MINIMUM WAGE Republic Act 6727 (otherwise known as the Wage Rationalization Act ) Regional Tripartite Wage and

Productivity Boards determine the wage.

MINIMUM WAGE

• MINIMUM WAGE Republic Act 6727 (otherwiseknown as the Wage Rationalization Act )

• Regional Tripartite Wage and Productivity Boards determine the wage rates in different regions.

COVERAGE

• Applies to all private sector workers regardless of their position or status, irrespective of the method by which their
wages are paid, except the ff.

• 1. Household helpers, including family drivers and workers in the personal service of another

• 2. Employees of establishments regularly employing not more than 10 workers

• 3. Workers of distressed establishments;

• 4. Workers of establishments which are exempted from compliance for a fixed point.

FORMULAE

• Formulae in determining the Estimated Equivalent Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Employees:

• For those working even on Saturdays and Sundays:

Applicable Daily Rate x 365

___________________________

12

FORMULAE

• Where 365 days/year=

3OO working days

51 rest days

11 regular holidays

3 special days

________

365 Total Equivalent Number of days in a year

FORMULAE

• For those required to work everyday including Sundays, rest days, special days and regular holidays

Applicable Daily Rate x 392.80

_______________________________

12

• Where:

• 392.80 days/year = 300 ordinary working days

2.0 ten regular holidays x 200%

2.60 one regular holiday/rest day x 260%

66.30 51 rest days x 130%

3.90 3 special days x 130%

• For those who do not work and are not considered paid on Sundays or rest days:

Applicable Daily Rate x 314

_____________________________

12

• Where: 300 ordinary working days

11 regular holidays

3 special days (if considered paid; if actually worked, this is 3.9)

--------

314

FORMULAE

• For those who do not work and are not considered paid on Saturdays and Sundays or rest days:

Applicable Daily Rate x 262

____________________________

12

Where 262 days/year:

248 ordinary working days

11 regular holidays

3 special days (if considered paid; if Actually worked, this is 3.9)

------

262

Minimum Wage of Workers Paid By Results

• ART. 101. Payment by results. - (a) The Secretary of Labor and Employment shall regulate the payment of wages by
results, including pakyao, piecework, and other non-time work, in order to ensure the payment of fair and reasonable
wage rates, preferably through time and motion studies or in consultation with representatives of workers’ and
employers’ organizations.

• Wage Order No. IVA-13 (June 1, 2008) GROWTH CORRIDOR

AREA: Carmona, Cavite City, Dasmarinas, Gen. Trias, Rosario, Cabuyao, Calamba City, Los Banos, San Pablo City, Sta.
Cruz, Sta Rosa: Daily Rate:P298.00 Monthly Rate:P7748.00

• GROWTH CORRIDOR AREA Kawit, Silang, Tagaytay City, Tanza, Trece Martirez, Batangas City, Bauan, Lipa City, San
Pascual, Santo Tomas, Tanauan City, Lucena City Daily RateP293.00 Monthly RateP7,618.00

Holiday Pay (Article 94)

• 11 regular holidays (E.O. 203)

• New Year January 1

• Maundy Thursday Movable Date

• Good Friday Movable Date

• Araw ng Kagitingan April 9

• Labor Day May 1

• Independence Day June 12

• National Heroes Day Last Sunday of August

• Eidl Fitr Movable Date

• Christmas Day December 25

• Rizal Day December 30

• Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday

• Applies to all employees except:

• -govt. employees

• -establishments not employing more than ten workers

• -househelp

• -managerial employees

• -officers or members of a managerial staff

• -field personnel unsupervised

• Covered employees shall be entitled to holiday pay when they are on leave of absence with pay on the work day
immediately preceding the regular holiday.

