HOLY ANGEL UNIVERSITY

ANGELES CITY, PAMPANGA

A COMPARISON OF HANDBOOK FOR WORKERS STATUTORY MONETARY

BENEFITS BETWEEN 2014 AND 2020

Submitted to:

Mrs. Alma Yutuc

Submitted by:

Hipolito, Melany C.

Ibañez, Josh Amram L.

Ollado, Maaseiah Chloe D.

Tamayo Lee Anne P.

Turla Djonerie A.

MARCH 07, 2022

The Department of Labor and Employment's (DOLE) Handbook Workers Statutory Monetary

Benefits provides a credible reference for general labor rules, rights, and obligations of an

employee and employer, respectively. Overtime pay, premium pay rates, minimum salaries, 13th

month pay, and pay on regular and special holidays are all covered by labor legislation.

The majority of the amendments between the 2014 handbook and the 2020 handbook concern

are about employee compensation and specific cases involving monetary rewards. The 2014

handbook modifications will be compared to the recently updated 2020 handbook, and the

differences will be examined. First, there are the overtime pay modifications. Employees who

worked more than 8 hours on a special day that was supposed to be a rest day were entitled to an

additional 50 percent of their hourly rate, according to the 2014 handbook. However, in the 2020

handbook, the bonus for working on a special day was reduced to 30% of an employee's hourly

pay.

The modification concerning holidays and premium pay would come next. Employees used to

profit from extraordinary circumstances such as working on holidays since they were paid more

than their regular hourly rate before the modifications in the 2014 handbook. However, this has

changed dramatically as a result of recent revisions to the Holiday and Premium Pay in 2020

manual. Despite the absence of a change in the percentage contributed to Premium Pay, it was

decided that the employee's daily basic income should be the basis. It was also revised so that the

Non-Agriculture wage rate for Retail and Services Establishments is now P537.00 and P500.00,

respectively, instead of P451.00 and 414.00. The Muslim Holidays, on the other hand, were

omitted, although they may still be found under Wage Order No. ARMM-09 specifies that
employees who are Muslims are entitled to receive 200 percent of their wages if they are

required to work on a Muslim holiday.

The 13th Month Pay revision has been added to the list. The 13th-month pay of a maternity leave

employee is included in the computation in the 2014 handbook; this was done because they

wanted maternity leave employees to understand how their 13th-month pay was calculated.

However, the revised handbook for 2020 only included the changes in the Income Tax Pay to

13th Month Wage, and it was mentioned that 13th-month pay and other perks are tax-free when

the pay is less than P90,000.

Aside from the aforementioned alterations, an employee is entitled to maternity leave in the

event that she is pregnant. However, maternity leave benefits were amended in 2020, because it

was decided that if a pregnant woman has a miscarriage or has to terminate her pregnancy owing

to certain health reasons, she will be allowed 60 days off with full pay to recover, with an extra

30 days off without pay if necessary. The Salary Differential further stipulates that the employer

is responsible for the difference between the employee's full salary and the real cash benefits

received by the Social Security System. In contrast, the 2014 handbook said that if a pregnant

employee is a single parent, she is entitled to an additional benefit of 105 days of paid leave. In

addition to this benefit, if she qualifies under RA 8972, or the "Solo Parents' Welfare Act of

2000," she will receive an additional 15 days of full payment.

For the last series of amendments, the Service Charges specified in the 2014 handbook that

employees who collect service charges are entitled to an equal share of 85 percent of the

collected
charges, with the remaining 15 percent going to management to offset losses and breakages. The

same principle applies when a business does not collect service charges but does have a pooling

tip from customers, with the tips being monitored and distributed accordingly. However, it was

made more specific in the 2020 guidebook, since it also indicated the amendment's coverage. In

addition, unlike the 2014 version, service charges are now distributed based on actual hours or

days of labor performed by the employee. Furthermore, it was stated that when the law approves

a rise in the minimum wage, the services charges are not deemed a minimum wage increase.

