HANDBOOK ON WORKER'S STATUTORY MONETARY BENEFITS

BUREAU OF WORKING CONDITIONS

OEPARTMENT OF LABOR AND EMPLOYMENT INTRAMUROS, MANILA

2012

Republic of rhe Phitippines

Projecl Ieom
Rosalinda
0 ima p ilis.Ba tdoz Secre fary

DEPARTMENT OF LABOR AND EMPLOYMENT

Intremu(os. Minila

F0REliv0R0

Lourdes M. Trasmonle
Undersecretary

I am pleased that the Eureau of Worktng Conditions has come up with this 2012 edition of its llandbook on Workers' Statitory Monetary Benenb. This is a valuable addition to the Department oF-Labor and Erirploymentis arsenal of currnt, ureful and.relevant.knowledge and information which it continlally builds up and update r0r tne benetrt 0f our tllents, m0st notably our workets.

Brenda L. Villa fue rte Director lV - BWC

Promoting better observance of lab0r stnndards towards the protection 0l workers is

Employment Plan 2011-20t6 and in the countrv,

key strategic response under the Rights at Work pillar of the tabo, and ir centraato meeting the objective 0f decent work

Nicanor V. Bon Chief- LEO

Emila T. de Guzman Supervising LE0

women and.lheir children, thirteenth-month pay, separa on pay, retirement pay, and other labor standards, such as the payrnent of SSS and lliitteatttr premiums, ji provided under the Labor Code and other relevant laws can be acliieved if our workers are vigilant about their Constitutionally-protected and guaranteed rights and if our employers are fully inforned about thei. obligationg.

En surin g, compliance with the payment 0f minlmum wage, overtime pay, night shift 0rrrerent|ar. pay, 5ervlce incentive pay, holiday pay, maternity and paternity leave pay, pdrental,leave.p6y for solo parents, leave pay for yictims 0f violence agalnst

Thus, the publication of Ihis Handbook on Workers,statutory Monetary Benefits will, I am sure, benefit many.

All Rights Reserved

This Handbook, or any psrt thereof, Dtay not be reproduced lor commer.ial purpose! without th written pernrission of the Bureau of Working Conditions, 0epartrnent of Labor and Employment.

In its better formal, the Handbo0k remains comprehensive in layino down the essential statutes embracing general labor standards, as well as benefi[s under the Employees C0rnpensati0n Program, and philHealth and Social Security benefits. What is new is thdt the Handbook now provides user-friendly tools for computing specific monetary benefits and has a back.paqe directorv and dioitized e-liirks t6 DOLE, lts -fegronal and field offices, and of tourse, thd BWC, f;r Inquiries 6nd reeobaIks tr0m wofkers, employers, and the public.
Another significant addition to this updated edition is the statutory Drovision of Republic Act No. 9710 or the Magna Cartd of Wonen that spelts'o;t the nondiscriminatory benefits for women w0rkers.

This Handbook is publi5hed by the Eureau ol Working Conditions (BWc) Department of [abor and Employmnt (DOLE] 3rd Floor, DOt gldg,, Intramuros, Manila Tel. No.527300 locals 301,308; Tetefax No. SjG-8975; email: dole.b,,vc@gmail.com; website: www,bwc.dole.gov.ph - t{oT fo8 sAtg -

It is, therefore, rny sin(ere hope that this Handbook will find its place within the reading confines of our workers and employers for this will rea y ehpower them to become bettet informed.

commend the BWC for the etfo(ts Workers' 5 ta tu tory Mo neta ry Eenefits.

it

invesied

in updating thls Handbolk

on

lll),-.]rtr\,
ROSAUNo'A

OtilAf tUf, EAIDOI

Cover Art: tdward M. tchrvez and Grald S. Xhu

Secrelary

fn ,-UNTENTS
COMPLIANCE GUIDE

D.

SERVICE CHARGES (Article 96| A. Sharing

B. C.

Payments Tips

21 21

1. IIINIMUM

WAGE

t.
Rates
2 3 3 5
5 6

A. Coverage B. Minimum Wage C. Basis

. D. Monlhly-Paid and Daily-Paid Emptoyees E. Minimum Wage oi Househelpers (RA i655) . F. Effect of Reduction ol Workdays on Wages
G. Penalty and Double lndemnlty for Vjolalion of lhe
Prescribed Increases or AdiuslmBnts in th Wage Rates
(RA 8188)

SERVICE INCENTIVE LEAVE (Article 95) A. Coverage B. Meafling of'ofie year of service' C. Usage/Co n ve rs ion to Cash

22 23 23

L
9.

i'ATERNITY LEAVE (RA 1t61, as amended by RA 8282)

A. B.

Coverage Entitlement

24 24

H. Barangay Micro Business Enterprises

6
6
7

PATERNITY LEAVE (RA S187)

J.

{BMBEs) RA 9178 Minimum Wage ot Workers Paid by Resulls Minimum Wage ofApprentices, Learners, and Disabled Workers

A.

2. HOLIDAY

'

PAY (Artiole 94)

A. Definition B. Coverage C. Regular Holidays

Muslim Holidays E. Absences F. Successive Regular Holidays G. Temporary or Periodic Shutdowo/Cessation 0f Work H. Holiday Pay of Cerlain Employees

I
B

B. The Palernjly Leave Benefit C. Conditions for Entitlement D. Application for Paternily Leave E. Nonconversion to Cash F. Crediting of Existing Benefils
,IO. PARENTAL LEAVE FOR SOLO PARENTS (RA 8972)

Coverage

Zs 25 25 26 26 26

0.

I
10

A.

b.

Coverage

uettnltton ot tBrms

't1
12

12

C. The Parental Leave Benefit D. Condilions for Entitlement E. Nonconversion to Cash

F.

Crediling of Existing Leave

Protection Against Work Discrimination

G. Termination of the Benefit 3. PREMIUiI

PAY

(Articls 91.S3)
IJ
13

H,
14

27 21 28 28 28 28 29

A. Definition B, Coverage C. Special Days D. Premium Pay Rals

4. OVERT$IIE

29

11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN

AND THEIR CHILDREN (RA 9262}

A.

PAY {Arricte 87)

B. C. Overlime Pay Rales D, Slipulateq Overtime Rates

5. t'llcHT SHIFT DIFFERENTTAL (Arttcte

Definition Coverage

to
16 16

A.0efinition B. Coverage and Purpose C. Requiremenl for Entitlomenl D, The Benefil E. Usage of lhe Eenefil
12. SPECIAL TEAVE FOR WOMEN (RA e7t0) A. Coverage

30 30 30
31

31

A. Definition B. Coverago C. Computation of Night Shift

86)

6. Dellnrtr0n 0l Ierm
't8
18

C. Conditions for Entitlement

32 32 32

Differential

19

D. The Special Leave Benefit

E. Usage

F. Nonconversion to Cash

32 33 33

18. SoCIAL SECUR|TY BENEFTTS (RA .t161, as amendd by

RA 8282) A. The Social Security program

13.

THIRTEENTH-MONTH PAY {PD 851) A. Coverage 8. oefinilion of Rank-and-Fite Emptoyees C. Minimum Amount D. Exempted Employers E. lime of Payment of Thirteenlh-Month pay F.. Th irtee nth- Mo nth Pay for Cerlain Types ol Employees G. lh irteen th- Monlh Pay of Resigned or Separaled Employee H. Non-inclusion in Regular Wage SEPARATION PAy (Arrictes 283-841 A. one-Half Monlh Pay pet yeat of Servlce B. One-Month Pay per Year ot Service G. Notice of Terrnination H. Basis of Separalion pay Inclusion of Regular Allowance in the Computation

b.

uoveraqe

51

34 34
34

C. The Benefits APPENDIX Directory of DOLE.Regionat Olfices

oirectory of DOLE-NCR Field Offices The Bureau of Working Conditions

5l
51

54
55 56

35 35 36 36 37

14.

l.

38 39 39 39 39

15.

RETIREMENJ PAY (Artlcte 2A7, as amended by RA 1641)

A. Coverage B. Amounl of Retiremenl

Applicable

pay

40 40

C. Retirement Benefits under a Collective Bargaining Agreemenl

E. Retirement Benelil of Parl-lime Workers F. Relirement Benefit of Undsrground Mine Employees under Republic Act

0. Retkemenl Benefils of Workers who arc patc 0y Results 4t

41

Conlracl

aI

c. Other Bendfits upon

85SB Retirement

42 42

16.

EENEFITS UNDER THE EMPLOYEES' COMPENSATION

PROcRAM (PD 626) A. The Employees'Compensation program

B. Coverage C. The Benefils D. Kinds of Disabitily E. Filing ol Claims F. O b ligalions/R os po nsibilities of Emptoyers
17.

43 43 43 44 44 45

PHILHEALTII BENEFITS (RA IS75, as amended by RA 9241) A. The Nallonal Heallh Insurance 46 B. Coverage 46 C. The Ben6lits 47

program

COMPLIANCE GUIDE
Retail i Service Esla bl shments
Employ Ing

Applicable Labol
Standa rds Minimum Waoe Holiday pay Premium pay

NonAg rlcu ltu re

1lo5

Employing I to 9 worksrs

Reference (Page no.)

Mtruruurrl WRcr
Act") mandates the fixing of the minimum wages applicable to different induslrial sectors, namely, non-agricullure, agriculture
Republic Act No. 6727 (also known as the "Wage Rati0nalizati0n

N/A N/A N/A

N/A

I
13 16
18

919!''!_ser-l pay
Nighl shilt
Servico charoe

Service
lea vs

incenlivt

N/A

gross sales jn some sectors.

22 24

plantalion, and nonplantation, c0ttage/handicraft, and retail/service, depending on the number of workers or capitalizaiion or annual

Malernily lavB Paternity leave

Parental leave Leave for VAWC

The Rules lmplementing RA 6727 define the induslrial sectors as

follows:

25
27 30 fo
I

Special leave
women '13"' month

32 34 38 40 43 46
51

pay

Separalion pay Retiremenl pay ECC benefits' PhilHeallh benefils SSS benetits'

N/A

N/A

''Agriculture refefs to farming in all its branches and, among others, includes lhe cullivation and tillage ol the soil, produclion, cultivalion, growing and harvesling of any agricultural or horticultural commodilies, dairying, raising of livestock 0r poultry, the culture of fish and other aquatic producls in farms or ponds, and any activities performed by a farmer or on a farm as an incident t0 or in conjunclion with such farming operations, but does not include the manufacturing and/or processing of sugar, coconut, dbaca,
tobacco, pineapple, aquatic or other farm products.

'will be paid by lhe Government Subsidized Moals dnd Snacks

The employer nlay provide subsidized meals and snacks to his employees provided thal the sfubsidy shall not be less than 30% of the fair and reasonaore value of such facili(ies. In such case, the employer may doduct ftom the wages of lhe employees nol fiore than 70ol" ol lhe value ol lhe meals and snacks enjoyed by lhe employees, pro\,lided further thal such deduclion is with the written autho.ization of th employees cqncerned. (Sec. 4 Rule Vll-A, Book lll of the Rules lmptementing lhe Labor Code). Fdr lhe compulation ol the fair and reasonable value of lhe mears given, lhe employel may seek assislance from concerned DOLE Regional/Field Oflice.
SalaJy of Househelbor who lvorks aB salesclrk

"Retail Establishment" is one principally engaged in the sale of g0ods lo end-users f0r personal or household use. A retail establishmenl lhat (egula.ly engages in wholesale aclivities loses its relail character. ''Service Establishment" is one principalty en'gaged in the sale of service to individuals for lheir own 0r household use and is generally recognized as such.

ll is regularly

employing not more than

regardless of stalus, except the owner/s, for at least six (6) months in any calendar yBar

ten (10)

workers

the prescribd mirlimum wage which is applicable in

establishmenls, under existing Wage Orders.

