DOLE Handbook On Workers Statutory Monetary Benefits (2019 Edition)

HANDBOOK ON
WORKERS’ STATUTORY
MONETARY BENEFITS
DEPARTMENT OF LABOR AND EMPLOYMENT

BUREAU OF WORKING CONDITIONS
INTRAMUROS, MANILA
2019
The Project Team
Ma. Teresita S. Cucueco, Nicanor V. Bon, Emila T. de Guzman, Lalaine M. Famil ara,
Queen T herese D. Espinas, and other BW C staff
All Rights Reserved
T his Handbook, or any part thereof, may not be reproduced for commercial
purposes without the written permission of the Bureau of W orking Conditions,
Department of Labor and Employment.
T his Handbook is published by the

Bureau of W orking Conditions (BW C)
Depart ment of Labor and Employment (DOLE)
3 r d Floor, DOLE Bldg., Intramuros, Manila
Tel. No. 5273000 locals 30 3, 308; Telefax No. 527-3478;
email: askbwc@gmail.com; website: bwc.dole.gov.ph
Republic of the Philippines
DEPARTMENT OF L ABOR AND EMPLOYMENT
Intramuros, Manila
FOREWORD
T he Department of Labor and Employment is pleased to release the
2019 Edition of Handbook on W orkers’ Statutory Monetary Benefits
covering updates on labor standards and developments on labor
rules and regulations.
W e continue to envision this Handbook not only as a reliable tool in bringing

awareness on labor laws and regulations but also to serve as effective guide of
employees, employers, as well as students, practitioners and the general public.
T his Handbook forms part of our dynamic and further strengthened enforcement
activities under the Revised Rules in the administration and enforcement of labor
laws pursuant to the visitorial power of the Secretary of Labor and Employment. W e
commit to be steadfast in addressing violations of l abor laws while remaining strict
yet equitable. Also, we aim to educate our clients and encourage them to develop a
culture of voluntary compliance with labor laws in their respective workplaces.
In this edition, we updated the detailed illustration and sample wage computations
using the minimum wage rat es prescribed in the most recent Wage Orders. For easy
reference, we incorporated the latest summary of current regional daily minimum
wage rat es. W e also added Republic Act No. 10966 declaring December 8 (Feast of
Immaculate Concepcion of Mary) as Special Non -W orking Day. Moreover, we clarified
herein that distribution of collected Service Charges of establishments covers not
only the employees of the principal but also deployed workers of contractors and
subcontract ors pursuant to Labor Advisory No. 13, Series of 2015.
An equally important new item is the incorporation of the new minimum wage rat es
prescribed through the W age Orders issued by the Regional Tripartite Wages and
Productivity Board for domest ic workers raising the minimum wage in National Capital
Region from Php2,500.00 t o Php3,500.00; Php2,500.00 to Php4,000.00 for those
employed in chartered cities and first -class municipalities; and Php1,800.00 to
Php3,000.00 for those in other municipaliti es.
W e sincerely offer this humble work to our clients with the hope that we stay
true to our mandate of promoting full, decent and productive employment
opportunities to all Filipino workers in the country
.
SILVESTRE H. BELLO III

Secretary
CONTENTS
COMPLIANCE GUIDE 1
1. MINIMUM WAGE
A. Coverage 3
B. Minimum W age Rates 4
C. Basis 6
D. Monthly-Paid and Daily-Paid Employees 6
E. Minimum W age and Rights of Kasambahay 8
F. Effect of Reduction of W orkdays on W ages 9
G. Penalt y and Double Indemnit y for Violation of the Prescribed
Increases or Adjustments in the Wage Rates (RA 8188) 9
H. Barangay Micro Business Enterprises (BMBEs) 9
I. Minimum W age of W orkers Paid by Results 10
J. Minimum W age of Apprentices, Lea rners, & Persons with Disability 10
K. Coverage from Income Tax of Minimum Wage Earners 11
2. HOLIDAY PAY (Article 94)

A. Definition 12
B. Coverage 12
C. Regular Holidays 13
D. Absences 14
E. Successive Regular Holidays 15
F. Temporary or Periodic Shutdown/Cessation of W ork 15
G. Holiday Pay of Certain Employees 15
3. PREMIUM PAY (Articles 91 -93)

A. Definition 16
B. Coverage 16
C. Special Days 17
D. Premium Pay Rates 18
4. OVERTIME PAY (Article 87)

A. Definition 20
B. Coverage 20
C. Overtime Pay Rates 20
D. Stipulated Overtime Rates 21
5. NIGHT SHIFT DIFFERENTIAL (Article 86)
A. Definition 22
B. Coverage 22
C. Computation of Night Shift Differential 23
6. SERVICE CHARGES (Article 96)

A. Sharing 25
B. Payments 25
C. Tips 25
7. SERVICE INCENTIVE LEAVE (Article 95)

A. Coverage 26
B. Meaning of “one year of service” 27
C. Usage/Conversion to Cash 27
8. MATERNITY LEAVE (RA 1161, as amended by RA 8282)

A. Coverage 28
B. Entitlement 28
9. PATERNITY LEAVE (RA 8187)

A. Coverage 29
B. T he Paternity Leave Benefit 29
C. Conditions for Entitlement 30
D. Application for Paternit y Leave 30
E. Non-conversion to Cash 30
F. Crediting of Existing B enefits 30
10. PARENTAL LEAVE FOR SOLO PARENTS (RA 8972)

A. Coverage 31
B. Definition of Terms 32
C. T he Parental Leave Benefit 32
D. Conditions for Entitlement 32
E. Non-conversion to Cash 32
F. Crediting of Existing Leave 33
G. Termination of the Benefit 33
H. Protection Against W ork Discrimination 33
11. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN
AND THEIR CHILDREN (RA 9 262)
A. Definition 34
B. Coverage and Purpose 34
C. Requirement for Entitlement 34
D. T he Benefit 35
E. Usage of the Benefit 35
12. SPECIAL LEAVE FOR WOMEN (RA 9710)

A. Coverage 36
B. Definition of Term 36
C. Conditions for Entitlement 36
D. T he Special Leave B enefit 36
E. Usage 37
F. Nonconversion to Cash 37
13. THIRTEENTH-MONTH PAY (PD 851)

A. Coverage 38
B. Definition of Rank -and-File Employees 38
C. Minimum Amount 38
D. Formula and Computation of 13 t h Month Pay 39
E. Exempted Employers 40
F. Time of Payment of T hirteenth - Month Pay 40
G. T hirteenth-Month Pay for Certain Types of Employees 41
H. T hirteenth-Month Pay of Resigned or Separ ated Employee 41
I. Non-inclusion in Regular Wage 42
J. Coverage from Income Tax of the 13 t h Month Pay 42
14. SEPARATION PAY (Articles 2 98- 299)

A. One-Half Mont h Pay per Year of Service 43
B. One-Month Pay per Year of Service 44
C. Notice of Termination 44
D. Basis of Separation Pay 44
E. Inclusion of Regular Allowance in the Computation 44
F. Coverage from Income Tax of Separation Pay 45
15. RETIREMENT PAY (Article 302)

A. Coverage 46
B. Amount of Retirement Pay 46
C. Retirement Benefits under a Collective Bargaining Agreement/
Applicable Contract 47
D. Retirement Benefits of W orkers who are Paid by Results 47
E. Retirement Benefit of Part-time W orkers 48
F. Retirement Benefit of Underground or Surface Mine Employees under
Republic Act No. 8558 as amended by Republic Act No. 10757 48
G. Retirement Benefit of Racehorse Jockeys 48
H. Retirement Benefits of Kasambahay and Persons in the Personal
Service of Another 49
I. Other Benefits upon Retirement 49
J. Coverage from Income Tax of Retirement Pay 49
16. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION

PROGRAM (PD 626)
A. T he Employees’ Compensation Program 50
B. Coverage 50
C. T he Benefits 50
D. Kinds of Disabilit y 51
E. Filing of Claims 52
F. Obligations/Responsibilities of Employers 53
17. PHILHEALTH BENEFITS (RA 7875, as amended by RA 9241)

A. T he National Health Insurance Program 54
B. Coverage 54
C. T he Benefits 55
18. SOCIAL SECURITY BENEFITS (RA 1161, as amended by

RA 8282)
A. T he Social Securit y Program 59
B. Coverage 59
C. T he Benefits 59
19. PAG-IBIG BENEFITS (RA 9679)

A. T he Home Development Mutual Fund (HDMF) 62
B. Coverage 62
C. T he Benefits 64
D. Monthly Contribution 66
APPENDIX Directory of DOLE Regional Offices 67

Directory of DOLE -NCR Field Offices 68
T he Bureau of W orking Conditions 69
1
C OMPLIANCE G UIDE
Retail & Servi ce
Non-
Applicable Labor Establishments Reference
Agriculture/ (Page no.)
Standards Employing 1 Employing 1
Agriculture
to 5 w orkers to 9 w orkers
Minimum W age ✓ ✓ ✓ 2
Holiday pay N/ A N/ A ✓ 12
Premium pay ✓ ✓ ✓ 16
Overtime pay ✓ ✓ ✓ 20
Night shift pay N/ A ✓ ✓ 22
Service charges ✓ ✓ ✓ 25
Service incentive leave N/ A N/ A ✓ 26
Maternit y leave ✓ ✓ ✓ 28
Paternit y leave ✓ ✓ ✓ 29
Parental leave ✓ ✓ ✓ 31
Leave for VAW C ✓ ✓ ✓ 34
Special leave for women ✓ ✓ ✓ 36
13 t h mont h pay ✓ ✓ ✓ 38
Separation pay ✓ ✓ ✓ 43
Retirement pay N/ A N/ A** ✓ 46
ECC benefits* ✓ ✓ ✓ 50
PhilHealth benefits* ✓ ✓ ✓ 54
SSS benefits* ✓ ✓ ✓ 59
Pag-IBIG benefits * ✓ ✓ ✓ 62
*will be paid by the Governm ent
** em ploying not more than 10 workers
Subsidized Meals and Snacks

The employer may provide subsidize d meals and snacks to his employees
provided that the subsidy shall not be less than 30% of the fair and reasonable
value of such facilities. In such case, the employer may deduct from the wages
of the employees not more than 70% of the value of the meals and snacks
enjoyed by the employees, provided further that such deduction is with the
written authorization of the employees concerned. (Sec. 4 , Rule VII-A, Book III
of the Rules Implementing the Labor Code). For the computation of the fair and
reasonable value of the meals given, the employer may seek assistance from
concerned Regional Tripartite Wages and Productivity Board (RTW PBs).
Salary of Kasambahay who works as salesclerk

A Kasambahay who works as salesclerk should receive salary in
accordance with the prescribed minimum wage which is applicable in the retail
and service establishments, under existing Wage Orders.
2
1
M INIMUM W AGE
Republic Act No. 6727 (also known as the “Wage Rationalization Act”)
mandates the fixing of the minimum wages applica ble to different industrial
sectors, namely, non-agriculture, agriculture plantation, and non -
plantation, cottage/handicraft, and retail/service, depending on the number
of workers or capitalization or annual gross sales in some sectors.
The Rules Implementing RA 6727 define the industrial sectors as

follows:
“Agriculture” refers to farming in all its branches and, among others,

includes the cultivation and tillage of the soil, production, cultivation,
growing and harvesting of any agricultural or horticu ltural commodities,
dairying, raising of livestock or poultry, the culture of fish and other
aquatic products in farms or ponds, and any activities performed by a
farmer or on a farm as an incident to or in conjunction with such farming
operations, but does not include the manufacturing and/or processing of
sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm
products.
“Retail Establishment” is one principally engaged in the sale of goods to

end-users for personal or household use. A retail es tablishment that
regularly engages in wholesale activities loses its retail character.
“Service Establishment” is one principally engaged in the sale of

service to individuals for their own or household use and is generally
recognized as such.
The said law rationalized wage determination by establishing the

mechanism and proper standards through the creation of Regional
Tripartite Wages and Productivity Boards (RTW PBs) authorized to
determine the daily minimum wage rates in the following different regi ons
based on established criteria:
3
National Capital Region (NCR) or Metro Manila

Cordillera Administrative Region (CAR)
Region 1 - Northern Luzon or Ilocos
Region 2 - Cagayan Valley
Region 3 - Central Luzon
Region 4-A - CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon)
Region 4-B - MIMAROPA (Mindoro, Marinduque, Romblon, Palawan)
Region 5 - Bicol
Region 6 - Western Visayas
Region 7 - Central Visayas
Region 8 - Eastern Visayas
Region 9 - Western Mindanao or Zamboanga Peninsula
Region 10 - Northern Mindanao
Region 11 - Southern Mindanao or Davao
Region 12 - Central Mindanao or SOCCSKSARGEN (South
Cotabato, North Cotabato, Sultan Kudarat -
Sarangani, General Santos)
Region 13 - Caraga
Autonomous Region in Muslim Mindanao (ARMM)
The Regional Wage Orders prescribe the daily minimum wage rates
per industry per locality within the region and in some instances depending
on the number of workers and the capitalization of enterprises. The Wage
Orders likewise provide the b asis and procedure for application for
exemption from compliance therefrom. Some Wage Orders grant
allowances instead of wage increases.
A. Coverage
A.1 The wage increases prescribed under Wage Orders apply to all
private sector workers and employees receiv ing the daily minimum wage
rates or those receiving up to a certain daily wage ceiling, where
applicable, regardless of their position, designation, or status of
employment, and irrespective of the method by whic h their wages are paid,
except workers of duly registered Barangay Micro Business Enterprises
(BMBEs) with Certificate of Authority pursuant to Republic Act No. 10644.
4
A.2 Upon application with and as determined by an RTWPB, based on

documentation and other requirements in accordance with applicab le rules
and regulations issued by the National Wages and Productivity
Commission (NW PC), a company/establishment may be exempted from
compliance with a Wage Order for a period not to exceed one (1) year.
B. Minimum Wage Rates
DAILY MINIMUM WAGE (MW)

National Capital Region
As of 22 November 2018
Cities/Municipalities
Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa,
Parañaque, Pasay, Pasig, Quezon, San Juan, Taguig, Valenzuela, and
Municipalities of Navotas and Pateros
Basic
Basic Wage New Minimum
Sector/Industry Wage/Integration of
Increase Wage Rates
COL A
Non-agriculture
P 512.00 P 25.00 P537.00
Agriculture
Plantation
Non-plantation
Retail/Servi ce
Establishments
Employing 15 workers or P 475.00 P 25.00 P500.00
less
Manufacturing
Establishments
Regularly e mploying less
than 10 workers
5
Summary of Current Regional Daily Minimum Wage Rates

