03. Working Conditions

Minimum Working Conditions

The Labor Code only provides for the minimum terms and conditions of employment, thus, employers are free to give more than what is set by the following standards:

• Minimum wage which varies per region depending on the prescribed daily minimum rate by the Regional Tripartite Wages and Productivity Boards. For the National Capital Region, the minimum wage is set at PhP 610.00 per day;
• Holiday pay referring to the payment of the regular daily wage for any unworked regular holiday. Further, work performed on a regular holiday merits at least twice the daily wage of the employee;
• Premium pay referring to the additional compensation for work performed within 8 hours on rest days and special days. Work performed on special days merits additional compensation of at least 30% of the basic wage or a total of 130%. Where the employee works on a special day falling on his rest day, he/she shall be entitled to an additional compensation of at least 50% of his/her basic wage or a total of 150%. For reference, “rest day” refers to the rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days, while “special days” refer to the eight (8) non-working days, as well as to the city or municipal holidays declared by the government.
• Overtime pay referring to the additional compensation for work performed beyond 8 hours a day. If done on an ordinary working day, the employee is entitled to additional 25% of the hourly rate in excess of 8 hours;
• Thirteenth-month pay referring to one-twelfth of the total basic salary earned by an employee within a calendar year;
• Night shift differential referring to the additional compensation of 10% of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m.;
• Service incentive leave referring to the paid leave of five (5) days granted to an employee who has rendered at least one (1) year of service that may be used for sick, vacation, and other leave purposes;
• Maternity leave referring to 105-day leave with full pay granted to a female employee for every instance of pregnancy, miscarriage, and emergency termination of pregnancy, regardless of frequency, providing her an ample transition time to regain health and overall wellness and to assume maternal roles;
• Paternity leave referring a maximum of 7-day paid leave granted to a married male employee allowing him to lend support to his lawful wife during her period of recovery and/or in nursing of their newborn child, including miscarriage;
• Parental leave referring to a maximum of 7-day paid leave granted to a qualified solo parent to enable the performance of parental duties and responsibilities where physical presence is required or beneficial to the child;
• Leave for victims of violence against women and their children refers to a maximum of 10-day paid leave granted to a female employee who is a victim of violence against women and their children allowing her to attend to medical and legal concerns at any time during the application of any protection order, investigation, prosecution and/or trial of the criminal case;
• Special leave for women refers to the paid leave granted to a female employee allowing her to recuperate following surgery caused by gynecological disorders for a period of up to two (2) months;
• Separation pay referring to the compensation given to an employee who is terminated from employment due to authorized causes. The amount ranges from ½ month pay to 1 month pay per year of service depending on the circumstances;
• Retirement pay referring to the compensation given to a retiring employee. The minimum retirement pay is equivalent to one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one (1) whole year.

Salary

Generally, employees’ salaries are paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. In the Philippines, the law explicitly prohibits employers to pay salaries by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee. Employers are also not allowed to limit or interfere with the freedom of any employee to dispose of his/her wages. They cannot in any manner force, compel, or oblige the employees to purchase merchandise, commodities, or other property from any other person, or otherwise make use of any store or services of such employer or any other person.

Maximum Working Week

Employees have the right to weekly rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days. If the employees are made to work on their scheduled rest day, they are entitled to premium pay equivalent to an additional amount of at least 30% of the basic wage.

Overtime

The normal hours of work of any employee shall not exceed eight (8) hours a day. Work may be performed beyond 8 hours provided that the employee is paid for the overtime work an additional compensation equivalent to his regular wage plus at least 25% thereof.  Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least 30% thereof.

In the Philippines, undertime work on any particular day cannot be offset by overtime work on any other day.

Employer’s Obligation to Provide a Healthy and Safe Workplace

The Philippines acknowledges that a safe and healthful workplace must be ensured for all working people by affording them full protection against all hazards in their work environment. In 2018, Philippines passed Republic Act No. 11058 which strengthened the compliance with occupational safety and health standards, under which, employers are statutorily mandated to:

• Furnish the workers a place of employment free from hazardous conditions that are causing or are likely to cause death, illness or physical harm to the workers;
• Give complete job safety instructions or orientation to all the workers especially to those entering the job for the first time, including those relating to familiarization with their work environment;
• Inform the workers of the hazards associated with their work, health risks involved or to which they are exposed to, preventive measures to eliminate or minimize the risks, and steps to be taken in cases of emergency;
• Use only approved devices and equipment for the workplace;
• Comply with occupational safety and health standards including training, medical examination and, where necessary, provision of protective and safety devices such as personal protective equipment and machine guards;
• Allow workers and their safety and health representatives to participate actively in the process of organizing, planning, implementing and evaluating the safety and health program to improve safety and health in the workplace; and

Provide, where necessary, for measures to deal with emergencies and accidents including first-aid arrangements.