Househelper whq works as salesclerk should receive salary in accordance wilh

the

felaal and se.vice

The said law rationalized wage detefminalion by establishing the mechanism and proper standards through the creation of Regional Triparlile Wages and Productivity Boards (RTWpBs) aulhorized to determine the daily minlmum wage rales in the following different regions based on established criteria:

Region2 Region3 Region 4-A

Region Region Region Region Kegr0n Region

National Capital Region (NCR) or t\,,tetro l\.,tanila Cordillera Administrative Region (CAR) , Northern Luzon or ocos Regibn 1

2 !9!!"Jr of registered Barangay (BMBES) with

Micro Business Enterprises

-CagayanValley -Central Luzon

Rizal, Quezon)

Certificates of Authority issued by the Ofiice of the Municipal or Clty Treasurer.

- CALABARZON (Cavite, Laguna, Batangas,

4-B
5 6
7 u

l\,IIMAROPA (Mindoro, Marinduque, Rombton,

Palawan)

- Bicol
- Weslern Visayas

applicable rules and regulations issued by the National Wages and Productivity Commission (NWpC), a compiny/eslablishmenthay be exempted from compliance with a Wage Order for a period not to exceed one (1) year. B. Mlnimum Wage Rates
DAILY MINIMUM WAGE (MWI

A.2 Upon application with and as determined by an RTWpB, based on documenlation and other requirements in accordance with

- Central Visayas - Easlern Visayas

- Western Mindanao or Zamboanga Peninsula

Region 10 Region 11 Region 12

- Norlhern

Minda nao

t{ational Capital
Las Pinas. Makali Malabon, 1, Manita, Mati/rjna, Navolas, Paranaque, Pasig, Ouezon San Juan,

Region 13 - Caraga Aulonomous Region in Muslim Mindanao (ARMM).

- Southern Mindanao or Davao - Central Mindanao or SOCCSKSARGEN (South Cotabato, .North Cotabato, Sultan KudaralSarangani, General Santos)

Increases.

The Regjonal Wage Orders prescribe the daily minimum wage rates per induslry per locality within the region and in some inslances depending on the number of workers and lhe capitalizalion of enterprises. The Wage Orders likewise provide the basis and procedure for application for exemption from compliance lherefrom. Some Wage orders granl allowances instead of wage
CoveJags

A.

A.1 The wage increases prescribed under Wage Orders apply to employees receiving the daily minimum wage rates or those receiving Up to a cerlain daily wage ceiling, where applicable, regardless of their position, designalion, or stalus, and irrespective of the melhod by which their wages are paid, except lhe following:

all private sector workers and

1. Househelpers, including family drivers and ,,/vorkers in personal service of another whose conditions of work
prescribed in RepublicAcl No. 7655.

C. Basis

the
are

The basis ot the minimum wage rates prescribed by law shall be lhe normal working hours of eighl (8) hours a day.

'
'

" Elleclivily dale is on July t, 2010 (addilionat pZZ 00)

Elfecitivity dare is on May 26, 201i

Effeclivity dale is on 2E August 2008

5 SUMMARY OF CURRENT REGIONAI. OAILY MINIMUM WAGE RATES

Non-Agriculture, Ag,lculture As of Januafy 2012 (ln pesos)

0. Monthly-Paid Emptoyees and Daily-paid Employees

Monthly-paid employees are lhose who are paid everyday of the month, including unworked rest days, special days, and regular holidays. Factor 365 days in a year is used in determining lhe equivalenl monthly salary of monthly-paid employees.

P 389.00

Daily-paid employees are those who are paid on the days lhey actually worked and on unworked regular holiday$. Faclor 313 (6day work per week) 0r 261 (5-day work per weei) may be used in computing the equivalent monthly salary of daily-paid employees.

To compute their equivalent monthly rate, the procedure follows:

90.00

is

as

- I99

A00licable Daily Rate (ADR) x factor.

v! i/
l

12
245 00

months
to

Estimated Equivatent

Monthty Satary (EEMR)

Ol6/Sepl 22, 2011

i

- 287 228 00-234.00

iv!!g : lxy , Xrd i I! n/

r lll
oi

67tn;.i, ?oi i

Withoul preiudice

existing company policies, practices

WO 17i Nov. 25, 2011

i;a ,u,Ju't ;, rrv ia,,..'.. .{i ;;, 4v r ,r

WO 16/Jan.'1, WO 16/0c1.31,2010 l llNovembe. 11, 2011

and/or agreemenls, lhe above formula are merely suggeslions dnd may be used as guides in delermining the equivalent monlhly mrntmurn wage rates. E. Minlmum Wage of Hourehelpers (RA 7655)

ARMM

i:tSefiemoeii,2oti

?9!S. I
232.00

.?1800
z:r
oo

The minimum compensalion of eight hundred pesos (p800.00) a month is required for househelpers in lhe 6ities of Caloocan, Las
Munlinlupa, Navotas, Paranaque, Pasay, pasig, Ouezon, San Juan, Taguig, Valenzuela, and in the municipality of pateros. Meanwhile, a compensation of six hundred fifty pesos (p650.00) a month is required for househelpers in other charterd cities-cilies other lhan Manila, Pasay, Quezon, and Caloocan-highly urbanized cities, and lirst-class municiDalities.

Pinas, Makali, Malabon, Mandaluyong, Manila,

Marikina,

e/ ProvidsP 22 00 COLA b/ Gr:nred P Pr2 00 coLA

c/

Granled P 5.00

o.8

00 wage incras and inte!.ated rhe

Pl0 COtA uode' W.O l3 inro lhe

./
r/

d/ Gr/nrdd

P l0 00 *a9.Increase Gr..ld addirional P14COLA, lh6P1 undorW.O 15 wittbE inreg.arsd

i.lo

rh brsic w.q on

Oranred P rt 0o wage incr.as6 P r2 w.qe inq..re P 0 wage incr.ase and inleg.ared rhe 7 COLA into lhe basic waOe r/ 6ranl6d PI? 00 ECOIA tor three ronrfis i/ Granred P20 00 wage h sdee t/ Gr.rrd Pl5COLA ro b 0rven ii 2 rrsn.hss: Ft0on Jun 1 E p5 on spt. t. 201t: itrleorated i.lo th blsic p.t th. P3 COIA ondo, W O t4 l/ eranted P 12 wrOe incr6ase mi Inls!'3led lhE F1? GOLA llocnee toi 6 nonths; lo b. inleg.ar6d into th basic weqs rharesfior. n/ G.8.led P15 cot^: P5 6ftectiv J.n 1,20i?.nd P10 efl.ctivs Mat 1,20t2 o/ 6rdnl6d Pl5coLA {P10 upoi Ettecrieily I p5onApf. | 20ll)aidinteg.:redlhsp2tCOLA lrofl prvious WO3 inlo the b.sic pry p/ Granld Pll waOe incre.so and P1 C0lA q/ Graored P10 00 CoLA

g/ Gt.nld h/ G,a.led

On lhe other hand, a compensation of five hundred fifty pesos (P550.00) a month is required for househelpers in other
municipalities. Househ6lpers who are receiving al least one thousand pesos (81,000.00) a month shall be covered by the Social Security System and shall bs entitled to all the beflsfiis Drovided therein.
'Faclors 310 or 258 may be used instad ol 313 or 261, re6Declively,
Ihree (3) national special days are not considered paid.

S.urce: Nalional Wegse ,nd P'odudrivity Commission LJpdated: t0 January 2 012

il

the

Employers shall review

househelpers every three (3) years with the end in view of improving lhe lerms and conditions thereol.
F.

the

employment contracts

ot

lheir

Etfict ol Reduclion of Workdays on

Wages

the.land 0n which the particular business entity,s office, plant and equipmenl are sjluated. are nol more than three mittion if.OOO OOOt shall be exempt from lhe coverage of tfre Ulnimum ,)v;;;;;1 Provided, j" f-fr"ri."." .thar a employees sha sti be ro regular emptoyees such as ""riti.a sociat securiry and 9'y." neaIncare benefits

l:l:llr

otherwise.

wages corresponding to the days laken olf from the workweek, consislenl wilh lhe principle of ,,no work, no pay." This is withoui prejudice to an agreement or company polici which provides

In siluations where lhe employer has to reduce the number of regular working days to prevent serious losses, such as when there rs a substanlial slump in lhe demand for his/her goods or services or ,,!hen lhere is lack of raw materjals, the emplo-yer may deducl tfle

To avail ol the benefits, the BMBE should register with lhe citv or municipality,having jurisdiclion over the same-and musf secu,'e a Lenfltcate ot Aulhority aulhorizing them lo operate as such.

workers and owners shall agree on the acceotable wage rales based on the wage advisories issued bV the RTWpAs.

The BMBE

l. Minimum Wage of Workers paid by Results

All workers paid by results, including homeworkers and those who are paid on piece rale, takay, pakyaw or lask basis, snall receive noi ress than the preScribed minimum wage rates under the Regional Wage 0rders for normal working hours which shall not exceed eioht .{dJ noufs a day, or a proportion lhereof determined lhrough lime and molion studies

G. Penalty and Double Indemnity for Violation of the prescribed Increasss or Adiustmenls in the Wago Rrtes (RA gl88)

Law.

person, corporation, trusl. firm, partnership, association or .Any entity which refuses or fails lo pay any of the prescribed increases or adiuslmenls in the wage rales rnade in accordance with RA 6727, shall be-punished by a fine ol not less Ihan Twenty_live Thousanj Pesos (F25,000.00) nor more than One Hundred ihousand pesos (P100,000.00) or imprisonment of not less lhan lwo (2) y"ur" noi more lhan four (4) years, or both such fine and imprisonment at the discretion of the courtt provided, fhal any person convicted hereof shall not be entitled to the benefits providid for under the probation

'

The wage rates of workers who are paid by resulls mav

of employers and workers organizations rflpar| e ca ed by lhe DOLE SecrFtaty.

represenlalives

or consultafion'wiftr

be
a

in

J,

.Jtrinimum Wage
Wo rke

rs

of

Apprentices, Learners, .and 0isabled

The employer concerned shall be ordered to pay an ,mount equivalenl_lo double lhe !npaid benefits owing to the employees: rtovtoe1, tnal paymenl ot indemnrty shatl not absolve the employer from the criminal liability imposable hereof. violation is committed by a corporation, trust, fjrm. partnership, associalion or any olher entity, Ihe penally of rmrns0nmenl shall be imposed upon the entity's responsible oJficers, including, bul not limited lo, the presidenl, vice-piesident, chief execulive officer, general manager, managing director or
parlner.