Premium Pay (Articles 91-93)

• Exemptions: government employees, managerial employees, officers/members of managerial staff, househelp,

• For work performed on rest days or on special days: plus 30% of the daily rate of 100% or a total of 130%

• Special Days (EO 2030)

• Ninoy Aquino Day August 21

• All Saints Day November 1

• Last Day of the Year December 31

• For work performed on a rest day which is also a special day: Plus 50% of the daily rate of 100% or a total of 150%

• For work performed on a regular holiday which is also the employee’s rest day: Plus 30 percent of the regular holiday
rate of 200% based on his/her basic wage rate or a total of 260%

Overtime Pay (Article 87)

• Exemptions: Same as in Premium Pay

• For work in excess of eight (8) hours performed on ordinary working days: Plus 25% of the hourly rate

• For work in excess of eight hours performed on a scheduled rest day, a special day, and a regular holiday: Plus 30% of
the hourly rate on said days.

Night Shift Differential (Article 86)

• Exemptions: government employees, househelp, managerial employees, officers/members of managerial staff, field
personnel

• Night shift differential refers to the additional compensation of 10% of an employee’s regular wage for each hour of
work performed between 10 p.m. and 6 a.m.

Service Incentive Leave (Article 95)

• Every employee who has rendered at least one year of service is entitled to SIL of 5 days with pay

• Exemptions: government employees, househelp, managerial employees, officers/members of managerial staff, field
personnel, those already enjoying this benefit, those enjoying vacation leave with pay at least 5 days, less than 10
employees.
• Service Charge (Article 96) All rank-and-file employees of employers collecting service charges are entitled to an equal
share in the 85% of the total of such charges. The remaining 15% shall answer for losses and damages. Distributed 2x a
month.

Maternity Leave (RA 1161, as amended by RA 8282)

• Every pregnant employee in the private sector, whether married or unmarried is entitled to maternity leave benefit of 60
days in case of normal delivery or miscarriage, or 78 days in case of Caesarian section delivery, with benefits equivalent
to 100% of the average salary credit of theemployee as defined under the law.

Paternity Leave (RA 8187)

• Granted to all male employees in the private sector regardless of status Applies to 4 deliveries of the employee’s

lawful wife with whom he is cohabiting Shall be for 7 calendar days with full pay Not convertible to cash if not availed of

• PARENTAL LEAVE FOR SOLO PARENTS (RA 8972) Means leave benefits granted to a solo parent to enable him/her to
perform parental duties where physical presence is required Must have rendered at least one year of service Seven
working days every year with full pay.

•Leave for Victims of Violence Against Women and their Children(RA 9262) The leave benefit shall cover the days that
the woman employee has to attend to medical and legal concerns A certification from the Punong Barangay that a case
is pending

• 13 th. month pay (PD 851) Paid to all employees who worked for at least one month during a calendar year. Should be
given to employees not later than December 24 every year. Should not be less than one-twelfth of the total basic salary
earned by an employee in calendar year Exemptions: government, those already paying at the time of PD 851 househelp,
commission, boundary or task employees.

• Separation Pay (Article 283-84) One-Half month pay for every year of service: -retrenchment to prevent losses -
closure or cessation of operation of an establishment – deceased One-Month Pay for every year of service: - installation
of labor-saving device -redundancy -impossible reinstatement

• Allowance should be integrated with the basic salary Fraction of six months considered one year. Separation pay also
paid to illegally dismissed employees

• Retirement Pay (RA 7641) Employees should be retired upon reaching the age of 60 or more but not beyond 65 and
have served for at least 5 years. Exemptions: government, not more than ten employees. ½ month pay for every year of
service which includes: 15 days salary based on the latest salary rate; cash equivalent of five days; one twelfth of the
thirteenth month pay or a total of 22. 5 days.

SOLO PARENT ACT OF 2000 (REPUBLIC ACT. 8972)

Solo Parent Welfare Act of 2000

• An act providing for benefits and privileges to solo parents and their children, appropriating funds therefor and other
purposes.

• This act was approved on November 7, 2000. It is the policy of the State to promote the family as the foundation of the
nation, strengthen its solidarity and ensure its total development.