Non-Agriculture, Agriculture
( I n Pe so s)
( As o f No ve mb e r 2 0 1 8 )
WO No. NON- AGRICULTURE
REGION
DATE OF EFFECTIVITY AGRICULTURE Plantation Non-Plantation
NCR a W O 2 2 / No v em b e r 2 2, 2 0 1 8 ₱ 5 0 0 . 0 0 - ₱ 5 3 7. 0 0 ₱500.00 ₱500.00
CA R b W O 1 9 / A u g us t 2 0 , 2 0 1 8 300.00-320.00 300.00-320.00 300.00-320.00
I c W O 1 9 /J a n u a r y 2 5 , 2 0 1 8 2 5 6 . 0 0 - 3 1 0. 0 0 265.00 256.00
II d W O 1 9 /f o r p u b l ic a t i o n 360.00 340.00 340.00
II I e W O 2 1 / A u g us t 1 , 2 0 1 8 3 3 9 . 0 0 - 4 0 0. 0 0 3 2 4 . 0 0 - 3 7 0. 0 0 3 1 2 . 0 0 - 3 5 4. 0 0
IV - A f WO 18/April 28, 2018 3 1 7 . 0 0 – 4 0 0. 0 0 3 0 3 . 0 0 - 3 7 2. 0 0 3 0 3 . 0 0 - 3 5 6. 0 0
IV - B g W O 0 9 /f o r p u b l ic a t i o n 2 8 3 . 0 0 - 3 2 0. 0 0 2 8 3 . 0 0 - 3 2 0. 0 0 2 8 3 . 0 0 - 3 2 0. 0 0
V h W O 1 9 / S e pt e m b e r 2 1 , 2 0 1 8 2 9 5 . 0 0 - 3 0 5. 0 0 2 9 5 . 0 0 - 3 0 5. 0 0 2 9 5 . 0 0 - 3 0 5. 0 0
VI i W O 2 4 /J u l y 1 2 , 2 0 1 8 2 9 5 . 0 0 – 3 6 5. 0 0 295.00 295.00
V II j W O 2 1 / A u g us t 3 , 2 0 1 8 3 1 8 . 0 0 - 3 8 6. 0 0 3 1 3 . 0 0 - 3 6 8. 0 0 3 1 3 . 0 0 - 3 6 8. 0 0
V II I k W O 2 0 /J u n e 2 5, 2 0 1 8 305.00 275.00 275.00
IX l W O 2 0 /J u l y 3 0 , 2 0 1 8 316.00 303.00 303.00
X m W O 2 0 / No v em b e r 1, 2 0 1 8 3 4 3 . 0 0 – 3 6 5. 0 0 3 3 1 . 0 0 – 3 5 3. 0 0 3 3 1 . 0 0 – 3 5 3. 0 0
XI n W O 2 0 / A u g us t 1 6 , 2 0 1 8 370.00 365.00 365.00
X II o W O 2 0 / Ma y 1 1 , 2 0 1 8 311.00 290.00 290.00
CA RA G A p W O 1 5 / De c em b e r 0 8, 2 0 1 7 305.00 305.00 305.00
A RMM q W O 1 7 /J u n e 1 5, 2 0 1 8 280.00 270.00 270.00
C. Basis
a
G r a n t e d P 2 5 i n c r e a s e i n b a s i c p a y ; i n t e g r a t i o n o f t h e P 1 0 CO L A i n t o t h e b a s i c p a y .
b
Gr ant ed ₱20 - ₱30 i ncr ease i n basi c pay.
c
G r a n t e d ₱ 1 3 - ₱3 0 i n c r e a s e i n b a s i c p a y f o r n o n - a g r i c u l t u r e s e c t o r ; ₱ 1 3 i n c r e a s e f o r a g r i c u l t u r e .
d
G r a n t e d P 1 0 i n c r e a s e i n b a s i c p a y a n d P 1 0 CO L A
e
Gr ant ed ₱20 i ncr ease i n basi c pay; t he i ncr ease i n Aur ora shall be given i n t wo t r anches.
f
G r a n t e d ₱ 1 4 - ₱2 1 . 5 0 i n c r e a s e i n b a s i c p a y u p o n e f f e c t i v i t y ; t h e r e s h a l l b e o n e w a g e r a t e f o r a g r i c u l t u r e p e r c o v e r e d a r e a
c l a s s i f i c a t i o n t o b e g i v e n i n 2 t r a n c h e s ; a c c e l e r a t i o n o f t h e i m p l em e n t a t i o n o f t h e r e m a i n i n g t r a n c h e s ( 3 r d t o 7 t h ) p e r W O
17 to be gi ven i n 3 t r anches to concl ude i n Dec. 1, 2020; i ncr ease i n sel ect ed ar eas f r om ₱0.50 - ₱5.00 t o f ur ther sim pli fy
t he wage r at es per sect or & ar ea classi fi cati on.
g
G r a n t e d P 2 0 i n c r e a s e i n b a s i c p a y f o r e s t a b l i s h m e n t s w / 1 0 w o r k e r s & a b o v e ; & P 1 2 i n c r e a s e f o r e s t a b l i s h m e n t s w/ l e s s
t h a n 1 0 wo r k e r s .
h
G r a n t e d P 2 0 - P3 0 i n c r e a s e i n b a s i c p a y t o b e g i v e n i n t w o t r a n c h e s .
i
G r a n t e d t h e f f : ₱2 6 . 5 0 i n c r e a s e i n b a s i c p a y a n d ₱ 1 5 C O L A f o r w o r k e r s i n t h e n o n - a g r i / i n d u s t r i a l / c o m m e r c i a l em p l o y i n g
m o r e t h a n 1 0 w o r k e r s ; ₱ 1 8 . 5 0 i n c r e a s e i n b a s i c p a y & ₱ 5 CO L A f o r w o r k e r s i n n o n - a g r i / i n d u s t r i a l / c o m m er c i a l em p l o y i n g 1 0
w o r k e r s & b e l o w ; ₱ 8 . 5 0 b a s i c p a y i n c r e a s e & ₱5 C O L A f o r a g r i - p l a n t a t i o n ; & ₱ 1 8 . 5 0 b a s i c w a g e i n c r e a s e a n d ₱ 5 CO L A f o r
wor ker s i n agr i cult ur e non - pl ant at i on.
j
G r a n t e d ₱ 1 0 - ₱2 0 f o r n o n - a g r i ; ₱ 1 0 - ₱5 2 f o r a g r i c u l t u r e .
k
G r a n t e d i n c r e a s e i n b a s i c p a y f o r t h e f f : ₱ 2 0 f o r n o n - a g r i c u l t u r e ; ₱ 3 0 f o r R e t a i l / S e r v i c e E s t a b l i s h m e n t s em p l o y i n g 1 1 t o 3 0
a n d 1 0 w o r k e r s a n d b e l o w; ₱2 2 f o r c o t t a g e / h a n d i c r a f t ; ₱ 2 4 f o r n o n - s u g a r ( a g r i c u l t u r e ) a n d ₱ 3 0 f o r s u g a r f a r m ( a g r i c u l t u r e ) .
l
Gr ant ed ₱20 i ncr ease i n basi c pay.
m
Gr ant ed P27 - P35 i ncr ease i n basi c pay.
n
Gr ant ed P56 i ncr ease i n basi c pay to be gi ven i n t wo tr anches; P30 upon ef f ecti vi ty and P26 on Febr uary 16, 2019.
o
Gr ant ed ₱16 i ncr ease i n basi c pay for non - agricult ur e and ₱18 for agr i cult ur e, r et ail and ser vice .
p
G r a n t e d ₱ 1 0 C O L A u p o n e f f e c t i v i t y ; ₱ 1 0 i n c r ea s e i n b a s i c p a y o n F e b . 1 4 , 2 0 1 8 & ₱ 5 e f f e c t i v e M a y 1 , 2 0 1 8 . .
q
Gr ant ed ₱15 wage i ncr ease.
SO URCE : Nati onal W ages and Pr oducti vit y Comm i ssion
6
The basis of the minimum wage rates prescribed by law shall be the
normal working hours of eight (8) hours a day.
D. Monthly-Paid Employees and Daily-Paid Employees
Monthly-paid employees are those who are paid every day of the
month, including unworked rest days, special days, and regular holidays.
Factor 365 days in a year is used in determining the equivalent monthly
salary of monthly-paid employees.
Daily-paid employees are those who are paid on the days they
actually worked and on unworked regular holidays.
Computation of the Estimated Equivalent Monthly Rate (EEMR) of

Monthly-Paid and Daily-Paid Employees
For monthly-paid employees:
Factor 365 days in a year is used in determining the equivalent

annual and monthly salary of monthly-paid employees. To compute their
Estimated Equivalent Monthly Rate (EEMR), the procedure is as follows:
Applicable Daily Rate (ADR) x 365 = EEMR

12 months
W here 365 days/ year = 297 ordinary working days

52 rest days
12 regular holidays
_ 4 special days r
365 Total equivalent no. of days/ year
For daily-paid employees:
The following factors and formula may be used in computing the

EEMR of different groups of daily-paid employees for purposes of
entitlement to minimum wages and alli ed benefits under existing laws:
r
D e c e m b e r 8 w a s d e c l a r e d a s S p e c i a l no n - w o r k i n g d a y p e r R A 1 0 9 6 6 – F e a st o f Im m a c u l a t e C o nc e p t i o n o f M a r y
7
1. For those who are required to work everyday, including Sundays or

rest days, special days and regular holidays
Applicable Daily Rate (ADR) x 3 93.8 = EEMR

12 months
W here 393.50 days/ year = 297 ordinary working days

24 regular holidays x 200%
67.60 52 rest days x 130%
5.20 4 special days s x 130%
393.80 Total equivalent no.
days/year
2. For those who do not work and are not considered paid on Sunday s or
rest days
Applicable Daily Rate (ADR) x 313 t = EEMR

12 months

12 regular holidays
4 special days (if considered paid;
if actually worked, this is
equivalent to 5.2 days)
3. For those who do not work and are not considered paid on Saturdays
and Sundays or rest days
Applicable Daily Rate (ADR) x 261 u = EEMR

12 months

12 regular holidays
4 special days (if considered paid;
if actually worked, this is
equivalent to 5.2 days)
Without prejudice to existing company policies, practices and/or

agreements, the above formula are merely suggestions and may be used
as guides in determining the equivalent monthly minimum wage rates .
s
D e c e m b e r 8 w a s d e c l a r e d a s S p e c i a l n o n - w o r k i n g d a y p e r R A 1 0 9 6 6 – F e a st o f Im m a c u l a t e C o nc e p t i o n o f M a r y
t
F a c t o r 3 0 9 m a y b e u se d i n s t e a d o f 3 1 3 i f t h e 4 sp e c i a l d a y s a r e no t c o n s i d e r e d p a i d
u
F a c t o r 2 5 7 m a y b e u se d i n s t e a d o f 2 6 1 i f t h e 4 sp e c i a l d a y s a r e no t c o n s i d e r e d p a i d
8
E. Minimum Wage and Rights of Kasambahay

The minimum wage v of Kasambahay shall not be less than the
following:
a) Three Thousand Five Hundred Pesos (P3 ,500.00 ) a month for those
em ployed in the National Capita l R egion (NCR);
b) Two thousand fiv e pesos to Four Thousand Pesos (P2,500.00 to P4,000.00 )
a m onth for those employed in chartered cit ies and first-class municipalit ies ;
and
c) One Thousand Eight H undred Pesos to Three Thousand Pesos (P1,800.00 to
P3,000.00 ) a m onth for those em ployed in other m unicipa lit ies.
After one year from the effectivity of the Batas Kasambahay and
periodically thereafter, the Regional Tripartite Wages and Productivity
Boards (RTW PBs) shall review and if proper, determine and adjust the
minimum wage rates of Kasambahay. The RTWPBs shall conduct
consultations/hearings with stakeholders prior to the issu ance of a wage
order.
Rights and Benefits of Kasambahay:
1. Minimum wage;
2. Other mandatory benefits, su ch as the daily and weekly rest periods;
3. Service Incentive Leave;
4. 13th month pay;
5. Freedom from employers’ interference in the disposal of wages;
6. Coverage under the SSS, PhilHealth and Pag -IBIG laws;
7. Standard of treatment;
8. Board, lodging and medical attendance;
9. Right to privacy;
10. Access to outside communication;
11. Access to education and training;
12. Right to form, join, or assist labor organization;
13. Right to be provided a cop y of the employment contract ;
14. Right to certificate of employment;
15. Right to terminate the employment; and
16. Right to exercise their own religious beliefs and cultural practices.
v
C ur r e nt M i n i m um W a g e f o r K a sa m b a h a y a s o f D e c e m b e r 2 0 1 7
9
F. Effect of Reduction of Workdays on Wages
In situations where the employer has to reduce the number of regular

working days to prevent serious losses, such as when there is a
substantial slump in the demand for his/her goods or services or when
there is lack of raw materials, the employer may deduct the wages
corresponding to the days taken off from the workweek, consistent with the
principle of “no work, no pay.” This is without prejudice to an agreement or
company policy which provides otherwise.
G. Penalty and Double Indemnity for Violation of the Pr escribed

Increases or Adjustments in the Wage Rates (RA 8188)
Any person, corporation, trust, firm, partnership, association or entity

which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with R A 6727, shall be
punished by a fine of not less than Twenty-five Thousand Pesos
(P25,000.00) nor more than One Hundred Thousand Pesos ( P100,000.00)
or imprisonment of not less than two (2) years nor more than four (4)
years, or both such fine and imprisonm ent at the discretion of the court:
Provided, That any person convicted hereof shall not be entitled to the
benefits provided for under the Probation Law.
The employer concerned shall be ordered to pay an amount

equivalent to double the unpaid benefits o wing to the employees: Provided,
That payment of indemnity shall not absolve the employer from the criminal
liability imposable hereof.
If the violation is committed by a corporation, trust, firm, partnership,

association or any other entity, the penalty of imprisonment shall be
imposed upon the entity’s responsible officers, including, but not limited to,
the president, vice-president, chief executive officer, general manager,
managing director or partner.
H. Barangay Micro Business Enterprises (BMBEs )
BMBEs or business enterprises engaged in the production, processing

or manufacturing of products or commodities including agro -processing,
trading and services whose total assets, excluding the land on which the
particular business entity’s office, plant and equipment are situated, are
10
not more than Three Million Pesos (P3,000,000) shall be exempt from the
coverage of the Minimum Wage Law: Provided, that all employees shall
still be entitled to the same benefits given to regular employees such as
social security and healthcare benefits.
The DTI, through the Negosyo Center in the city or municipality level,
shall have the sole power to issue the Certificate of Authority for BMBEs to
avail of the benefits provided by R.A. No. 9178, otherwise known as the
“Barangay Micro Business Enterprises (BMBEs) Act of 2012”. w
The BMBE workers and owners shall agree on the acceptable wage
rates based on the wage advisories issued by the RTWPBs.
I. Minimum Wage of Workers Paid by Results
All workers paid by results, including homeworkers and those who

are paid on piece rate, takay, pakyaw or task basis, shall receive not less
than the prescribed minimum wage rates under the Regional Wage Orders
for normal working hours which shall not exceed eight (8) hours a day, or a
proportion thereof.
The wage rates of workers who are paid by results may be

determined through time and motion studies or consultation with
representatives of employers’ and workers’ organizations in a tripartite
called by the DOLE Secretary.
J. Minimum Wage of Apprentices, Learners, and Persons with disability
Wage of apprentices and learners shall in no case be less than

seventy-five (75%) percent of the applicable minimum wage rates.
Apprentices and learners are those who are covered by

apprenticeship and learnership agreements duly approved by the Technical
Education and Skills Development Authority (TESDA).
A qualified employee with disability shall be subject to the same terms

and conditions of employment and the same compensation, privileg es,
w
Sectio n 5 ( b) of R.A. No. 106 44.
11
benefits, fringe benefits or allowances as a qualified able -bodied person