Wage of apprentices and learners shall in no case be less lhan seventy-fjve (75%) percenl of the applicable minimum wage raies.

lf lhe

apprenliceship and learnership agreemenls duly approved by the

recnnrcat bducation and Skills Development Authority (TESDA). A qualifisd disabled employee shall be subject to lhe same terms and., condilions_ of employment and the same compensalion, _ pflvrteges, benBfits, fringe benelits or allowances as a qualified able bodied person (Sec, 5 of RA 7277 or the Magna Carta'tor OisaiGJ

Apprenlices and learners are lhose who

are covered

by

H. Barangay Micro Buslness Enterprises (BMBEs)

BMBEs or business Bnterprises engaged in the production, processing or manufacturing of products or commodities includjno agro-processing, tradtng and servrces whose t0lal assets, excludini

Pe rson )

,)
./z

special Iraining, sxperience,

execule, under gneral supervision,

or

knowledge;

or

(c)

special

HoLIDAY PAY
(Artlcl
A. Defin ltlon Holiday pay refers to lhe payment of the regular daily wage for
any unworked regular holiday.
94)

6.

assignments and tasks; and 5.4 Do not devote more than twenty percent (20yo) of their hours worked in a workweek to activities which are not dlreclly and closely related lo lhe performance of lhe work described in paragraphs S.1, S.2, and 5.3 above,

B. Coverage This benefit applles to all employees excepl: 1. Government employees, whether employed by lhe National Government or any o[ its polilical subdivisions, including lhose employed in govern me nt -own ed and/or conlrolled corporations with original charlers or crealed under special laws; 2. Those of retail and service establishments regularly employing less than ten (10) workers; 3. Househelpers and persons in the personal service of another;

unsupervjsed by the employer, including those who are engaged on lask or contract basis, pureli commission basis or lhose who are paid a tixed amount for performing work irrespective of lhe lime consumed in lhe perlormance lhereol. C. Regular llolldays

performance

Field personnel and other employees whose time

is

and

lne.mrnrmum wage rate (daily basic wage and

..

Every employee covered by the Holiday pay Rule is enti ed to

1007o

wage rale even jf he/she did not report for work, Frovided he/she is

lhat lhe employee is entifled lo at leasl

C0LA). This means of his/her minimum

presenl

or is on leave of
pf

immediately

eceding the holiday,

absence with pay on the work day

4. Managerial employees,
conditions:

if

they meet all

of the

following

Work performed on ihat day merits wage rale of the employee.

al least twice (200y0)

the

4.1 Theif primary duty is to manage the establishmenl in which they are employed or of a depattment or
subdivision lhereof; 4.2 lhey customarily and regularly direcl lhe work of two or more employees thereir,, 4.3. They have lhe authority to hire or fir8 other employees

lllustrction: Using the NCR minlmum wage rate (daily basic wage and COLA) 0l F404.00 + P22.00 per day for the non-agriculluial seclor, effective May 26,2011 under Wage Order No. NCR_16.
For work wilhin eight (B) hours;

of lower rank; or their suggestions

and

recommendations as lo hiring, firing, and promotion, or any other change of status of olher employees are given particular weight. 5. Officers or members 0f a managerial slaff, if lhey perform ihe followlng duties and responsibilities; 5.1 Primarily perform work directly related lo management policies of their employeri

Plus 100% of the minimum wage rate of 100% or a tolal of

2OOo/"

Ssctor/lndustry
Non-agriculture

Rata
P426.00 P367.00

Amo$nt
P426 x200% = P852.00 Not covered or exempted

Relail/Service Eslablishmeni employing less than 10 workers

5.2 Cuslomarily and regularly exercise digcrelion

independenl judgment;

and

5.3 (a) Regularty and directly assist a proprietor

managerial employee

the establishment or subdivision thereof in which he or she

in lhe
or

managemenl

of

ot

employee, work perlormed on said day merits at leasl an additional 30% ol lhe employee's regutar holiday tate ot ZOO% or a total of at leasl 260% (Please see 3. Premlum pav).

Where lhe holiday falls on the scheduled rest day

of

the

is employed, or (b) execute, under general supervision,

rvork al0ng specialized

technical lines requiring

10

When a regular holiday falts on a Sunday, the following Monday shall not be a holiday, unless a proclamation is issued declaring it a spscial day,

Unless otherwise modified by law, order, or proclamation, the following are lhe (welve (12) regular holidays in a year under
Executive Order No. 292, as amended by Republic Act 9849:
New Year's Maundy Thursday Good Araw ng Kagitingan

and Zamboanga del Sur and in the cities of Cotabato, igan, Marawi, Pagadian, and Zamboanga, and in such other Muslim prov,nces and c,ties as may be crealed by law. Upon proclamation by the President of the Philippines, Muslim holidays may also be officially observed in other provinces and cities. I
lhe President of the Philippines in accordance with th8 Muslim Lunar
Presidenlial Proclamation No. 1198 (26 October 1973) provides:
The dates of Muslim hoiidays shall be determined by the Office of

Movabl Oate Movable Dale Monday nsarost April Labor Day Monday nearest May 1 Independence Day Monday nearest June 12 Nalional Heroes' 0ay Last Monday of August Eidl Filr Movable Date Eidl Adha Movable Date Bonifacio Day Monday nearest November 30 Chrislmas Day December 25 Rizal Day Monday nearest December 30

Day Ftiday

January

Calendar (Hilra).

"All private corporations, offices, agencies and entilies 0r establishments operating within the provinces and cities enumerated herein shall observe the legal holidayb as proclaimed, provided, however, that all Muslim employees working outside of the Muslim provinces and cities shail be excused ffom work during the observance of the Muslim holidays as recognized by la,,v without diminu on or loss of wages during the said period xxx.'
Considering that all private corporations, offics, agencies, and entilies or eslablishments operaling within lhe designated. Mustim provinces and ciliss are required to observe Muslim holidays, both Muslims and Christians working within the Muslim areas may nol

. When Arary n9 Kagitingan falls on the same day as Maundy Thursday or Good Friday, a covered employee is enti ed t0 at least lwo hundred percent (2000/o) of his/her basic wage even if said day is unv{orkod, Where the employee is required to work on thal dayl helshe is ontillsd to an addilional 100ok ot tha basic waoe,
D. Musllm Holldays Presidential 0ecree No. 1083 (Code of Muslim personal Laws of
Muslim

report for work on the days designated by law as Muslim holidays.

E. Absencog

the Philippines), as amended, recognizas lhe four (4)

holidays, namely:

1. All covered employees shall be enti|ed to holiday pay when they are on leave of absence wilh pay on the workday

lunar month ol Muharrum,

1.'Anun Jadid (New Year), which fa s on the first dav ot lhe 2.

on leave of absence withoul pay on the day )mme'ialely precBdirg a rogular holiday may not be paid the required
holiday pay if they do not w0rk on such regular holiday.
Employerc shalt grant the same percefltage

immediately preceding the regular holiday. Employsss who ar

2. Maulid-un-Nabi (Eirthday of (he prophet Muhammad), which falls on the lwelfth day of the third lunar month ot Rabi-u!-Awwali 3. Lailatul lsre Wal Mil6j (Noclurnal Journey and Ascension of lhe Prophet Muhammad), which falls on lhe lwenty-sevenlh day
ol the seventh Iunar month of Ralab; Thes6 official holidays shall be observed in the provinces of .Basilan, Lanao del Norle. Lanao del Sur. Maguindanao, North Cotabato, Sultan KUdarat, Sulu, Tawi-Tawi, Zamboanga del Norte

as lhe benefit granted by competent authority in the form of

of the holiday pay

mphyee's c0mpensation or social securily payment, whichever is higher, if the employees are not reporting for
work while on such leave benefils.

3. Where the day immedialely preceding lhe holiday is a nonabsence on that day, in which case he/she shall be enti ed to

work day in the establishment or lhe scheduled rest daV of the employee, he/she shall not be deemed to be on leave of

-t
13

lhe holiday pay

F. Successive
Reg ula

jf

preceding lhe nonwork day or rest day.

he/she worked on lhe day immediatelv

J
Pnrrrltuu pny
(Ar ctss
A. Defln ltion Premium pay refers
performod wilhin eight (8) hours on nonwork days, such as rst days and special days. B. Coverage This benefil applies to all employes excepl;
91.93).

r Holidays

Where there are two (2) successive regular holidays, like Maundy Thursday and Good Friday, an employee may not be paid for bolh holidays i{ he/she absents himself/herself from work on the dav irnmediately preceding the first holiday, untess he/she works on the firsl holiday, i11 which case heishe is enlilled lo his/her holiday pay on the second holiday.
G. Tomporary

to the additional

compensalion

for

work

or Psriodic Shutdown/Cessation of ltork

temporary

In cases of

when lhe repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within lhB period shall be compensated in accordance witb the RulBs lmptementing lhe Labor
Code, as amendd.

cessalion of work of an establishment, a6 when a yearly inveniory oi

or

periodic shutdown and lemDorarv

H. Hollday Pay of Certain Emptoyees 1. Where lhe covered employee is paid on piece-rale basis, his/ her holiday pay shall not be tess than his/her average daily earnings for lhe lasl seven (7) actual work days preceding lh regular holiday; provided, however, lhat in no case shall the
,,vage rate.

1. Government employees, whether employed by the National covernment or any of ils polilical subdivisions, including lh0se employed in gove rn men t-own ed and/or conlrolled corporatjons with ori0inal charters or created under special

2.

laws:
d

Managerial emptoyees,
con

ition s:

if lhy meet a of the fo owing

or of a
department or

2.1 Their primary duly is lo manags the stablishment in

holiday pay be less than the applicable stalutory minimum

pay

which lhey are employed

subdivision thereof; 2.2 They customarily and regularly direct the work of two

or more employees therein;

2. Seasonal workers may not be paid the required holiday

during off-season when they are not at work.

3. Workers who do not have regular u/orking days, such

stevedores, shall be entilled to this benefit,

as

2.3 Tiey have the authority to hire or fire other employees ol lower rankt or their suggestions and recommendallons as lo hiring, firing, and promolion, or any other change of status of olher employess are
grven particular weight.

3. officers or members of a managerial staff, if lhey perform the

following dulies and responsibilities: 3.1 Primarity perform v/ork direc y related to managemenl policies of lheir 6mployer;

3.2 Customarily and regularly exercise

3.3 (a) Regularly and direc

managerial employee

independent judgment;

discretion and

eslablishment or subdivision thsreof in which he or she is enployed; or {b) execute, under general supervisjon, work along speciallzed or technical lines requirino

y assist a proptietor o, in the manaaemenl . of lhe

or
knowledge;

special training, experience,

or

(c)

.
assignmenls and tasks; and 3.4 Do not devote more than twenly percent {20%) of their hours worked in a workweek to activities which are not direclly and closely related to the performance ol lhe , work described in paragraphs 3.1,3.2, and 3.3 above. 4. Househelpers and persons in lhe personal service of anolher: 5. Workers who are paid by resulls, including those wh0 are paid on piece rate, lakay, pakyaw, or task basis, and other noniime work, if their oulput rates are in accordance with the standards prescribed in lhe regulations, or where such rates hav been fixed by lhe Secrelaty ot Labot and Employmenl; 6. Field personnel, if they regularly perform their duties awav lrom the principal or branch office or place of business of th; employer and whose actual hours of work in the lield cannot be delermined wilh reasonable certaintv.

15

execute, under general supervision,

special

(50o/o)
(1 50
o/o

of hisiher basic wago or a total of one hundred filty percent

).

2. Special Work Days

employee is entitled only to his/her dajly wage tale. No premium pay is required since work prformed on said day is considered work on an ordinary workday. D. Premium Pay Rates

For work performed on a deilared Special Work Dal,

an

The COLA shall nol be included in the computation of premium pay. The minimum statutory premium pay rates are as follows:

C. Special Days
1, Special Days

1. For work perlormed on resl days or on special days: Pfu6 30% of the dai/y basic ftte of 100o/o or a totai of
Seclor/lndustry
Non-agriculluro Relail/Service Establishment

130%.

Rate
04.00 P 367.00
P4

Amount

Unfess olherwise modified by iaw, order, or proclamalion, ihe following are llre three (3) special days in a year under Executive Order No. 292, as amended by Repubtic Aci 9849 that shall be observed in lhe Philippines:

P404x130%=P525.20 P367x130%=P471.10

2. For work performed 0n a resl day which is also a special dav: Plus 50% of the daily basic fale ol 100% or a total of 150%.
ndustry
Non-agriculture
Ra
P4

Day All Saints Day

Ninoy Aquino

Last Day of lhe

Year

Monday nearest August 21 NovemDer l December 31

te 04.00

Relail/Se.vice Establishmenl

P36 7.0 0

Amounl P404x150%=P606.00 P367x150%=P550.50

The "no work, no pay" principle applies during special days and on such olher special days as may be proctaimed by the president or bv Conoress.
Wort ars *no are not required or permi ed to work on sDecial days are nol enlit,ed lo any compensalion This. holveve., is wllhoul plejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and olher benefils for days declared as specjal days even if unworked.

