Labor Law
Labor Law
Labor Law
1. Basic Pay
- Gross pay with allowances with no deductions yet.
Minimum wage
- Varies per region as it is set by Regional Tripartite Wages and Productivity Board
- Violation of minimum wage may result in double indemnity and/or criminal liability
- RTWPB may provide for exemptions, including those for Barangay Micro Business Enterprises
- Minimum wage earners are exempt from income tax
2. Overtime Premium
- An additional pay of 30% of a day’s wage for work done on a rest day or a special non-working day
- If work is done beyond the 8 hours, the employee is entitled to overtime pay
- Employees are entitled to 1 scheduled rest days consisting of 24-hours of uninterrupted rest, for every
week.
3. Night Shift Differential
- An additional pay for work between 10:00 p.m and 6 a.m the following day
- Additional pay of 10% for every hour work done between the said time
- A legally mandated benefit
- Covered employees are entitled
- Computation required determining hourly rate
- COLA or Cost of Living Adjustment is excluded in the computation
4. Holiday Premium
- 12 regular holidays
- Without work= holiday pay
- With work= holiday pay + day’s wage
- With work and double holiday= 2x holiday pay + wage
- 100% holiday pay of basic pay (daily wage)
Premium pay is an additional pay of 30% of a day’s wage for work done on a rest day or a special non-working holiday.
Separation Pay