Toward this end, it shall develop a comprehensive program of services for solo parents and their children to be carried
out by the he non-governmental agencies.

Is any individual who falls under any of the following categories:

• A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the
offender. Provided, that the mother keeps and raises the child;

• Parent left solo or alone with the responsibility of parenthood…..

• Due to death of spouse;

• While the spouse is detained or is serving sentence for a criminal conviction for at least one (1) year;

• Due to physical and/or mental incapacity of spouse as certified by a public medical practitioner;

• Due to legal separation or de facto separation from spouse for at least one (1) year, as long as he/she is entrusted
with the custody of the children;

• Due to declaration of nullity or annulment of marriage as decreed by a court or by a church as long as he/she is
entrusted with the custody of the children;
• Due to abandonment of spouse for at least one (1) year;

•Unmarried mother/father who has preferred to keep and rear her/his child/children instead of having others care for
them or give them up to a welfare institution;

• Any other person who solely provides parental care and support to a child or children; provided he/she is duly licensed
as a foster parent by the DSWD or duly appointed legal guardian by the court;

• Any family member who assume the responsibility of head of the family as result of death, abandonment,
disappearance or prolonged absence of the parents or solo parent.

CHILDREN

• Refer to those living with the dependent upon the solo parent for support who are unmarried, unemployed and below
18 years of age, or even 18 years and above but are incapable of self-support and/or mentally and/or physically
challenged.

EMPLOYMENT-RELATED BENEFITS

• PARENTAL LEAVE

• Parental leave is a leave guaranteed to a solo parent employee who has rendered at least one year of service.

• Parental leave should not be more than seven (7) working days per year.

• This is non-cumulative

• What are the requirements for availment of this leave?

• The solo parent has:

• 1 - Rendered at least one year of service whether continuous or broken;

• 2 - Notified the employer within a reasonable time period; and

• 3 - Presented a Solo Parent Identification Card to his/her employer (while the ID is in process, any proof may be
presented)

• PARENTAL LEAVE

• Where can a solo parent get the Solo Parent IdentificationCard?

• The Solo Parent Identification Card may be obtained from the Municipal/Social Welfare and Development Office.

• Is the parental leave convertible to cash?

• No, unless specifically agreed upon previously.

• Is the employer required to provide parental leave in addition to already existing similar benefits under a company
policy or CBA?

• No, the same shall be credited as cash

• If the similar benefits is greater than what the law provides,which will prevail?

• The greater benefit shall prevail.

• Is the emergency or contingency leave under a company policy or CBA considered compliance with the law?

• No, the same shall not be credited as compliance with the parental leave provided for under the Act and these Rules.

PARENTAL LEAVE

• When can a Solo Parent avail of parental leave?

• A solo parent may avail of parental leave with pay in any of thefollowing circumstances:

• (1) when a child gets ill;

• (3) for enrollment purposes;

• (4) other circumstances necessary in the performance of parental duties and responsibilities where the physical
presence is required.

EMPLOYMENT-RELATED BENEFITS

• Are househelpers covered by RA 8972 and therefore may avail of the 7 days parental leave?

• Yes, as long as he/she falls under the definition of a solo parent under Section 3 of RA 8972; and that he/she has
rendered service of at least one year.

• FLEXIBLE WORK SCHEDULE

• What are the different types of flexible work schedules allowed by DOLE policy?

• The following are flexible work schedule allowed by DOLE:

• 1. Compressed Workweek – the workweek of 48 hours in six days iscompressed for 5 days, which is approximately
9.6 per day from Monday to Friday, without payment of overtime pay in exchange for an additional day off in a week,
savings on transportation and meal expenses, among other considerations.

• 2. Gliding Time Schedule – the schedule allows an employee to a flexible punch-in time i.e. anytime from 7:00am –
9:00am and punch out after 8 hours of work.