(Sec. 1 of RA 10524 or the Magna Carta for Persons with Disability).
K. Coverage from Income Tax of Minimum Wage Earners
Effective January 1, 2018, salaried individuals earning annual

gross compensation of ₱250,000 or below per year are exempted from
paying income taxes. x
The following income of MWEs shall also be exempt from income tax:
1. Statutory Minimum Wage (SMW ) inclusive of the COLA;

2. Holiday pay;
3. Overtime pay;
4. Night shift differential pay; and
5. Hazard pay.
x
R e ve n u e R e g u l a t i o n s N o . 1 1 - 2 0 1 8 , A m e nd i n g C e r t a i n P r o v i si o n s o f R e ve n u e R e g u l a t i o n s N o . 2 - 9 8 , a s A m e nd e d , t o
Im p l e m e nt F u r t he r A m e n d m e n t s I nt r o d uc e d b y R e p u b l i c A c t N o . 1 0 9 6 3
12
2
H OLIDAY P AY
(Article 94)
A. Definition
Holiday pay refers to the payment of the regular daily wage for any
unworked regular holiday.
B. Coverage
This benefit applies to all employees except:
1. Government employees, whether employed by the N ational

Government or any of its political subdivisions, including those
employed in government-owned and/or controlled corporations with
original charters or created under special laws;
2. Those of retail and service establishments regularly employing less
than ten (10) workers;
3. Kasambahay and persons in the personal service of another;
4. Managerial employees, if they meet all of the following conditions:
4.1. Their primary duty is to manage the establishment in
which they are employed or of a department or subdivision
thereof;
4.2. They customarily and regularly direct the work of two or
more employees therein; and
4.3. They have the authority to hire or fire other employees of
lower rank; or their suggestions and recommendations as to
hiring, firing, and promotion, or any other change of status
of other employees are given particular weight.
5. Officers or members of a managerial staff, if they perform the
following duties and responsibilities:
5.1. Primarily perform work directly related to management
policies of their employer;
5.2. Customarily and regularly exercise discretion and
independent judgment;
13
5.3. (a) Regularly and directly assist a proprietor or managerial

employee in the management of the establishment or
subdivision thereof in which he or she is employed; or (b)
execute, under general supervision, work along specialized
or technical lines requiring special training, experience, or
knowledge; or (c) execute, under general supervision,
special assignments and tasks; and
5.4. Do not devote more than twenty percent (20%) of their
hours worked in a workweek to activities which are not
directly and closely related to the performance of the work
described in paragraphs 5.1, 5.2, and 5.3 above.
6. Field personnel and other employees whose time and pe rformance is
unsupervised by the employer, including those who are engaged on
task or contract basis, purely commission basis or those who are
paid a fixed amount for performing work irrespective of the time
consumed in the performance thereof.
C. Regular Holidays
Every employee covered by the Holiday Pay Rule is entitled to the

minimum wage rate (daily basic wage and COLA) . This means that the
employee is entitled to at least 100% of his/her minimum wage rate even if
he/she did not report for work, prov ided he/she is present or is on leave of
absence with pay on the work day immediately preceding the holiday.
Work performed on that day merits at least twice (200%) the daily
wage of the employee.
Illustration:
Using the NCR minimum wage of P537.00 per day for the non-
agricultural sector, effective November 22, 2018 under Wage Order No.
NCR-22.
For work within eight (8) hours:

Plus 100% of the minimum wage of 100% or a total of 200%
Sector/Industry Rate Amount
Non-agriculture P537.00 P537 x 200% = P1,074. 00
Retail/Service Establishment
P500.00 Not covered or exempted
employing less than 10 workers
14
Where the holiday falls on the scheduled rest day of the employee,
work performed on said day merits at least an additional 30% of the
employee’s regular holiday rate of 200% or a total of at least 260% (Please
see 3. Premium Pay).
When a regular holiday falls on a Sunday, the following Monday shall

not be a holiday, unless a proclamation is issued declaring it a special day.
Unless otherwise modified by law, order, or proclamation, the

following are the twelve (12) regular holidays in a year under Executive
Order No. 292, as amended by Republic Act 9 849:
New Year ’s Day January 1

Maundy T hursday Movable Date
Good Friday Movable Date
Araw ng Kagitingan Monday nearest April 9
Labor Day Monday nearest May 1
Independence Day Monday nearest June 12
National Heroes’ Day Last Monday of August
Eidl Fitr Movable Date
Eidl Adha Movable Date
Bonifacio Day Monday nearest November 30
Christ mas Day December 25
Rizal Day Monday nearest December 30
When Araw ng Kagitingan falls on the same day as Maundy Thursday

or Good Friday, a covered employee is entitled to at least two hundred
percent (200%) of his/her daily wage even if said day is unworked. W here
the employee is required to work on that day, he/she is entitled to an
additional 100% of the daily wage.
D. Absences
1. All covered employees shall be entitled to holiday pay when they are
on leave of absence with pay o n the workday immediately preceding
the 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.
15
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 the
employees are not reporting for work while on such leave benefits .
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 nonwork day or rest day.
E. Successive Regular Holidays
Where there are two (2) successive regular holidays, like Maundy
Thursday and Good Friday, an employee may not be paid for both holidays
if he/she absents himself/herself from work on the day immediately
preceding the first holiday, unless he/she works on the first holiday, in
which case he/she is entitled to his/her holiday pay on the second holiday.
F. Temporary or Periodic Shutdown/Cessatio n of Work
In cases of temporary or periodic shutdown and temporary cessation

of work of an establishment, as when a yearly inventory or when the repair
or cleaning of machineries and equipment is undertaken, the regular
holidays falling within the period shall be compensated in accordance with
the Rules Implementing the Labor Code, as amended.
G. Holiday Pay of Certain Employees
1. W here the covered employee is paid on piece-rate basis, his / her

holiday pay shall not be less than his/her average da ily earnings for the
last seven (7) actual work days preceding the regular holiday; provided,
however, that in no case shall the holiday pay be less than the
applicable statutory minimum wage rate.
2. Seasonal workers may not be paid the required holiday pay during off-
season when they are not at work.
3. Workers who do not have regular working days, such as stevedores,
shall be entitled to this benefit.
16
3
P REMIUM P AY
(Articles 91-93)
A. Definition
Premium pay refers to the additional compensation for wor k

performed within eight (8) hours on non -work days, such as rest days and
special days.
B. Coverage
1. Government employees, whether employed by the National

Government or any of its political subdivisions , including those
2.1. Their primary duty is to manage the establishme nt in which they
are employed or of a department or subdivision thereof;
2.2. They customarily and regularly direct the work of two or more
employees therein;
2.3. They have the authority to hire or fire other employees of
lower rank; or their sugge stions and recommendations as to
hiring, firing, and promotion, or any other change of status of
other employees are given particular weight.
3. Officers or members of a manage rial staff, if they perform the
3.1. Primarily perform work directly related to management policies
of their employer;
3.2. Customarily and regularly exercise discretion and
independent judgment;
execute, under general supervision, work along specialized or
17
technical lines requiring special training, experience, or

knowledge; or (c) execute, under general supervisi on, special
assignments and tasks; and
3.4. Do not devote more than twenty percent (20%) of their hours
worked in a workweek to activities which are not directly and
closely related to the performance of the work described in
paragraphs 3.1, 3.2, and 3.3 a bove.
5. Workers who are paid by results, including those who are paid on
piece rate, takay, pakyaw, or task basis, and other nontime work, if
their output rates are in accordance with the stand ards prescribed in
the regulations, or where such rates have been fixed by the Secretary
of Labor and Employment; and
6. Field personnel, if they regularly perform their duties away from the
principal or branch office or place of business of the employer and
whose actual hours of work in the field cannot be determined with
reasonable certainty.
C. Special Days
1. Special Days
Unless otherwise modified by law, order, or proclamation, the

following are the four (4) special days in a year under Executive Order No.
292, as amended by Republic Act 9 849, as further amended by Republic
Act No. 10966 y that shall be observed in the Philippines :
Ninoy Aquino Day Monday nearest August 21

All Saints Day November 1
Feast of Immaculate C onception of Mary December 8
Last Day of the Year December 31
The “no work, no pay” principle applies during special days and on
such other special days as may be proclaimed by the President or by
Congress.
Workers who are not required or permi tted to work on special days
are not entitled to any compensation. This, however, is without prejudice to
any voluntary practice or provision in the Collective Bargaining Agreement
y
D e c e m b e r 8 w a s d e c l a r e d a s S p e c i a l ( no n - w o r k i n g ) D a y p e r R A 1 0 9 6 6 o n D e c e m b e r 2 8 , 2 0 1 7 – F e a st o f Im m a c u l a t e
C o nc e p t i o n o f M a r y
18
(CBA) providing for payment of wages and other benefits for days declared
as special days even if unworked.
On the other hand, work performed on special days merits additional

compensation of at least thirty percent (30%) of the basic wage or a total
of one hundred thirty percent (130%). W here the employee works on a
special day falling on his rest day, he/she shall be entitled to an additional
compensation of at least fifty percent (50%) of his/her basic wage or a total
of one hundred fifty percent (150%).
2. Special Work Days
For work performed on a declared Special Work Da y, an employee is

entitled only to his/her daily wage . No premium pay is required since work
performed on said day is considered work on an ordinary workday.
D. Premium Pay Rates
The COLA shall not be included in the computation of premium pay.

The minimum statutory premium pay rates are as follows:
1. For work performed on rest days or on special days:

Plus 30% of the daily basic wage of 100% or a total of 130%.

Non-agriculture P537.00 P537 x 130% = P698.10
Retail/Service E stablishment P500.00 P500 x 130% = P650.00
2. For work performed on a rest day which is also a special day:

Plus 50% of the daily basic wage of 100% or a total of 150%.
Non-agriculture P537.00 P537 x 150% = P805.50
Retail/Serv ice Establishment P500.00 P500 x 150% = P750.00
19
3. For work performed on a regular holiday which is also the employee’s

rest day (not applicable to employees who are not covered by the
holiday-pay rule). Plus 30% of the regular holiday rate of 200% based
on his/her daily basic wage rate or a total of 260%.

(P537.00 x 260%) =
Non-agriculture P537.00
P1,396.20
Retail/Service Establishment Not covered by holiday pay
P500.00
employing less than 10 workers rule
20
4
O VERTIME P AY
(Article 87)
A. Definition
Overtime pay refers to the additional compensation for work

performed beyond eight (8) hours a day.
B. Coverage
Same as those covered under 3. Premium Pay.
C. Overtime Pay Rates
The COLA shall not be inclu ded in the computation of overtime pay.
The minimum overtime pay rates vary according to the day the overtime
work is performed, as follows:
1. For work in excess of eight (8) hours performed on ordinary working

days: Plus 25% of the hourly rate.

P537/8 x 125% = P67.125 x 125% x number
Non-agriculture P537.00 of hours OT w ork
Retail/Service P500/8 x 125% = P62.50 x 125% x number
P500.00 of hours OT w ork
Establishment
2. For work in excess of eight (8) hours performed on a sche duled rest
day or a special day: Plus 30% of the hourly rate on said days.
P537/8 x 130% x 130% = P67.125 x 130% x
130% x number of hours OT work
Retail/Service P500/8 x 130% x 130% = P62.50 x 130 % x
P500.00
Establishment 130% x number of hours OT work
21
3. For work in excess of eight (8) hours performed on a special day

which falls on a scheduled rest day: Plus 30% of the hourly rate on
said days.
P537/8 x 150% x 130% = P67.125 x 150% x
Retail/Service P500/8 x 150% x 130% = P62.50 x 150 % x
P500.00
Establishment 130% x number of hours OT work
4. For work in excess of eight (8) hours performed on a regular hol iday:
Plus 30% of the hourly rate on said days.
P537/8 x 200% x 130% = P67.125 x 200% x
Retail/Service
Establishment
P500.00 Not covered by the rule on holiday pay
employing less
than 10 workers
5. For work in excess of eight (8) hours performed on a regular holiday

which falls on a scheduled rest day: Plus 30% of the hourly rate on
said days.
P537/8 x 260% x 130 % = P67.125 x 260% x
Retail/Service
Establishment
P500.00 Not covered by the rule on holiday pay
employing less
than 10 workers
D. Stipulated Overtime Rates
Generally, the premium pay for work performed on rest da ys, special
days, or regular holidays is included as part of the regular rate of the
employee in the computation of overtime pay for overtime work rendered
on said days, especially if the employer pays only the minimum overtime
rates prescribed by law.
The employees and employer, however, may stipulate in their

collective agreement the payment for overtime work at rates higher than
those provided by law.
22
5
N IGHT S HIFT DIFFERENTIAL
(Article 86)
A. Definition
Night Shift Differential (NSD) refers to the a dditional compensation of

ten percent (10%) of an employee’s regular wage for each hour of work
performed between 10 p.m. and 6 a.m.
B. Coverage

2. Those of retail and service establishments regularly employing not
more than five (5) workers;
4.1. Their primary duty is to manage the establishment in which
they are employed or of a department or subdivisi on thereof;
employees therein; and
4.3. They have the authority to hire or fire other employees of lower
rank; or their suggestions and recommendations as to hiring,
firing, and promotion, or any other change of status of other
employees are given particular weight.
5.1. Primarily perform work directly related to management
policies of their employer;
5.2. Customarily and regularly exercise discretion and independent
judgment;
23

execute, under general supervision, work along specialized or
knowledge; or (c) execute, under general supervision, special
paragraphs 5.1, 5.2, and 5.3 above;
6. Field personnel and those whose time and performance are
unsupervised by the employer.
C. Computation of Night Shift Differential
The COLA shall not be included in the computation of night shift pay.
The table below may be used to guide computations:
Work on: Pay equals
Ordinary day 100% or 1

Sunday or rest day 130% or 1.3
Special day 130% or 1.3
Special day falling on rest day 150% or 1.5
Regular Holiday 200% or 2
Regular Holiday falling on rest day 260% or 2.6
Double holiday 300% or 3
Double holiday falling on rest day 390% or 3.9
Ordinary day, night shift 1 x 1.1 = 1.1 or 110%

Rest day, night shift 1.3 x 1.1 = 1.43 or 143%
Special day, night shift 1.3 x 1.1 = 1.43 or 143%
Special day, rest day, night shift 1.5 x 1.1 = 1.65 or 165%
Regular Holiday, night shift 2 x 1.1 = 2.2 or 220%
Regular Holiday, rest day, night shift 2.6 x 1.1 = 2.86 or 286%
Double holiday, night shift 3 x 1.1 = 3.3 or 330%
Double holiday, rest day,night shift 3.9 x 1.1 = 4.29 or 429%
Ordinary day, overtime (OT) 1 x 1.25 = 1.25 or 125%

Rest day, overtime 1.3 x 1.3 = 1.69 or 169%
24
Special day, overtime 1.3 x 1.3 = 1.69 or 169%

Special day, rest day, overtime 1.5 x 1.3 = 1.95 or 195%
Regular Holiday, overtime 2 x 1.3 = 2.6 or 260%
Regular Holiday, rest day, overtime 2.6 x 1.3 = 3.38 or 338%
Double holiday, overtime 3 x 1.3 = 3.9 or 390%
Double holiday, rest day, overtime 3.9 x 1.3 = 5.07 or 507%
Ordinary day, night shift, overtime 1 x 1.1 x 1.25 = 1.375 or 137.5%

Rest day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 or 185.9%
Special day, night shift, overtime 1.3 x 1.1 x 1.3 = 1.859 or 185.9%
Special day, rest day, night shift, OT 1.5 x 1.1 x 1.3 = 2.145 or 214.5%
Regular Holiday, night shift, OT 2 x 1.1 x 1.3 = 2.86 or 286%
Reg. Holiday, rest day, night shift, OT 2.6 x 1.1 x 1.3 = 3.718 or 371.8%
Double holiday, night shift, OT 3 x 1.1 x 1.3 = 4.29 or 429%
Double holiday, rest day, night shift, OT 3.9 x 1.1 x 1.3 = 5.577 or 557.7%
The minimum night shift pay rates vary acco rding to the day the night
shift work is performed.

