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LABOR CODE DETAILS

Hours of Work

Eight (8) hours per day or 48 hours per week. Rest periods of short duration during work hours shall be counted as hours worked.

Work Day

A day is the 24-hour period which commences from the time the employee regularly starts to work.

Minimum Wage (Manufacturing Sector)

The minimum wage rate for agricultural and non-agricultural workers in every region are determined by the Regional Tripartite Wages and Productivity Board. The minimum wage rates by Region (non-agricultural jobs) as of CY 2000 are as follows:

Regions
Daily Minimum Wage
(in Pesos/day)
- As of January 2003
Metro Manila) private sector workers & employees
  • Wage Order # NCR 08 (Oct. 6, 2000)
  • private sector workers and employees
P 280.00
CAR (Cordillera Autonomous Region)
P 190.00
Region I
P 190
Region II
P 185.00
Region III
P 228.50
Region IV
P 237.00
Region V
P 182.00
Region VI
P 180.00
Region VII
P 200.00
Region VIII
P 188.00
Region IX
P 175.00
Region X
P 192.00
Region XI
P 195.00
Region XII
P 180.00
CARAGA
P 179.00
ARMM
P 140.00
Source: Department of Labor and Employment (http://www.dole.gov.ph)
Note: Minimum wage ranges are provided inasmuch as rates vary from province to province within each region.
Fringe Benefits

This refers to goods, services, or other benefits furnished by an employer in cash or kind, in adddition to basic salaries; to managerial or supervisory employees such as but not limited to the following:

  • Housing
  • Expense Account
  • Vehicle of Any Kind
  • Household personnel, such as maid, driver and others
  • Interest on loans at less than market rate to the extent of the difference between the market rate and actual rate granted;
  • Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations;
  • Holiday and vacation expenses
  • Educational assistance to the employee or his dependents; and
  • Life or health insurance and other non-life insurance premiums or similaramounts in excess of what the law allows

Managerial employees refer to those who are given powers or prerogatives to lay down and execute managerial policies and or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.

Supervisory employees are those who effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requirres the use of independent judgment.

Overtime (OT) Remuneration

Overtime premium is allotted for work exceeding the maximum prescribed period. The OT rates per hour for overtime work rendered on the specified days:

Category
Computation(in Pesos)
OT Work on Regular Day 125% * Rate/Hour
OT work during Rest Day or Special Public Holiday
   First 8 hours
   In excess of the 1st 8 hours

130% * Rate/Hour
130% * Rate/Hour+30% of(130% of Rate/Hour)
OT work on Special Public Holiday falling on employee’s rest day
   First 8 hours
   In excess of the 1st 8 hours
150% * Rate/Hour
150% * Rate/Hour+30% of(150% of Rate/Hour)
OT work on Regular Holiday
   First 8 hours
   In excess of the 1st 8 hours

200% of Rate/Hour
200% of Rate/Hou + 30% of (200% of Rate/Hour)
OT work on Rest Day falling on a Regular Holiday
   First 8 hours
   In excess of the 1st 8 hours

260% of Rate/Hour
260% of Rate/Hour + 30% of (260% of Rate?Hour)
Night-Shift Differential Pay

Night-shift employees must be paid a differential of not less than 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m.

Service Incentive Leave

Every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay.

Meal and Rest Periods

One-hour time-off for regular meals.

MANDATORY EMPLOYMENT CONTRIBUTION
13th Month Pay

By law, companies are required to give its employees a 13th pay equivalent to one (1) month salary.

Social Security Systems (SSS) Contributions

As mandated by law, both employer and employees are to contribute for the social security benefits of the employees in accordance with the following schedule:

Compensation Ranges
Monthly Salary Credit
Monthly Contributions
Total
Employer
Employee
P 1,000-1,249.99
1,000
70.70 33.30
104.00
1,250-1,749.99
1,500
101.00 50.00
151.00
1,750-2,249.99
2,000
131.30 66.70
198.00
2,250-2,749.99
2,500
161.70 83.30
245
2,750-3,249.99
3,000
192.00 100.00
292
3,250-3,749.99
3,500
222.30 116.70
339
3,750-4,249.99
4,000
252.70 166.70
386
4,250-4,749.99
4,500
283.00 150.00
433
4,750-5,249.99
5,000
313.30 166.70
480
5,250-5,749.99
5,500
343.70 183.30
527
5,750-6,249.99
6,000

374.00

200.00
574
6,250-6,749.99
6,500
404.30 216.70
621
6,750-7,249.99
7,000
434.70 233.30
668
7,250-7,749.99
7,500
465.00 250.00
715
7,750-8,249.99
8,000
495.30 266.70
762
8,250-8,749.99
8,500
525.70 283.30
809
8,750-9,249.99
9,000
556.00 300.00
856
9,250-9,749.99
9,500
586.70 316.70
903
9,750-10,249.99
10,000
616.70 333.00
950
10,250-10,749.99
10,500
647.00 350.00
997
10,750-11,249.99
11,000
677.30 366.70
1,044
11,250-11,749.99
11,500
707.70 383.30
1,091
11,750-over
12,000
725.00 400.00
1,138
Employer's monthly contribution includes P10.00 for Employees Compensation (EC) that coveers disability/accident benefits.
Contribution to National Health Insurance Program (NHIP) As mandated by R.A. 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth), both employers and employees are to contribute for the medical insurance/benefits of hte employees in accordance with the following schedule effective January 1, 2001:
PHILHEALTH CONTRIBUTION RATES
Montly Salary Range
Salary Base
Monthly Contribution
Employee Share
Employer Share
P 3,499.99 & below
3,000.00
75.00
37.50
37.50
3,500.00-3,999.99
3,500.00
87.50
43.75
43.75
4,000.00-4,499.99
4,000.00
100.00
50.00
50.00
4,500.00-4,999.99
4,500.00
112.50
56.25
56.25
5,000.00-5,499.99
5,000.00
125.00
62.50
62.50
5,500.00-5,999.99
5,500.00
137.50
68.75
68.75
6,000.00-6,499.99
6,000.00
150.00
75.00
75.00
6,500.00 - 6,999.99 6,500.00
162.50
81.25
81.25
7,000.00-7,499.99
7,000.00
175.00
87.50
87.50
7,500.00 - 7,999.99
7,500.00
187.50
93.75
93.75
8,000.00 - 8,499.99 8,000.00
200.00
100.00
100.00
8,500.00 - 8,999.99 8,500.00
212.50
106.25
106.25
9,000.00 - 9,499.99 9,000.00
225
112.50
112.50
9,500.00 - 9,999.99 9,500.00
237.50
118.75
118.75
10,000.00 and up 10.000.00
250
125
125
Source: Philippine Health Insurance Corp. http:www.philhealth.gov.ph
Note: Payment of monthly premium contributions for public and private ssector employees is on or before 10th of the month following the applicable month thru nearest Philhealth Accredited Collecting Banks (ACB'S)
Contribution to Home Development and Mutual Fund Companies/employers are also required to contribute at least P100 per month to HDMF for employee benefits. Ccompanies/employers remit this contribution plus that of hte employees' which will be deducted from their payroll, in accordance with the periodic remittance schedule provided by HDMF.
 

 

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