Labor

Standards
Coverage:

EMPLOYEEs in all establishments are

covered by the law on labor standards
Excluded from the Coverage of
Labor Code: (GF-MOM-WPD)
1. Government employees
2. Field Personnel
3. Managerial Employee
4. Officers and members of the managerial
staff
5. Members of the Family of the employer
who are dependent on him for support
6. Workers paid by result
7. Persons in the Personal Service of
Another
8. Domestic Helpers
Government Employees

• Governed by the Civil Service Law

• GOCC’s with original charter- governed
by the legislated charters
• GOCC’s with no original charter-LABOR
CODE
Field Personnels

1. Regularly perform their duties away

from the principal place of business or
branch of the employer; AND
2. Whose actual hours of work in the field
cannot be determined with reasonable
certainty
Field Personnels

They are exempted from coverage

due to the nature of their functions which
requires performance of service away from
the principal business.
Managerial Employees

One who is vested with powers or

prerogatives to lay down or execute
management policies and or to hire, transfer,
suspend, lay off, recall, discharge, assign or
discipline employees or to effectively
recommend such managerial actions.
Employees who do not fall under this
definition are considered rank and file ees.
Officers or Members of the
Managerial Staff
1. Their primary duty consists of the performance of work directly
related to management policies of their employers
2. They customarily and regularly exercise discretion and
independent judgment
3. They regularly and directly assist a proprietor or a managerial ee
whose primary duty consists of the management of the
establishment in which he is employed or subdivision thereof; or
execute under general supervision work along specialized or
technical lines requiring special training, experience, or
knowledge; or execute under general supervision, special
assignments and tasks; and
4. They do not devote more than 20% of their hours worked in a
work week to activities which are not directly and closely
related to the performance of the work described above
Members of the Family

Exempted due to the support given

by the employer which may exceed the
benefit of which an employee is entitled
Workers paid by Result
Payment of this type of worker is determined
by the results of the work performed or the number
of units produced, not the number of hours used in
the completion of the job or the time spent in
production.
An employee who is engaged on a task or
contract basis, or those paid by result, is not
automatically excluded by that fact alone. To be
excluded, the ee must also fall under the
classification of a field personnel.
Domestic Servants/ Persons in
the Personal Service of Another
They are those who:
1. Perform such services in the employer’s
home which are usually necessary or
desirable for the maintenance and
enjoyment thereof; or
2. Minister to the personal comfort,
convenience, or safety of the er as well
as the members or the er’s household
Domestic Servants/ Persons in
the Personal Service of Another

Covered under the Kasambahay

Law (RA 10361)
NORMAL
HOURS
OF WORK
Normal Hours: shall not
exceed 8 hours
How to determine Hours work?
• Compensable Hours worked
I. All the time during which an
employee is required to be on duty or
to be at the employer’s premises or to
be at the prescribed workplace; AND
II. All the time during which an
employee is suffered or permitted to
work
Principles
• All hours worked which the ee is
required to give to his er, regardless of
whether or not such hours are spent in
productive labor or involve physical or
mental exertion
• An employee need not leave the
premises of the workplace in order that
his rest period shall not be counted, it
being enough that he stops working, rests
completely and leaves his workplace to
go elsewhere, whether within or outside
the premises of his workplace
• If the work performed was necessary or it
benefited the er or the ee could not abandon
his work at the end of his normal working
hours because he had no replacement, all
the time spent for such work shall be
considered as hours worked if the work was
with the knowledge of his employer or
immediate supervisor;
• The time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be considered
working time either if the imminence of the
resumption of work requires the employee’s
presence at the place of work or if the
interval is too brief to be utilized effectively
and gainfully in the ee’s own interest
Reduction of 8-Hour Working period by
the Er
The employer, in the lawful
exercise of its prerogative, is not
prohibited from reducing the eight-
hour normal working time per day
provided that no corresponding
reduction is made on the
employee’s wage to an eight hour
workday
Broken Hours
Minimum normal 8 working
hours fixed by law need not be
continuous to constitute the legal
working day. It may mean broken hours
of 4 hrs in the morning and 4 hrs in the
afternoon or variation thereof provided
that the total number of 8 hours is
accomplished in a day.
Work Day

