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NICANOR V. BON Bureau of Working Conditions
Department of Labor and Employment
11Flr., Conference Room, Antonino Bldg., Kalaw St. Ermita, Manila
2 February 2010
LABOR STANDARDSLABOR STANDARDS andand 2010 HOLIDAYS2010 HOLIDAYS
Bureau of Working Conditions
What are Labor What are Labor StandardsStandards
the minimum requirements
prescribed by existing laws, rules
and regulations relating to
wages, hours of work, allowances
and other monetary and welfare
benefits, including those set by
occupational safety and health
standards.
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HOURS of WORKHOURS of WORK
Bureau of Working Conditions
Normal Hours of WorkNormal Hours of Work
not to exceed 8 hours a day.
Hours worked shall include:
All time during which an
employee is required to be on duty or to be at a prescribed workplace.
All time during which an
employee is suffered or permitted to work. Bureau of Working Conditions
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Meal and Rest PeriodsMeal and Rest Periods
not less than 60 mins. time-off for regular meals. [non-compensable]
- Rest periods or coffee breaks
running from 5 to 20 mins. are compensable working time.
Bureau of Working Conditions5
Weekly Rest PeriodsWeekly Rest Periods
not less than 24 consecutive hours after every 6 consecutive normal work days.
The employer shall determine and
schedule the weekly rest day of his
employees. He shall, however,
respect the preference of
employees as to their weekly rest day
when such preference is based on
religious grounds.Bureau of Working Conditions
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RULES FOR PAY RULES FOR PAY ONON
REGULAR HOLIDAYSREGULAR HOLIDAYS ANDAND
SPECIAL DAYSSPECIAL DAYS
Bureau of Working Conditions7
Bureau of Working Conditions
For Regular HolidaysFor Regular Holidays
Holiday Pay - payment of regular daily wage for any unworked regular holiday.
if unworked - 100% of the regular daily wage if worked - 200% of the regular daily wage - 200% + 30% or a total of 260% (regular holiday falling on rest day)
Condition for entitlement: present or on leave with pay on the
workday prior to the holiday.
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Regular Holidays Regular Holidays [ RA 9492 ][ RA 9492 ]
New Year’s Day January 1Maundy Thursday Movable dateGood Friday Movable dateAraw ng Kagitingan Monday nearest April 9Labor Day Monday nearest May 1Independence Day Monday nearest June 12National Heroes Day Last Monday of AugustBonifacio Day Monday nearest Nov. 30Eidul Fitr Movable dateChristmas Day December 25Rizal Day Monday nearest Dec. 30
Bureau of Working Conditions9
Bureau of Working Conditions
For Special Days For Special Days
Premium Pay - additional compensation for work performed within 8 hours on a special day.
if unworked - no pay, unless there is favorable company policy, practice or CBA
if worked - plus 30% - plus 50% [special day falling on
rest day]
National Special Days (RA 9492): Ninoy Aquino Day Monday nearest
Aug. 21 All Saints Day November 1 Last Day of the Year December 31 10
For Special Working DaysFor Special Working Days
For work performed, an employee is entitled only to his basic rate.
No premium pay is required since work on said days is considered work on ordinary working days.
Bureau of Working Conditions11
2010 Regular Holidays Regular Holidays (Proclamation 1841)(Proclamation 1841)
New Year’s Day January 1Maundy Thursday April 1Good Friday April 2Araw ng Kagitingan April 9 (Friday)Labor Day May 1 (Saturday)Independence Day June 14 (Monday)National Heroes Day August 30 (Monday)Bonifacio Day November 29 (Monday)Eidul Fitr No proclamation
yetChristmas Day December 25 (Saturday)Rizal Day December 27 (Monday)
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2010 Special Days ays (Proclamation 1841)(Proclamation 1841)
Ninoy Aquino Day August 23 (Monday)
All Saints Day November 1 (Monday)
Additional Special Day December 24 (Friday)
Last Day of the Year December 31 (Friday)
Special Holiday for all schools
EDSA Revolution February 22 (Monday Anniversary nearest February 25)
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Other provisions of of
Proclamation 1841Proclamation 1841
•Eid’l Fitr – date of observance to be declared later by the President. (Regular Holiday)
•Eid’l Adha – to be declared a national holiday by the President based on the recommendation of OMA as to the date of observance.
