Handbook on Workers' Statutory Monetary Benefits 2023

The Bureau of Working Conditions (BWC) of the Department of Labor and Employment (DOLE).

What organization published the Handbook on Workers' Statutory Monetary Benefits?

Various statutory monetary benefits for workers in the Philippines.

What does the 2023 edition of the Handbook cover?

Rest periods are not counted as working time if employees can rest completely; however, waiting time is considered working time if integral to the work.

What is the policy regarding rest periods according to the Handbook?

When it is outside regular hours, voluntary, and no productive work is performed.

When is attendance at lectures and training programs not considered working time?

At least one hour for regular meals, or a minimum of 20 minutes which is credited as compensable hours.

How long are employees entitled to meal periods?

Short rest periods, usually 5 to 20 minutes, are considered compensable working time.

What is the treatment of short rest periods according to the Handbook?

They are paid every day of the month, including unworked rest days, special days, and regular holidays, using a factor of 365 days a year.

How are monthly-paid employees compensated?

They are paid only for days actually worked and unworked regular holidays.

How are daily-paid employees compensated?

Formulas provided for calculating monthly-paid and daily-paid employees' compensation based on daily rates and factors considering working days, rest days, and holidays.

What is the Estimated Equivalent Monthly Rate (EEMR)?

At least 30% of the value.

What is the minimum subsidy percentage for meals and snacks provided by employers?

Minimum wage rates for Kasambahay are prescribed per region and municipality type.

What is the wage policy for Kasambahay as of July 2023?

The minimum wage applicable to retail and service establishments under existing Wage Orders.

What wage should a Kasambahay working as a salesclerk receive?

The 'no work, no pay' principle, unless company policy or agreement states otherwise.

What principle applies to wages when workdays are reduced?

Fines between ₱25,000 to ₱100,000, imprisonment of 2 to 4 years, or both, plus double the unpaid benefits.

What are the penalties for violating wage increase regulations under RA 8188?

It rationalizes wage determination through Regional Tripartite Wages and Productivity Boards (RTWPBs).

What does Republic Act No. 6727, the Wage Rationalization Act, mandate?

It applies to various industrial sectors based on factors like the number of workers, capitalization, or annual gross sales, including non-agriculture, agriculture, cottage/handicraft, and retail/service.

To which sectors does the Wage Rationalization Act apply?

RTWPBs determine daily minimum wage rates in various regions based on established criteria.

What is the role of RTWPBs?

It generally applies to all private sector workers receiving daily minimum wage rates or up to a certain ceiling, regardless of position, designation, or status.

What is the coverage of the wage law?

Exemptions apply to workers of duly registered Barangay Micro Business Enterprises (BMBEs) with a Certificate of Authority pursuant to RA 10644.

What exemptions exist under the wage law?

Up to one year upon application with and determination by an RTWPB.

What is the maximum duration for which establishments may be exempted from compliance with a Wage Order?

Ranges from ₽573.00 to ₽610.00, depending on the sector/industry.

What are the minimum wage rates in NCR as of July 16, 2023?

₽610.00.

What is the minimum wage rate for non-agriculture in NCR as of July 16, 2023?

₽573.00 for service/retail establishments employing 15 workers or less, and manufacturing establishments employing less than 10 workers.

What is the minimum wage rate for agriculture and certain small establishments in NCR as of July 16, 2023?

Monthly on their website.

How often does the National Wages and Productivity Commission update the summary of minimum wage rates?

Based on normal working hours of eight (8) hours a day.

What is the basis for calculating minimum wage rates?

Includes time on duty, at the employer's premises, or at a prescribed workplace, and time suffered or permitted to work.

What constitutes 'hours worked' according to the minimum wage regulations?

At least twice (200%) the daily wage, which is ₱1,220.00 for NCR non-agriculture.

What is the wage for work performed on a regular holiday in NCR for non-agriculture?

At least an additional 30% of the 200% rate, totaling at least 260%, which is ₱1,586.00 for NCR non-agriculture.

What additional pay is entitled for work performed on a regular holiday that falls on an employee's rest day?

Entitled to at least 200% even if unworked; if required to work, entitled to an additional 100%.