is the 24-hour period which

commences form the time the employee
regularly starts to work.
Part Time

It is not prohibited to have normal hours

of work of less than 8 hrs a day. What
the law regulates is work exceeding 8
hrs.
 Is a scheme where the normal workweek is reduced
to less than 6 days but the total number of work hours of 48
COMPRES hours per week shall remain.
SED WORK The normal work day is increased to more than 8
hours but SHOULD NOT exceed 12 hours, without
WEEK corresponding overtime premium. The concept can be
adjusted accordingly depending on the normal work week
of the company.
 The validity if the reduction of working
hours can be upheld when the arrangement is:
1. Temporary
Valid 2. It is a more humane solution instead of a
retrenchment of personnel
Compressed 3. There is notice and consultations with the
Work Week workers and supervisors
4. A consensus is reached on how to deal
with deteriorating economic conditions;
and
5. It is sufficiently proven that the company
as suffering from losses
Rules on Hours Worked
Waiting time
Shall be considered working time if:
1. Waiting time is an integral part of this
work;
2. The employee is required or engaged by
the employer to wait; or
3. When employee is required to remain on
call in the employer’s premises or so close
thereto that he cannot use the time
effectively and gainfully for his own
purpose
Waiting time
In order to determine if waiting time
is compensable or not:
The amount of control the
employer has over the employee
during the waiting time, and whether
the ee can effectively use the time for
his own purposes is material.
Travel Time
Travel from Home to Work:
GR: Normal Travel from home to work is NOT
working time
Expns:
• Emergency call outside his regular working
hours where he is required to travel to his regular
place of business or some other worksite
• Done through a conveyance provided by the Er
• Done under the supervision and control of the Er
• Done under vexing and dangerous circumstances
Travel Time

Travel that is all in a day’s work:

Time in travel as part of the ee’s

principal activity: WORKING TIME
Travel Time
Travel away from Home:

GR:
1. Travel that requires an overnight stay on the part of
the Ee when it cuts across the Ees workday is clearly
working time.
2. The time is not only hours worked on regular
workdays but also during corresponding working
hours on non-working days. Outside of these regular
working hours, travel away from home is not
considered working time.
XPN: During meal period or when Ee is permitted
to sleep in adequate facilities furnished by the Er.
Sleeping Time
Compensable: If sleeping time is subject
to serious interruption or takes place under
conditions substantially less desirable than
would be likely to exist at the employer’s
home

Not Compensable: IF there is an

opportunity to comparatively uninterrupted
sleep under fair and desirable conditions.
Meal Period

Duration: Er shall give his Ees not

less than 60 mins of meal period
Not Compensable: For a full one hr
of undisturbed lunch break, the ee’s
can effectively use this hour not only
for eating, but also for their rest and
comfort.
Meal Period

Compensable:
1. Is predominantly spent for the Er’s
benefit or
2. When it is less than 60 mins
OVERTIME WORK
Definition

Is the service rendered in excess of

and in addition to the 8 hrs of ordinary
working days
GR: An ee may not be compelled
to work more than 8 hrs a day
XPN: Compulsory Overtime
1. When the country is at war or when any other national or local
emergency has been declared by Congress or the Chief
Executive;
2. When overtime work is necessary to prevent loss of life or
property, or in case of imminent danger to public safety due to
actual or pending emergency in the locality caused by serious
accident, fire, floods, typhoons, earthquakes, epidemic, or other
disaster or calamities
3. 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
GR: An ee may not be compelled
to work more than 8 hrs a day
XPN: Compulsory Overtime
4. When the work is necessary to prevent loss or
damage to perishable goods;
5. When the completion or continuation of work started
before the 8th hour is necessary to prevent serious
obstruction or prejudice to the business or operations
of the employer; or
6. When the overtime work is necessary to avail of
favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
GR: An ee may not be compelled
to work more than 8 hrs a day

in cases not falling within any of the

exceptions, NO EMPLOYEES may be made to work
beyond eight hours a day against his will
Overtime pay vs Premium Pay
OVERTIMEPAY
Additional Compensation
for work performed beyond 8 hrs
on ordinary days (within the
worker’s 24 hour workday)
PREMIUM PAY
Additional Compensation
for work performed within 8 hours
a day when normally he should not
be working (on non-working days,
such as rest days and special
days). But additional
compensation for work rendered in
excess of 8 hours during these
days is also considered overtime
pay
Overtime Pay
• For overtime work on an ordinary day: 125% (Basic
+ 25% OP)

If during Holiday or Rest day: Rate of the first 8

hrs plus 30% of the RW:
• For overtime work on rest day or special day: 130%
+ 30%
• For overtime on a rest day that falls on a special day
(Rest day and Special Holiday): 150% + 30%
• If done during a Regular Holiday: 200% + 30%
Exercise:
Lady, a rank and file employee, is receiving
a monthly compensation of Php 20,000.00. Under
the terms and conditions of her work, she ought to
work 5 days a week. In February 2023, she was
working overtime in February 24 for 3 hours, and
on February 27 for 2 hours. How much is her
monthly compensation for the month of
February?
 Exercise:
Basic Daily Wage: Php 20,000/ (5 days * 4 Php 1,000 per day
weeks)
February 24 (Special Working Holiday) Daily Wage for Feb 24: Php1,933.75
[1,000*130%= 1,300 8 hr basic wage
1,300/8= 162.50
162.50 per hour*3*130%= Php 633.75 OT
Pay]
OT 633.75
PP 300.00
February 27 (Regular Working day) Daily wage for Feb. 27: Php 1,312.50
[1,000/8 hrs= 125 per hr
125*2*125%= 312.5 OT Pay]
Wage for the Month of February:
Monthly Wage: 20,000
PHP 21,246.25
Feb 24 (OT and Premium): 933.75
Feb 27 (OT): 312.50
Exercise:

Lady, a rank and file employee, is receiving

a monthly compensation of Php 20,000.00. Under
the terms and conditions of her work, she ought to
work 5 days a week. In December 2022, she was
asked to work overtime for 2 hrs in December 8,
and on December 25 she was asked by the
employer to submit the financial statements
within the day, she finished her work at 8:00 pm.
How much did Lady earn in December 2022?
 Exercise:
Basic Daily Wage: Php 20,000/ (5 days * 4 Php 1,000 per day
weeks)
February 8 (Special Working Holiday) Daily Wage for Dec. 8: Php1,722.50
[1,000*130%= 1,300 8 hr basic wage
1,300/8= 162.50
162.50 per hour*2*130%= Php 422.50 OT
Pay]
December 25(Regular Holiday and Rest Day) Daily wage for Dec.25: Php 3,867.50
[1,000 *200%*130%= 2,600.00
325/hr * 3* 130%= 1,267.50]
Wage for the Month of December:
Monthly Wage: 20,000
PHP 23,590.00
December 8(OT and Premium): 722.50
December 25(OT and Premium): 2,867.50
Basis of Computation

Regular wage which includes the cash wage

only, without deduction on account of the facilities
provided by the Er. (LC, Art. 90)
Waiver of Overtime Pay
GR: The right to overtime pay cannot be waived. The
right is intended for the benefit of the laborers and
employees. Any stipulation in the contract that the
labourer shall work beyond eight hours without additional
compensation for the extra hours is contrary to law and
null and void.

XPNs:
1. When the alleged waiver of overtime pay is in consideration
of benefits and privileges which may be more than what
will accrue to them in overtime pay, the waiver may be
permitted. (Azucena, Vol. 1, 2016, p. 262)
2. Compressed workweek (CWW) arrangement.
Waiver of Overtime Pay
GR: The right to overtime pay cannot be waived. The
right is intended for the benefit of the laborers and
employees. Any stipulation in the contract that the
labourer shall work beyond eight hours without additional
compensation for the extra hours is contrary to law and
null and void.

XPNs:
1. When the alleged waiver of overtime pay is in consideration
of benefits and privileges which may be more than what
will accrue to them in overtime pay, the waiver may be
permitted. (Azucena, Vol. 1, 2016, p. 262)
2. Compressed workweek (CWW) arrangement.
Waiver of Overtime Pay
Q: Danilo Flores applied for the position of driver in the
motor-pool of Gold Company, a multinational corporation.
Danilo was informed that he would frequently be working
overtime as he would have to drive for the company’s
executives even beyond the ordinary 8-hour work day. He
was provided with a contract of employment wherein he
would be paid a monthly rate equivalent to 35 times his
daily wage, regular sick and vacation leaves, 5 day-leave
with pay every month and time off with pay when the
company’s executives using the cars do not need Danilo’s
service for more than eight hours a day, in lieu of overtime.
Are the above provisions of the contract of employment in
conformity with, or violative of, the law?
Waiver of Overtime Pay
A: Except for the provision that Danilo shall have
time off with pay when the company’s executives
using the cars do not need Danilo’s service for
more than 8 hours a day, in lieu of OT, the
provisions of the contract of employment of
Danilo are not violative of any labor law because
they instead improve upon the present provisions
of pertinent labor laws.?
Undertime not offset by
Overtime

Where a worker incurs undertime hours

during his regular daily work, said undertime
hours should not be offset against the overtime
hours on the same day or on any other day.
Offsetting is prohibited by jurisprudence and
statute.
 NIGHT SHIFT
DIFFERENTIAL
Concept

Every employee shall be

paid a night shift
differential of not less than
ten percent (10%) of his
regular wage for each hour
of work performed
between 10:00 P.M. and
6:00 A.M.
Waiver

GR: Waiver of Night Shift

Differential is against
public policy.