P537/8 x *110% = ₱67.125 x
110% x number of hours w ork
Retail/Service Establishment P500/8 x *110% = ₱62.50 x
P500.00
employing 15 workers or less 110% x number of hours w ork
* This value may be substituted based on the above rates depending

on the day the night shift work is performed.
25
6
S ERVICE CHARGES
(Article 96)
A. Sharing
All rank-and-file employees of employers and contractors working

therein z collecting service charges are entitled to an equal share in the
eighty-five percent (85%) of the total of such charge s. The remaining
fifteen percent (15%) of the charges may be retained by management to
answer for losses and breakages and for distribution to managerial
employees, at the discretion of the management in the latter case. Service
charges are collected by m ost hotels and some restaurants, nightclubs,
cocktail lounges, among others.
B. Payments
The shares of the employees in the service charges shall be

distributed to them once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) da ys.
Where the company stopped collecting service charges, the average

share previously enjoyed by the employees for the past twelve (12) months
immediately preceding such stoppage shall be integrated into their basic
wages.
C. Tips
Where a restaurant or similar establishment does not collect service

charges but has a practice or policy of monitoring and pooling tips given
voluntarily by its customers to its employees, the pooled tips should be
monitored, accounted, and distributed in the same manner as the service
charges.
z
L a b o r A d v i so r y N o . 1 3 s. 2 0 1 5 – A p p l i c a b l e M i n i m um W a g e R a t e s B a s e d o n S e c t o r o r I n d u st r y C l a s s i f i c a t i o n s w i t h
R e q u i r e d N um b e r o f W o r k e r s i n R e l a t i o n t o t he W o r k e r s o f C o n t r a c t o r s a n d S ub c o n t r a c t o r s.
26
7
S ERVICE I NCENTIVE L EAVE
(Article 95)
A. Coverage
Every employee who has rendered at least one (1) year of service is
entitled to Service Incentive Leave (SIL) of five (5) days with pay.
This benefit applies to all employees excep t:

2. Persons in the personal service of another;
3.1. Their primary duty is to manage the establishment in which they
are employed or of a department or subdivision thereof;
employees therein; and
3.3. They have the authority to hire or fire other employees of lower
rank; or their suggestions and recommendations as to hiring,
firing, and promotion, or any other change of status of other
employees are given particular weight.
4.1. Primarily perform work directly related to management policies
of their employer;
4.2. Customarily and regularly exe rcise discretion and independent
judgment;
execute, under general supervisi on, work along specialized or
knowledge; or (c) execute, under general supervision, special
27
paragraphs 4.1, 4.2, and 4.3 above;
5. Field personnel and those whose time and performance is
unsupervised by the employer;
6. Those already enjo ying this benefit;
7. Those enjoying vacation leave with pay of at least five (5) days; and
8. Those employed in establishments regularly employing less than ten
(10) employees.
B. Meaning of “one year of service”
The phrase “one year of service” of the emp loyee means service
within twelve (12) months, whether continuous or broken, reckoned from
the date the employee started working. The period includes authorized
absences, unworked weekly rest days, and paid regular holidays. If
through individual or coll ective agreement, company practice or policy, the
period of the working days is less than twelve (12) months, said period
shall be considered as one year for the purpose of determining the
entitlement to the service incentive leave.
C. Usage/Conversion to Cash
The service incentive leave may be used for sick and vacation leave
purposes. The unused service incentive leave is commutable to its money
equivalent at the end of the year. In computing, the basis shall be the
salary rate at the date of conversi on.
The use and conversion of this benefit may be on a pro rata basis. aa
Illustration: An employee was hired on 1 January 2000 and resigned on 1 March

2001. Assuming that he/she has not used or commut ed any of his/her accrued SIL,
he/she is entitled to th e conversion of his/her accrued SIL, upon his/her
resignation, as follows:
SIL earned as of 31 December 2000 5 days

Proportionate SIL for January and February 2001
(2/12) x 5 days 0.833 day
Total accrued SIL as of 1 March 2001 5.833 days
aa
B a se d o n t h e o p i n i o n o f D O L E L e g a l S e r v i c e .
28
8
M ATERNITY L EAVE
(RA 1161, as amended by RA 8282)
A. Coverage
This benefit applies to all female employees, whether married or

unmarried.
B. Entitlement
Every pregnant employee in the private sector, whether married or

unmarried, is entitled to maternity leave benefit of sixty (60) days in case
of normal delivery or miscarriage, or seventy -eight (78) days, in case 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.
To be entitled to the maternity leave benefit, a female employee

should be an SSS member employed at the time of her delivery or
miscarriage; she must have given the require d notification to the SSS
through her employer; and her employer must have paid at least three
monthly contributions to the SSS within the twelve -month period
immediately before the date of the contingency (i.e., childbirth or
miscarriage).
The maternity leave benefit, like other benefits granted by the Social
Security System (SSS), is granted to employees in lieu of wages. Thus,
this may not be included in computing the employee’s thirteenth -month pay
for the calendar year.
29
9
P ATERNITY L EAVE
(RA 8187)
A. Coverage
Paternity Leave is granted to all married male employees in the

private sector, regardless of their employment status (e.g., probationary,
regular, contractual, project basis). The purpose of this benefit is to allow
the husband to lend supp ort to his wife during her period of recovery
and/or in nursing her newborn child.
Government employees are also entitled to the paternity leave

benefit. They shall be governed by the Civil Service rules.
B. The Paternity Leave Benefit
Paternity leave benefit shall apply to the first four (4) deliveries of the
employee’s lawful wife with whom he is cohabiting. For this purpose,
“cohabiting” means the obligation of the husband and wife to live together.
If the spouses are not physically living together because of the

workstation or occupation, the male employee is still entitled to the
paternity leave benefit.
The paternity leave shall be for seven (7) calendar days, with full pay,
consisting of basic salary and mandatory allowances fixed by the Region al
Wage Board, if any, provided that his pay shall not be less than the
mandated minimum wage.
Usage of the paternity leave shall be after the delivery, without

prejudice to an employer ’s policy of allowing the employee to avail of the
benefit before or during the delivery, provided that the total number of days
shall not be more than seven (7) calendar days for each covered delivery.
30
C. Conditions for Entitlement

A married male employee shall be entitled to paternity leave benefit
provided that he has met the following conditions:
1. He is an employee at the time of the delivery of his child;
2. He is cohabiting with his spouse at the time that she gives birth or suffers a
miscarriage;
3. He has applied for paternity leave with his employer within a reasonable period
of time from the expected date of delivery by his pregnant spouse, or within
such period as may be provided by company rules and regulations, or by
collective bargaining agreement; and
4. His wife has given birth or suffered a miscarriage .
D. Application for Paternity Leave

The married male employee shall apply for paternity leave with his
employer within a reasonable period of time from the expected date of
delivery by his pregnant spouse, or within such period as may be provided
by company rules and regulations, or by collective bargaining agreement.
In case of a miscarriage, prior application for paternity leave shall not be
required.
E. Non-conversion to Cash
In the event that the paternity leave is not availed of, it shall not be
convertible to cash and shall not be cumulative.
F. Crediting of Existing Benefits
1. If the existing paternity leave benefit under the collective bargaining agreement,
contract, or company policy is greater than seven (7) calendar days as provided
for in RA 8187, the greater benefit shall prevail.
2. If the existing paternity leave benefit is less than that provided in RA 8187, the
employer shall adjust the existing benefit to cover the difference.
Where a company policy, contract, or collective bargaining agreement

provides for an emergency or contingency leave without specific provisions
on paternity leave, the employer shall grant to the employee seven (7)
calendar days of paternity leave.
31
10
P ARENTAL LEAVE FOR S OLO P ARENTS
(RA 8972)
A. Coverage
Parental leave for solo parents is granted to any solo parent or

individual who is left alone with the responsibility of parenthood due to:
1. Giving birth as a result of rape or, as used by the law, other crimes
against chastity;
2. Death of spouse;
3. Spouse is detained or is serving sentence for a criminal conviction for
at least one (1) year;
4. Physical and/or mental incapacity of spouse as certified by a public
medical practitioner;
5. Legal separation or de facto separation from spouse for at least one
(1) year: Provided that he/she is entrusted with the custody of the
children;
6. Declaration of nullity or annulment of marriage as decreed by a court
or by a church: Provided, that he/she is entrusted with the custody of
the children;
7. Abandonment of spouse for at least one (1) year;
8. Unmarried father/mother who has preferred to keep and rear his/her
child/children, instead of having others care for them or give them up
to a welfare institution;
9. Any other person who solely provides parental care and support to a
child or children: Provided, that he/she is duly licensed as a foster
parent by the Department of Social Welfare and Development (DSW D)
or duly appointed legal guardian by the court; and
10. Any family member who assumes the responsibility of head of family
as a result of the death, abandonment, disappearance, or prolonged
absence of the parents or solo parent: Provided, that such
abandonment, disappearance, or prolonged absence lasts for at least
one (1) year.
32
B. Definition of Terms
“Parental leave” shall mean leave benefits granted to a solo parent to

enable him/her to perform parental duties and responsibilities where
physical presence is required.
“Child” refers to a person living with and dependent on the solo parent
for support. He/she is unmarried, unemployed, and below eigh teen (18)
years of age, or even eighteen (18) years old and above but is incapable of
self-support because he/she is mentally- and/or physically-challenged.
C. The Parental Leave Benefit
The parental leave, in addition to leave privileges under existin g laws,

shall be for seven (7) work days every year, with full pay, consisting of
basic salary and mandatory allowances fixed by the Regional Wage Board,
if any, provided that his/her pay shall not be less than the mandated
minimum wage.
D. Conditions for Entitlement
A solo parent employee shall be entitled to the parental leave,

provided that:
1. He/she has rendered at least one (1) year of service, whether continuous or
broken;
2. He/she has notified his/her employer that he/she will avail himself/herself of it,
within a reasonable period of time; and
3. He/she has presented to his/her employer a Solo Parent Identification Card,

which may be obtained from the DSW D office of the city or municipalit y where
he/she resides.
E. Nonconversion to Cash
In the event that the parental leave is not availed of, it shall not be
convertible to cash, unless specifically agreed on previously.
33
F. Crediting of Existing Leave
If there is an existing or similar benefit under a company policy or a

collective bargaining agreement, the same shall be credited as such. If the
same is greater than the seven (7) days provided for in RA 8972, the
greater benefit shall prevail.
Emergency or contingency leave provided under a company policy or

a collective bargaining agreement shall not be credited as compliance with
the parental leave provided for under RA 8972.
G. Termination of the Benefit
A change in the status or circumstance of the parent claiming the

benefit under the law, such that he/she is no longer left alone with the
responsibility of parenthood, shall terminate his/her eligibility for this
benefit.
H. Protection Against Work Discrimination
No employer shall discriminate against any solo parent employee with

respect to terms and conditions of employment on acc ount of his/her being
a solo parent.
34
11
L EAVE FOR V ICTIMS OF V IOLENCE AGAINST
W OMEN AND T HEIR C HILDREN
(RA 9262)
A. Definition
“Violence against women and their children,” as used in Republic Act

9262 (the “Anti-Violence Against Women and Their Children Act of 2004”),
“refers to any act or a series of acts committed by any person against a
woman who is his wife, former wife, or against a woman with whom the
person has or had a sexual or dating relationship, or with whom he has a
common child, or against her child whether legitimate or illegitimate, within
or without the family abode, which will result in or is likely to result in
physical, sexual, psychological harm or suffering, or economic abuse
including threats of such acts, battery, assault, coer cion, harassment or
arbitrary deprivation of liberty.”
B. Coverage and Purpose
Private sector women employees who are victims as defined in RA

9262 shall be entitled to the paid leave benefit under such terms and
conditions provided herein.
The leave benefit shall cover the days that the woman employee has
to attend to medical and legal concerns.
C. Requirement for Entitlement
To be entitled to the leave benefit, the only requirement is for the

victim-employee to present to her employer a certifica tion from the
barangay chairman (Punong Barangay) or barangay councilor (barangay
kagawad) or prosecutor or the Clerk of Court, as the case may be, that an
action relative to the matter is pending.
35
D. The Benefit
In addition to other paid leaves under existing labor laws, company

policies, and/or collective bargaining agreements, the qualified victim -
employee shall be entitled to a leave of up to ten (10) days with full pay,
consisting of basic salary and mandatory allowances fixed by the Regional
Wage Board, if any.
The said leave shall be extended when the need arises, as specified
in the protection order issued by the barangay or the court.
E. Usage of the Benefit
The usage of the ten-day leave shall be at the option of the woman
employee. In the event that the leave benefit is not availed of, it shall not
be convertible into cash and shall not be cumulative.
36
12
S PECIAL L EAVE FOR W OMEN
(RA 9710)
A. Coverage
Any female employee regardless of age and civil status shall be

entitled to a special leave benefit under such terms and conditions
provided herein.
B. Definition of Term
“Gynecological disorders” refers to disorders that would require

surgical procedures such as, but not limited to dilatation and curettage and
those involving female reproductive organs such as the vagina, cervix,
uterus, fallopian tubes, ovaries, breast, adnexa and pelvic floor, as
certified by a competent physician. It shall also include hyster ectomy,
ovariectomy and mastectomy.
C. Conditions for Entitlement
1. She has rendered at least six (6) months continuous aggregate

employment service for the last twelve (12) months prior to surgery;
2. She has filed an application for special leave with her employer within a
reasonable period of time from the expe cted date of surgery or within
such period as may be provided by company rules and regulations or
collective bargaining agreement; and
3. She has undergone surgery due to gynecological disorders as certified

by a competent physician.
D. The Special Leave Benefit
The employee is entitled to special leave benefit of two (2) months with
full pay based on her gross month ly compensation.
37
Gross monthly compensation refers to the monthly basic pay plus

mandatory allowances fixed by the regional wage boards.
E. Usage
The special leave shall be granted to the qualified employee after she
has undergone surgery without prejudice to an employer allowing an
employee to receive her pay before or during the surgery.
F. Nonconversion to Cash
The special leave shall be non -cumulative and non-convertible to cash

unless otherwise provided by a collective bargaining agreement (CBA).
38
13
T HIRTEENTH -M ONTH P AY
(PD 851)
A. Coverage
All employers are required to pay their rank and file employees
thirteenth-month pay, regardless of the nature of their employment and
irrespective of the methods by which their wages are paid, provided they
worked for at least one (1) month during a calendar year. The thirteenth -
month pay should be given to the employees not later than Decem ber 24 of
every year.
B. Definition of Rank-and-File Employees
The Labor Code, as amended, distinguishes a rank -and-file employee

from a managerial employee. A managerial employee is one who is vested
with powers or prerogatives to lay down and execute management policies
and/or to hire, transfer, suspend, layoff, recall, discharge, assign, or
discipline employees, or to effectively recommend such managerial
actions. All employees not falling within this definition are considered
rank-and-file employees.
The above distinction shall be used as guide for the purpose of

determining who are rank-and-file employees entitled to the thirteenth -
month pay.
C. Minimum Amount
The thirteenth-month pay shall not be less than one -twelfth (1/12) of
the total basic salary earned by an employee in a calendar year.
The "basic salary" of an employee for the purpose of computing the

thirteenth-month pay shall include all remunerations or earnings paid by
his or her employer for services rendered. It does not include al lowances
39
and monetary benefits which are not considered or integrated as part of

the regular or basic salary, such as the cash equivalent of unused vacation
and sick leave credits, overtime, premium, night shift differential and
holiday pay, and cost of li ving allowance (COLA). However, these salary -
related benefits should be included as part of the basic salary in the
computation of the thirteenth -month pay if these are treated as part of the
basic salary of the employees, through individual or collective agreement,
company practice or policy.
D. Formula And Computation of 13 t h Month Pay
Total basic salary earned during the year = proportionate