What entitlement do employees have if Araw ng Kagitingan falls on Maundy Thursday or Good Friday?

Entitled if on leave with pay on the preceding workday; may not be paid if on leave without pay.

What determines entitlement to holiday pay if an employee is on leave?

They may not be paid for both unless they work on the first holiday, in which case they are entitled to pay on the second.

What happens if an employee is absent on the day preceding the first of two successive holidays?

Regular holidays falling within the shutdown period shall be compensated.

How are regular holidays treated during a temporary or periodic shutdown?

Based on average daily earnings for the last 7 work days, but not less than the minimum wage.

How is holiday pay calculated for piece-rate workers?

Total assets not exceeding ₱3,000,000.

What is the asset limit for Barangay Micro Business Enterprises (BMBEs) to be exempt from the Minimum Wage Law?

Social security and health care benefits.

What must BMBEs provide to their employees despite being exempt from the Minimum Wage Law?

Based on agreement with owners and wage advisories from RTWPBs.

What is required for wage rates of BMBE workers?

Not less than the prescribed minimum wage rates for normal working hours (up to 8 hours/day) or a proportion thereof.

What must workers paid by results receive for normal working hours?

At least 75% of the applicable minimum wage rates.

What percentage of the applicable minimum wage must apprentices and learners receive?

The arrangements for their wages.

What must be approved by TESDA regarding apprentices and learners?

An itemized listing of workers below managerial level, including learners, apprentices, and disabled workers, and their salaries.

What does the Annual Establishment Report on Wages (AERW) include?

Submission is required via the NWPC website.

What is required for the online submission of workers' salary reports?

May 31, 2023.

What was the deadline for the salary report for 2022?

January 31 of the following year.

What is the deadline for salary reports in succeeding years?

MWEs' compensation income, including holiday pay, overtime pay, night shift differential pay, and hazard pay, is exempt from withholding tax.

What is the income tax coverage for Minimum Wage Earners (MWEs) starting January 1, 2018?

Commissions, bonuses exceeding ₱90,000.00, and taxable allowances.

What additional compensation is subject to withholding tax for MWEs?

Compensation not exceeding ₱250,000.00 is exempt from withholding tax.

What is the income exemption threshold for compensation during the year?

Additional compensation for work performed within eight (8) hours on rest days and special days.

What is holiday pay?

Government employees, certain managerial employees, Kasambahay, personal service workers, and field personnel whose hours cannot be determined.

Who is excluded from receiving holiday pay?

Only the daily wage is paid, as it's considered an ordinary workday.

What is the pay rate for work performed on a special (working) day?

At least an additional 30% of the basic wage (total 130%).

What is the minimum premium pay rate for work on special days?

Payment of the regular daily wage for any unworked regular holiday.

What is the definition of regular holiday pay?

Government employees, retail/service establishments with less than 10 workers, Kasambahay, personal service workers, and certain managerial employees.

Who is not covered by the regular holiday pay?

Lists twelve (12) regular holidays.

What are the regular holidays for 2023 as per Proclamation No. 42 s. 2022?

At least 100% of the minimum wage rate.

What is the minimum wage rate entitlement for employees on unworked regular holidays?

The pay merits an equivalent of 286% (2 x 1.1 x 1.3).

What is the formula for calculating pay for work on a regular holiday with night shift differential and overtime?

₱610.00 x 130% = ₱793.00.

What is the service charge calculation for work on a special day?

At least an additional 50% of the basic wage (total 150%).

What is the additional pay for work on a special day falling on the employee's rest day?

At least an additional 30% of the regular holiday rate of 200% (total 260%).

What is the pay for work on a regular holiday that is also the employee's rest day?

Amount added to bills by establishments for work or services rendered.

What is overtime pay?

Managerial employees.

Who is excluded from receiving overtime pay?

Once every two weeks or twice a month, not exceeding 16-day intervals.

How often are collected service charges distributed among covered employees?

No, service charges paid to employees are not considered.

Are service charges considered in determining compliance with an increased minimum wage?

Additional compensation for work performed beyond eight (8) hours a day.

What is service incentive leave?

The same employees covered under Premium Pay.