XPN: Waiver is allowed if

it will result in higher or
better benefits to Ees.
Night Differential in
Overtime
If work is done
between 10PM and 6AM
is overtime work, then the
10% NSD should be
based on the overtime
rate.
REST
PERIODS
Right to weekly rest
day

Every Employer shall give

his employees a rest period of not
less than 24 consecutive hours after
every 6 consecutive normal work-
days
Not Necessarily
Sunday or Holiday

All establishments and

enterprises may operate or open for
business on Sundays and holidays
provided that the employees are
given the weekly rest day and the
benefits provided under the law
Who determines
Weekly Rest Day?
GR: the EMPLOYER shall determine and
schedule the WRD of his employee
XPN:
1. CBA
2. Preference of Employee based on religious
grounds
XPN to XPN (2) Employer may schedule the
weekly rest day of his choice for at least 2 days in
a month if the preference of the employee will
inevitably result in:
• Serious prejudice to the operations of the
undertaking; and
• The Er cannot normally be expected to resort to
Note:
Er shall make known the rest period by
means of:
1. Written notice
2. Posted conspicuously in the
workplace
3. At least 1 week before it becomes
effective
 Emergency Rest
Day Work
• GR: The Ee cannot be compelled by the Er
to work on his rest day.
• XPNs:
1. In case of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or
calamity to prevent loss of life and propert, or
imminent danger to public safety;
2. In cases of urgent work to be performend on
the machinery, equipment, or installation, to
avoid serious loss which the employer would
otherwise suffer;
3. In the event of abnormal pressure of work due
to special circumstances, where the employer
cannot ordinarily be expected to resort to other
measures;
PREMIUM PAY
Premium Pay

It is the additional compensation for

work rendered by the Ee on days when
normally he should not be working such as
special holidays and Weekly Rest days.

Refers to the regular wage combined

with the additional compensation of 30%
under Art. 93 and 100% under Art. 94
 Rates of Compensation for
Rest Day or Holiday Work
RATES OF ADDITIONAL
INSTANCES
COMPENSATION
Work on a scheduled rest day +30% premium pay of 100% RW
Work performed on Sundays and
Holidays by an Ee who has no regular +30% premium pay of 100% RW
workdays and restdays
Work on a Sunday (if Ee’s scheduled
+30% premium pay of 100% RW
rest day)
1st 8 hrs: +30% of 100% RW
Work performed on any Special
Excess of 8hrs: +30% of hourly rate
Holiday
on said date
1st 8 hrs: +50% PP of the 100% RW
Work performed on a Special Holiday
Excess of 8hrs: +30% on hourly rate
and same day is rest day (scheduled)
on said date
Ee is only entitled to his basic rate. No
Illustration
Q: Jose applied with Mercury Drug Company for
the position of Sales Clerk. Mercury Drug
Company maintains a chain of drug stores that are
open every day till late at night. Jose was informed
that he had to work on Sundays and holidays at
night as part of the regular course of employment.
He was presented with a contract of employment
setting forth his compensation on an annual basis
with an express waiver of extra compensation for
work on Sundays and holidays, which Jose signed.
Is such a waiver binding on Jose? Explain.
A: NO. The waiver is not binding on Jose.
Rights may be waived, unless the waiver is
contrary to law, public order, public policy,
morals and customs. The waiver in this case
is void.
HOLIDAY PAY
HOLIDAY PAY
Holiday Pay is a one-day pay given by
law to an employee even if he does not work on
a regular holiday.

Purpose:
To secure the payment of undiminished monthly
income undisturbed by any work interruption.
In other words, although the worker is forced to
take a rest, he earns what he should earn, that is,
his holiday pay.
Persons entitled to Holiday
Pay
GR: All Ees are entitled. (Sec. 1, Rule IV, Book III, IRR)
XPNs: Persons not Entitled to Holiday Pay
1. Government Ees and any of its political subdivisions, including
GOCCs (with original charter);
2. Retail and service establishments regularly employing less than
10 workers;
3. Domestic helpers and persons in the personal service of another;
4. Ee engaged on task or contract basis or purely commission basis;
5. Members of the Family of the Er who are dependent on him for
support;
6. Managerial Ee and other members of the managerial staff
7. Field personnel and other Ee whose time and performance are
unsupervised by the Er; and
8. Ee paid fixed amount for performing work irrespective of the
time consumed in the performance thereof.
Exemption of Retail/Service
Establishments
Minimum Wage Holiday Pay/SIL
Applies to Applies to
establishments establishments
employing not more employing less than ten
than ten employees (1- employees (1-9
10 employees). employees).
Has to be obtained by Granted by the LC. May
applying for it with the be availed without the
Regional Wage Board. need of a prior
application for
exemption.
 Regular Holidays (RH)

• GR: They are compensable whether

worked or unworked subject to certain
conditions. They are also called legal
holidays.
• XPN: A legal holiday falling on a
Sunday creates no legal obligation for
the employer to pay extra, aside from
the usual holiday pay, to its monthly-
paid employees.
 REGULAR HOLIDAYS DATE
New Year’s Day January 1
Araw ng Kagitingan Monday nearest April 9
Maundy Thursday Movable Date
Good Friday Movable Date
Labor Day May 1
Independence Day June 12
National Heroes Day Last Monday of August
Eidl Fitr Movable date
Eidl Adha Movable date
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
SPECIAL (NON-WORKING
HOLIDAYS) SPECIAL (NON-
WORKING) HOLIDAY