3. F0r work performed on a regular holiday which is also the employee's rssl day (not appllcabfe to employees who dre
not covered by the holiday-pay rul). Plus 30% of the regular holiday rate of 200% based on his/her daily basic wage rate or a lolal of A60%. Seclor/lndustry
Non-agricullure Relail/Service Establishment employiog less lhan 10 workers Rate P404.00
P367.0 0

Amount
P404 x 260% = Pl,050.40 Not covered by holiday pay rule

employee works on a specral day

On the other hand, work performed on special days merits . addilional compensalion of at least thirly percent (30%) 0f lhe basic pay or a total of one hundred thirty percent (.130%). Where the
be entitled to an addili0nal compensalion of at leasi fiftv percent

fa ing on his rest day, he/she shall

16

17

A . ?

3. For work in excess of eight {8) hours perflrmed on

hollday: Plus 30% of the hourly rate on said days.
Ralo
P404.00 P367.00
200% x ,|30l( OT nork
Day

rcgutar

,
A. Datin ltlon
B. Coverago

OvERrrur
(Artlclo
87)

Soctolllndustry

Amounl
P404/8

PRy

Non-sgricullure R6lail/Servlcs Eslablishment employin0 l6st lhan 10 worfters

200%

130% = P50.50 x

numbaa

of hourE

Nol coyered by lhe

rllo

on holiday

OvBrlime pay refers

performed beyond eight (8) hours a day.

to the additional

compensalion

for

work

4. For work in excess of eight (8) hours performed on a regular holiday vyhlch falls on a schoduled rest dav: plus 307o of the
hourly rate on said days.

S6clo../lndt,stry
Noo-agricullure

Rala
P104.00
P367.00

Same as those covered under 3, premlum pay.

C. Overtimo Pay Rates

pey.

Ol work
Rstail/Service Esleblishmenl
employinq less than 10 workers
Dav

P404/8 x 260% r 130%: P!0.50 x 260% r ,|30* x numb6. ol hour. Nol cov6fed by th

Amounl

r!lg on hollday

overtime work is performed, as follo$/s:

The COLA shall not be included in the computation of overtime ..The mi m:lm ovettime pay rates vary accoding lo lhe day th

D. Stlpuleted Ovortime Rates Generally, the premium pay for work performed on resl days, special days, or regular holidays is included as paft of the regular rate of lhe employee in the computation ol overtime pay for overtime '.vork rndsred on said days, especially if the employer pays only the minimum overtim rales prsscribed by law.

1. For work in excess of eight (8) hours performed on ordinary

r,vorking

days: Plus 25% of the hourly

Rate
P404.00 P367.00

rate,

Soctorllndustrv
Non-agriculturs

Amounl
P104/8 x 12570 = P50.50 r 125* x numbof ot hou.! OT worl P367/8 x 125%. P15.88 r 125% x numbar ol hour3 OT rvoik

Rstail/Sorvic Establishment

The employees and employer, however, may stipulale in their collective agrement lhe payment for overtime work at rales higher lhan lhose Drovided bv law.

2. For work

in

excess

schdulsd rest day or a special day; Plus 30% of the hourly ra(e on said days.

of

eight

(8) hours

performed

on

Soclorllnduslry
Non-6g.icullure Rlail/Srvlce Estsb/ishment

Ralo
P104.00
130%

Amount
P401i8 x 130% x 130% = P!0.50 ,|30%

P367.00

r 130% x 130% = pl5,Eg 130% x 130% x numb.r of hour. OT wo.k

P367i8

OI worl

x nurnbor of hou13

18

19

work along specialized or technical lines requiring special training, experience, or knowledge; or (cl execute, under gensral supervision, special
assignments and lasks; and
861

Ntcur SHtrr DrrrtRrrurrRl

(Articte
A. Defin ition

Nighl

compensatron ol len perceot (100/.) of an employee.s regular wEge for each hour of work performed beiween t 0 p.m. and 6
a.-m.

.Shift Differentiat (NSO) reters to the

additional

5.4 Do not devole more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely relaled lo the performance ol the *ork described in paragraphs S.1, S.2, and 5.3 abovei ,. .. pers0nnet ^ rrer0 o. and lhose whose time and perf0rmance are unsuporvised by the emplo yer.
C. Computation of Night Shift

Dilfsren al

B. Coverage This benefit applies to all employees except:

The COLA shall not be inctuded in the computation of night shift pay. The lable below may be used to guide computations:
Work

or:

Par eouals
100% 130%

4. Managerial employees,
co nd ition s:

mproyed In gov ern me nl_owned and/or conlrolled corpoiations wilh original charlers or created under special lawsi 2. Those of relail and service establishments regrl"riy emptoying not more than Five (5) workers; 3. Househelprs and persons in the personal service of another;

1. covernmenl employees, whether employed by lhe Na onal Governmenl or any of its p0lilical subdivi;ion, i".l"Ai"" if,"..

lf they meet uff of fn.

day day day Holjday uouote no day

Ordinary Sonday or rsl Special Special day lailing on rest Regular Regular Holiday talltng on resl Double holiday falting on rest

day
day

j30% or 1.3 t50% or t.5

200o/o

ot 1 of 1.3

ot

2 6

fotfo*ing

day

260% ot Z 300% or 3

390yo or 3.g

subdrvision thereol; 4.2 They cuslomarily and regularly direct lhe work of two or more employees lherein; 4.3 They have the authority to hire or fire olher emplovees

4.1 Their primary duty is lo manage lhe establishment in *1i..|| tl'uy are emptoyed oi of a departmenl or

recommendations as to hiring, firing, and promolion, or any other. change of status of oiher employees are gtven parlicular weiohl. 5. Officers or members of a rianagerial staff, if they perform the following duties and responsibilittes: 5.1. Primarily perform work direc y related to management policies of lheir employer;

ol lower rank; or their suggestions

and

ordinary day, nighl shift 1 x 1.1 = 1.1 or il00/o Resl day, night shift 1 3 x 1.j = t.a3 or ta3y" Special day, night shift 1 .3 x 1.1 = t .qe or Uiii Special day, rest day. night shrft 1 5 x 1 1 : f.Ot o, idiil Hegurar Hoflday, night shilt 2 x 1.1 = 2.2 or 220% Regular Holiday, rest day, night shitt2.6 x | 1 2.86 or 286% = uoubre hotiday. night shift 3 r 1.1 = 3.3 or 330% Double holiday, rest day,night shift 3.9 x 1.1 t.2g or 42iii =

5.2 Customarily and regularly exercise djscrelion

Inoependent ludgment,

and

{oT) 1 x 1.25 = .25 ot 125% 1 3 x 1 3 = t.6g or 169% Special day, overtime i 3 x 1.3 = f .OS or tiii" Special day, rest day, overlime 1.S x 1.3 1.9b or l93% = Regular Holiday, overtime 2 x j.3 = 2.6 ot 260% Regular. Holiday, rest day. overtime 2 6 x 1.3: 3.3g or 33Sd uouble holrday, overlim 3r13 =3.9 or3g0% Double holiday, rest day, overtime 3.9 x 1.3 5.07 o, t0ii; =
ordinary day, overlime t{esl dey. over{ime
1

5.3 (a) Regularly and direc y assisl a proprietor

managerial employee

establishment or subdivision thereof in which he or she ls employed; or (b) execule, under general supervision.

in the management of

0r the

Ordinary day, nighl shifl, overtime 1 x 1.1 x 1 .2S 1 .375 ot 131-S% = Residay, night shifl, 1.3 x 1.j x r.l = r.OSS or fSi.gil Special day, night shifl, overrjme 1.3 x 1.1 x r.3 1.8Si = speciarday,restday,njghrshjtt,oT 1.5 x 1 I x

ove(ime

;, t8;.d 13=liia ;,ii;.;E"

20

21

OT 2 x 1.1 x 1.3 = 2.86 or tB6% OT 2.6 x 1.1 x 1.3 = 3.718 or 371.8% Double holaday, night shift, OT 3x1.1 x1.3 = 4.29 ot 129% Double holiday, restday, nightshift, OT 39x 11x 1.3 = 5.577 0r557.7%
Rgular Holiday, night shift,
Reg. Holiday, resl day, nightshifr,

6
Srnvrcr CHnncrs
(Article 96)

Thb minimum night shift pay rates vary according to the day the nighl shift work is psrformed. Sector/lndu strv
Non-agricullure Retail/S6rvice Establishmefl I smploying less lhao 10 workers

Rate
P404.00 P367 00

P404/8

Amount r r110% : P50.50 x.t.t0%

A. Sharing
x

numbar of houts work

P367/8 x r11oyo = P45.88

t 10%

numb.r ol hours work

on

'This value may be sub6tltuted bared on the above rstes dependlng th. day th nlght 3hlft tvork i! psrlorrnsd.

(15%) of the charges may be retainod by management to answer for losses and breakages and for disl(ibulion to manageial employees, at the discretion of the management in thB latter case. Service charges are collected by most holels and some reslauranls, nighlclubs, cocktail lounges, among olhers.

rank-and"file employees of employers collecting service lo an equal share in the eighty-five percent (857o) of lhe total of such charges. The remaining fifteen percent
charges are entitled

All

B. Payments

The shares of the employees in lho service charges shall be distributed to lhem once every lwo (2) weeks or twice a monlh at
intervals nol exceeding sixteen (16) days.

inlegrated into their basic wages.

Where the company stopped collecling servjce charges, lhe average share previousfy enioysd by lhe employees lor the past twelve (12) months immedialely preceding such stoppage shall be

C. Tlps

restauranl or similar eslablishmnt does not. collect a praclice or policy of monitoring and pooling tips given voluntarily by its customers to its employees, the pooled tips should be monitored, accounted, and dislribut;d in the same nanner as the service charoes. Where

service charges but has

22

7
SrRvrcr lrucrrutrvr Lenvt
(Article 95)
A. Cov6rag

3.4 Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely rlated lo the performance of the
work described in paragraphs 3.1, 3.2, and 3.3 above;

4. Field personnel and those whose time and performance

unsupervised by lhe employet' 5. Those already snjoying this benefit;

is

6. Those enjoying vacation leave with pay of at least fiva (5)

days; and

.wilh pay.
'

Every employee who has rendered al leasl one (1) year of service is enlitled to Service lrtcenlive Leave (SlL) ol five (5) days
This benefit applies to all employess except:

7. Those employed in establishmenls regularly employing less

than ten (10) smployees.