12 months 13 t h mont h pay
Illustration:
Using the basic wage in the National Capi tal Region at P502.00 (from
January 1, 2018 to November 21, 2018) and P537.00 (from November 22,
2018 to December 31, 2018) per day and a six-day workweek or an
equivalent Monthly Basic Salary of P12,466.33 and P13,290.75,
respectively, to wit:
January no absence P12,466.33

February no absence P12,466.33
March 1day leave w/pay P12,466.33
April no absence P12,466.33
May 5 days leave w/o pay P 9,956.33
June 2 days leave w/pay P12,466.33
July no absence P12,466.33
August 2 days leave w/pay P12,466.33
September no absence P12,466.33
October on leave w/o pay no salary
November on leave w/o pay no salary
December no absence P13,290.75
Total basic salary earned for the year P122,977.72
P122,977.72 = P10,248.14 is the proportionate

12 months 13 t h month pay
40
E. Exempted Employers
The following employers are not covered by PD 851:
1. T he government and any of its political subdivisions, including

government -owned and controlle d corporations, except those
corporations operating essent ially as private subsidiaries of the
government;
2. Employers who are already paying their employees thirteenth - month
pay or more in a calendar year or its equivalent at the time of the
issuance of PD 851;
3. Persons in the personal service of another in relation to such workers;
and
4. Employers of those who are paid on purely commission, boundary or
task basis, and those who are paid a fixed amount for performing
specific work, irrespective of the time co nsumed in the performance
thereof (except those workers who are paid on piece -rate basis, in
which case their employer shall grant them thirteenth -month pay).
As used herein, “workers paid on piece -rate basis” shall refer to those
who are paid a standard amount for every piece or unit of work produced
that is more or less regularly replicated, without regard to the time spent in
producing the same.
The term "its equivalent" as used in item D.2 above shall include
Christmas bonus, midyear bonus, cash bonus es, and other payments
amounting to not less than one-twelfth (1/12) of the basic salary but shall
not include cash and stock dividends, cost of living allowance, and all
other allowances regularly enjoyed by the employee, as well as
nonmonetary benefits.
F. Time of Payment of Thirteenth -Month Pay
The thirteenth-month pay shall be paid not later than December 24 of

every year. An employer, however, may give to his or her employees one -
half (1/2) of the thirteenth -month pay before the opening of the regul ar
school year and the remaining half on or before December 24 of every
year. The frequency of payment of this monetary benefit may be the
subject of an agreement between the employer and the
recognized/collective bargaining agent of the employees.
41
G. Thirteenth-Month Pay for Certain Types of Employees
1. Employees who are paid on piecework basis are entitled to the

thirteenth-month pay.
2. Employees who are paid a fixed or guaranteed wage plus commission

are also entitled to the thirteenth -month pay, based on their earnings
during the calendar year (i.e., on both their fixed or guaranteed wage
and commission).
In the consolidated cases of Boie Takeda Chemicals, Inc. vs. Dionisio

de la Serna, G.R. No. 92174 December 10, 1993, and Philippine Fuji
Xerox Corporation vs. Cresenciano B. Trajano and Philippine Fuji
Xerox Employees Union, G.R. No. 102552 December 10, 1993, the
Supreme Court ruled that commissions, while included in the generic
term wage, are not part of "basic salary/wage" and therefore should
not be included in computing the thirteenth -month pay. Thus:
In remunerative schemes consisting of a fixed or guaranteed

wage plus commission, the fixed or guaranteed wage is patently the
"basic salary" for this is what the employee receives for a standard
work period. Commissions are given for extra efforts exerted in
consummating sales or other related transactions. T hey are, as
such, additional pay, which this Court has made clear do not form
part of the "basic salary" (228 SCRA 329 [1993]).
3. Employees with multiple employers
Government employees working part-time in a private enterprise,

including private educational institutions, as well as employees
working in two or more private firms, whether on full -time or part-time
basis, are entitled to the thirteen th- month pay from all their private
employers, regardless of their total earnings from each of their
employers.
H. Thirteenth-Month Pay of Resigned or Separated Employee
An employee who has resigned or whose services are terminated at

any time before the time of payment of the thirteenth -month pay is entitled
to this monetary benefit in proportion to the length of time he or she has
worked during the year, reckoned from the time he or she has started
working during the calendar year up to the time of hi s or her resignation or
42
termination from the service. Thus, if he or she worked only from January
to September, his or her proportionate thirteenth -month pay should be
equal to one-twelfth (1/12) of his or her total basic salary earned during
that period.
I. Non-inclusion in Regular Wage
The thirteenth-month pay is not part of the regular wage of employees

for purposes of determining overtime and premium payme nts, fringe
benefits, contributions to the State Insurance Fund, Social Security
System, National Health Insurance Program, and private retirement plans.
J. Coverage from Income Tax of the 13 t h Month Pay
13 t h month pay and other benefits, such as productivity incentives and

Christmas bonus, not exceeding Ninety Thousand Pesos (₱90,000.00) are
exempt from taxation. bbcc
bb
S e c t i o n 3 2 B , C h a p t e r V I o f R . A . N o . 8 4 2 4 ( N a t i o n a l I nt e r na l R e ve n u e C o d e o f t he P h i l i p p i n e s) , a s a m e nd e d b y S e c .
1 of R. A. No. 10653.
cc
Re ve n u e Re gu la ti o n s No . 1 1 - 20 1 8 , Ame n d i n g Ce r t ai n Pr o vi si on s o f R e venu e Re g ul a ti o n s No . 2 -
9 8 , a s Ame n d e d , t o I mp l e me n t F u r t h er A me n d m e n t s I n t r o d u ce d b y Re pu blic Act No . 1 0 9 6 3
43
14
S EPARATION P AY
(Articles 298-299 dd)
Separation pay is given to employees in instances covered by Articles

298 and 299 (formerly Articles 283 and 284) of the Labor Code of the
Philippines. An employee’s entitlement to separation pay depends on the
reason or ground for the termination of his or her services. An employee
may be terminated for just cause (i.e., gross and habitual neglect of duty,
fraud, or commission of a crime), and other similar causes a s enumerated
under Article 297 (formerly Article 282) of the Labor Code and, generally,
may not be entitled to separation pay. ee On the other hand, where the
termination is for authorized causes, separation pay is due.
A. One-Half (1/2) Month Pay per Year of Service
An employee is entitled to receive a separation pay equivalent to one -

half (1/2) month pay for every year of service, a fraction of at least six (6)
months being considered as one (1) whole year, if his/her separation from
the service is due to any of the following authorized causes:
1. Retrenchment to prevent losses (i.e., reduction of personnel effected b y

management to prevent losses);
2. Closure or cessation of operation of an establishment not due to serious

losses or financial reverses; and
3. W hen the employee is suff ering from a disease not curable

within a period of six (6) mont hs 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 securit y guard for a continuous period of six

(6) months ff
dd
F o r m e r l y A r t i c l e s 2 8 3 - 2 8 4 r e n um b e r e d p u r s u a n t t o D O L E D e p a r t m e nt A d v i so r y N o . 1 , S e r i e s o f 2 0 1 5 i s s ue d o n 2 1
July 2015.
ee
T he S up r e m e C o ur t h a s r u l e d i n c e r t a i n c a s e s t h a t se p a r a t i o n p a y s ha l l b e g r a nt e d t he w o r k e r s.
ff
D e p a r t m e nt O r d e r N o . 1 5 0 s. 2 0 1 6 R e v i se d G u i d e l i ne s G o v e r n i n g t he E m p l o ym e nt a n d W o r k i n g C o n d i t i o n s o f S e c ur i t y
G u a r d s a nd O t h e r P r i va t e S e c ur i t y P e r so n n e l i n t h e P r i va t e S e c ur i t y I n d u st r y
44
In no case will an employee get less than one (1) month separation
pay if the separation is due to the above stated causes.
B. One-Month Pay per Year of Servic e

An employee is entitled to separation pay equivalent to his/her one -
month pay for every year of service, a fraction of at least six (6) months
being considered as one whole year, if his/her separation from service is
due to any of the following:
1. Installation by employer of labor -saving devices;
2. Redundancy, as when the posit ion of the employee has been found t o
be excessive or unnecessary in the operation of the ent erprise; 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 authorit y 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. gg
4. Lack of service assignment of securit y guard by reason of age hh.
C. Notice of Termination
The employer may terminate the employment of any employee due to
the above-mentioned authorized causes by serving a written notice on the
employee and the Department of Labor and Employment through its
regional office having jurisdiction over the place of business at least one
(1) month before the intended date thereof.
D. Basis of Separation Pay
The computation of separation pay of an employee shall be based on

his/her latest salary rate.
E. Inclusion of Regular Allowance in the Computation
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G a c o v s. N L R C , e t a l . , G . R . N o . 1 0 4 6 9 0 , F e b r ua r y 2 3 , 1 9 9 4 .
hh
D e p a r t m e nt O r d e r N o . 1 5 0 s. 2 0 1 6 R e v i se d G u i d e l i ne s G o v e r n i n g t he E m p l o ym e nt a n d W o r k i n g C o n d i t i o n s o f
S e c ur i t y G ua r d s a n d O t he r P r i va t e S e c ur i t y P e r so n n e l i n t he P r i va t e S e c ur i t y I n d u st r y
45
In the computation of separation pay, it would be error not to integrate

the allowance with the basic salary. The salary base properly used in
computing the separation pay should include not just the basic salary but
also the regular allowances that an emp loyee has been receiving. ii
F. Coverage from Income Tax of Separation Pay
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. jj
ii
P l a nt e r s’ P r o d u c t s, I nc . v s. N L R C , G . R . N o . 7 8 5 2 4 , J a n ua r y 2 0 , 1 9 8 9 .
jj
B IR R u l i ng N o . 0 5 7 - 2 0 1 4 ; S e c . 3 2 ( B ) ( 6 ) ( b ) o f t he N a t i o na l I n t e r n a l R e ve n u e C o d e , a s a m e nd e d .
46
15
R ETIREMENT P AY
(Article 302 kk)
A. Coverage
1. Employees shall be retired upon reaching the age of sixty (60) years
or more but not beyond sixty-five (65) years old [and have served the
establishment for at least five (5) years].
2. This benefit applies to all employees except:
1) government employees;
2) employees of retail, service and agricultural establishments/ operations
regularly employing not more than ten (10) employees .
B. Amount of Retirement Pay
The minimum retirement pay shall be equivalent to one -half (1/2)

month salary for every year of service, a fraction of at least six (6) months
being considered as one (1) whole year.
For the purpose of computing retirement pay, "one -half month salary"
shall include all of the following:
1. Fifteen (15) days salary based on the latest salary rate;

2. Cash equivalent of five (5) days of service incentive leave;
3. One-twelfth (1/12) of the thirteenth -month pay.
(1/12 x 365/12 = .083 x 30.41 = 2.5)
Thus, “one-half month salary” is equivalent to 22.5 days (Capitol

Wireless, Inc. v. Honorable Secretary Ma. Nieves R. Confesor, G. R. No.
117174, November 13, 1996).
The COLA shall not be included in the computation of retirement pay.
kk
F o r m e r l y A r t i c l e 2 8 7 r e n um b e r e d p u r s ua nt t o D O L E D e p a r t m e nt A d v i so r y N o . 1 , S e r i e s o f 2 0 1 5 i s s u e d o n 2 1 J u l y
2015.
47
Illustration:
Minimum Retirement Pay = Daily Rate ll x 22.5 days x number of years in
service
Other benefits may be included in the computation of the retirement

pay upon agreement of the employer and the employee or if provided in the
Collective Bargaining Agreement (CBA).
C. Retirement Benefits under a Co llective Bargaining Agreement or

