3.

what are the components and exclusions of wages under labor code

Components of Wages (Article 97): According to Article 97 of the Labor Code, the
term "wage" is defined as the remuneration or earnings, however designated, capable of
being expressed in terms of money, whether fixed or ascertained on a time, task, piece,
or commission basis, or other method of calculating the same, which is payable by an
employer to an employee under a written or unwritten contract of employment for work
done or to be done, or for services rendered or to be rendered.

Components of wages may include basic salary, allowances, and other monetary
benefits received by the employee, excluding certain items specified by law.

Exclusions from Wages (Article 97): Article 97 also provides a list of items that are
excluded from the computation of wages. Exclusions include:

1. Sickness and maternity benefits.

2. Contributions to the Social Security System, Medicare, and other contributions
provided by law.
3. Payments made by the employer to a third person for the benefit of the employee
(such as payments for insurance premiums, savings, and other benefits).
4. Payments made by the employer to the employee for the latter's benefit, such as a
stock bonus or profit-sharing plan.
5. Overtime pay, holiday pay, night shift differential, and hazard pay.
6. 13th-month pay.
7. Other benefits provided by law or appropriate regulations.