Ninoy Aquino Day August 21

All Saints Day November 1
Feast of Immaculate December 8
Conception of Mary (RA
10966)
Last day of the year December 31
Other holidays declared by
law and ordinance
Regular Holiday vs. Special
Holiday
REGULAR SPECIAL
HOLIDAY HOLIDAY
If Compensable , Not
unworked compensable
subject to
certain
conditions
If worked Rate is 200% of Additional
the regular rate 30% premium
pay of 100%
RW
Limited to the Not exclusive;
12 holidays law or
provided in the ordinance may
 Formula to Compute Wage on
Holidays (M.C., No. 10, Series of 2004)

1. Regular Holiday
a. If it is employee’s regular workday
i. Unworked - 100%
ii. Worked
i. 1ST 8 hours -200%
ii. Excess of 8 hours - 200%, plus 30% of
hourly rate on said day.
b. If it is employee’s rest day
a. Unworked – 100%
b. Worked
a. 1st 8 hours – 200%, plus 30% of 200%
b. Excess of 8 hours – 230%, plus 30% of
hourly rate on said day.
 Formula to Compute Wage on
Holidays (M.C., No. 10, Series of 2004)
2. For declared Special Holidays such as Special
Non-Working Day, Special Public
Holiday,Special National Holiday in addition to
the 3 nationwide special non-working days:
a. If it is employee’s regular workday
• Unworked – no pay unless there is a
favorable company policy, practice or CBA
granting payment of wages on special days
even if unworked.
• Worked
• 1ST 8 hours – plus 30% of daily wage
rate of 100%
 Formula to Compute Wage on
Holidays (M.C., No. 10, Series of 2004)
b. If it is employee’s rest day and worked
i. 1st 8 hours – 150%
ii. Excess of 8 hours – Hourly rate of the basic
daily wage x 150% x 130% x no. hours worked.
3. For those declared as special working
holidays, the following rules shall apply:
a. For work performed, an employee is
entitled to his basic rate.
b. No premium pay is required since work
performed on said days is considered work
on ordinary working days.
 Holiday Pay for Certain
Employees
Private School Teachers (Faculty Members of
Colleges and Universities)
1. RH during semestral vacations - not entitled
to holiday pay.
2. RH during Christmas vacation -entitled to
holiday pay.
 Holiday Pay for Certain
Employees
Private School Teachers (Faculty Members of
Colleges and Universities)
1. RH during semestral vacations - not entitled
to holiday pay.
2. RH during Christmas vacation -entitled to
holiday pay.
Holiday Pay for Certain
Employees
Hourly-Paid Teachers
1. No pay on regular holidays including
Christmas and semestral vacations; but,
2. With pay on special public holidays and
other no-class days when classes are called
off or shortened on account of floods,
typhoons, rallies and the like. (Jose Rizal
College v. NLRC, G.R. No. 65482, Dec.1,
1987)
Whether extension days be ordered or not. In
Holiday Pay for Certain
Employees
Part- Time Worker
If the work is partial, the pay should also be
partial.
The amount of holiday pay of a part-timer is to
be determined on a case-to-case basis. The basis
is any of the following, whichever yields the
highest amount:
1. The regular wage per day;
2. The basic wage on the working day preceding the
regular holiday if the employee is present on leave
with pay on the last working day immediately prior to
the regular holiday;
Holiday Pay for Certain
Employees
Q. Are the school faculty who according to
their contracts are paid per lecture hour
entitled to unworked holiday pay?
Holiday Pay for Certain
Employees
1. If during RH – NO. Art 94 of the L.C. is silent with
respect to faculty members paid by the hour who
because of their teaching contracts are obliged to work
and consent to be paid only for work actually done
(except when an emergency or a fortuitous event or a
national need calls for the declaration of special
holidays).
2. If during special public holidays – YES. The law and
the IRR governing holiday pay are silent as to payment
on Special Public Holidays. Be it noted that when a
special public holiday is declared, the faculty member
paid by the hour is deprived of expected income, and it
Rule when Two Regular Holidays Fall
on the Same Day (Double Holiday Pay)

If two regular holidays fall on the same

day (such as Maundy Thursday or Good Friday
falling on Araw ng Kagitingan [April 9], the
employees should be paid 400% of the basic wage
for both holidays provided he worked on that day
or was on leave of absence with pay or was on
authorized absence on the day prior to the regular
holiday.
Double Holiday Pay
MAUNDAY

WED THURSDAY & RATE

ARAW NG
KAGITINGAN
Present Unworked 200%
LOA w/pay Unworked 200%
LOA w/pay Worked 300%

