STATUTORY MONETARY BENEFITS Principles in determining hours worked
All hours are hours worked regardless
MINIMUM WAGE of whether or not the hours are spent
in productive labor or involve physical
R.A. 6727 “Wage Rationalization Act”
or mental exertion
Basis for wage classification:
Rest period is considered when the
o Agriculture
employee stops working. Employee
farming in all its branches
does not need to leave the premises
during rest period
o Retail establishment
The work performed was necessary,
principally engaged in the sale of benefited the employer, or employee
goods to end-users could not abandon his work at the end
regularly engages in wholesale of his normal working hours due to no
activities loses its retail character replacement, the hours spent is
considered work hours, provided that
o Service establishment it is upon the knowledge of the
principally engaged in the sale of employer
service to individuals time during which an employee is
Regional Tripartite Wages and Productivity Boards inactive due to interruptions in their
(RTWPBs) work beyond their control shall be
considered working time
o authorized to determine the daily minimum
wages in different regions based on Treatment on waiting time
established criteria waiting time = working time if employee is
obligated to wait as part of their work or as
Regional Wage Orders tasked by the employer
o prescribe daily minimum wage rates per being on call is considered working
industry per locality within the region
o depends on the number of workers and the
capitalization of enterprises Attendance at lectures, meetings, training
o provide bases and procedure for application programs, etc.
for exemption from compliance Attendance in such activities are not
counted as working time if all conditions
Coverage are met:
o attendance is outside employee’s
o wage increases apply to:
regular working hours
o attendance is voluntary
private sector workers receiving daily
o employee does not perform productive
minimum wage rates or those receiving up
work during attendance
to a certain daily wage ceiling
EXCEPT: workers of Barangay Micro
Meal and Rest Periods
Business Enterprises (BMBEs) with
employees are entitled to not less than 1
Certificate of Authority
hour time-off for regular meals, except:
o work is non-manual work or does not
o an establishment may be exempted from
involve strenuous physical exertion
compliance with a Wage Order for at most 1
o the establishment regularly operates
year
more than 16 hours a day
Rules in Determining Compensable Working Hours o in case of emergencies or urgent work
to be performed on machineries to
o basis of minimum wage is normal working
avoid serious loss
hours of 8 hours a day o the work is necessary to prevent
serious loss of perishable goods
Hours worked
employees falling onto the aforementioned
all time during which an employee is
conditions can be given at least 20
required to be on duty or is permitted
minutes meal period, provided that the
to work
shorter meal period is credited as
compensable hours worked
rest periods of 5 to 20 minutes are
considered as compensable working time
Monthly-Paid Employees and Daily-Paid
Employees
Wage of Kasambahay Working as Salesclerk
o Monthly-paid
o receive wage in accordance with the
paid every day of the month
including unworked rest days, special prescribed minimum wage applicable in retail
days, and regular holidays and service establishments under existing
365 days in a year is used in Wage Orders
determining the equivalent monthly Effect of Reduction of Workdays on Wages
salary
o in reducing regular working days to prevent
o Daily-paid losses, employers may deduct wages
paid on the days they actually worked corresponding to days taken off from the
and on unworked regular holidays workweek
o consistent with “No Work, No Pay”
Estimated Equivalent Monthly Rate (EEMR)
Penalty for Violation of Prescribed Adjustments in
o Monthly-paid Wage Rates
Factor 365 days in a year is used in
determining annual and monthly salary o fine of P25,000 to P100,000
o imprisonment of 2 to 4 years
o employer is ordered to pay double the unpaid
benefits owed to employees
Barangay Micro Business Enterprises (BMBEs)
o Daily-paid o business enterprises engaged in the
for those who are required to work production, processing, or manufacturing of
everyday, including Sundays or rest days, products or commodities
special days, and regular holidays o total assets, excluding land, are less than 3M
pesos are not covered by the Minimum Wage
Law
o all employees are still entitled to benefits such
as SSS and PhilHealth
o BMBE workers and owners shall agree on the
for those who do not work and are not acceptable wage rates
considered paid on Sundays or rest days
Wage of Workers Paid by Results
o they receive at least the prescribed minimum
wage for the normal working hours not
exceeding 8 hours a day
o it could be a proportion for work less than
for those who do not work and are not normal working hours
considered paid on Saturdays and
Sundays or rest days Wage of Apprentices, Learners and Persons with
Disability
o Wage of apprentices and learners = at least
75% of minimum wage rates
o apprentices and learners should be those
covered by Technical Education and Skills
Subsidized Meals and Snacks Development Authority (TESDA)
o PWDs are entitled to the same terms and
o employer may provide subsidized meals and compensation as a qualified able-bodied
snacks to employees person
o subsidy must be at least 30% of the fair and
reasonable value of the facilities Annual Establishment Report on Wages
o employer may deduct at most 70% of the o all private establishments are required to
value of the meals and snacks enjoyed by submit an annual report on a verified itemized
employees listing of their labor component and
corresponding salaries and wages
Coverage from Income Tax
o income payments are exempted from
requirement of withholding tax on