• 3. Other flexible work arrangements as agreed upon by parties, provided the minimum requirements of the law are met.

• When can an employer provide for a flexible work schedule for solo parents?

• An employer shall provide for flexible work schedule when requested by a solo parent employee provided the same
shall not affect individual and company productivity.

Can an employer refuse to grant a request of a solo parent for aflexible work schedule?

• Yes, the employer may seek exemption from the DOLE Regional Office having jurisdiction over the workplace provided
it is based on meritorious grounds

• WORK DISCRIMINATION

• Can an employer discriminate against an employee on account of being a solo parent?

• No employer shall discriminate a solo parent employee with respect to terms and conditions of employment on
account of his/her being a solo parent.

TERMINATION OF THE BENEFITS

• When can the solo parent benefits be terminated?

• A change in the status or circumstance of the parent claiming the benefits under RA 8972 such that he/she is no
longer left alone with the responsibility of parenthood, shall terminate his/her eligibility for these benefits.

• EXISTING STATUTORY BENEFITS RELATED TO MATERNITY PROTECTION/PARENTAL RESPONSIBILITY

• What is maternity benefit?

• he maternity benefit is a daily cash allowance granted to a married or unmarried female SSS member who was unable
to work due to childbirth or miscarriage. The maternity leave is equivalent to 60 days for normal delivery or miscarriage,
78 days for caesarian section.

• Is a female solo parent also entitled to maternity benefit?

• Yes, an employed SSS member who is a female solo parent is entitled to maternity benefit provided she has paid at
least 3 monthly contributions to the Social Security System within the 12-month period immediately preceding the
semester of her childbirth or miscarriage and she has given the notification of her pregnancy through her employer. A
self-employed female member of the SSS is likewise entitled to maternity benefits, provided that she meets the
qualifying contributions under RA 8282.
EMPLOYMENT-RELATED BENEFITS

• EXISTING STATUTORY BENEFITS RELATED TO MATERNITY PROTECTION/PARENTAL RESPONSIBILITY

• What is paternity leave?

• Paternity leave is a leave benefit granted to a married male employee allowing him not to report for work for 7 days but
continues to earn compensation, on the condition that his spouse has delivered a child or suffered a miscarriage for
purpose of enabling him to effectively lend support to his wife in her period of recovery and/or in the nursing of the
newly born child.

Is a male solo parent entitled to paternity leave?

• No, only married male employee shall be entitled to a paternity leave of 7 days with pay for the first four deliveries of
the legitimate spouse with whom he is cohabiting.

• Can a married male employee avail of parental leave?

•Yes, provided he falls under the definition of a solo parent.

SECTION 1

• Definition of Terms

• a. “Paternity leave” refers to the leave benefits granted to a married male employee allowing him not to report for work
for seven (7) days but continues to earn the compensation therefor, on the condition that his spouse has delivered a
child or suffered a miscarriage for the purpose of lending support to his wife during her period of recovery and/or in
nursing of the newly born child.

• b. “Employee” refers to any person who performs services for another and receives compensation therefor, provided
anemployer-employee relationship exists between them.

• c. “Delivery” refers to childbirth or miscarriage.

• d. “Spouse” refers to the lawful wife. For this purpose, lawful wife refers to a woman who is legally married to the male
employee concerned.

• e. “Cohabiting” refers to the obligation of the husband and wife tho live together.

SECTION 2

• Coverage.

• Every married male employee in the private sector shall be entitled to paternity leave benefits of seven (7) days with
full pay for the first four deliveries by his lawful spouse under such terms and conditions as hereinafter provided. The
rules on paternity leave of employees in the public sector shall be promulgated by the Civil Service Commission.

• For example, the employee may take a leave of 2 days before delivery, 1 day during delivery, and another 4 days after
delivery. However, the benefit must be availed of not later than 60 days after date of delivery.

