Labor Code & Related Provisions
Provision / Law Summary of the Rule Explanation & Significance
Art. 100 – Non-diminution Employer cannot reduce or Protects employees’ existing
of benefits eliminate benefits, monetary benefits from being
or otherwise, that employees unilaterally withdrawn. Once
have been regularly a benefit ripens into a
receiving. company practice, it becomes
part of the employee’s wage
package.
Art. 102 – Legal tender Wages must be paid in legal Ensures employees receive
currency (Philippine peso) actual, spendable money and
and not in goods, tokens or are not forced into barter or
promissory notes. company scrip systems.
Art. 103 – Payment of Wages must be paid at least Guarantees timely and
wages once every two weeks or regular wage payment so
twice a month, not later than employees can meet daily
16 days from the previous living needs.
pay.
Art. 113 – Wage deductions No deductions from wages Protects employees from
except: those required by law unauthorized or excessive
(taxes, SSS, PhilHealth, wage deductions.
Pag-IBIG), authorized by
employee, or with
court/DOLE approval.
Art. 116 – Withholding of It is unlawful to withhold any Ensures workers receive full
wages part of an employee’s wage pay without arbitrary
except as allowed by law. withholding by employers.
Art. 118 – Retaliation Employer may not retaliate Safeguards employees from
against an employee for filing punishment for asserting their
a complaint or exercising any legal rights.
labor rights.
Art. 124 – Minimum wage Regional Tripartite Wages Provides a legal floor to
and Productivity Boards set protect workers from
minimum wage rates; no exploitation and to ensure
employer may pay lower. decent living wages.
Art. 133 & RA 9710 (Magna Female employees must Promotes gender equity and
Carta of Women) – Equal receive equal pay for work of prevents discrimination based
pay equal value; RA 9710 on sex in compensation and
strengthens gender equality benefits.
and protection.
Art. 86 – Night differential Employees working between Compensates for the
10 p.m. and 6 a.m. must inconvenience and health
receive at least 10% risks of night work.
additional pay of regular
wage per hour.
Art. 87 – Overtime pay Work beyond 8 hours a day Rewards extra effort and
must be paid at least 25% discourages abuse of working
more than regular rate; 30% if hours.
done on rest day or holiday.
Arts. 91–93 – Rest day pay Employees are entitled to one Ensures weekly rest and
rest day per week; work on provides premium pay if
rest day merits at least 30% employees give up their rest
additional pay. day.
Art. 94 – Holiday pay Regular holiday work is paid Recognizes national holidays
double; if not worked, and secures pay even when
employee still receives 100% employees take mandated
of daily wage. holidays.
Art. 95 – Service Incentive Employees with at least one Gives workers time off for
Leave (SIL) year of service get 5 days of personal or emergency
paid SIL annually. needs.
Art. 96 – Service charges Service charges (e.g., from Ensures fair sharing of
hotels/restaurants) are service charge collections.
shared: 85% to employees,
15% to management.
Art. 97 – On-call waiting Time when employee is Protects employees from
time required to be on call and unpaid “standby” duty when
cannot use the time freely is they are effectively under
considered hours worked. employer control.
Other Common Labor Issues
Issue / Law Summary of the Rule Explanation & Significance
Discrimination & holiday Any unequal treatment (sex, Upholds constitutional right to
issue age, religion, etc.) or denial of equal protection and labor
holiday benefits is unlawful. rights.
Misclassification & Wrongly labeling employees Ensures workers get the
underpayment as “contractors” or correct wage, security of
“probationary” to avoid tenure, and benefits.
benefits is illegal.
Non-remittance (SSS, Employers must remit Protects employees’ social
PhilHealth, Pag-IBIG) contributions they deduct security, health insurance,
from employees to these and housing benefits.
government agencies.
Special Statutes
Law / Provision Summary of the Rule Explanation & Significance
PD 851 – 13th Month Pay All rank-and-file employees Provides year-end financial
must receive 13th month pay relief to workers.
equal to 1/12 of total basic
salary earned within the
calendar year.
RA 10911 – Anti-Age Prohibits age discrimination Ensures equal employment
Discrimination in in hiring, promotion, training, opportunity regardless of age.
Employment Act or termination.
RA 11199 – Social Security Strengthens SSS, mandates Provides retirement,
Act of 2018 employer and employee sickness, maternity, and other
contributions for social social security benefits.
protection.
RA 11223 – Universal All Filipinos are automatically Ensures access to basic
Health Care (UHC) Act enrolled in the National health services.
Health Insurance Program
(PhilHealth).
RA 9679 – Pag-IBIG Fund Establishes the Home Helps employees save and
Law of 2009 Development Mutual Fund for access housing finance.
savings and affordable
housing loans.
SSS Law – Maternity Female SSS members are Supports mothers financially
Benefits entitled to paid maternity during childbirth or
leave benefits if contributions miscarriage.
and notice requirements are
met.
Key Takeaways
● These provisions collectively protect workers’ rights to fair wages, benefits, and
non-discrimination, while setting clear duties for employers.
● Non-compliance can lead to DOLE enforcement actions, fines, or criminal liability.
Tip: For detailed implementing rules or current wage rates, always check the latest issuances
from the Department of Labor and Employment (DOLE) and the concerned agencies (SSS,
PhilHealth, Pag-IBIG).