[3] Statutory Monetary Benefits - Night Shift Differential, Service Charges. Service Incentive Leave

From St. Ven's notes

Night Shift Differential

The additional compensation of 10% of an employee’s regular wage for each hour of work performed between 10 PM and 6 AM

Night Shift Differential’s Coverage

All employees, except:

• Government employees

• Retail and service establishments with at most 5 workers

• Kasambahay

• Managerial employees

• Officers or members of a managerial staff

• Field personnel

Night Shift Differential Rate

Varies according to the day the night shift work is performed

Service Charges

Amount collected by hotels and restaurants that is added to the bills for work or services rendered

Service Charges’ Coverage

All employees, except managerial employees under direct employ of the establishments

Distribution of Service Charges

• All service charges shall be distributed completely and equally, based on actual hours or days of service rendered, among the covered employees

• Includes those already receiving the benefit of sharing in the service charges

Frequency of Distribution

• Once every two weeks or twice a month

  • Intervals not exceeding 16 days

Increase in Minimum Wage

In case of wage increase, service charges paid to employees shall not be considered in determining compliance with increased minimum wage

Service Incentive Leave

• Paid leave of 5 days

• Granted to employees who rendered at least 1 year of service

• May be used for sick, vacation, and other leave purposes

Service Incentive Leave’s Coverage

Applies to every employee who has rendered at least 1 year of service, except:

• Government employees

• Persons in personal service of another

• Managerial employees

• Officers or members of a managerial staff

• Field personnel

• Those already enjoying this benefit

• Those enjoying vacation leave with pay of at least 5 days

• Those employed in establishments with less than 10 employees

One Year of Service

• Service within 12 months, whether continuous or broken

• Reckoned from the day the employee started working

• Period includes absences, unworked weekly rest days, and paid regular holidays

Service Incentive Leave’s Conversion

• Employee may choose to use leave credits or convert them to their monetary equivalent if not used at the end of the year

• If employee chooses not to use or convert SIL, they are entitled upon resignation or separation to the monetary equivalent of the same

• Basis shall be the salary rate at the date of conversion