Therefore, the Handbook for Workers Statutory Monetary Benefits requires that the revisions be

followed in order for employees to obtain the compensation and benefits to which they are

entitled. The adjustments reflect continually changing labor laws and regulations in order to suit

the well- being and current demands of employees and employers in light of changes in

economic systems, which result in changes in society and culture, as well as organizational

growth. We've realized how critical this is because it's only fair for employees to be compensated

and receive additional pay for the services they provide and the experiences they share at work;

after all, employees are the backbone of every business, demonstrating that employers care about

their overall health as well as their future.

 Below are the illustrations of changes in the Handbook for Statutory Monetary Benefits between

2014 and 2020:

COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON DAILY MINIMUM WAGE

(MW)
2014 Handbook 2020 Handbook
SECTOR/INDUSTRY NEW MINIMUM WAGE RATES NEW MINIMUM WAGE RATES
Non-Agriculture ₱466 ₱537
Agriculture
Plantation ₱429 ₱500

Non-Plantation ₱429 ₱500

Private Hospitals
With Bed Capacity of 100 or Less ₱429

Retail/Service Establishments
Employing 15 workers or less ₱429 ₱500

Manufacturing Establishments

Employing less than 10 workers ₱429 ₱500

* Above wage rate is pursuant to wage Order No. NCR-
22 which took effect on 22-Nov-2018
 COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON REGULAR HOLIDAYS

2014 Handbook 2020 Handbook

SECTOR/INDUST RY
RATE AMOUNT RATE AMOUNT

Non-Agriculture
₱451.00 + ₱15 ₱466 x 200% = ₱537 ₱537 x 200%
COLA ₱932.00 = ₱1,074.00
/Service Establishments Employing Less than 10 Workers

₱414.00 + Not Covered or ₱500 Not Covered or

₱15 COLA Exempted Exempted

COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON SPECIAL DAYS

2014 Handbook 2020 Handbook

Four (4) Special Days in a Year under Executive
Three (3) Special Days in a Year under Order No. 292, as amended by Republic Act 9849,
Executive Order No. 292, as amended by as further amended by the Republic Act No. 10966
Republic Act 9849 that shall be observed in the that shall be observed in the Philippines:
Philippines:
Ninoy Aquino Day Monday nearest August 21
Ninoy Aquino Day Monday nearest August
All Saints Day November 1
All Saints Day November 1
Feast of Immaculate
Last Day of the Year December 31 Conception of Mary December 8

Last Day of the December 31

Year
 COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON SPECIAL WORK DAYS

2014 Handbook 2020 Handbook

PREMIUM PAY RATES PREMIUM PAY RATES

SECTOR/INDUSTRY
RATE AMOUNT RATE AMOUNT
For work performed on rest days on or special days:
us 30% of the daily basic rate of 100% or a total of 130%.

₱451 x 130%
₱451.00 = ₱586.30 ₱537.00 ₱537 x 130%
= ₱698.10
Non-Agriculture ₱414 x 130%
₱414.00 = 538.20 ₱500.00 ₱500 x 130%
Retail/Service Establishments = ₱650.00
or work performed on a rest day which is also a special day:
50% of the daily basic rate of 100% or a total of 150%.

₱451 x 150% ₱537.00 ₱537 x 150%

₱451.00 = ₱676.50 = ₱805.50
Non-Agriculture
₱414 x 150% ₱500.00 ₱500 x 150%
Retail/Service Establishments ₱414.00 = ₱621.00 = ₱750.00
COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON OVERTIME PAY

2014 Handbook 2020 Handbook

SECTOR/INDUSTRY RATE AMOUNT RATE AMOUNT

1. For work in excess of eight (8)

hours performed on ordinary
₱537/8 x
working days: Plus 25% of the ₱537.00 125% =
hourly rate. ₱451/8 x 125% =
₱67.125 x
₱451.00₱56.38 x 125% x
125% x
number of hours OT work
number of
Non-Agriculture ₱414/8 x 125% =
hours OT
₱414.00₱51.75 x 125% x
work
Retail/Service Establishments number of hours OT work
₱500/8 x
₱500.00 125% =
₱62.50 x
125% x
number of
hours OT
work

