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Decent Work
Decent Work
Decent Work
WORK
REPORT NO. 4
GERRY LYN J. ILAN
BSN - 4B
LABOR CODE OF THE PHILIPPINES
Presidential Decree No. 442. This Decree shall be known as the "Labor Code
of the Philippines. It prescribes the rules for hiring and termination of private
employees; the conditions of work including maximum work hours and
overtime; employee benefits such as holiday pay, thirteenth month pay and
retirement pay; and the guidelines in the organization and membership in
labor unions as well as in collective bargaining.
REQUIRED WORKING HOURS IN THE PHILIPPINES
An employee’s normal hours at work must not exceed eight (8) hours a day.
Working hours shall include:
● the whole duration when an employee is required to be on duty and/or to be
at a prescribed workplace;
● the whole duration when an employee is permitted to work; and
● rest periods of short duration during working hours.
Night Shift Differential Pay
An employee performing work between 10:00 PM and 6:00 AM must be paid a
night shift premium of not less than 10% of their regular wage for each hour of
work performed.
Overtime Work
Work performed beyond the normal working hours must be paid an additional
compensation equivalent to an employee’s regular wage plus at least 25%
thereof.
Employees who work beyond 8 hours on a holiday or rest day shall also be paid
an additional compensation equivalent to the rate of the first 8 hours plus at least
30% thereof.
Undertime Not Offset by Overtime
Undertime work on a normal work day shall not be offset by overtime work on
any other work day. Philippine labor laws discourage the offset because the
hourly rate of overtime is higher than the hours missed when an employee works
for less than 8 hours.
Emergency Overtime Work
An employee may be required to perform emergency overtime work under any of
the following cases:
● when the country is at war or when any other national or local emergency
has been declared by the National Assembly or the Chief Executive
● when it is necessary to prevent loss of life or property in cases of imminent
danger to public safety due to actual or impending emergencies in the
locality caused by serious accidents, fire, flood, typhoon, earthquake,
epidemic or any other disaster
● when there is urgent work to be performed on machines, installations or
equipment, in order to avoid serious loss or damage to the employer or
some other causes of similar nature
REQUIRED WORK BENEFITS
This state-run insurance program offers benefits under the Social Security and
Employees' Compensation (EC) Programs.
● maternity pay
● sickness pay
● pensions
● disability benefits
● salary loans
● life insurance
● funeral grants
PhilHealth is the name of the health insurance plan in place for private employees in
the Philippines. As of 2021, the monthly contribution rate for the health insurance
program is 3.5% of the employee's basic salary. The monthly contribution is equally
divided between employee and employer. PHP 10,000 is the salary minimum and
PHP 70,000 is the salary ceiling.
● Z benefits are offered to the patients who need prolonged hospitalization and
more expensive treatment
● SDG benefits include treatment packages for malaria, HIV-AIDS, tuberculosis,
animal bites, and others diseases
Employers are not obligated to provide any specific insurance benefits since
PhilHealth offers the above entitlements.
Home Development Mutual Fund (HDMF)
The HDMF, also known as Pag-IBIG fund, provides housing loans. It also offers
financial assistance to Filipinos to enable them to afford decent housing.
Workers who earn less than PHP 1,500 a month contribute 1% of their salary to
the Pag-IBIG fund. Workers who earn more contribute 2% of their monthly salary.
Employers have to contribute 2% regardless of the salary bracket of the employee.
The highest contribution to HDMF fund should not exceed PHP 200 in total (PHP
100 for employees and PHP 100 for employers).
Working hours and holidays
The workers in the Philippines are entitled to two types of holidays: regular
holidays and special holidays.
The minimum wage rate also depends on the industry sector. The industry
sectors are broadly divided into agricultural and non-agricultural.
When an employee spends more than the required eight hours working, he
or she is entitled to additional pay, as below:
Night shifts
The labor laws of the Philippines make it mandatory to pay night shift differential to the
workers working between 10pm and 6pm. The night shift differential must not be less than
10% of the worker's regular salary.
Overtime
If an employee works more than eight hours on an ordinary workday, they are entitled to an
extra 25% of their average hourly rate.
Premium pay
Employees are eligible to receive premium pay for working on their rest days or special
holidays. If an employee needs to work on their rest day or special day, they receive an extra
30% of their daily salary. If they work on a special day that is also their rest day, they get 50%
extra payment. If the work is performed on a regular holiday that is also a rest day, the
employee gets a total of 260%.
13-month pay
13 month pay, or the colloquially named “13 month salary” is a statutory requirement that
employers must provide to certain employees.
All non-management employees in the Philippines are entitled to receive 13th-month pay.
This extra month of salary must be released by 24 December. Some employees opt to receive
the payment into two installments — in May and December.
Employees who have worked for at least one month for an employee are entitled to receive
the 13th-month pay. This is paid pro rata for those who work less than the year.
Employers need to file a compliance report by 15 January of the following year to confirm
payment has been made.
Service incentive leave
Sick leave
Married male workers can have seven days of paternity leave for the
first four pregnancies of their wives. Male workers can apply for paternal
leave only when they are living with their spouse at the time of delivery
or miscarriage. They need to apply for leave within a reasonable period.
Retirement benefit
Workers who have paid their contribution for less than 10 years
get a lump sum equal to the contribution made by them and
their employers, including interest earned.
STANDARD LABOR OF THE PHILIPPINES
The Labor Code of the Philippines is a legal code that determines all employment
practices and labor relations in the Philippines. This is to help protect employees
and employers- while ensuring that neither is subject to unfair treatment or
exploitation. No employee in the Philippines must work for over 8 hours a day.
The Labor Code of the Philippines ensures that no worker is abused while giving
authority to employers to assign overtime work or work on holidays as long as they
pay the wages stated by the law. To learn more about labor and compliance in the
Philippines.
1. Regular Employment
● Regular or Permanent Employment is when an employee performs activities
that are necessary or desirable to the business of the employer.
● Regular employees enjoy the benefit of tenure and cannot be terminated for
causes other than those provided by law and only after due process.
2. Casual Employment
● Casual Employment is when an employee performs work that is usually not
necessary or primarily related to the employer's business. The period of
employment must be made clear to the employee at the time they started
rendering service.
● However, employees that have rendered service for at least one (1) year in
the same company, whether continuous or not, shall be considered regular
employees with respect to the activities they perform.
3. Fixed-Term Employment
● Term or Fixed-Term Employment is a type of employment that is not
determined by the activities that employees are required to perform but by
the commencement and termination of the employment contract.
4. Project Employment
● Project Employment is when an employee is hired for a specific project and
the duration of employment is defined by the scope of work and/or length
of the project.
● A project employee can acquire the status of a permanent employee if they
are continuously rehired to undertake other projects.
5. Seasonal Employment
● Seasonal Employment is defined when an employment contract is only for
a certain time or season of the year. This is common practice in service
industries, such as Retail, Food and Beverage, and Hospitality to increase
manpower and cover labor demand during peak seasons.
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