Section 3

• Conditions for Entitlement to Paternity Leave

• a. The employee is lawfully married;

• b. He is cohabiting with his legitimate wife;

• c. His wife is pregnant or has delivered a child or suffered a miscarriage or abortion;

• d. Must be of the first four deliveries;

• e. The employer is notified within reasonable time of the pregnancy and of date of expected delivery (not required in
case of abortion or miscarriage).
SECTION 4

Application for leave.

• The married male employees shall apply for paternity leave with his employer within a reasonable period of time from
the expected date of delivery by the pregnant spouse, or within such period as may be provided by company rules and
regulations or by collective bargaining agreement, provided that prior application for leave shall not be required in case
of miscarriage.

Limitation:

• The benefit may be availed of only for the first four deliveries.

SECTION 5

• Availment.

• Paternity leave benefits shall be granted to the qualified employer after the delivery by his wife, without prejudice to an
employer allowing an employee to avail of the benefit before or during the delivery; provided, that the total number of
days shall not exceed seven (7) days for each delivery.

Who are obliged to grant paternity leaves?

• The payee would be the Social Security System in the Philippines for the private sector , and the GSIS for the public
sector. Corporations, trusts, firms, partnerships, associations, and other employing agencies that remit contributions to
SSS and the GSIS are obligated to grant paternity leave benefits according to what are described by RA 8187. Also
check with your company if they have separate policies on paternity benefits.

SECTION 6 AND 7

• Benefits

• The employee is entitled to his full pay, consisting of basic salary, for the seven (7) days during which he is allowed not
to report for work, provided, that his pay shall not be less than the mandated minimum wage.

SECTION 7. Non-commutation of benefits.

• In the event that paternity leave benefit is not availed of, said leave shall not be convertible to cash.

SECTION 8 AND 9

• Non-diminution clause.

• Nothing in these Rules shall be construed to reduce or replace any existing benefits of any kind granted under existing
laws, decrees, executive orders, or any contract, agreement or policy between employer and employee.

SECTION 9. Crediting of existing benefits.

• Where a male employee is already enjoying the paternity leave benefits by reason of contract, company policy or
collective bargaining agreement, the following rules shall apply:

a. If the existing paternity leave benefit is greater than the benefit herein provided, the greater benefit shall prevail.

Crediting of existing benefits.

• b. If the existing paternity leave is less than that provided herein, such existing benefit shall be adjusted to the extent
of the difference. However, where a contract, company policy or collective bargaining agreement provides for an
emergency or contingency leave without specific provisions on paternity leave, the paternity leave as herein provided
shall apply in full.

SECTION 10

• Penalty.

• Any person, corporation, trust, firm, partnership, association or entityfound violating any provision of these Rules shall
be penalized by a fine not exceeding twenty five thousand pesos (P25,000) or imprisonment of not less than thirty (30)
days nor more than six (6) months.

• If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of
imprisonment shall be imposed on the entity’s responsible officers, including but not limited to, the president, vice
president, chief executive officer, general manager, managing director or partner directly responsible therefor.

SECTION 11 AND 12

• Transitory Provision

• All qualified employees whose spouse delivered a child or suffered a miscarriage on or after July 5, 1996 are entitled
to paternity leave.

SECTION 12. Repealing Clause

• All laws, ordinances, rules, regulations, issuances, or parts thereof which are inconsistent with these Rules are deemed
repealed or modified accordingly.

SECTION 13 AND 14

• Separability Clause

• If any provision or portion of these Rules is declared void or unconstitutional, the remaining portions or provisions
hereof shall continue to be valid and effective.

SECTION 14. Effectivity.

• These Revised Rules shall take effect on 05 July 1996.

An Act Increasing the Maternity Leave Period to One Hundred Five (105) Days for Female Workers With an Option to
Extend for an Additional Thirty (30) Days Without Pay, and Granting an Additional Fifteen (15) Days for Solo Mothers,
and for Other Purposes

REPUBLIC ACT No. 11210