compensation:
for minimum wage earners (MWEs) who
work in the private sector and being paid
the statutory minimum wage
holiday pay, overtime pay, night shift
differential pay, and hazard pay
earned by MWE is covered by tax
exemption
hazard pay
o amount paid to MWEs who are
exposed to great danger
o annual salary does not exceed P250,000
HOLIDAY PAY Holiday Pay Rates
payment of the regular daily wage for any o entitled to 100% of minimum wage even if
unworked regular holiday unworked
o worked performed = 200%
Coverage
o holiday falling on rest day = 260% (30% from
o applies to all employees, except: holiday, 30% from rest day)
government employees o two regular holidays (unworked) = 200%
retail and service establishments o two regular holidays (worked) = 300%
employing less than 10 workers o two refular holidays falling on rest day
kasambahay (worked) = 390% (30% from each holiday,
managerial employees who follow all 30%
criteria: o from rest day)
primary duty is to manage the o when regular holiday falls on a Sunday, the
establishment following Monday is not considered a
direct the work of two or more o holiday, unless it is declared a special day
employees
have the authority to hire or fire; Absences
suggestions towards the career status
o employees on leave of absence with pay on
of employees have particular weight
workday before the regular holiday is entitled
o officers or members of a managerial staff if to holiday pay
o employees on leave of absence without pay
they perform the following:
perform work directly related to on workday before regular holiday may not be
management policies of employer paid holiday pay unless they work on that day
exercise discretion and independent o if non-work day or rest day precedes holiday
judgment employee is entitled to holiday pay
assist a proprietor or managerial provided that they worked on the day
employee in the management of before the non-working day or rest day
establishment, work along technical Successive Regular Holidays
if absent the day before the first holiday ⇒ not
lines which reqires training,
experience, or knowledge, and o
execute special assignments/tasks entitled for two holiday pays
do not devote more than 20% of hours
⇒ entitled to holiday pay for second holiday
o if absent employee works during first holiday
worked in a workweek towards
aforementioned activities
Temporary or Periodic Shutdown of Work
o field personnel whose time and performance is
o regular holidays fallong within temporary
unsupervised by the employer
cessation of work (eg., yearly inventory or
Regular Holidays maintenance) will be compensated
o Holidays mandated by law Holiday Pay of Certain Employees
o for the year 2024 (10 regular holidays):
o employee paid via piece-rate basis
New Year’s Day - January 1
holiday pay is at least equal to average
Maundy Thursday - March 28
daily earning for the past 7 work days
Good Friday - March 29
before the holiday
Araw ng Kagitingan - April 9
provided that the holiday pay is not less
Labor Day - May 1
than the applicable statutory minimum
Independence Day - July 12
wage rate
National Heroes Day - Last Monday of
August
o seasonal workers
Bonifacio Day - November 30
not paid holiday pay during off-season
Christmas Day - December 25
Rizal Day - December 30
o workers who do not have regular working days
Eidul Adha
entitled to holiday pay
Eidul Fitr
PREMIUM PAY OVERTIME PAY
additional compensation for work performed additional compensation for work performed
within 8 hours on rest days and special days beyond 8 hours a day
Coverage Coverage
all employees, except: o same as those covered in Premium Pay
government employees Overtime Pay Rates
managerial employees (as mentioned in
holiday pay) o overtime on ordinary working days
officers or members of a managerial staff (as hourly rate x 125% x number of hours
mentioned in holiday pay) OT work
kasambahay
workers paid by results o overtime on scheduled rest day or special day
paid on piece rate, takay, pakyaw, or task hourly rate x 130% x 130% x number
basis of hours OT work
other non-time work
field personnel (as mentioned in holiday pay o overtime on special day falling on rest day
hourly rate x 150% x 130% x number
o Note: retail and service establishments with of hours OT work
less than 10 workers are not exempted o overtime on regular holiday
hourly rate x 200% x 130% x number
Special Days of hours OT work
o Special non-working days o overtime on regular holiday falling on rest day
o for the year 2024 (8 special days) hourly rate x 260% x 130% x number
of hours OT work
Chinese New Year - February 10
Black Saturday - March 30 Stipulated Overtime Rates
Ninoy Aquino Day - August 21
All Saints’ Day - November 1 o premium pay for work on rest days, special
All Souls’ Day - November 2 days, or regular holidays is included as part of
Feast of the Immaculate Conception of regular rate in the computation of OT
Mary - December 8
Christmas Eve - December 24
Last Day of the Year - December 31
o Special (Working) Days
employee is entitled to only their minimum
wage
no premium pay since work is considered
ordinary workday
Premium Pay Rates
o “no work, no pay” applies during special days
o workers not required to work on special days
are not entitled to any compensation
o work performed on special days merits
additional compensation of at least 30% of
basic wage (130%)
o work performed on rest day which is also
special day = 150%
o work on a regular holiday falling on rest day =
260%
NIGHT SHIFT DIFFERENTIAL
NSD is the additional compensation of 10% of
an employee’s regular wage for each hour of
work performed between 10 PM and 6 AM
Coverage
o all employees, except:
government employees
retail and service establishments with at
most 5 workers
kasambahay
managerial employees
officers or members of a managerial staff
field personnel
Night Shift Differential Rate
o varies according to the day the night shift work
is performed