LABOR LAW
1. Basic Pay
- Gross pay with allowances with no deductions yet.
Minimum wage
- Varies per region as it is set by Regional Tripartite Wages and Productivity Board
- Violation of minimum wage may result in double indemnity and/or criminal liability
- RTWPB may provide for exemptions, including those for Barangay Micro Business Enterprises
- Minimum wage earners are exempt from income tax
2. Overtime Premium
- An additional pay of 30% of a day’s wage for work done on a rest day or a special non-working day
- If work is done beyond the 8 hours, the employee is entitled to overtime pay
- Employees are entitled to 1 scheduled rest days consisting of 24-hours of uninterrupted rest, for every
week.
3. Night Shift Differential
- An additional pay for work between 10:00 p.m and 6 a.m the following day
- Additional pay of 10% for every hour work done between the said time
- A legally mandated benefit
- Covered employees are entitled
- Computation required determining hourly rate
- COLA or Cost of Living Adjustment is excluded in the computation
4. Holiday Premium
- 12 regular holidays
- Without work= holiday pay
- With work= holiday pay + day’s wage
- With work and double holiday= 2x holiday pay + wage
- 100% holiday pay of basic pay (daily wage)
Premium pay is an additional pay of 30% of a day’s wage for work done on a rest day or a special non-working holiday.
- An employee is entitled to 1 rest day per week
- There are 4 special non-working days
a) Ninoy Aquino Day
b) All Saint’s Day
c) Feast of Immaculate Conception of Mary
d) Last day of the Year
- No work, no pay applies to daily-paid employees during a special non-working day.
5. 13th Month Pay
- Is given to rank-and-file employees
- Consists of additional pay based on total basic salary earned during the year divided by 12 months or
number of months in the service incase of employees who have exited
- Benefit is non-taxable if total bonuses do not exceed limit (90,000) provided by the law
- Minimum of 6 months (regular status), prorated
- Paid prior of December 24
6. Leaves
- Official absence from work
7. Service Incentive Leave
- Given to employees who may want to take a leave from work and still get paid on their absences
- There are 5 service incentive leave credits given to an employee who has rendered at least 12 months of
service
- Leave credits may be used to pay the cash equivalent of the unused leave credit
- Replenish yearly.
8. Maternity Leave
- Are given to female employees to be used during or after their pregnancy
- Consist of 105 days of leave credits with full pay, with an option to extend for an additional 30 days without
pay
- Female solo parent has an additional 15 days of leave credits with full pay
- For cases of miscarriage or emergency termination of pregnancy, the employee is given 60 days of leave
credits with full pay
- Availing of maternity is without limitation as to frequency
- The benefit is non-convertible cash
- Benefit is non cumulative
9. Paternity Leave
- Benefits given to married male employees whose legal wife underwent delivery or miscarriage
- Benefit applies to all male employees regardless of employment status
- Consist of 7 days leave credits with full pay
- Married male employee is required to be cohabiting with his legal wife unless there is a justifying
circumstances
- Non-convertible to cash
- Non-cumulative
- Applicable to first 4 deliveries of wife
10. Solo Parent Leave
- Are given to employees left alone with the responsibility of parenthood
- Applies to all solo parent
- Consist of 7 working days leave credits with full pay
- Employee is required to obtain Solo Parent ID from the DSWD.
- Benefit is non-convertible to cash
Separation Pay
- Employees may be separated from their employment due to authorized causes
- Employees are not at fault, instead due to legitimate business reasons, their employment had to be severed
- Separation pay varies depending on the authorized cause
- Exempt from income tax
- One month pay or ½ month pay for every year service whichever is higher.