B. Meaning of "o|le year of seryice" The phrase'one year of service'of the employee means service twelve (12) months, whether continuous or broken, reckoried from the date the employee slarled working. The period includes aulhorized absences, unworked weekly resl days, and paid regular holidays. lf through individual or collective agreement, c0mpany practice or policy, the period of the working days is less than twelve (12) months, said period shall be considered as one year for the purpose of determining the entitlemenl to the sorvice Incenlive
r,^,ithin leav e.

gmployed in governmenl-owned and/or conlrolled corpo-ralions with original chartsrs or crea{ed under spcial laws: 2. H0usehelpers and persons in lhe personal servlce 0f another:

1. Governmenl employees, whelhsr mployed by lhe Nalional covernment or any of ils political subdivisions, includino those

3. Managerial employees,
cond ilion s:

if they meet all of the following

3.1 Their primary duty is lo manage lhe esiablishment in which they are employed or 0f a department or
gubdivision thereof:

C. Usage/Conversion to Cash

2.? They customarily and regularly djrecl lhe work of two or more employees lherein; 2.3 They have the authority to hire or fire othr employees

of lo',ver rank; or their suggeslions

and are

recommendations as to hiring, firing, and promotion, or grven parlicular weighl. 3. Officefs or members of a managerial staft, following duties and responsibilities:

The service incentive leave may be used for sick and vacation leave purposes. The unused service incentive leave is commutable to its money equivalent at the end of lhe year. In computing, the basis shall be Ihe salary rate at the date of conve16ion. The use and conversion of lhis benefit may be on
ba sis.
d

any other change of status of olher employees

a pto tala
and

if lhey perform the

3.1 Primarily perform work directly related lo managemenl

lltuskalion: An employee was hired on 1 January 2000

3.2 Customarily and regularly exercise discretion

independent judgmenti

policies of lheir smployer;

and

resigned on l March 2001. Assuming that he/she has not used oI commuted any ol his/her accrued SlL, he/she is entitled to the conversion of hisiher accrued SlL, upon his/het resignation, as
follows:

3.3 (a) Rgularly and direclly assist a proprietor or managerial employee in the management of lhe
estabfishment o( subdivision lhereof in which he or she is employed; or (b) execule, under general supsrvision,

execule, under general supervision,

assignments and tasks; and

',vork along specialized or technical lines requiring special training, experience, or knowledge; or (c)
special

SIL earned as of 31 December 2000 Proportionale $lL for January and February 2001 (2/12) x 5 days Total accrued SIL as of 1 March 2001

5 days

0.833 dav 5.833 days

dBased

on ths opinion of DOLE Legal Servic.

24

')^

9
8 MRrrRrurry Lrnvg
{RA 1161, a$ amended by RA OZ82}
I

PRrrRrurry Lrave
(RA 8187)

A. Coverage Leave is granted lo all married male employees in the of their employment stitus (e.g., probEtionary, reguiar, contraclual, project basis). The purpose of this benefit is to allow lhe husband to lend support l0 his wife durino her period oI recovery and/or in nursing her newborn child.

A. Coverage
unmarried.

,Paternity private seclor, regardless

This benefil appljes to all female employees, whether married or

B. Entitlement

Governmenl employees are also entiued . benefit. They shsll be governed B. Th Paternity Leave Bonefit

to the paternity leave

by the Civil Service rules.

to one hundred percent (100%) of the aveiage daity salary creOit oi

tne emptoyee as defined under the raw. leave benefit, a fenale emDlovee be an SSS member employed at the tjme of her deliverv oi mrscaffragei she must have given the required notification to the

tvery pregnant employee in the private seclor, whether maffied or unmar|ied, is enti ed to maternily leave beneFit of sixfv (6Ot divs in case ol normal delivery or miscarriage, o, ,eu"nlvleioti ti'gl oays, rn case of Caesarian seclion delivery, with benefiti eq-uluuiunf

purpose, cohabiting' means the obligation of lhe husband and wife lo live togelher.

leave benefit shall apply to lhe first four (4) deliveries . Paternity ol lhe employee s lawful wife with whom he is cohabiting. For !his

. To be entitled lo the maternity should

lf lhe spouses are not physically living togelher because of the workstation or occupation, lhe male employee is still enti ed to the paternity leave benefit.
fhe palornily ieave shall be for seven (i) calendar days, wilh fuil pay,^consisting of basjc sslary and mandatory allowancis fixed by the Regional Wage Board, if any, provided that nis p"y sha not b; less lhan the mandatd minimum wage.
Usage of the palernity leave shall be after the deliverv. witiroul prejudice to-an Bmployer's poticy of allowing the employel to avail ol the benelit before or during the delivery, provided that the lotal number of days shall not be more than seven {7) calendar days for each covered delivery, C. Condltions

D5s Inrough ner employet; and her employer must have paid at leasl lhree monthly conlributions to the SSS *lthin the t*elve'-monin period immediately before the dale of the contingency 1i.e., 'childbirth
or miscarriage).
The {aternity^leave benefit, like other benefils granted by the Social Security.System (SSS). is granted to employees in lieu of may not be inctuded in compuring the employee.s il_9ll .lnrr, rhrs rnrrreenlh-month pay lor lhe calendar vear

foj Entitloment

, A,married male employee shall be enti ed to paternity leave bene|itpfoVidedtha|hehasmetthefol|owingcondilions:

'1. He is an employee at the time of lhe delivery of his child:

26

27

2. He is cohabiling wilh his spouse at the time that she gives

birlh or suffers a miscarriage

3. He has applied for paternity leave with hls employer v,/ithin a feasonable period of time from the expected date of delivery by his pfegnant spouse, or within such perlod as may be provlded by company rules and regulatlons, or by colleclive
bargaining agreement; and

l0
PRnrrurRt LEAVE FoR SoLo PRRrrurs
(RA 8er2)

4. His wife has given birth or suffered a miscarriage.

D. Appllcallon for Palernity Leeve

A. Coverag6 Parental leave for solo parents is granled to any solo parent or individual who is left alone with lhe responsibility of parnthood due
to:

for palernily leave shall not be rquired. E. Nonconversion lo Cash

The married male employee shall apply for paternity leave with his employer within a reasonable period of time from the expected dale of delivery by his pregnant spouse, or within such period as may be provided by company rules and regulations, or by collective bargaining agreement. In case of a miscarriage, prior application

1. Giving birth as a resull of rape or, as used by the taw, other

crirnes against chastityi

be converlible to cash and shall not be cumulative. F. Credlting

In the evenl thal the palernity leave is nol availed ol. it shall not

ol Existing Ecns{lts
ve

1.

lf

the exisling palernity leave benefil under the collec

grealer benefit shall prevail.

bargaining. agreement, con(ract, or Company policy is grBater than seven (7) calendar days as provided for in RA 8197, lhe

a criminal conviclion for al least one (1) y6ar; 4. Physical and/or menlal incapacily of spouse as certified by a public medical practilioner; 5. Legal separation or de facto separalion from spouss for at least one (1) year: Provided Ihat he/she is eirtrusted with the custody of the children; 6. Declaralion of nullity or 8nnulmenl of marriage as decresd by a court or by a church: Provided, that he/she is 6ntrusted with lhe cuslody ol lhe children; 7. Abandonment of spouse for at least one (1) year; 8, Unmarried father/mothsr v,,ho has preforred to keep and. rear his/her child/childfen, instead of having olhers cars for them 0r grve lhem up to a welfare inslilution;
9. Any olher person who solely provides parental care and support to a child or cliildren: Provided. that he/she ia dutv licensed as a fosler parnt by th Department ot Socijt Wellare and Developmnt {DSWD) or duty appointed tegal
guardian by the courl: nd

2. Death of spous6; 3. Spouse is delained or is serving senlence for

2. lf the exisling paternity teav benefit is less than thal provided in RA 8187, the employer shall adlust lhe existing benelil to
cover the difference.

Where a company policy, contracl, or collective bargaining agleemenl provides for an emergency of contingency leave paternity l6ave.

wilhout specific provisions on palernity leave, the employer shall granl to the employee seven (7) calendar days of

10. Any family member who assumes the respbnsibility of hoad of family as a rosull ot thB death, abandonmenl, disappearance, or prolonged absence of lhe parents or solo parenl: Provided, that such aband0nment, disappearance, or prolonged absence lssts for at least one (1) year.

B. Definltlon of

Torm8

parent

'Parental leave'shall msan leav6 benefits granted

to

nable him/her

responsibilities where physical prssence is required.

to

perform parnlal duties

lo a

solo
and

28

29

'Child'refers lo a person living with and dependent on lhe solo parent lor support. He/she is unmarried, unemployed, and below eighteen (18) years ol age, or even eighteen (19) years old and above but is incapable of sel(-support because he/she is mentally_
and/or physically-challenged.

G. Termination of the Eenetit

A change in Ihe slatus o. circumslance of the parent claiming lhe benefit under the la\/, such that he/she is no longer left alone wilh lhe responsibility of parenthood, shall terminate his/her eligibility for lhis benefit.

G. The Parnlal Lseve Beneflt

The parenlal leave, in addilion to leave privileges under existing lai,vs, shall be lor seven (7) work days every year, with full pay: c0nsisting of basic salary and mandatory allowances fixed by thi Regional Wage Board, if any, provided that hisiher pay shall not be less than lhe mandated minirnum waoe.

H. Protection Against Work Discrimlnation

No employer shall discriminate against any s0lo parenl employe

$]ilh respect 10 terms and conditions of employmenl on account of

his/her being a solo parent.

D. Condillons tor Entittemnt

A qolo parent employe shall be entitled to the parenlal leave. provided that:

1. He/she has rendered at least one (i) year of service, whelher

conlinuous or brokenl

2. He/she has notified his/her employer that he/she will avail

himself/herself of it, within a reasonabte period of Iime; and

3. He/she has presented

office of lhe city or municipality where he/she resides.

to his/her employer a Solo parent ldentification Card, which may bs obtained from the DSWD
Cash

E. Ilonconversion lo

In lhe evenl that the parental leave it not availed 01, it shall not be convertible lo cash, unless specifically agreed on previouslV.

F. Credillng of Existing Leavs

a collective

lf lhere is an existing or similar benefit under a company policy or

su_ch. lJ the same is greater than the seven (7) days provided for in RA 8972, the greater benefit shall prevart. .Emergency.. polrcy or a colleclive bargaining agreemenl shall not be credited compliance wilh the parental leave provided for under RA g922.

bargaining agreemenl, the same shall be ciedited'as

or

contingency Ieave provided under

company

ai

30
31

11

D. Thc Benefit
company policies, and/or collective bargaining agreements, lhe qu-alified victim-employee $hall be enti ed lo a-teaie of up to .ten (10) days with full pay, consistrflg of basic salary and mandalory allowances lixed by the Regional Wage Board. if any. specitied
courl.

In addilion to other paid leaves under existing labor

laws,

Lmvr ron Vrcrrvs or Vrolrruce

AGATNST

Wourru

Rllo THtrn CHrloReru

(RA 9262)

The said leave shall be exlended whe'n the need arises, as ;n Ihe proleclion order jssued by the barangay or lhe
Usage of tho Benefit

E.

A. Dsfinilion
(rhe."Anri,viorun"" il#t;,,1,"J""^'li ?262, ur 4uu4 ,, rerers l0 any acl or a serjes oi acls commjlled by anv person against a woman who is his wife, former wiFe, or'rg"inJ i
"Violence against women and

The usage of the ten-day leave shall be at the oDtion of the woman employee. ln the event that the leave beneltt is nol availed of, it shall not be convertible into cash and shall not be cumulative
I

l:t

Ae,;l;i';il'#ff

lit*'
_.

ljii"x.il child ":L whther legitimate or iltegitimate, wittrin or wiinoutitre iamiiv abode, which wi resutt in or ii lt<ety i" ,.rrffi. p'n1,J..i,i"rr.i psychological harm or sufferino

;i JT,?. f,'" JT.i"lX'

o

i:l ; ::y:#'3l ,l:l

l:: :' #.,*i :?

;:' it ol ililiii'

""1'

8.. Coverage and purpose

"T'T";''
in

Pjiu^1t...gglo, women emptoyees who are victims as defined

;flilXili:li":*Lli';tri:.il:
The leave benefil shall covef . has lo atlend

o"'o reave benerit under such terms

the days that lhe woman employee

lo medjca, and logal aoncerns.

C.