Applicable Contract
Any employee may retire or be retired by his or her employer upon

reaching the retirement age established in the collective bargaining
agreement (CBA) or other applicable agreement/contract and shall re ceive
the retirement benefits granted therein; provided, however, that such
retirement benefits shall not be less than the retirement pay required under
RA 7641, and provided further that if such retirement benefits under the
agreement are less, the employer shall pay the difference.
Where both the employer and the employee contribute to a retirement

fund pursuant to the applicable agreement, the employer's total
contributions and the accrued interest thereof should not be less than the
total retirement benefits to which the employee would have been entitled
had there been no such retirement benefits’ fund. If such total portion from
the employer is less, the employer shall pay the deficiency.
D. Retirement Benefits of Workers who are Paid by Results
For covered workers who are paid by results and do not have a fixed
monthly salary rate, the basis for the determination of the salary for fifteen
(15) days shall be their average daily salary (ADS). The ADS is derived by
dividing the total salary or earnin gs for the last twelve months reckoned
from the date of retirement by the number of actual working days in that
particular period, provided that the determination of rates of payment by
results are in accordance with the established regulations.
ll
C e b u I n st i t ut e o f T e c h no l o g y v s . O p l e , G R N o . 5 8 8 7 0 , D e c . 1 8 , 1 9 8 7 - E xi s t i ng l a w s e xc l ud e a l l o w a n c e s f r o m t h e
b a s i c s a l a r y o r w a g e i n t h e c o m p ut a t i o n o f t h e a m o u n t o f r e t i r e m e nt a nd o t he r b e n e f i t s p a ya b l e t o a n e m p l o ye e .
48
E. Retirement Benefit of Part-time Workers
Part-time workers are also entitled to retirement pay of “one -half

month salary” for every year of service under RA 7641 after satisfying the
following conditions precedent for optional retirement: (a) there is no
retirement plan between the employer and the employee and (b) the
employee should have reached the age of sixty (60) years, and should
have rendered at least five (5) years of service with the employer.
Applying the foregoing principle, the components of reti rement benefit

of part-time workers may likewise be computed at least in proportion to the
salary and related benefits due them.
F. Retirement Benefit of Underground or Surface Mine Employees

under Republic Act No. 8558 as amended by Republic Act No.
10757 mm
The retirement age of underground or surface mine employees has

been reduced to a much lower age. For this purpose, an underground or
surface mine employee refers to any person employed to extract mineral
deposits underground or in the surface, or to work in excavations or
workings such as shafts, winzes, tunnels, drifts, crosscuts, raises, working
places whether abandoned or in use beneath or in the earth’s surface for
the purpose of searching for and extracting mineral deposits. Moreover,
surface mine workers shall only include mill -plant workers, electrical,
mechanical and tailings pond personnel.
In the absence of a retirement plan or other applicable agreement

providing for retirement benefits of underground mine employees in the
establishment, an employee may retire upon reaching the compulsory
retirement age of sixty (60) years or upon optional retirement at the age of
fifty (50) years, provided he/she has served for at least five (5) years as an
underground mine employee or in underground mine of the establishment.
G. Retirement Benefit of Racehorse Jockeys
The compulsory retirement age of professional racehorse jockeys who

are duly licensed by the Philippine Racing Commission (PHILRACOM) is
mm
A n A c t R e d uc i n g t he R e t i r e m e nt A g e o f S ur f a c e M i ne W o r k e r s f r o m S i xt y ( 6 0 ) t o F i f t y ( 5 0 ) Y e a r s , a m e n d i ng f o r t h e
p u r p o s e A r t i c l e 3 0 2 o f P D 4 4 2 , o t h e r w i se k n o w n a s t he “ L a b o r C o d e o f t he P h i l i p p i ne s ” w h i c h w a s s i g ne d i n t o l a w o n
08 April 2016.
49
fifty-five (55) years old provided that he/she has ser ved for at least five (5)
years as racehorse jockey and has paid additional premium to the SSS.
H. Retirement Benefit of Kasambahay and Persons in the Personal

Service of Another
Kasambahay and persons in the personal service of another are

entitled to retirement benefits pursuant to Department Order No. 20 s.
1994 nn.
I. Other Benefits upon Retirement
The retirement benefits under RA 7641 and RA 8558 are separate and
distinct from those granted by the Social Security System.
Under the law, upon optional or c ompulsory retirement, the employee

is also entitled to the proportionate thirteenth -month pay for the calendar
year and to the cash equivalent of accrued leave benefits.
J. Coverage from Income Tax of Retirement Pay
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 the employer:
Provided, That the retiring official or employee has been in the service of
the same employer 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 shal l 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 t hus 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. oo
nn
D e p a r t m e nt O r d e r N o . 2 0 , s e r i e s o f 1 9 9 4 - A m e nd i ng S e c t i o n 2 o f R A 7 6 4 1 .
oo
P ur s u a nt t o S e c t i o n 3 2 ( B ) ( 6 ) ( a ) o f t he N a t i o na l I n t e r na l R e ve n u e C o d e o f t he P h i l i p p i n e s , a s a m e nd e d .
50
16
B ENEFITS U NDER THE E MPLOYEES ’
C OMPENSATION P ROGRAM
(PD 626)
A. The Employees’ Compensation Program
The Employees’ Compensation Program (ECP) is a government

program designed to provide a compensation package to public and private
sector employees or their dependents in the event of work -related
sickness, injury, disability, or death. pp
B. Coverage
The ECP covers all workers in the formal sector.
Coverage in the ECP starts on the first day of employment.
Employees in the private sector who are compulsory members of the

Social Security System (SSS) qq, with employer-employee relationship
C. The Benefits
Loss of income benefit or a cash benefit given to a worker to

compensate for lost income due to his or her inability to work.
Medical benefits which include the reimbursement of the cost of

medicine for the illness or injury, payments to providers of medical care,
hospital care, surgical expenses, and the costs of appliances and supplies
pp
F o r m o r e i nf o r m a t i o n, p l e a se w r i t e o r c a l l t h e E m p l o y e e s ’ C o m p e n s a t i o n C o m m i s s i o n ( E C C ) , I nf o r m a t i o n a n d
P ub l i c A s s i st a nc e D i vi s i o n, l o c a t e d a t 3 5 5 S e n. G i l P u y a t A ve n u e , M a k a t i C i t y. T e l e p h o n e N o s. 8 9 9 - 4 2 5 1 t o 5 2
l o c a l s 2 2 7 a nd 2 2 8 ; F a x: 8 9 7 - 7 5 9 7 . P ub l i c A s s i st a n c e C e n t e r ( P A C ) T e l e p ho n e N o . 8 9 9 - 4 2 5 1 . E m a i l :
e c c _ m a i l @ y a ho o . c o m . W e b s i t e : w w w . e c c . g o v. p h
qq
N o n- r e g i st r a t i o n o f a n e m p l o ye e w i t h t h e S S S i s no t p r e j u d i c i a l t o h i s/ h e r E C c l a i m i n t h e e ve n t t ha t t he s a m e ha s
b e e n d e c l a r e d a s w o r k - c o n n e c t e d . ( A r t . 1 6 7 ( g ) i n r e l a t i o n t o A r t . 1 6 8 , P . D . N o . 6 2 6 , a s a m e nd e d )
51
where necessary. The medical services are limited to ward services of an

accredited hospital.
Rehabilitation services which include physical therapy, vocational

training, and special assistance provided to employees who sustain a
disability as a result of sickness or injury arising out of employment. The
objective is to develop the workers’ mental, vocational, and social p otential
and to help them remain as productive members of society.
Carer ’s allowance which is provided to an employee who suffers

from a work-connected permanent partial and permanent total disability. rr
Death and Funeral benefits which are granted to beneficiaries of an

employee in the event of work-connected death. Death benefits shall also
be granted to the beneficiaries in cases where the cause of the employee
is a complication or natural consequence of his/ her compensated
permanent total disability. ss
D. Kinds of Disability
There are three (3) types of loss of income benefits:
Temporary Total Disability (TTD) benefit which is given to an

employee who is unable to work for a continuous period not exceeding 120
days.
Permanent Partial Disability (PPD) benefit which is given to a

worker who loses a body part and consequently the loss of the use of that
body part.
Permanent Total Disability (PTD) benefit which is given if the

employee’s inability to work lasts for more than 240 days. PTD benefit can
be claimed in the following cases:
1. complete loss of sight of both eyes ;
2. loss of two limbs at or above the ankles or wrists;
3. permanent and complete paralysis of two limbs ;
4. brain injury resulting in incurable imbecility or insanity ; and
rr
B o a r d R e so l u t i o n N o . 9 0 - 1 2 - 0 0 9 0 , D e c . 2 0 , 1 9 9 0 i n r e l a t i o n t o E . O . N o . 1 3 4 , A p r i l 2 3 , 2 0 1 3
ss
B o a r d R e so l u t i o n N o . 1 0 - 0 9 - 1 1 6 , S e p t . 2 , 2 0 1 0 i n r e l a t i o n t o A r t . 1 9 4 ( b ) o f P . D . N o . 6 2 6 , a s a m e nd e d
52
5. such cases as determined by the SSS and approved by the

Commission. tt
E. Filing of Claims
Employees can claim only for work -connected sickness, injuries, or

death.
Who may file: The claimant or his/her representative may file an

appropriate claim with the GSIS, in case of public sector claimant, or
with the SSS, in case of private sector claimant.
When: A claim must be filed within three (3) years from:
a. In case of sickness – from the time the employee lost his

earning capacity;
b. In case of injury – from the time it was sustained;
c. In case of death – from the time of death of the covered
member. uu
How: Fill in the prescribed forms supplied by the GSIS or SSS and
attach the supporting documents required for every contingency.
Where to File: All EC claims may be filed by the claimant at his option
in the Regional Office/ Branch of the System ([GSIS - public sector];
[SSS-private sector]) nearest to the public place of work or residence.” vv
Period of Appeal. The claimant shall file with the GSIS or the SSS, as
the case may be , a notice of appeal within thirty (30) calendar days from
receipt of the decision.
tt
A r t . 1 9 2 ( c ) , ( 6 ) , P . D . 6 2 6 , a s a m e nd e d , i n r e l a t i o n t o R u l e IX , S e c . 1 ( 6 ) , A m e nd e d R u l e s o n E m p l o ye e s’
C o m p e n sa t i o n
uu
ECC Circ ular No. 03 -709 , J uly 22 , 200 9
vv
E C C B o a r d R e so l ut i o n N o . 1 0 - 1 0 - 1 5 7 , O c t . 2 0 , 2 0 1 0
53
F. Obligations/Responsibilities of Employers
1. Contribution to the State Insurance Fund (SIF). – The employer

shall contribute in behalf of his or her employees to the SIF, from
which payments for benefits are drawn.
2. Registration. – Every employer (and every employee as well) shall

be registered with the GSIS or SSS by accomplishing the prescribed
forms.
3. Safety Devices. – The employer shall comply with health and safety
laws and shall take the necessary precautions for the prevention of
work-related disability or death.
4. Employer ’s Logbook. –
• All employers shall keep a logbook to record chronologically
the sickness, injury or death of their employees, setting forth
therein their names, dates and places of the contingency,
nature of the contingency and absences.
• Entries in the logbook shall be made within five (5) days from
notice or knowledge of the occurrence of the contingency.
• Within five days after entry in the logbook, the employer shall
report to the System only those contingencies he deems to be
work-connected.” ww
5. Provision for Medical Services. – In addition to EC benefits,

existing medical services being provided by the employer shall be
maintained and continued to be enjoyed by their employees. xx
ww
A r t . 2 0 5 [ a ] , P . D . N o . 6 2 6 , a s a m e nd e d
xx
A r t . 1 7 5 , P . D . 6 2 6 , a s a m e nd e d
54
17
P HIL H EALTH B ENEFITS
A. The National Health Insurance Program
The National Health Insurance Program (NHIP), formerly known as

Medicare, is a health insurance program for SSS members and their
dependents whereby the healthy subsidize the sick who may find
themselves in need of financial assistance when they get hospitalized.
The Philippine Health Insurance Corporation yy or PhilHealth is the

mandated administrator of the Medicare prog ram (now known as NHIP)
under the National Health Insurance Act of 2013 (Republic Act 7875 as
amended by RA 9241 and 10606)
B. Coverage
The program covers the following:
1. Members In The Formal Economy - includes those with formal

contracts and fixed terms of employment including workers in the
government and private sector, whose premium contribution payments
are equally shared by the employee and the employer.
2. Sponsored Members - includes members whose contributions are

being paid for by another in dividual, government agencies, or private
entities.
3. Members In The Informal Economy - includes a wide range of

individuals and sectors ranging from the self -earning to migrant
workers.
yy
F o r i nq u i r i e s o n N H IP c o ve r a g e , b e ne f i t s a n d p r o c e d u r e s f o r S S S m em b e r s, y o u m a y v i s i t t he P h i l i p p i n e H e a l t h
I n s ur a n c e C o r p o r a t i o n ( P h i l H e a l t h) a t t h e C i t y st a t e C e nt r e B l d g . , 7 0 9 S ha w B l vd . , B a r a n g a y O r a n b o , P a si g C i t y o r
c a l l t e l e p ho n e n um b e r 6 3 7 - 9 9 9 9 . Y o u m a y a l so v i s i t t h e P h i l H e a l t h w e b s i t e a t ht t p : / / w w w . p hi l h e a l t h . g o v. p h .
55
4. Lifetime Members - members who have reached the age of

retirement under the law and have paid at least 120 monthly premium
contributions.
5. Indigent Members - persons who have no visible means of income,

or whose income is insufficient for family subsistence, as identified by
the Department of Social Welfare and Development (DSW D), based
on specific criteria.
6. Senior Citizens - those who are 60 years old and above and are not
currently covered by any of the existing membership categories of
PhilHealth.
C. The Benefits
A unified benefit package for all PhilHealth members i s being

implemented which includes the following categories of personal health
services:
1. Inpatient hospital care:
• Room and board;

• Services of health care professionals;
• Diagnostic, laboratory, and other medical examination services;
• Use of surgical or medical equipment and facilities;
• Prescription drugs and biologicals, subject to the limitations
stated in Section 37 of RA 7875; and
• Inpatient education packages.
2. Outpatient care:
• Services of health care professionals;

• Diagnostic, laboratory, and o ther medical examination services;
• Personal preventive services;
• Prescription drugs and biologicals, subject to the limitations
described in Section 37 of RA 7875; and
• Emergency and transfer services.
56
The New PhilHealth Inpatient Benefit Schedule

Effective April 5, 2009
HOSPITAL CATEGORIES
Levels 3 & 4 Hospitals (Tertiary)
Benefit Item Case Type
A B C D
 P500/day P500/day P800/day P1,100/day
Room and Board
  P 4,200 P 14,000 P 28,000 P 40,000
Drugs and Medicines
X-ray, Lab. and Others** P 3,200 P 10,500 P 21,000 P 30,000
For procedures with RVU 30 & below = P1,200
For procedures with RVU 31 to 80 = P1,500
Operating Room For procedures with RVU 81 to 600: RVU x PCF 20
(Minimum = P3,500)
Professional Fees
a. Daily visits
General Practitioner (Groups 1, 5, and 6)
Per Day P300 P400 P500 P600
Maximum per confinement P1,200 P2,400 P4,000 P6,000
Specialist (Groups 2, 3, and 4)
Per Day P500 P600 P700 P800
Maximum per P2,000 P3,600 P5,600 P8,000
Confinement
For RVU 500 and below For RVU 501 and above
b. Surgery
Surgeon Anesthesiolo- Surgeon Anesthesio -
gist logist
General Practitioner RVU x PCF 40 40% of RVU x PCF 40 40% of
First Tier = PF1 surgeon’s fee = PF1 surgeon’s fee
(Group 1) Max. of (PF1) Max. of Max. of (PF1) Max. of
P3,200 P1,280 P3,200 P1,280
With training RVU x PCF 48 48% of RVU x PCF 48 48% of
Second Tier = PF2 surgeon’s fee = PF2 surgeon’s fee
(Groups 5 and 6) (PF1) (PF1)
Diplomate/fellow RVU x PCF 56 56% of RVU x PCF 80 40% of
Third Tier = PF3 surgeon’s fee = PF4 surgeon’s fee
(Groups 2, 3, and 4) (PF1) (PF4)

M a xi m um o f 4 5 d a y s p e r ye a r .