Who is covered under service incentive leave?

They vary depending on the day the overtime is performed.

How do overtime pay rates vary?

Plus 25% of the hourly rate.

What is the overtime pay rate for ordinary working days?

Plus 30% of the hourly rate.

How is the overtime pay calculated for a scheduled rest day or special day?

Plus 30% of the hourly rate, calculated as (₱610.00/8) x 150% x 130%.

What is the overtime pay for a special day falling on a scheduled rest day?

Plus 30% of the hourly rate, calculated as (₱610.00/8) x 200% x 130%.

What is the overtime pay for a regular holiday?

Plus 30% of the hourly rate, calculated as (₱610.00/8) x 260% x 130%.

How is the overtime pay calculated for a regular holiday falling on a scheduled rest day?

They can stipulate higher overtime rates in their collective agreement.

What can employees and employers do regarding stipulated overtime rates?

Five (5) days of paid leave usable for sick, vacation, and other leave purposes.

What is the definition of paid leave granted to an employee after one year of service?

Every employee except government employees, persons in personal service, and managerial employees under specific conditions.

Who is eligible for the paid leave after one year of service?

Service within twelve (12) months, continuous or broken, including authorized absences and paid regular holidays.

What constitutes 'one year of service' for leave eligibility?

Employees may convert them to a monetary equivalent or use them.

What happens to unused leave credits at year-end?

Paid leave for female employees for pregnancy, miscarriage, and emergency termination of pregnancy.

What is the maternity leave definition?

One hundred five (105) days with full pay, plus an additional fifteen (15) days with full pay.

What is the duration of maternity leave?

An additional compensation of ten percent (10%) of the employee's regular wage for work performed between 10 p.m. and 6 a.m.

What is the night shift differential rate?

All female employees regardless of civil status, employment status, and legitimacy of the child.

Who is covered under the maternity leave provisions?

Must have rendered at least six months of service and notify the employer within a reasonable time.

What are the conditions for entitlement to maternity leave?

Seven working days with pay granted every year.

What is the frequency of availment for solo parents under RA 8972?

Must present a valid Solo Parent Identification Card (****) and apply at the local Social Welfare and Development Office.

What is required for a solo parent to receive benefits under RA 8972?

It varies based on the day the night shift work is performed.

What is the night shift differential rate based on?

10% of the applicable hourly rate.

What is the additional compensation for night shift work?

It is required for solo parents to access benefits under RA 8972.

What is the significance of the Solo Parent Identification Card (****)?

They become ineligible for benefits.

What happens if a solo parent's status changes?

To provide time for recovery and assuming maternal roles.

What is the purpose of maternity leave?

105 days, with an optional additional 30 days without pay.

What is the maximum duration of maternity leave available for live childbirths, including optional additional days?

At least 60 days.

What is the compulsory postnatal leave duration for maternity leave?

Sixty (60) days with full pay.

What is the duration of leave granted for miscarriage or emergency termination of pregnancy?

Private sector employers.

Who pays the difference between full salary and SSS cash benefits during maternity leave?

Granted for every instance of pregnancy, miscarriage, or emergency termination of pregnancy, regardless of frequency.

How often can maternity leave be availed?

Paid leave for a female employee victim of VAWC to attend to medical and legal concerns related to protection orders, investigation, prosecution, and trial.

What is the definition of Paternity Leave?

All female employees who are victims of VAWC as defined by RA 9262.

Who is covered under the Paternity Leave policy?

Up to ten (10) days with full pay.

What is the duration of Paternity Leave?

Must present a certification from the barangay chairman, councilor, prosecutor, or Clerk of Court stating that an action related to the matter is pending.

What are the conditions for entitlement to Paternity Leave?

Paid leave for a married male employee to support his lawful wife during her recovery and/or nursing of their newborn child, including miscarriage.

What is the definition of Special Leave for Women?

All married male employees, regardless of employment status.

Who is eligible for Special Leave for Women?

Seven (7) days with full pay.

What is the duration of Special Leave for Women?

Must be an employee at the time of the child's delivery and cohabiting with his spouse.

What are the conditions for entitlement to Special Leave for Women?