIG for Employers – The Virtual Pag-IBIG for Employers is an online facility that allows employers to enjoy PagIBIG Fund services for their businesses and employees safely and conveniently. e. Virtual Pag-IBIG Mobile App – The official mobile application of Pag-IBIG Fund that aims to bring its services closer to the members. With just a few taps on their smartphone and with the internet, members can conveniently access Pag-IBIG