(at least)
Authorized Worked 300%
absence (at least)
Worked and day is 390% (+ 30%
Concept of Successive
Regular Holidays
WED MAUNDY GOOD ENTITLED
THURS FRIDAY TO HOLIDAY
PAY
Worked RH RH Yes, Both
LOA w/pay RH RH Yes, Both
LOA w/o RH RH No, Both
pay
LOA w/o Worked RH Yes, Only to
pay holiday pay
on Friday.
Effects of absences on holiday
pay; successive regular holiday
1. All covered employees shall be entitled to holiday
pay when they are on leave of absence with pay on
the workday immediately preceding a regular
holiday. Employees who are on leave of absence
without pay on the day immediately preceding a
regular holiday may not be paid the required
holiday pay if they do not work on such regular
holiday.
2. Employers shall grant the same percentage of the
holiday pay as the benefit granted by competent
authority in the form of employee’s compensation
or social security payment, whichever is higher, if
Effects of absences on holiday
pay; successive regular holiday
3. Where the day immediately preceding the holiday
is a non-work day in the establishment or the
scheduled rest day of the employee, he/she shall
not be deemed to be on leave of absence on that
day, in which case he/she shall be entitled to the
holiday pay if he/she worked on the day
immediately preceding the non-work day or rest
day.
4. Where there are two (2) successive regular
holidays, like Maunday Thursday and Good
Friday, an employee may not be paid for both
holidays if he/she absents himself/herself from
13
TH
MONTH PAY
P.D. 851
CONCEPT
It is a form of monetary benefit
equivalent to the monthly basic compensation
received by an employee, computed pro-rata
according to the number of months within a
year that the employee has rendered service to
the employer.
Basic Salary
Includes all remunerations or earnings paid by the
employer to an employee for services rendered including
cost-of-living allowances.
It does not include all allowances and monetary
benefits which are not considered or integrated as part of
the regular or basic salary such as:
1. Cash equivalent of unused vacation and sick leave credits;
2. Overtime pay;
3. Premium pay;
4. Night Shift Differential;
5. Holiday pay; and
6. Commissions
XPN: If it is an integral part of the basic salary.
Time of Payment
all employers are required to pay all
their rank-and-file employees, a 13th month
pay not later than Dec. 24 every year.
Minimum Period of
Service Required
It is imposed as a ‘minimum service
requirement’ that the employee should have
worked for at least one (1) month during a
calendar year.
Persons covered by PD
851
1. EMPLOYEE
GR: All rank-and-file Ees are covered by PD 851
regardless of the amount of basic salary that they
receive in a month, if their Ers are not otherwise
exempted from paying the 13th month pay. Such Ees
are entitled to the 13th month pay regardless of said
designation of employment status, and irrespective of
the method by which their wages are paid.
XPN:
a. Government Ees;
b. Ees paid purely on commission basis;
c. Ees already receiving 13th month pay;
d. Managers; and
e. Seafarers
Persons covered by PD
851
2. EMPLOYER
GR: All Ers are covered by PD 581.
XPN:
1. The Government and any of its political
subdivisions, including GOCCs;
2. Ers already paying their Ees 13th month pay or
more in a calendar year in its equivalent at the
time of the issuance of the Revised Guidelines;
3. Ers of those who are paid on purely basis of:
Commission; Boundary; or Task, and Fixed
amount for performing a specific work irrespective
of the time consumed in the performance thereof
4. Distressed EMployers
Equivalent forms of 13th
Month Pay
1. Christmas Bonus
2. Midyear Bonus
3. Profit Sharing Scheme
4. Other Cash bonuses amounting to less than
1/12 of its basic salary
Things Not Proper Substitute
for 13th Month Pay

1. Free Rice
2. Electricity
3. Cash and Stock dividends; and
4. Cost-of-Living allowance
LEAVES
SERVICE INCENTIVE
LEAVE
CONCEPT

It is a Five (5)-day leave with pay

for every ee who has rendered at least 1
year of service whether continuous or
brokem.
RIGHT TO SERVICE
INCENTIVE LEAVE

GR: Eever ee who has rendered at least 1

year of service shall be entitled to a yearly
SIL of 5 days with pay.
RIGHT TO SERVICE
INCENTIVE LEAVE
XPN:
1. Government Ees
2. Domestic Helpers and persons in the personal service of
another
3. Managerial Ee’s if they meet all the following conditions:
a. Their primary duty is to manage the establishment in which
they are employed or of a department or subdivision thereof
b. They customarily and regularly direct the work of two or more
Ees therein; and
c. They have the authority to hire or fire other ees of lower rank,
or their suggestion or recommendation as to hiring, firing etc
RIGHT TO SERVICE
INCENTIVE LEAVE

4. Field Personnel and those whose time and

performance is unsupervised by the Er
5. Those who are already enjoying the benefit
6. Those employed in establishments regularly
employing less than 10 Ee’s.
Entitlement of Terminated
Ees to SIL

1. Illegally Dismissed ees- entitled to SIL until

actual reinstatement.
2. Legally Dismissed ees- the Ee who had not
been paid SIL from the outset of employment
is entitled only to such pay after a year from
commencement of service until termination of
employment or contract.
Commutability of SIL to
monetary equivalent

It is commutable if not used or exhausted at

the end of the year. It is aimed primarily in
encouraging workers to work continuously and
with dedication to the company.