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Overtime Pay Overtime Pay [ Art. 87 ][ Art. 87 ]
additional compensation for work performed beyond 8 hours.
25% - ordinary work days 30% - rest days, special days &
regular holidays
Bureau of Working Conditions15
Night Shift Pay Night Shift Pay [ Art. 86 ][ Art. 86 ]
Bureau of Working Conditions
• additional compensation for work performed between 10 pm and 6 am.
10% or regular for each hour of work
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Payment of WagesPayment of Wages
Forms of Payment
shall be paid in legal tender.
Payment by check or thru ATM - allowed where the following conditions are met:
with written consent of employees.
bank or ATM facility within 1 km from workplace.
Employees are given reasonable time during banking hours to withdraw wages from bank facility.
Bureau of Working Conditions17
Time of Payment
not less often than once every 2 weeks or twice a month at intervals not exceeding 16 days.
at or near the place of undertaking.
Payment of Wages Payment of Wages cont…cont…
Bureau of Working Conditions
Place of Payment
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Direct Payment of Wages
shall be made direct to the employee.
Exceptions:
Employer is authorized in writing by employee to pay wages to a member of his family.
Payment to another person of any part of the employee’s wages is authorized by existing law.
Employee’s death.
Payment of Wages Payment of Wages cont…cont…
Bureau of Working Conditions19
Prohibitions on WagesProhibitions on Wages
Non-interference in disposal of wages
Withholding of wages and kickbacks prohibited
Deduction to ensure employment
Retaliatory measures
False reportingBureau of Working Conditions
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Wage DeductionWage Deduction
Employer should not make any deduction from wages of employees.
Exceptions:
authorized by law.
with written authorization of employees for payment to a third person and the employer agrees to do so.
Bureau of Working Conditions21
Deposits/Deductions for Loss or Deposits/Deductions for Loss or DamagesDamages
Conditions: Employee is clearly shown to be responsible for the loss or damage.
Employee is given reasonable opportunity to show cause why deduction should not be made.
Amount of deductions is fair and reasonable and shall not exceed the actual loss or damage.
Deduction from wages/salaries does not exceed 20% of the employee’s wages in a week.
Bureau of Working Conditions22
THE USE OF FACTORSTHE USE OF FACTORS
Guidelines for the Computation Guidelines for the Computation of the Estimated Equivalent of the Estimated Equivalent
Monthly Rate (EEMR) of Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Monthly-Paid and Daily-Paid
Employees Employees
Guidelines for the Computation Guidelines for the Computation of the Estimated Equivalent of the Estimated Equivalent
Monthly Rate (EEMR) of Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Monthly-Paid and Daily-Paid
Employees Employees
Bureau of Working Conditions
Distinction b/w Monthly-Paid and Distinction b/w Monthly-Paid and
Daily-Paid Employees Daily-Paid Employees Monthly-Paid Employees - paid every day
of the month, including unworked rest days, special days and regular holidays.
Daily-Paid Employees - paid on the days they actually worked except unworked regular holidays when they are paid their basic wage if they are present or on leave with pay on the workday before the regular holiday.