Req

lrement for Entillement to the leave benefjl, lhe onJy requjremenl js for lhe
the

present ro her emptoyer a cerrificalion trom I'_"]lTl:rp|".y"." to

may be, that an action relative lo the matter pending. is

. Tr be entitled

ii'i:i;:r ;:;::#;"1''1;3:3,,3t;?ifl

:,1

.il

"?t:tfl::.

i;:"."j,,1

32

33

T2
SPECIAL LEAVE FOR WOMEN
(RA e7r 0l

E.

Usage

surgory.

special leave shatt be granted to the qualilied employee alter. . The she has underg0ne surgery without p(eiudice to an employei allowing an employee lo receive her pay before or during ihe

A. Covsrrg.
Any female employee regardless ol age and civil status shall be enlitlsd to a special leave bdnefit under such te(ms and conditions provided hsrein.

F.

Nonconverslon to Cesh
The special leave shall be non-cumulative and non-convertible to

agreement (CBA).

cash unls6s olherwise provided by

collective bargaining

8.

Oeflnillon of Term
'Gynacological disorders, refers

Include nyslerclomy, oyarieclomy and masleclomv.

C.

curellage and lhose involving female reproductive organs such ai rne vagtna, cervtx, uterus, fallopian Iubes, ovaries, breast, adnexa and pelvic lloor, as cerltfied by a comptent physician. lt shall also

surgical procdures such as, but not limiled

lo disordors thal would

to

require
and

ditalation

Condltloni (or Enlitlernont

'

1. She has rendored at least six (6) morths conlinuous aggregale employflenl service for the last lwelve 112)
months prior lo surgery;

2. She has liled an application lor special loave with her employer vrithin a reasonable period of time lrom the expecld date of surgery or within such period as may be proyided by company rules and regulations or colleitive
bargaining agfeement; and

3. She has undergone surgery due to gynecol0gical disorders

as certified by a compelent physician.

D. The Spocial Leaye Banetit

Ihe ernploye is enlilled to special lave benefit of two (2) monlhs with full pay based on her gross monlhly compensation.
Gross monthly compensalion refers to the monlhly basic pay plus mandetory allowances lixed by the reoional wage boards.

34

35

13

of the

employees, through individual

company practice or policy.

or

colleclive agreement,

TnIRrreltrH-MoNTH
(PD 851)

D. Erempled Employrs

PAY

The following employers are nol covered by pD B5.l:

A. Coverage

an0 trrespeclive of the methods by which their provided they worked for al teast one ""0", {1) monih Orriig year.
The thirteenth-month pay should bi given to not later than Decmber 24 ol every year.
B. oeflnlttor of Rank.and.Fits Emproyees

,''ii'":il|i"#"; ;;;':"1T;i"j: :11,''j";:,l,::*.;',i#"";T,'J;;:.,:

ir"'o"id

1. The government and any of its political subdivisions, including gove rnm e nt-owned and conlrolled corporalions, excepl lhose corporations opetating essentially as private subsidiaries of tne governmenl;

"i.fu;i, itri;;;;y;;

2. Employers who are already paying their employees Ihirteenthmonlh pay or more in a calendar year or its equivalent at the
lime of lhe issuance of PD 8S1;

3. Employers

of

househelpers and persons

service of another in relalion lo such workers; and

in the oersonal

execule management policies and/or to

f-r".* a manageriat ernployee. n,*rgrif :T:|:IT one wno is vested with powers o, prerogatives to "rpr";"" i. lay down and -t,lr",

The Labor Code, as amended, distinguishes

rank-and_file

4. Employers of lhose who are paid on purely commission,

boundary or lask basis, and lhose wh0 are paid a fixed amount for performing specific work, jrrespeclive ol lhe time consumed in lhe performance thereot (excepl lhose workers who are 0aid on ptece-rale basis, in which case lheir employer shall grant them thirte enth- month pay).

transter, srsp"nOi

J,rffi""x";n,"J"n".;:n*nJ;"1:...,i*:tlrtl*ii":;,.r ft-!{!if falling within lhis definition are coniidered rrrt_unJ_fil" Jrfifo},"u.l'
th

Th above dislinction shall be used as guide for the 0uroose ol determining who are rank_and_fite empioyees .rriif.J

irtee nlh -month pay.

i"-ifi"

As used herein, "workers paid on pisce-rate basis" shall refer to lhose who are paid a standard amount fol every piece or unit of w0rk pr0duced lhal is more or less regularly replicated, without regard t0 the time spent in producing the same. The lefm "ils eqoivalenl" as used in ltem D.2 ab0ve shall include Chrislmas bonus, midyear bonus, cash bonuses, and olher

C. Minlmum Amount

. The thirteenth-month pay shall not be less than one_twelfth (ti 12t of lhe lotat basic satary earned by an emproyeein a iar.rl'ji'v|",.''

payments am0unting to not less than one-twelfth (11.12) ol the basic salary but shall nol include cash and stock dividends, cost of llvino

allowance, and

all olher

.. the.thirteenth.month
paro Dy hrs

The "basic salary' of an employee for lhe purpose of computing

employee, as well as nonmonelary benetits.

allowances regularly enjoyed

by

thJ

premium, night shitt allowance {C0LA). De Incruded as parl thirleenth-month pay

rncruce a owances and monetary beneftts which are nol considered or rnregrated.as part ol the regular or basic salary, such as the cash equlValenl Ol UnUsed vacalion and Sick leave credils. overtime

or her employer for services rendered. lt does

pay shall lncluoe arr remuneraltons 0r earninos

n"oi

E. Time of Payment ot Thirteenth.Month pay

ditferentiat and hotiday pay, and cost ol ti;;n; H0r,vever. these salary_related benefits shouli of Ute basic salary rn the computalion ol the if these are lrealed as part of fie fasic sataiv

The lhirleenth'rnonlh pay shall b paid nol laler than December 24 of every year. An employer, however, may give lo his or her employees one-hall (1/2) of the thirteenth-month pay befo(e the opening of the regular school year and lhe remaining half on or before oecember 24 of every year. The trequency of paymenl of lhis monelary benefit may be lhe subi.ct of an agreement between

36

ff

i#::"r|t'and

the recogni'edlcolleclive bargaining agent or the

F. Thlrtoenth.Month pay for Co.tatn Types of Employees

she worked only from January lo Seplember, hib or

she has slarted working during the calendar yar up to the time of his or her resignallon or lerminati0n from the service. Thus, jf he or
her

Employees who are paid on piecework basis are nli ed to Ine thtrleenlh,monlh pay.

p.oportionate thirteenth-monlh pay should be equat to one-twelfth (1112) ol his or her tolal basic salary earned during lhat priod.
H. Non-inclusion in Regular

2. Employaes who ar6 paid a fixed or guaranleed waoe olus commission are als0 enli ed to tne -ttr irfee n fn monitr Ial earnings.during the carendar year (i.e., o,n :l:""L:,1 ,rheir
oorn rnerr ttxed or guaranteed wage and commisiion|.

Wage

commissions, while inctuded in the generic not part of "basic salary/wage" and therefore strouta-not rncruoed In c0mpUtirg the ihirteenth,month pay. Thus:

and phitippine Fuji Xercx Cotporcton ,s Crii"niilno-i' frajano md phitippine Fuji Xercx trptoy"u," t;;;;:';.i. N;. rudDDl uecember '|0, .1993, the Supreme Court ruled that

In lhe consolidated cass of goie Takeda Chemicals. tnc. vs..Dio.nisio de ta Se"aa, G.R. No. S2174 O"."rOu, iO,lS9i.

contributions lo the State lnsurance Fund. Social Securily Syslem, National Health Insurance Program, and private retirement plans.

ovortime and premium payments, fringe benefits,

ol lhe

The mandated lhirtsenlh-month pay need nol be credited as part regular wage of employeos for purposes of detFrmining

as well

as

i;;

";;;. ;;; le

In . .

liied or quaranteed wage ts paten y the "basic salary" for this ij what th employee rgceives for a standard work Deriod.
Commissions
consummatinq sates or olhe, relaled transactions. The; are, as such, addjtionat pay, which this Court has maJi c,ea. do not form part of the ,basic salafy, (rrd Sa-RA 3;;

guaranleed wage plus commission. lhe

remunerative schemes consisling

of a lixed or

are given for extra efiorls errriJ "i"

l1e e3j).

3. Employees wilh multiple emploVers

.Government employes working parllime in a pfivale enrerprise, including private educaaional inslitutions, as weii working in lwo or rnore private tirms, wnettrei 1::rnployees on rult_rrme or parl-iime basis. are en ed to the thirteenlhpay from their privale empt0yers, ,"griJfL.;';f J.nolth their lotal earnings from each of their empioyers.

G. Thirteenth -fil onlh pay

ol Resigned or Ssparaled Employee

the.rime o-r p.ay$enr of rh" rh;i;.;i; rs enuUed,to this monelary benefit in proporlion to lhe lenolh of he or she has worked during the year, reckoned from the;im; tim; h; o;

. An

l::t,lT:_*1:,.

employee who has resignd or wnose servlce8 are Ierminaled

;;;;;i;';;;

38

39

t4
SrpnRarroru pRy
(Artictes 2B3.8itl

m0nth's pay as his/her separalion pay if his/her separation is due to any of lhe causes enumeraled above. B. One.Month Pay per year of Ssrvlce

be lerminated for just cause (i.e., gross and habrtuat r|".f!.i"iOri"l rrau0, or c0mmission of a crime), and other similai causes at onumeraled under Article 282 of lhe Labor Code ,nO, q"nuri u. rnrJ not be.entitled to separarion pay. On the other terminalion is lor authorizd causes, separation pay is Oue.

..99p.r?l]9n pay is given to ernployees in instances covered bv ot lhe Labor Code of the plifippi*.. ii, employe_e's snliUement lo separalion pay depends on ff,Jiur.o" ground tor Ihe lerminalion of his or her services. ", An emplovee mav
Arlicles 2d3 and 284

An employee is entiUed to separation pay equivalent to his/her one"month pay for every year of s6rvice, a fraction of at least six {6) months being considered as one whole year, if his/her separation from service is due to any of the following: 2. Redundancy, as when lhs position oflhe employee has been found to be excessiv or unnecessary in the operation of lhe
enterprise; and

1. fnstallation by enployer of labor-sav,ng devjces;

laiJ.;;;;;- 'i;;

3. lmpossible reinstalement of lhe smployee to his or her former posltion or to a substantially equivalent posi on for tsasons

A. One.Halt (1/21 Month pay per year of Service An employe is enti ed lo rceive a separation pay equjvalent lo one-half (t/2) month pay for every year of service,

.reasl stx (tj) monlhs being considered as one (1) whole vear if nrs/ner separation ffom lhe service is due to any ot tne toitowinj
aulhorized causes:
'1. R-elrenchmont to prevent losses (i.e., reduction effected by management lo prevent losses):

j frj"fr" oi uf

equivalenl position in the establishment to which he or she can be assigned.'

not attribulable to the faull of the employer, as when lhe reinstatement ordered by a competent aulhority cannot be implemented due to closure or cessalion of opera ons of thd e sta blishmen Uem ploye r. or lhe position lo which h6 or she is lo be reinstaled no longer exists and there is no substantiallv

G. Notlce of Terminallon
The employer may lerminate the employmenl of any employee due to lhe above-menlioned aulhorized causes by serving a wriiten

of prsonnel
due

2. Closure or cessation of 0peration of an establishment not

Io

se

ous losses or linancial reverses: and

thefeof.

notico on the employee and the Department ot Labor and Employment lhrough its regional office heving jurisdiction over the place of business al least one (1) month before lhe inlended date

3 rylln lhe employee is suffering from a disease nol curable within a period of six (6) months and nislnei lonfinuel
In no case will an
employee

H. Basls of Separation pay

The compulation of separation pay of an employee shall be based on his/her latest salary rate.

emproyment is prejudicial to his/her heatth or to lhe health of his/her co-employees.

separatr0n pay it the separation is due to lhe above slated'causes. an0 ne/she has served for at least six (6) months. Thus,

gel less than one (1)

monlh

l.

