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 695.00 per day;
- Holiday pay is 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 is 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 employees work on a special day falling on their rest days, they shall be entitled to an additional compensation of at least 50% of their 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. “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 is the additional compensation for work performed beyond 8 hours a day. If done on an ordinary working day, the employee is entitled to an additional 25% of the hourly rate in excess of 8 hours. If the overtime work is performed on a rest day, special day, or regular holiday, the employee is entitled to an additional 30% of their hourly rate applicable for that day.
- Thirteenth-month pay is one-twelfth of the total basic salary earned by an employee within a calendar year;
- Night shift differential is 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 is the paid leave of five (5) days granted to an employee who has rendered at least one (1) year of service, whether continuous or broken, that may be used for sick, vacation, and other leave purposes;
- Maternity leave is 105-day leave with full pay granted to a female employee for every instance of pregnancy, regardless of frequency. For miscarriage and emergency termination of pregnancy the employee is entitled to 60 days maternity leave with full pay;
- Paternity leave is a maximum of 7-day paid leave granted to a married male employee for the first 4 deliveries of the employee’s lawful wife with whom he is cohabiting. The benefit also applies in cases of miscarriage;
- Parental leave for solo parents is 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 which allows 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 is the compensation given to an employee who is terminated from employment due to authorised causes. Where separation pay is required by law, the employee is entitled, in any event, to not less than one (1) month pay, or to the applicable per-year-of-service computation, whichever is higher.
- Retirement pay is the compensation given to a retiring employee. The minimum retirement pay is equivalent to 22.5 days’ pay for every year of service, with a fraction of at least six (6) months 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. Further, no employer may deduct any amount from an employee’s wages except in the limited instances permitted by the Labor Code and its implementing rules, such as deductions authorised by law or regulation, valid union check-off, or deductions made with the employee’s written authorisation.
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 performed beyond 8 hours on an ordinary working day must be paid with additional compensation equivalent to the employee’s regular hourly wage plus at least 25%. Where overtime work is performed on a rest day or holiday, the employee shall be paid additional compensation equivalent to the hourly rate for the first eight (8) hours on such rest day or holiday plus at least 30%.
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, the 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 familiarisation with their work environment;
- Inform the workers of the hazards associated with their work, health risks involved, or those to which they are exposed, preventive measures to eliminate or minimise 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 organising, 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.
Complaint Procedures
Employees may raise grievances or complaints in the manner stated in the company policy/handbook or the Collective Bargaining Agreement.
If the establishment is organised and represented by a union, the union may submit grievances through the grievance machinery. Such machinery is established under the Collective Bargaining Agreement for the adjustment and resolution of grievances arising from its interpretation or implementation and those arising from the interpretation or enforcement of company personnel policies. Despite the presence of the union, an individual employee or group of employees shall have the right at any time to present grievances to the employer.
Further, employees may also request for assistance with the Department of Labor and Employment through the Single Entry Approach (SEnA). The SEnA is an administrative approach to provide a speedy, impartial, inexpensive, and accessible settlement procedure for certain labour issues including money claims, unfair labour practices, and occupational safety and health standards issues.