p e r s i ng l e p e r i o d o f c o nf i ne m e nt .
57
Level 2 Hospitals (Secondary)
Case Type
Benefit Item
A B C
Room and Board* P 400/day P 400/day P 600/day
Drugs and Medicines** P 3,360 P 11,200 P 22,400
X-ray, Laboratory and Others** P 2,240 P 7,350 P 14,700
For procedures with RVU 30 & below = P750
For procedures with RVU 31 to 80 = P1,200
Operating Room For procedures with RVU 81 to 600
RVU x PCF 15
(Minimum = P2,200 and Maximum = P7,500)
Professional Fees
a. Daily visits
Per Day P300 P400 P500
Maximum per confinement P1,200 P2,400 P4,000
Per Day P500 P600 P700

Maximum per confinement P2,000 P3,600 P5,600
b. Surgery (for Case Types A, B and C) Surgeon Anesthesiologist
General Practitioner RVU x PCF 40 40% of surgeon’s fee

First tier = PF1 (PF1)
(Group 1) Maximum of P3,200 Maximum of P1,280
With training RVU x PCF 48 48% of surgeon’s fee

Second tier = PF2 (PF1)
(Groups 5 and 6)
Diplomate/fellow RVU x PCF 56 56% of surgeon’s fee

Third tier = PF3 (PF1)
(Groups 2, 3, and 4)
58
Level 1 Hospitals (Primary)
Benefit Item Case Type

A B
Room and Board* P300/day P300/day
Drugs and Medicines** P2,700 P 9,000
X-ray, Laboratory and Others** P1,600 P 5,000
Operating Room P500
Professional Fees
a. Daily visits
Per Day P300 P400
Maximum per confinement P1,200 P2,400
Per Day P500 P600
Maximum per confinement P2,000 P3,600
b. Surgery (for Case Types A and B) Surgeon Anesthesiologist
General Practitioner
RVU x PCF 40 40% of surgeon’s fee
First Tier
= PF1 (PF1)
(Group 1 )
With training
Second Tier
= PF2 (PF1)
(Groups 5 and 6)
Diplomate/fellow
Third Tier
= PF3 (PF1)
(Groups 2, 3, and 4)
Max. of P2,000 per Max. fee computed as
confinement percentage of P2,000
The following are also included in your Additional Update
PhilHealth benefits: • In compliance to PhilHealth Circular Nos. 22, s.
• Outpatient Malaria Package starting 01 2007 and 11, s. 2008, the ho spital’s Statement of
December 2008 Account (SA) or Billing Statement (BS ) should be
• Normal Spontaneous Delivery up to fourth attached to a claim application.
childbirth starting 01 Janua ry 2009 • No need to attach an SA or BS to claim
• Voluntary Surgical Contraception applications for packages like Maternity Care
Procedures starting 01 October 2008 Package, SARS, Peritoneal Dialysis, and Avian
• Cataract Package starting 01 May 2009 Flu.
• A(H1N1) Package starting 01 May 2009
59
18
S OCIAL S ECURITY B ENEFITS
A. The Social Security Program
The Social Security Program provides a package of benefits in the

event of death, disability, sickness, maternity, and old age. Basically, the
Social Security System (SSS) provides for a replacement of income lost on
account of the aforementioned contingencies. zz
B. Coverage
A private employee, whether permanent, temporary or provisional.
C. The Benefits
C.1 Sickness
The sickness benefit is a daily cash allowance paid for the number of
days a member is unable to work due to sickness or injury.
A member is qualified to avail himself/herself of this benefit if:
1. he/she is unable to work due to sickness or injury and is thus confined

either in the hospital or at home for at least four days;
2. he/she has paid at least three monthly contributions within t he 12 -
month period immediately before the semester of sickness;
3. he/she has used up all current company sick leaves with pay for the
current year; and
4. he/she has notified his/h er employer.
zz
F o r i n q u i r i e s o n S S S b e ne f i t s a nd o t he r r e l a t e d m a t t e r s, y o u m a y v i s i t t h e S o c i a l S e c ur i t y S y s t e m ( S S S ) a t t he S S S
B u i l d i ng , E a st A v e n ue , D i l i m a n , Q u e z o n C i t y o r i t s n e a r e st b r a nc h o f f i c e . Y o u m a y a l s o c a l l t e l e p h o ne n um b e r s
9 2 0 - 6 4 0 1 ( o p e r a t o r - a s s i st e d ) , 9 2 0 - 6 4 4 6 ( M e m b e r R e l a t i o n s D e p a r t m e nt ) , 9 1 7 - 7 7 7 7 ( m a c h i n e - a s s i st e d ; p r e s s yo u r
SSS no . and wait for i n s t r uc t i o n s ) or visit it s web sit e at w w w . s s s . g o v. p h or e-m a il it at
member_relations@sss.gov.ph.
60
The amount of an employee’s sickness benefit is computed as: the

daily sickness allowance times the approved number of days.
Effective May 24, 1997, the daily sickness allowance is 90 percent of

the average daily salary credit (Section 14 of Republic Act 8282).
C.2. Maternity (see Title #8. Maternity Leave on page 27)
C.3. Disability
It is a cash benefit paid to a member who becomes permanently

disabled, either partially or totally.
A member who suffers partial or total permanent disab ility, with at

least one (1) contribution paid to the SSS prior to the semester of
contingency, is qualified.
The complete and permanent loss of use of any of the following parts
of the body under permanent partial disability:
one thumb sight of one eye one big toe

one index finger hearing of one ear one hand
one middle finger hearing of both ears one arm
one ring finger one foot one ear
one little finger one leg both ears
The following fall under permanent total disability:

1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury causing insanit y; and
5. Other cases as determined and approved by the SSS.
Types of disability benefits:

1. T he monthly pension which is paid to a disabled member who has paid at
least 36 monthly contributions to the SSS; and
2. T he lump sum amount which is granted to those who have not paid the
required 36 monthly contri butions.
C.4. Retirement
It is a cash benefit paid to a member who can no longer work due to

old age.
61
A member is qualified to avail himself of this benefit if:
a. he/she is 60 years old and unemployed and has paid at least 120 monthly
contributions prior to the semest er of retirement.
b. he/she is 65 years old, whether employed or not. If employed he/she should
have paid 120 mont hly contributions prior to the semester of retirement,
whether employed or not.
The types of retirement benefits are:
a. the monthly pension, and

b. the lump sum amount.
The monthly pension is a lifetime cash benefit paid to a retiree who

has paid at least 120 monthly contributions to the SSS prior to the
semester of retirement.
The lump sum amount is granted to a retiree who has not paid the
required 120 monthly contributions.
C.5. Death & Funeral
The death benefit is a cash paid to the beneficiaries of a deceased

member.
The primary beneficiaries are the legitimate dependent spouse until

he or she remarries and legitimate, legit imated, legally adopted or
illegitimate dependent children of the member. In the absence of primary
beneficiaries, the secondary beneficiaries are the dependent parents of
the member. In their absence, the person designated by the member as
beneficiary in his/her member ’s record will be the recipient.
The types of death benefits are:
1. the monthly pension; and
2. the lump sum amount.
The monthly pension is granted only to the primary beneficiaries of a

deceased member who had paid 36 monthly contributions be fore the
semester of death.
The lump sum is the amount granted to the primary beneficiaries of a

deceased member who had paid less than 36 monthly contributions before
the semester of death.
62
19
P AG - IBIG B ENEFITS
(Republic Act No. 9679)
A. The Home Development Mutual Fund (HDMF)

The Home Development Mutual Fund , otherwise known as Pag-IBIG
(Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno )
Fund is a mutual provident savings system for private and government
employees and other earning gro ups, supported by matching mandatory
contributions of their respective employers with housing as the primary
investment. aaa
B. Coverage
I. Mandatory Membership
▪ All employees who are or ought to be covered by the Social Security

System (SSS), provided that actual membership in the SSS shall not
be a condition precedent to the mandatory coverage in the Fund. It
shall include, but are not limited to:
o A private employee, whether permanent, temporary, or provisional

who is not over sixty (60) years old;
o A household helper earning at least ₱ 1,000.00 a month. A
household helper is any person who renders domestic services
exclusively to a household such as a driver, gardener, cook,
governess, and other similar occupations;
o A Filipino seafarer upon the signing of the s tandard contract of
employment between the seafarer and the manning agency, which
together wit h the foreign ship owner, acts as the employer;
o A self-employed person regardless of trade, business or occupation,
with an income of at least ₱ 1,000.00 a month and not over sixty (60)
years old;
o An expatriate who is not more than sixty (60) years old and is
compulsorily covered by the Social Security System (SSS),
aaa
F o r i n q u i r i e s, yo u m a y w r i t e t he M e m b e r R e l a t i o n s D e p t . , 2 n d F l o o r , J E L P B l d g . , 4 0 9 A d d i t i o n H i l l s , S ha w B l vd . ,
M a nd a l u y o ng C i t y, o r yo u m a y c a l l i t s H o t l i ne a t ( 0 2 ) 7 2 4 - 4 2 4 4 o r e m a i l a t p u b l i c a f f a i r s @ p a g i b i g f u n d . g o v. p h .
Y o u c a n a l so v i s i t i t s n e a r e st b r a nc h o f f i c e .
63
regardless of citizenship, nature and duration of employment, and

the manner by which the compensatio n is paid. In the absence of an
explicit exemption from SSS coverage, the said expatriate, upon
assumption of office, shall be covered by the Fund.
An expatriate shall refer t o a citizen of another country who is living and

working in the Philippines.
o All employees who are subject to mandatory coverage by the

Government Service Insurance System (GSIS), regardless of their
status of appoint ment, including members of the judiciary and
constitutional commissions;
o Uniformed members of the Armed Forces of the Philippines, the
Bureau of Fire Protection, the Bureau of Jail Management and
Penology, and the Philippine National Police;
o Filipinos employed by foreign - based employers, whether they are
deployed here or abroad or a combination thereof.
II. Voluntary Membership
An individual at least 18 years old but not more than 65 years old may
register with the Fund under voluntary membership. However, said
individual shall be required to comply with the set of rules and regulations
for Pag-IBIG members including the a mount of contribution and schedule
of payment. In addition, they shall be subject to the eligibility requirements
in the event of availment of loans and other programs/benefits offered by
the Fund.
The following shall be allowed to apply for voluntary me mbership:
▪ Non-working spouses who devote full time to managing the household and
family affairs, unless they also engage in another vocation or employment which
is subject to mandatory coverage, provided the employed spouse is a registered
Pag-IBIG member and consents to the Fund membership of the non -working
spouse;
▪ Filipino employees of foreign government or international organization, or their
wholly-owned instrumentalit y based in the Philippines, in the absence of an
administrative agreement with the F und;
▪ Employees of an employer who is granted a waiver or suspension of coverage
by the Fund under RA 9679;
▪ Leaders and members of religious groups;
▪ A member separated from employment, local or abroad, or ceased to be self -
employed but would like to continu e paying his/her personal contribution. Such
member may be a pensioner, investor, or any other individual with passive
income or allowances;
64
▪ Public officials or employees who are not covered by the GSIS such as
Barangay Officials, including Barangay Chairm en, Barangay Council Members,
Chairmen of the Barangay Sangguniang Kabataan, and Barangay Secretaries
and Treasurers;
▪ Such other earning individuals/ groups as may be determined by the Board by
rules and regulations.
C. The Benefits
The Fund offers its mem bers the following benefits:

1. Savings
2. Short Term Loans
3. Housing Programs
Savings or Provident Savings Program is a fast, easy and

affordable way for a member to save for his future needs. The
contributions that a member makes together with the employer co unterpart
are credited to his Total Accumulated Value (TAV). A member contributing
two percent of his monthly compensation doubles his savings immediately
with the addition of the employer counterpart contribution. Meanwhile, a
member contributing one percent of his monthly compensation triples his
savings as the employer counterpart remains at two percent. Aside from
being fully guaranteed by the national government, members’ contributions
are deducted from the gross income prior to computation of the inco me tax.
Members’ savings earn annual dividends that are also tax -free. The
dividend rate varies depending on the net income of the Fund at yearend.
Short-Term Loan Programs are meant to provide assistance to its

members, provided they are active and have made at least 24 monthly
contributions. There are two short -term loan programs that a member may
avail of when the need arises. The Multi -Purpose Loan Program was
designed to help finance members’ immediate medical, educational or
livelihood needs; minor home improvement, purchase of appliance and
furniture, and other related needs. Meanwhile, the Calamity Loan Program
is extended to members who have been affected by a recent calamity, as
proven by a declaration of calamity in their area of residence.
Housing Programs that an eligible member may avail of in the form

of housing loans are either the End-User Financing Program or the
Magaang Pabahay, Disenteng Buhay Program. Under the End -User
65
Financing Program, a member may avail of a loan to finance any of t he

following (Circular 247):
a. Purchase of a fully developed lot not exceeding one 1,000 square meters, which
should be within a residential area;
b. Purchase of a residential house and lot, townhouse or condominium unit,

inclusive of a parking slot. T he uni t may be:
• Old or brand new;

• A property mortgaged with the F und; or
• An acquired asset, which is disposed of through sealed public bidding,
negotiated sale, or the Rent -to- Own Program.
c. Construction or completion of a residential unit on a lot owned by t he member;
d. Home improvement, i.e. any alteration in an existing residential unit intended by

a homeowner to be a permanent integral part of the property, which will
enhance its durabilit y and material value;
e. Refinancing of an existing mortgage with an in stitution acceptable to the Fund,

provided that:
• T he loan is not in default within the 12 months prior to the date of application;
• T he said loan has a repayment history of at two years wit h the original
mortgagee
f. Combination of loan purposes, which sha ll be limited to the following:

• Purchase of a fully developed lot not exceeding 1,000 square meters and
construction of a residential unit thereon;
• Purchase of a residential unit, whether old or new, with home improvement;
• Refinancing of an existing mor tgage with home improvement;
• Refinancing of an existing mort gage, specifically a lot loan, wit h construction
of a residential unit thereon.
Under the Magaang Pabahay, Disenteng Buhay Program, a qualified

member may purchase an acquired asset of the Fund either in cash or
through a housing loan at very reasonable prices. A buyer who purchases
an acquired asset in cash is entitled to a 20% discount on the property’s
sales price, while a buyer who purchases through a housing loan is entitled
to a 15% discount on the property’s sales price.
To qualify for a Pag-IBIG housing loan, a member must satisfy the

following requirements:
66
a. Must be a member under the Pag -IBIG I for at least 24 months, as

evidenced by the remittance of at least 24 monthly contributions at the
time of loan application.
b. Not more than 65 years old at the date of loan application and must be
insurable; provided further that he is not more than 70 years old at loan
maturity;
c. Has the legal capacit y to acquire and encumber real propert y;
d. Has passed satisfactory background/credit and employment/business
checks conducted by the developer and the Pag -IBIG Fund;
e. Has no outstanding Pag -IBIG housing loan, either as a principal
borrower or co- borrower;
f. Has not availed of a Pag -IBIG housing loan t hat was foreclosed,
cancelled, bought back due to default, or subjected to dacion en pago,
which shall include cases where the borrower is no longer interested to
pursue the loan and surrenders the property;
g. May have an outstanding Pag - IBIG multi-purpose loan but which is
updat ed in payments at the time of loan application. A member whose
multi-purpose loan is in arrears shall be required to pay his arrears
over the counter to update his account.
D. Monthly Contribution
The monthly contributions for the members are below indicated:

Percentage of Monthly
Monthly Employee
Compensation Employer
Compensation Share
Share
1% 2%
P1,500 and below
Over P1,500 2% 2%
The maximum monthly compensation used in computing the employee

contributions is currently set at ₱5,000. This means that the maximum
member contribution and employer counterpart per month are both
currently ₱100.
67
Directory of DOLE Regional Offices

Na t i o na l Ca pi t a l Reg i o n ( NCR)
DO L E- NCR Bl d g . , Co rd i l l e ra Ad mi ni s t ra t i ve Re g i o n ( CAR)
9 6 7 Ma li g a ya St . , Ma l at e , Ca b i ne t Hi ll s,
1 0 0 4 Ma ni la 2 6 0 0 Ba g ui o Ci t y
Te l e ph o n e s: 4 0 2 -6 2 4 2 / 40 0 - 60 11 T el . # (0 7 4 ) 4 2 4 -0 8 2 4
F a x: ( 0 2 ) 4 00 - 6 24 1 ( 0 7 4 ) 4 4 2 -2 4 4 7
nc r@ d o l e . go v. p h d o l e ca r8 8 @ ya ho o . c o m
Se e n e x t p ag e fo r t h e Dir e ct o r y o f DO L E - NCR c a r@ d o l e .g o v. p h
F ie ld O ff ice s
Re g i o n 1 Re g i o n 2
Ar n e l Bl d g ., Ma b i ni St . , T u ri n g an Bld g . , Ca ri ta n Ce n tr o ,
Ca t b a n g e n , Sa n F er n a n do Ci t y, T u g u e ga r a o Ci t y, 3 5 0 0 Ca g a ya n
2 5 0 0 L a Unio n T el e f a x: ( 0 7 8) 8 4 4- 2 7 2 8 /
T el . # (0 7 2 ) 6 0 7 -8 1 1 4 8 4 4 - 1 54 0
F a x: ( 0 7 2 ) 70 0 - 25 2 0 ro 2 @ d o le . go v. p h
d o l e _ ro1 @ ya ho o . c o m
Re g i o n 3 Re g i o n 4 - A CAL AB ARZ O N
Di o sd ad o Mca ca p a g al Regi o n al G o v’t , Ce n t e r , 3 / F & 4 / F , An d e n so n Bl d g. I I ,
Br g y. Ma i mp i s, Ci t y o f Sa n Fe r n an d o Ba r a n g a y Pa ri an , Cal a mb a Ci t y,
2 0 0 0 Pa mp a n g a 4 0 2 7 L a gu n a
T el . # (0 4 5 ) 8 6 1 -4 3 8 3 T el . # (0 4 9 ) 5 4 5 -7 3 5 7
T el e f a x: ( 0 4 5) 4 5 5- 1 6 1 3 T el e f a x: ( 0 4 9) 5 4 5 - 7 3 6 0
d o l e ro 3@ g ma i l . co m d o l e 4i ms d @ ya ho o . c o m
Re g i o n 4 - B MIM ARO P A Re g i o n 5
3 r d Flr . Co n fil Bl d g . , Do ñ a Au r o ra St . , Ol d Al b a y,
Ro xa s Dr i ve . L u ma n g b a ya n , Cal ap a n Ci t y 4 5 0 0 L e ga spi Ci t y
O r ie n t al Mi nd o r o T el . # (0 5 2 ) 4 8 0 -3 0 5 8 ; 4 8 0 - 58 3 1
T el . # ( 0 4 3 ) 2 8 8 -2 0 7 8 ;2 8 8 - 20 8 0 T el e f a x: ( 0 5 2) 4 8 0- 3 0 5 8
d o l e re gi o n4 b @ ya ho o . co m ro 5 d o l e@ ya ho o . c o m
G / F Swa n Ro se Bl d g . , Co mmi ssi o n Civil St . , 3 r d & 4 t h Fl r . , DOL E - RO 7 Bld g .
Ja r o , Il oil o Ci t y 50 0 0 G e n . Ma xi l o m Ave . co r n e r
L u n a St . , L a Pa z, G o r o r do Ave . , Ce b u Ci t y
5 0 0 0 Il oil o Ci t y T el e p h on e s: ( 03 2 ) 26 6 - 97 2 2 &
Te l . # ( 0 33 ) 3 20 - 8 0 26 T ele f a x: ( 0 3 3 ) 5 0 9 - 0 40 0 F a x: ( 0 3 2 ) 41 6 - 61 6 7
d o l e re gi o n6 @ ya ho o . c o m d o l e _c e nt ra l vi s a ya s @ ya ho o . c o m
DO L E Co mp o u n d . T re ce Ma r ti r e z St . , 3 / F , Q NS Bl dg . , Ve t e ra n s. Ave .
6 5 0 0 Ta clo b a n Ci t y 65 0 0 T u ma g a , Z a mb o a n g a Ci t y 7 00 0
F a x # ( 0 5 3 ) 5 2 3 -4 2 2 0 T el . # (0 6 2 ) 9 9 3 -1 7 5 4
Te l e fa x: ( 0 5 3 ) 32 5 - 6 29 3 T el e f a x: ( 0 6 2) 9 9 1 - 2 6 7 2 & 99 1 - 26 7 3
d o l e ro 8_ ts s d @ ya ho o . co m d o l e 9 re co rd @ ya ho o . co m
Re g i o n 1 0 Re g i o n 1 1
Mo n t e Ca r lo Bld g . RER Ph a se I 4 t h Fl r . , Da vao Chi n g Pri n te r s Bl d g . co r .
Ka u swa g a n , Na t i o na l Hig h wa y Da cu d a o Ave . & L a kan d ul a St . , Ag d ao
9 0 0 0 Ca g a ya n d e Or o Ci t y 8 0 0 0 Da va o Ci t y
T el . # (0 8 8 ) 8 5 8 -1 6 8 5 T el . # (0 8 2 ) 2 2 7 -4 2 8 9
T el e f a x: ( 0 8 8) 8 5 7 - 2 2 1 8 T el e f a x: ( 0 8 2) 2 2 6- 2 6 7 1
d o l e 10 _ i ms d @ ya ho o . co m d o l e 11d a va o @ ya ho o . co m
Re g i o n 1 2 Re g i o n 1 3
1 0 2 Ace p al Bld g . , Ma bi ni Ext e n si o n, Ko r o n a d al CAR AG A Re g i o na l O f f i c e
Ci t y, Ni mf a T i u Bl d g . , JP Ro sale s Ave .
9 5 0 6 So u t h Cot a b a t o 8 6 0 0 Bu t u a n Ci t y
T el e p h on e s: ( 08 3 ) 52 0 - 01 2 5 & 2 2 8- 4 92 0 T el . # (0 8 5 ) 3 4 2 -9 6 0 6
T el e f a x: ( 0 8 3) 2 2 8 - 2 1 9 0 T el e f a x: ( 0 8 5) 3 4 2- 9 5 0 3
d o l e ro 12 . ro @ g ma i l .c o m Do l e c a ra g a1 3 @g ma i l . c o m
68
Directory of DOLE-NCR Field Offices

CAM AN AV A F i e l d O ff i c e ( CF O ) MUNT AP ARL AS F i e l d O f f ic e ( MF O )
5 / F , Ar a ne t a Sq u ar e Ce n t er , No . 2 6 3 Val e n zu ela Bl dg . ,
Mo n u me n t o Ci r cl e Al a b a ng Z a po t e Ro ad Pa mp l o n a
1 4 0 0 Cal o o ca n Ci t y L a s Pi ñ a s Ci t y
T el e f a x: ( 0 2 ) 3 6 7 -3 1 8 8 & 3 62 - 3 18 7 T el e p h on e s: 7 7 2- 8 2 16 ; 8 0 8- 0 4 22
3 2 3 - 7 46 6 J u ri s d i ct i on : Ci t i e s of Mu nt i n lu p a , T a gu i g ,
J u ri s d i ct i on : Ci ti e s of Ca lo o c an , Ma l a b on , Pa ra ñ a q u e , a nd L as Pi ñ a s
Na v o t a s, a nd Va l e n zu e l a
Ma ni l a F i e l d O ff i c e ( MF O ) PAP AM AR IS AN F i e l d O f f i ce ( PF O)
4 / F, Dy I n t e rn a ti o n al Bl d g . 4 / F Ru d ge n Bld g . , Sh a w Bl vd . ,
1 6 5 0 Sa n Ma r celi n o co r G en . Ma l var Sts. Br g y. Sa n An t o ni o Ca pi to l yo , 1 6 00 Pasi g Ci t y
Ma l a t e , 10 0 4 Ma nil a T el e p h on e : 5 3 2- 4 3 26 ; 6 6 1- 5 0 42
Te l e ph o n e s: 3 0 2 -9 2 6 9 to 7 0 ; 24 4 - 15 32 ; J u ri s d i ct i on : Pa t e ros a nd th e c it i e s
2 4 4 - 1 31 8 o f M an da l u yo ng , M a ri k in a , Pa s ig ,
a n d San J u an
Ma k a t i - Pa s a y F i e ld O ff i c e ( MPF O ) Q ue zo n Ci t y F i e l d O ff i c e ( Q CF O)
2 / F , Emp l o ye e s Co mp e n sa t i o n Co mmi ssi o n 4 / F , Ar ca di a Bl d g.
( ECC) Bl d g . , Q u e zo n Ave n u e
3 5 5 Se n . Gil Pu ya t Ave n ue Ext e n si o n 1 1 0 0 Q u e zo n Ci t y
1 2 0 0 Ma ka ti Ci t y T el e p h on e s: 9 2 1- 4 9 73
T el e p h on e s: 3 3 6- 5 0 62 ; 7 7 2- 8 2 10 ; 8 00 - 7 2 1 1 3 7 6 - 5 98 3 & 4 1 4 -4 4 7 1
For inquiries, please call DOLE Hotline at 1349

or the DOLE Regional Office having jurisdiction
over the workplace of the employee.
69
The BWC
The Bureau of Working Conditions (BW C) is responsible for the
formulation and development of labor standards in the areas of hours of
work, occupational safety and health, and other conditions of employment.
In May 1982, the Bureau of Labor Standards, which was created in

June 1957 under Reorganization Plan No. 20 -A, was renamed the Bureau
of Working Conditions. The BW C pe rforms all functions in relation to the
formulation of policies and enforcement of labor standards performed by
the then Wage Administrative Service and the Industrial Safety Division of
the Bureau of Labor.
Vision
The Bureau of Working Conditions envisio ns well-guided employers
and workers committed to a safe, healthful, and productive work
environment, adaptive to industry trends and developments, and equitably
enjoying the gains of joint endeavors.
Mission
• To formulate policies and initiate legislation s on labor standards,
based on relevant information culled from monitoring, consultations,
networking, and researches.
• To standardize the use of enforcement instruments and to clothe the
inspectorate system with strong enforcement authority to ensure
compliance with laws and regulations.
• To develop and sustain the capability of enterprises toward self -
management of safety and health in workplaces, thus, upholding the
principle of shared responsibility between workers and employers.
• To enhance the capability of small enterprises in implementing
practical and efficient methods of improving working conditions and
productivity.
• To inform and advise the public on labor standards, including
occupational safety and health, and on innovative work practices or
arrangements.

DOLE Handbook On Workers Statutory Monetary Benefits (2019 Edition)

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HANDBOOK ON

DEPARTMENT OF LABOR AND EMPLOYMENT

All Rights Reserved

T his Handbook is published by the

W e continue to envision this Handbook not only as a reliable tool in bringing

SILVESTRE H. BELLO III

2. HOLIDAY PAY (Article 94)

3. PREMIUM PAY (Articles 91 -93)

4. OVERTIME PAY (Article 87)

6. SERVICE CHARGES (Article 96)

7. SERVICE INCENTIVE LEAVE (Article 95)

8. MATERNITY LEAVE (RA 1161, as amended by RA 8282)

9. PATERNITY LEAVE (RA 8187)

10. PARENTAL LEAVE FOR SOLO PARENTS (RA 8972)

12. SPECIAL LEAVE FOR WOMEN (RA 9710)

13. THIRTEENTH-MONTH PAY (PD 851)

14. SEPARATION PAY (Articles 2 98- 299)

15. RETIREMENT PAY (Article 302)

16. BENEFITS UNDER THE EMPLOYEES’ COMPENSATION

17. PHILHEALTH BENEFITS (RA 7875, as amended by RA 9241)

18. SOCIAL SECURITY BENEFITS (RA 1161, as amended by

19. PAG-IBIG BENEFITS (RA 9679)

APPENDIX Directory of DOLE Regional Offices 67

Subsidized Meals and Snacks

Salary of Kasambahay who works as salesclerk

The Rules Implementing RA 6727 define the industrial sectors as

“Agriculture” refers to farming in all its branches and, among others,

“Retail Establishment” is one principally engaged in the sale of goods to

“Service Establishment” is one principally engaged in the sale of

The said law rationalized wage determination by establishing the

National Capital Region (NCR) or Metro Manila

A.2 Upon application with and as determined by an RTWPB, based on

B. Minimum Wage Rates

DAILY MINIMUM WAGE (MW)

Summary of Current Regional Daily Minimum Wage Rates

CA R b W O 1 9 / A u g us t 2 0 , 2 0 1 8 300.00-320.00 300.00-320.00 300.00-320.00

II d W O 1 9 /f o r p u b l ic a t i o n 360.00 340.00 340.00

IV - A f WO 18/April 28, 2018 3 1 7 . 0 0 – 4 0 0. 0 0 3 0 3 . 0 0 - 3 7 2. 0 0 3 0 3 . 0 0 - 3 5 6. 0 0

V II I k W O 2 0 /J u n e 2 5, 2 0 1 8 305.00 275.00 275.00

IX l W O 2 0 /J u l y 3 0 , 2 0 1 8 316.00 303.00 303.00

XI n W O 2 0 / A u g us t 1 6 , 2 0 1 8 370.00 365.00 365.00

X II o W O 2 0 / Ma y 1 1 , 2 0 1 8 311.00 290.00 290.00

CA RA G A p W O 1 5 / De c em b e r 0 8, 2 0 1 7 305.00 305.00 305.00

A RMM q W O 1 7 /J u n e 1 5, 2 0 1 8 280.00 270.00 270.00

D. Monthly-Paid Employees and Daily-Paid Employees

Computation of the Estimated Equivalent Monthly Rate (EEMR) of

For monthly-paid employees:

Factor 365 days in a year is used in determining the equivalent

Applicable Daily Rate (ADR) x 365 = EEMR

W here 365 days/ year = 297 ordinary working days

For daily-paid employees:

The following factors and formula may be used in computing the

1. For those who are required to work everyday, including Sundays or

Applicable Daily Rate (ADR) x 3 93.8 = EEMR

W here 393.50 days/ year = 297 ordinary working days

Applicable Daily Rate (ADR) x 313 t = EEMR

W here 313 days/ year = 297 ordinary working days

Applicable Daily Rate (ADR) x 261 u = EEMR

W here 261 days/ year = 245 ordinary working days