IncluElon ol Rsgular Allowancs in the Computstion

monlhs but tess than

if an employee had been in the service for at least slx f6) a year, heishe is enri eJ t. .*'fii'frji

In the computation of separation pay, it would be error not to integrate the allowance with the basic salary. The salary base properly used in compuling lhe separation pay should Include not just lhe basic salary but also lh6 regular allowances that an
employee has been receiving.e

Tho.Suprem Courl has ruled in cerlain cases rhal soparalion pay Bhall be g,snled lh workers.

rGaco

vs NLRC, et at., G.R No. t04690. February ZJ, 1994. 'Plantsrs'Producls, Inc. vs. NLRC, G.R. No. IBS24, Januatv 20. 1909

40

41

l5
RTTIREMENT PAY
(Article ?87, as amended by RA 2641,
A, Coyefage
1. Employees be retired upon reaching the age of srxly i60, but 0( beyond sixty_fiv {6b) years old [and have served the establishment for st leasl five (S) yearsl.

0ther benefits may be included in the cornputation of

the

reliremenl pay upon agreement of the employer and ihe employee or if provided in the Collective Eargaining Agreement (CBA). C. Rstlremont Bonetits under a Co,lectlve Bargaining Agreement or Applicabls Con(ract

Any employee may relire or be relirsd by hls or her employer upon reaching the fetirment age established in lhe c0llective

years or m0re

sha

2. This benetit applies to all employees except:

bargaining agreement {CBA) or other applicable agreement/contracl and shall receive the retirement benefits granted therein; provided, however, lhal such retirement benefits shall not be less than the retirement pay required under RA 7641, and provided further that if such rlirement benefits under the agreement are lBss, the employer shall pay the diffrence.

r)
2)

ol retail, servicg and agricultural establishments/operations regularly employing-nol more ihan ten {10) employees.
employses

government employees,,

B. Amount of Retirement pay

applicable agreement. the employer's tolal conlribulions and ths accrued iDt6rest thereof should not be less than the lotal retirernent benfits to which the employee would have been enlitled had lhere been n0 such relirement benefits'fund. lf such tolal porlion from the employer is
less, lhe employe{ shall pay lhe deficiancy D. Retifement Beiefits of Workers who are Paid by Results For covered workers who are paid by resulls and do not hsve a

retirement fund pursuant

Where bolh the employer and lhe employee contribute

lo the

to

The minimum retirement pay shall be equivalent lo one-half (1/21 month salary for every year 0f service, a fraction oF at teast sii f6j monlhs b6ing considered as one {1)whole year. purpose 0f computing reliremenl pay,,'one_half month .For Ihe sarary shalt inctude all of the fo owing:

fixed monthly salary rate, the basis for lhe delermination ol the
salary fot fifleen {15) days shall be lheir avefage daily salary (ADS). The ADS is derived by dividing the tolal salary or earnings lor the

2 .
,^,

1. Fifter (15)days salary based on the taiest satary rate;

{'tt12 x 365/12

3. One-lwelfth (!/12) of lhe thirteenth-month

Cash equivalent oi five (5) days of service incenlive leave;

pay.

last twelve months reckoned from the date of retiremenl by the number o{ actual w0rhing days in lhal particular period, provided

.083 x 30.41 = ?.S)

lhat Ihe determination o{ rales of paymenl by resulls are

accordance wilh lhe established regulalions.

in

Thus, "one-hall monlh satary' is equivalenl to 2A.S days (Capitoi wrreress, Inc vs. Honorable Secretary Ma Nieves R. Confesor, G. R. No. 117174, Novenber 13, 1S96).
pay.

E. Retirement Benefit of Patt.time Workers

The COtA shall not be inctuded in the computalion oI fetirement

lllustrarlon:
Minimum Reliroment

(a) there is n0 relirement plan belween the employer and the employee and (b) {he employee should have reached lhe age of
pay = g"i1t Rale x 22.5 days x number of
years in service

for every year of service under RA 7641 after satislying lhe following condilions precedent for optional reliremenl:
month salary"

Part-time workers are also entitled to retirement pay 0f "one-

sixly (60) y6ars, and should hav rendered at least five {5) years of service wilh the emDlover.

42

43

parl\lifle. workers rnay tikewise be compured et least in ::l_.lll,"l ptoportron lo the salary and rela(ed benefits due them.

Agllyils the foregoing pnnciple, the

components of retiremenl

t6
Brrurnts UruorR rHe EMptoyres'
Corrl prrusnrroru Pnoc
(PD 626)

Benefit I-"-,!r:T.i, Kepubtic Act 8558

ot Underground Mine Employees

nder

:d:q{!i:T[r'i:.:l

:?:.'?:",, lf ,.ii,f , jsi,".'."""., Ji,1l,

iiil
A.

RRn,t

i,:1":*1[I:." J"-i;i,.xl J,flx +ii: il!i:J"?,'"",,iil":i"'l{,fi o,iliu;,illlif i,iXl,'i;,.iiiii;,lil"il'i. 'iil l,li?i"

purpose of seafching For and extracting mineral deDosils.

ru,*n:

The Employees' Conpensalion program

g:",x.','r'Si:TJ.l";[;l'"#il';::,"Jl"J#fl

fi

:'ff PJ;:Si
.'
p ro v

Tha Employees' Compensation Program (ECp) is a government io provide a cornpensalion package to public and private sector employees or thsir dependents ia ths evnt of workprog(am designed

related gickness, injury, disability, or deaih.h

il?ryili::;":i#''""J',:,,1i[ol"'i!?,Jy,1,"",""111,,[l tetne.n,ent t the age of fifly (50) years, provided

:",
:ir','"",'"', T

iilfi

B.

Coverage

; jtl, fi :':,

"-',

uul,.

*lTs

oun

he/she has ierved

m I

ne

u'

l'

The ECP covers all workers in (he formal sector.

Coverage in lhe ECP starts on the fjrst day of emptoymenl_ Employee$ in Ihe private sector who are registered members of lhe. Social Security System {SSS), except self-employed workers and voluntary members ol the SSS.

G. Othef Benefits upon Retireme t

and disrinct rrom rhose sranred

Ihe retiremenl benefils under Rt

by,iJif;,lliffl;3i;;;0",,'
the

upon optional 0f computsory retirement, ^_!,19.:l tlr,law,

C. The Benotits
Loss of incone benefit or cash benefit given to a worker lo compensale for losl income due to his or her inability to work.
Mdlcal benefits which include the reimbursemenl of the cost of medicine for the illness or iniury, paymnts to providers of medical care, hospilal care, surgical expenses, and lhe c0sts of appliances and supplies where Recessary. The medicat service$ ar iimiled to ward $ervices of an accredited h0spital. vocalional training, and special agsistance provided to employees
hFor

i#ifJ"""",:"::':
benefils.

;:i'

:'"oo'il'ln""o:::;':;liJ:

Jl

li';i:'j.fi

::'i-:i:

Rehabilitation services which inctude physical

therapy,

more inlormalion, please writ or call lhe Employes, Colnponsatlon Comnlssion (ECC), lnlormation and publtc Assistaoce Oi;i$ion. locaied at 355 Sen. Gil Puyal Ave0ue, l\4akati City. Tetephone Nos. Egg-4251 lo 52 locals 227 and 22U Fat: 897-7597 Public Assisteflce Coflter ipAC) Telephone No 8994251. Enail: ecc_mail@yahoo,com. Wbsile: wwu.ecc.gov.ph

44

45

a.disabilily as a resutr of sickness or iniury arising our or emptoymenl. The objective is to develop the wbrkers, me-nlal vocational, and social potential and to help them ,ar"in '".

llij::lri!

Who may flle: The claimant or hislher representalive may fils an

productive members of socielV.

appropriale claim with the cSlS, in case of public sector claimant, or with lhe SSS, in case of private sector claimant. of confinement from the hospital. For homo confinement, il musl
be liled within one (1) year frorn the slart ol illness, When: A claim must be filed within one (1) year from the last day

Carer's allowan6e which is provided lo an employee who suffers p_.-T.,null t0rat disabitity (pTD) arisjng our of emptoyment rhe : exlent ol which is such thal he or she could nol on his oi her own
attend to his or her basic personal needs.

il::T. benefit prus ren percent { l0%) for every dependenr 1?,1,TI. cn o out not exceeding five (S)
D. Kinds of Disablltty
There are lhree (3) types of loss of incom beoetits:

Death beneflts which are granted to beneficiaries of an employee who dies as a fesull of sickness or tniurv arisino out oi employment. When a worker on pTD slatus Oies, tris or n"r'p,im",y bneficiaries shall receive eighty percent (80%) ot his or hei

contrngen6y.

and attach the supporting documenls required for

Ho$/: Fill jn lhe prescribed forms supptied by the GSIS 0r SSS

every

employees in the private seclor.

Where: A claim may be ftled at any GSIS branch oflice, tor governmenl employees, or at any SSS branch office, for

Period of Appeal. The claimant shatl file wrth lhe GSIS or the SSS, as the case may be, a notice of appeal wjthin thirty (30) calendar days from receipt ol lhe decjsion.
F. Obligatlons/Responsibtlilies

emproyee who is unable exceeding '120 days.

_,-T,"rlorrr,t Totat Disabitity (TTD) benefit which is given to an lo work for a continuous period noi

otEmployers,
The

1. Contribution

Permanent Partial Disability (ppO) benefit which is given to a worker wh0 loses a body part and consequenlly the loss of the us" of lhat body part.

employer shall contribule in behalf of his or her employes to the SlF, from which payments for benefits are drawn.

to the State Insurance Fund (SlF). -

2. Rgistration.

Torat Disabitity (pTD) benefil whictr is given if rhe __l:lT.lrl,inabilily emptoyees to work lasts for more lhan 240-days. pTD
benefit can be claimed in the followi g cases:

- Every employer (and every employee as well) shall be registered with the cSlS or SSS by accomplishing the prescribed forms.

3. Safely Devices.

5. such cases as dtermined and approved by SSS.

2. loss of two limbs at or above the ankles or wrisls; 3. permanent and complele paralysis of two limbs; 4. brain iojury resulting in incurable imbecilily or insanity,

1. completB loss of sight of both eyes:

prevention of work-related disability o( death.

and

- The employer shall comply with heallh and safety laws and shall take the necessary precautions for the

E. Filing of Ctaims

4. Employer's Logbook. - The employer is required to maintain a logbook to contain his or her employess' sickness, inluries, disabililies, and deaths. Notification of such 0ontinoencies lo lhe GSIS or SSS shatt be made within tive (S) day; from the
date of contingency

llOloVees ^_ oealn or

can claim only for work-connecled sickness, injuries,

5. Dprivations Clause.

whatsoever shall operate to depriye the employee or his/her dependenls of any part of lhe ECp compensatjon package.

No conlract, regulatton, or device

46

47

1',7

It

PHIIHcALTH BENEFITs
(RA 7875, as amended by RA 9241)

Members who have reached the relirement age and at least 120 monthly contributions. Optional Retirees (under RA1616, PD 1146 or PD 1184) are not yet entitled to lifetime coverage unlil lhey reach lhe age of retiremenl (60 years old).

have paid

4. lndigent Members
A. Ihe National Health Insurance program
NHIP.

under the indigent component of the

hospitalized.