XPN: RA 10361 grants SIL to domestic workers.

Their SIL need not be converted to cash or carried
over to succeeding years
Prescription of SIL

3 years from when the Er refuses to pay its

monetary equivalent after demand of
commutation or upon termination of the Ee’s
services, as the case may be.
MATERNITY
LEAVE

Sec 14-A of RA 8282

Coverage

Applies to all female Employees, whether

married or unmarried.

who has paid at least three (3) monthly

contributions in the twelve (12) month period
immediately preceding the semester of her
childbirth or miscarriage is entitled to 100% of
her basic salary, allowances and other benefits or
the cash equivalent of such benefits for 60 days
or 78 days in case of caesarian delivery.
105 day Expanded Maternity
Leave Law (RA 11210)

Who are covered: all qualified female workers in

the
1. Public Sector
2. Private Sector
3. Informal economy
4. Voluntary contributors to the SSS
5. National Athletes
Benefits under the Expanded
Maternity Leave Law (RA 11210)

1. Paid leave benefit granted to a qualified

female worker in the public sector, for the
duration of:
• 105 days for live childbirth, regardless of the mode
of delivery, and an additional 15 days paid leave if
the female worker qualifies as a solo parent under
RA8972
• 60 days paid leave for miscarriage and emergency
termination of pregnancy
Benefits under the Expanded
Maternity Leave Law (RA 11210)
2. Paid leave benefit granted to a qualified female
worker in the private sector covered by the SSS,
including those in the informal economy, for the
duration of
• Same as those provided under 1
• Employed female workers shall receive full pay
which consists of:
a. SSS maternity benefit computed based n their average
monthly salary credit; and
b. Salary differential to be paid by the employer, if any
Benefits under the Expanded
Maternity Leave Law (RA 11210)
3. An “option” to extend for an additional 30
days without pay in case of live childbirth,
provided that:
a. The employer shall be given due notice;
b. The same must be in writing;
c. It must be given at least 45 days before the end of
the female worker’s maternity leave;
d. No prior notice is necessary in the event of a
medical emergency, a subsequent notice to the
employer shall suffice
Benefits under the Expanded
Maternity Leave Law (RA 11210)

4. Paid maternity leave, allowances and benefits

granted to female national athletes;
5. Health care services for pre-natal delivery,
postpartum and pregnancy-related conditions
granted to female workers, particularly those who
are neither voluntary nor regular members of the
SSS as governed by existing rules and regulations
of the PhilHealth
Benefits under the Expanded
Maternity Leave Law (RA 11210)

Q. Is the option of the 30-day extension

without pay available to all qualified female
workers?

A: No. The 30-day extension without pay is only

available in cases of live childbirth. Hence, if a
female worker suffers miscarriage or ETP, she is
not entitled to such extension.
Frequency of the Grant

Maternity leave shall be granted to a

qualified female worker in every instance of
pregnancy, miscarriage or ETP, regardless of
frequency.
Grant of Maternity leave Benefits
after termination of Employment

Maternity leave with full pay shall also be

granted even if the childbirth, miscarriage, or
emergency termination of pregnancy occurs not
more than fifteen (15) days after the termination
of the Ee’s service, as her right thereto has already
accrued. However, such a period is not applicable
when the employment of the pregnant woman
worker has been terminated without just cause.
Maternity Leave for female
workers in the Public Sector
Eligibility: Any pregnant female worker in the government
service, regardless of employment status and length of service

Conditions:
1. She shall give prior notice to the head of the agency of her
pregnancy and her availment of maternity leave at least
thirty (30) days in advance, whenever possible, specifying
the effective date of the leave
2. She shall use the prescribed civil service form in the filing
of the maternity leave application, supported by a medical
certificate
Manner of payment (Govt)

The female worker shall be entitled to full

pay during maternity leave which shall be paid by
the agency. She shall have the option to receive
full pay either through lump sum payment or
regular payment of salary through agency payroll.
A clearance from money, property, and work-
related accountabilities shall be secured by the
female employee
Maternity Leave for Female
Workers in the Private Sector
Conditions:
1. She must have at least three (3) monthly contributions
in the twelve-month period immediately preceding
the semester of childbirth, miscarriage or ETP
2. She shall have notified her employer of her
pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may
provide
Manner of Payment (private)