2. For work in excess of eight (8)

hours performed on a scheduled rest day
₱537/8 x
or special day: Plus 30% of the hourly ₱537.00
₱451/8 x 130% x 130% x 130%
rate on said days. ₱451.00 130% = ₱56.38 x = ₱67.125 x
130% x 130% x 130% x 130%
number of hours x number of
Non-Agriculture OT work hours OT
work
Retail/Service Establishments ₱414/8 x 130% x
₱414.00 130% = ₱51.75 x ₱500/8 x
COMPARISON ON 2014’S HANDBOOK AND130% 2020’Sx HANDBOOK
130% x ON₱ 500.00
SERVICE CHARGES
130% x 130%
number of hours = ₱62.50 x
OT work
Service Charges specified 130% x 130%
that employees who are in collecting service
2014 HANDBOOK charges are allowed of equal sharing in the 85% of x number of
the collected
hours OT to
charges, wherein the remaining 15% is meant for the management
workwhen a
offset the losses and breakages, the same manner is also applied
business does not collect service charge but has a pooling tip from
customers, thus the tips are monitored and distributed accordingly
It was made more specific as it also mentioned the coverage of the
2020 HANDBOOK amendment. The distribution of service charges is now based on actual
hours or days of work rendered by the employee. It was also mentioned
that when there is an increase in minimum wage approved by the law,
the service charges are not considered an increase of the minimum
wage.
 COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON MATERNITY LEAVE

2014 Handbook 2020 Handbook

(RA 1161 as amended by RA 8282)
Any Civil
Status 1. Maternity leave benefit of sixty (60)
days in case of Normal Delivery or
miscarriage; seventy-eight (78) days, in
cases of Caesarian section delivery with
benefits equivalent to one hundred percent
(100%) of the average daily salary credit
of the employee as defined under the law.
(RA 8282, as amended by 11210)
1. Maternity leave benefit shall be for one-
hundred-five (105) days with full pay and an
additional fifteen (15) days with full pay in case
the female employee qualifies as a solo parent
under RA 8972 or the ‘Solo Parents’ Welfare Act
of 2000”. In case of miscarriage or emergency
termination of pregnancy, the maternity leave
shall be for sixty (60) days with full pay.

2. The Employer must have paid at least
three (3) monthly contributions to the SSS
within the twelve months immediately
before the date of the contingency (i.e.,
childbirth or miscarriage)
2. The Employee must have at least three monthly
contributions to the SSS in the twelve-month
period immediately preceding the semester
childbirth, miscarriage, or emergency termination
of pregnancy.

COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON THIRTEENTH-MONTH

PAY
2014 HANDBOOK 2020 HANDBOOK
(Formula and Computation of 13th Month Pay)

𝑇𝑜𝑡𝑎� 𝑏𝑎𝑠𝑖� 𝑠𝑎�𝑎𝑟� 𝑒𝑎𝑟𝑛𝑒� �𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 �𝑒𝑎𝑟

The formula and 12 𝑚𝑜𝑛𝑡ℎ𝑠 = proportionate 13-month-pay
Computation of 13th Month
Pay was not included.

Using the basic wage in the National Capital Region at ₱502 (from Jan. 1,
2018, to Nov. 21, 2018) ₱537 (from Nov. 22, 2018, to Dec. 31, 2018) per day
and six- day workweek or an equivalent Monthly Basic Salary of ₱12,466.33
and
₱13,290.75.

COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON SEPARATION PAY

2014 Handbook (Articles 297-298d) 2020 Handbook (Articles 298-299q)

One-Half (1/2) 1. Retrenchment to prevent losses (i.e., 1. Retrenchment to prevent losses (i.e.,
Month Pay per reduction of personnel affected reduction of personnel affected by management
Year of by management to prevent losses); to prevent losses);
Service
 2. Closure or cessation of operation of an 2. Closure or cessation of operation of an
establishment not due to establishment not due
serious losses or financial reverses; and to serious losses or financial reverses; and

3. When the employee is suffering from a
disease not curable
within a period of six (6) months and
his/her continued employment is
prejudicial to his/her health or to the health
of his/her co-employees.
One-Month 1. Installation by the employer of labor-
Pay per Year saving devices;
of Service
2. Redundancy is when the position of the 2. Redundancy, as when the position of the
employee is excessive or unnecessary in employee has been found to be excessive or
the
operation of the enterprise; and
3. Impossible reinstatement of the
employee to his or her former position
or to a substantially equivalent position for
reasons not attributable to
the fault of the employer, as when the
reinstatement ordered by a competent
authority cannot be implemented due to
closure or cessation of operations of the
establishment/employer, or the position to
which he or she is to be reinstated no
longer exists and there is no substantially
equivalent position in the establishment to
which he or
she can be assigned.
Coverage from
Income Tax of
Separation Pay
3. When the employee is suffering from a
disease not curable within a period of six (6)
months and his/her continued employment is
prejudicial to his/her health or to the health of
his/her co- employees.
4. Lack of service assignment of security guard
for a continuous
period of six (6) months
1. Installation by the employer of labor-saving
devices;
unnecessary in the operation of the enterprise;
and
3. Impossible reinstatement of the employee to
his or her former position or to a substantially
equivalent position for reasons not attributable
to the fault of the employer, as when the
reinstatement ordered by a competent authority
cannot be implemented due to closure or
cessation of operations of the
establishment/employer, or the position to
which he or she is to be reinstated no longer
exists and there is no substantially equivalent
position in the establishment to which he or she
can be assigned.
4. Lack of service assignment of a security
guard by reason of age.
Exempted from taxation is the separation pay
received by an employee as a result of his/her
separation from the service of the employer due
to death, sickness, or other physical disability or
for other cause beyond the control of said
employee such as retrenchment, redundancy or
cessation of business operations.

COMPARISON ON 2014’S HANDBOOK AND 2020’S HANDBOOK ON RETIREMENT PAY

 2014 Handbook (Article 301) 2020 Handbook (Article 302)
The compulsory retirement age of professional
Retirement Benefit racehorse jockeys who are duly licensed by the
of Racehorse Philippine Racing Commission (PHILRACOM) is
Jockeys fifty-five (55) years old, provided that he/she has
served for at least five (5) years as racehorse jockey
and has paid an additional premium to the SSS.
Retirement Benefit
of Kasambahay and Kasambahay and persons in the personal service of
Persons in the another are entitled to retirement benefit pursuant to
Personal Department Order No. 20 s. 1994.
Service of Another
 Exempted from taxation are the retirement benefits
received under RA 7641 (now Article 302 herein) and
those received by officials and employees of private
firms, whether individual or corporate, in accordance
with a reasonable private benefit plan maintained by
Coverage from the employer: Provided, That the retiring official or
Income Tax of employee has been in the service of the same employer
Retirement Pay for at least ten (10) years and is not less than fifty (50)
years of age at the time of his retirement: Provided,
further, That the benefits granted under this
subparagraph shall be availed of by an official or
employee only once. For purposes herein, the term
'reasonable private benefit plan' means a pension,
gratuity, stock bonus or profit-sharing plan maintained
by an employer for the benefit of some or all of his
officials or employees, wherein contributions are made
by such employer for the officials or employees, or
both, for the purpose of distributing to such officials
and employees the earnings and principal of the fund
thus accumulated, and wherein it is provided in said
plan that at no time shall any part of the corpus or
income of the fund be used for, or be diverted to, any
purpose other than for the exclusive benefit of the said
officials and employees.