The National Health lnsurance program (NHlp), forrnerly known as Medicare, is a health insurdnce program for SSS members and lheir dependents whereby the healthy aubsidize the sick who may find Ihemselves in need ot financial assistance when they get

C. The Beneflts A unified benefit package for atl PhilHeallh members is being implsmented which includes Ihe following categories of personal health services:
1. Inpatient hospltal car;

The Philippine Heallh Insurance Corporation or philHealth is the mandaled administralor of the Medicare program (now known as ryHlll yqer the Nationat Heatth tnsurance elt of tggS {Repubtic Act 7875).'
B. Covsrage
The program covers the

. . . . . .

Room and boafd; Services of heallh care protessionals;

lo

owino

Diagnoslic, laboralory, and other medical examination services: Use of surgical or medical equipment and facilitiss;

'1. Employdd Members

Prescripiion drugs and biologlcals, subjecl

limitations slated in Seclion 37 of RA 7875; and Inpatient education packages.

to

lhe

and pnvate sector.

all those employed in the governmenl

2.

lndividually Payjng Members

Filipino workers, professionals in private pra;tice (doclors, lawyers, dentists, elc. )

self-employed, overseas

2. Oulpatient care: Services of health care professionals; Diagnostic, laboralory, and olher medical examinalion
services,

5. Non-paying Members
c0verage:

lhe {ollowing are enti ed to liletime

Personal prevenljve services;

'

Retirees and pensi0ners of the GSIS and SSS (including permanent lotal disability and survjvorship pensioners of lhe SSS) prior lo the effeclivity ot RA
7875 on March 4, 1995

Prescription drugs and biologicals, subiect

limitations described In Section 37 of RA 7875; and Emergency and transfer services.

lo

lhe

nrrp //www.ph ieatth.gov,ph.

oI NH]p cove16g6, benlit$ and procedures for SSS members, you may vrsit th Phlllppine Health Insurance Corporation {pnrlHaltht al lh; Ll,lyslale {-enlre Bldg 709 Shaw Blvd Barangay Oranbo pasig Crty or Lat, lelepnone number 637-9999 you may atso vrsit rhe phitHeelah rx;bs,te at
'For inquirjes

48

49

The Hew PhitHeatth lnpaflent Aenfit-;heduG.=-Effective ADril S. 2009

HOS PITAL CATEG

Levols

aenefit llem
Room and Boa rd Drugs and Medicines X.ray. Lab. and Olhers

ltE

Hosoitals

ernatv
Q39e Type
D

F500/day

P1,200
B3

2oo

Benefil ltem

l500/dt
P1{,000

F800/day
B ?8,000

P1,100/day

B io.soo F2r,000 E 30,000 For procedures wilh RVU 301 letow +fZOO =

40,000

Oparating Room

F6lproceourEv;n avU

lr

ro

S0;Fi-00
nw
x

zo RVU x

p=roceor:res wiirr

ro ooo: (Mininum = P3,500)

nvu et

ect

PCf l5

;:mittn,rsEone'atEecririoner

Paolessional Fees

lCroa;l,l, t?

Prro"t---f
'Maram!m per conlinemenl

6]F2,400

tltl

ru00--T -p400

-f-F400 f

8600-

P1,200

rPerr.lsr Itrf00P5 lr J! rnd 1,

Psr

Im.oortp5 600

Day
tement

i
I

Ma!,nurn p3f con

P2,000

"ir Frrr, _ruto,

I
P3.600 I 40% ol surge0n s t0e

[psoo p,000
and

tol
b.
Surgery Surgeo n

GeneralPraclilioner

RVu x PCF 40

firs{ lier
(Group 1l

IIVU

PUI

4U

Max ol F3,200
RVU x Pc = PF2

(PF1)Max ol
P1,280 48% ol sutgeon s (e6

Max ol 83,200

40% oi sutge0n s lee (PF1) Max ol

lhitd liel
(Groups 2,3, and 4l

9t )Atl

Second ller (G(auos 5 a

I f(-;l . PF?
x PCF 80

48% of sur9eDn s lee 40% ot

{PF1I
56% ol

(Gtoups 2, 3, and 4l

surgeon's t
(PF1)

surge0n s ree
(PF4)

'Maximum of 45 days per yea. "per single period of conlinenrenl

50

51

t.| l6
Soctnt SrcuRrrv Brnrrrrs
{RA 1161, as amended by RA 8282)

A. Th Social Security Program

The lollowlng are also incloded in
PhilHeallh benetils:
Decembr 2008 your
01

AddlllonrlUpdale

.0ulp.liont *sl.ri!

.In

Packag startinq

compliance Io PhilHealth Ciacul,r Nos. 22, s. 2007 ard 11, 2008, the hospitats

lourth chlldbkth stsning 0t Jaiijary . Volunlar! Surglcal CoIk.capllon

P.oaaduraa slarling

'

llomzl Spoat.n.ola Dollvrry

0l

lp
2009

Slalem6nl
to

ol

Account (SAj

October 2008 'Cal,rrcl Packrg. slertin0 0l May 2009 .A(|lllltl Pack!ge starting 0t May 2009

appllcatroni lor packa0es ltk6 Xalrnlly C.rE p.clrga, 3AnS, P.ritoflerl 0l.lyth,
and

Stalern6nl (BSi should be aftached to a ctai; appllcalion. . No need lo etlach an SA or BS lo claim

or

Bjltin{

The Social Security Program provides a package of benefits in the event of death, disabilily, sickness, maternity, and old age. Basically, the Social Security Syslern (SSS) provides for a replacemen! of income losl on accounl of lhe aforemenlioned
contingencies.r B. Coverage

AYlrI flu.

. A private employee, whether permanent, lemporary or provisional; . A household helper earning at least P'1,000 a month is
subict lo compulsory coverage starting September 1, 1993.
C. The Benefits C.1 Sickness

The sickness benefil

injury.

is a daily cash allowance paid for

the

number of days a member is unable lo work due to sickness or

A member is qualified to avail himself/herself of lhis benetil if: 1. he/she is unable io work due to sickness or injury and is

lhus confined either in the hospital or at home for.at

leasl lour days;

2. he/she has paid at least three monthly conlributions

semester
oF

within th 12-month period immediately before the

sickness;

rFor inquiries on SSS benefits and other relatd mallrs. iou may visit lhe Social Scurily Syslem {SSS) at lhe SSS Euilding, Easl Avenue, Diliman, Ouezon City or ils nearesl branch office. You may also cali leleDhone numbets 920-6401 (0poralol.assisted), 920-6446 (Member Retations Department), 9177777 (machine-assisledi prs6 your SSS no. and wait lor inslructions) of visll ils website l www.rss.gov.ph or e-mail il al memhor_r,lalions@ss9.gov.ph.

53

3. he/she has usd up all current company sick leaves with 4. he/she has notified hisiher employer.
pay for lhe current year; and

ll is a cash benefil paid lo a member who can no longer work

due to old age. A member is qualifisd lo avail himself of this benefit if: b. He/she is 60 years old and unemployed and has paid at least 120 monthly contributions prior to the semester of relirement.

., _The amounl of an employee's sickness benelit is c0mpuled as: the dbily sickness allowance times the approved number o'f days.
Effeclive May. 24, 1597, the daily sickness allowanc

f"ilull-9f Acl 8282).

lhe avef6ge daity satary cred {seclion 14 of Republic

is

g0

b. heishe is 65 years old, whelher employed or not. lf employed heishe sh0uld have paid 120 monthly
contributions prior

to the

semesier

of

retirement,

C-2. Matemity (see

Ti

e #0. Maternity Leave on page 24)

whelher etnpioyed or nol. The types of retirement benefils are: a. the monthly pension, and b. the lump sum amount.

C.3. Disabi/ily permanenlly disabled, either partially or totally.

It is a

cash benelit paid

lo a

member who becomes

semesler of conlingency, is qualified.

A member \a/ho suffers partial or lotal permanenl disabilitv. with at leasl one (l) contribution paid to tie SSS prior to th'e

who has paid at feasl 120 monlhly conhjbullons to the SSS prior to lhe semesler of retirement.

The monlhly pension is a lifetime cash benefit paid to a retiree

The complele and permanenl loss of use of any of the . ,. lollowrng parts
of the body one thumb one index finget one middle finger
und6r permaneni partial disability: sight ol one eye one big toe heating ot one eat one hand hearing of bolh ears one arm one foot one ear one leg bolh ears

(he required 120 monthly contribulions.

The lump sum amount is granled to a reliree who has not paid

C.5. Dealh & Funeftl

The death benefit
deceased member

finger one little finger

one ring

is a cash paid to lhe

beneficiaries

of

The following lall under permanenl total disabililv: 1. Complete loss of sight of both eyes; 2. Loss of lwo limbs at or Ebove the ank,e or wrislsi 3. Permanent complete paralysis of two limbs;

4. Brain injury causing insanityi and 5. Other cases as de(ermined and approved by lhe

SSS.

adopted or illegiiimate dependeni children of the member, In lhe absence 0f primary beneficiaries, the secondary beneficiaries are the dependent parenls of lhe member, In their absence, the person dsignated by the member as beneficiary in his/her member,s record wlll be the recipient.
The types of death benefits are:

until he or she remarries and legitimate, legitimated, legally

The primary beneliciaries are the legitimate dependenl spouse

Types of disability benefits: 1. The monlhly pension which is paid to a disabled membor who has paid at least 36 monthly conlributions to the SSS; and

1. the monthly pension; and

2. the lump sum amount.

2. The lump sum amount which is granted lo tho6e who

have not paid the r6quired 36 monthly conlributions.

0f a deceased member who had paid 36 monlhly contribulions

before lhe semester of death.

The monthly pension is granted only lo the primary beneficiaries

C.4. Retirement

beneficiaries of a deceased member who had paid less than 36 monthly contributions betore the semester of death.

The lump sum is lho amoun( granled lo lhe

primary

54

55

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of D0LE Reotonal
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56

The
or emptoyment.

BWC

The Eureau of Working Conditions {BWC) is responsible for the rormuletion and developmenl of labor slandards in lhe areas of hours of work, occupational safely and heallh, and olher conditions

tl o

1^

t! G
tr

tl
tu

o CL o.

tr

th
ln May 198?, the Bureau . rn June
6ureau of Working Conditions. The BWC performs all functions in relation to the formulation of policies and enforcement of labor
1957 under Reorganization plan No.20-A, was renamed the

,Lt

t!

lt

o
3 .9
c,

of Labor Slandards, which was created

slandards performed by the then Wage Administrative Service and tne Industrial Salety Division of the Bureau of Labor.

oF
EZ irU
2<s

E,A l-z |LO

o t!
-5

vls ton
productive work envlronment, adaptive

The Bureau of Working Conditions envisions well_guided employers and workers commi[ed to a safe, healthfui and

developmenls, and equitably enjoying the gains of joini

lo

az b8

HE

o
(J
UI
OL

industry trends

,nOru*,i.

and -

o
t
u.l

l-{

tvilsston
. To formulate . i .
standards, based
moniloring,consultations,networking,andresearches.

policies and initiate legislations on labor on relevant information culled from

aulhorlly lo ensure compliance with laws and regulations.

To slandardize the use of enforcement instruments and t0 clothe the inspectorate system rxilh s(rong enforcement

Eo Nf

=o 53 FIL

tI| (J IL
l.|-

IL

To develop and suslain the capabillty of enterprises toward self-management 0l safety and health in workplaces, lhus,

upholding

workers and employers.

the principle of shared responsibility

between

. .

practical and efficient methods of improving working condilioni and produclivity.

To inlorm and advise the public on labor standards, includino occupalional safety and health, and on innovstive wori

To enhance the capability of small enterprises in im0lementino

=fi 6g 5o

praclices or arrang6menls.