Full payment of the benefit shall be

advanced by the employer within thirty (30) days
from the filing of the maternity leave application.
The SSS shall immediately reimburse the
employer the maternity benefits advanced to the
employed female member, only to the extent of
100% of her average daily salary credit for 105
days, 120 days, or 60 days, as the case may be
Manner of Payment (private)

Average Daily Salary credit (ADSC) is the

result obtained by dividing the sum of the six (6)
highest monthly salary credits in the twelve-
month period immediately preceding the semester
of contingency by one hundred eighty
Maternity Leave for Female
workers in the Informal Economy

Condition: She must have remitted to the SSS at

least three (3) monthly contributions in the
twelve-month period immediately preceding the
semester of her childbirth, miscarriage or ETP

Manner of Payment: the SSS shall directly pay

the maternity benefit
Allocation of Maternity Leave
Credits
In case of live childbirth, a qualified female worker
entitled to maternity leave benefits may at her oprtion, allocate
up to seven (7) days of said benefits to the child’s father,
whether or not the same is married to the female worker.
In case of death, absence, or incapacity of the child’s
father, the female worker may allocate to an alternative
caregiver, who may be any of the following upon the election
of the mother taking into account the best interest of the child: The option to allocate
a. A relative within the fourth degree of consanguinity; or maternity leave credits
b. The current partner, regardless of sexual orientation or gender shall not be applicable in
identity of the female worker sharing the same household. case the female worker
suffers miscarriage or
ETP
PATERNITY LEAVE
RA NO. 8187
PATERNITY LEAVE

It refers to the benefits granted

to a married male Ee allowing him not
to report for work for 7 days but
continues to earn the compensation on
the condition that his spouse has
delivered a child or suffered a
miscarriage for purposes of enabling
him to effectively lend support to his
wife in her period of recovery and/or
in the nursing of the newly-born child
Non-Commutation of
Paternity Leave

In the event that the paternity

leave benefit is not availed of, said
leave shall not be convertible to
cash
Conditions for
Entitlement to Paternity
Leave

The male Ee is:

1. Legally married to, and is cohabitating
with the woman who delivers the baby
2. Employed at the time of delivery of his
child
3. Ee of private or public sector
4. He has notified his Er of the pregnancy
of his legitimate spouse and the
expected date of such delivery
Availment of the Paternity
Leave may be After the
Delivery

Paternity leave may be availed

after the delivery without prejudice to
an Er’s policy of allowing the Ee to
avail of the benefit before or during
the delivery, provided that the total
number of days shall be more than
seven (7) days for each covered
delivery.
PARENTAL
LEAVE/SOLO
PARENT
WELFARE ACT
RA NO. 8972
PARENTAL LEAVE
Leave benefits granted to a solo parent
to enable him/her to perform parental duties
and responsibilitis where physical absence is
required (Sec. 3(d))
Parental leave of not more than 7
working days every year shall be granted to
any solo parent Ee who has rendered service
of at least 1 year, in addition to the legally
mandated leaves, namely: SIL, the SSS sick
leave, the SSS maternity leave, and paternity
leave
Conditions of entitlement
of parental leave
1. He or she must fall among those referred to as a
solo parent
2. Must have the actual and physical custody of the
child or children
3. Must have at least rendered service of 1 year to his
or her Er whether continuous or broken
4. He or she must remain a solo parent
5. He or she must have a SOLO PARENT ID issued
by the DSWD; and
6. He must notify the Er of the availment thereof
within reasonable period of time
Persons considered a solo
parent entitled to parental
leave
1. A woman who gives birth as a result of rape and other
crimes against chastity even without a final conviction
of the offender. Provided, that the mother keeps and
raises the child;
2. Parent left solo or alone with the responsibility of
parenthood due to:
a. Death of spouse;
b. Detention or service of sentence if spouse for a criminal
conviction for at least 1 yr
c. Physical and/or mental incapacity of spouse as certified by a
public medical practitioner
d. Legal separation or de facto separation from spouse for at least
1 year as long as he/she is entrusted with the custody of the
children
e. Nullity ior annulment of amrriiage as decreed by court or by a
Persons considered a solo
parent entitled to parental
leave
3. Unmarried mother/father who has preferred to keep an
rear his or her child/children instead of: (a) having others
care for them; or (b) Given them up to a welfare institution
4. Any other parents who solely provides: (a)parental care;
and (b) support to a child or children. Provided that he/she
is a duly licensed foster parent by the DSWD or duly
appointed legal guardian by the court; and
5. Any family member who assumes the responsibility of
head of the family as a result of the: (a) death; (b)
Abandonment; (c) Disapperance or (d) prolonged absence of
the parents or solo parent