Bureau of Working Conditions24
Procedure in Computing the Procedure in Computing the EEMR of EEMR of Monthly-Paid Employees:Monthly-Paid Employees:
Applicable Daily Rate x 365
12 = EEMR
365 days/year:
299 ordinary workdays
52 rest days
11 regular holidays
3 special days
365 Total equivalent no. of
days/yearBureau of Working Conditions
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For those who work everyday including For those who work everyday including Rest Days, Special Days & Regular Rest Days, Special Days & Regular HolidaysHolidays
Applicable Daily Rate x 392.50
12 = EEMR
392.50 days/year:
299 ordinary workdays
22 eleven regular holidays x 200% 67.60 52 rest days x 130%
3.90 3 special days x 130%
392.50 Total equivalent no. of days/year
Bureau of Working Conditions26
For those who do not work and are not For those who do not work and are not paid on Sundays or Rest dayspaid on Sundays or Rest days
Applicable Daily Rate x 313
12 = EEMR
313 days/year:
299 ordinary working days
11 regular holidays
3 special days (if considered paid; if actually worked = 3.9 days)
313 Total equivalent no. of days/year Bureau of Working Conditions
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For those who do not work and are not For those who do not work and are not paid on Saturdays & Sundays or Rest paid on Saturdays & Sundays or Rest daysdays
Applicable Daily Rate x 261
12 = EEMR
261 days/year :
247 ordinary working days 11 regular holidays 3 special days (if considered
paid; if actually worked = 3.9 days)
261 Total equivalent no. of days/year
Bureau of Working Conditions 28
Bureau of Working Conditions
LEAVE LEAVE BENEFITSBENEFITS
Service Incentive Leave Service Incentive Leave [ Art. 95 ][ Art. 95 ]
employees who rendered 1 year of service are entitled to 5 days leave with pay.
Usage/Commutation to Cash:
• for sick and vacation leave
purposes.
• The unused SIL is commutable to its money equivalent at the end of the year.
Bureau of Working Conditions 30
Maternity LeaveMaternity Leave [ RA 8282 ][ RA 8282 ]
Coverage
•Female employee who has paid at least 3-monthly contributions in the 12-month period prior to child birth or miscarriage, and who is currently employed.
Benefit
•The daily maternity benefit is equivalent to 100% of her average daily salary credit.
60 days for normal delivery or miscarriage 78 days Caesarian section delivery
Bureau of Working Conditions 31
Paternity LeavePaternity Leave [ RA 8187 ][ RA 8187 ]
Coverage - MARRIED male employees
Benefit 7 days leave with pay for the 1st four deliveries of his lawful wife.
Conditions for entitlement employee at the time of delivery of his child. cohabiting with spouse at the time of delivery or miscarriage. applied for paternity leave w/n reasonable
period. his wife has given birth or suffered a miscarriage.
Bureau of Working Conditions 32
Parental LeaveParental Leave of Solo Parents of Solo Parents [ RA 8972 ][ RA 8972 ]
Coverage
• Any individual under the 10 categories provided by law
Benefit
7 working days with pay
Conditions for Entitlement rendered 1 year of service. notified employer of usage within a reasonable
time. presented a Solo Parent ID Card to employer
which may be obtained from the DSWD Office of the City or municipality of residence.
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Any individual who is left alone with the responsibility of parenthood due to:
1. giving birth as a result of rape or crimes against chastity.
2. death of spouse.
3. spouse is detained, or is serving sentence for a criminal conviction for at least 1 year.
4. physical and/or mental incapacity of spouse as certified by a public medical practitioner.
5. declaration of nullity or annulment of marriage.
10 categories10 categories
Bureau of Working Conditions 34
6. legal separation or de facto separation from spouse for at least 1 year.
7. abandonment of spouse for at least 1 year.
8. Unmarried mother/father who has preferred to keep and rear the children.
9. Any other person who solely provides parental care and support to a child provided he/she is licensed as foster parent or appointed legal guardian.
10. Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance or prolonged absence of the parents or solo parent for at least 1 year.
10 categories 10 categories cont…cont…
Bureau of Working Conditions 35
Violence Against Women & their Children (VAWC) - any act or a series of acts committed by any person against a woman with whom the person has or had a sexual or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which will result in or is likely to result in physical, sexual, psychological harm or suffering, or economic abuses including threats of such acts, battery, assault, coercion, harassment or arbitrary deprivation of liberty.
Leave for Victims of VAWCLeave for Victims of VAWC [ RA9262 ]
Bureau of Working Conditions 36
Leave for Victims of VAWCLeave for Victims of VAWC cont…cont…
Benefit
• leave with pay up to 10 days, extendible when the necessity arises as specified under the protection order.
Requirement for entitlement
• certification from the Punong Barangay or kagawad, or Prosecutor or the Clerk of Court, as the case may be, that an action is pending.
• Availment – option of the woman employee
Circumstances for availment• Medical and legal concerns
Bureau of Working Conditions 37
Special Leave of Women Special Leave of Women [ RA [ RA 9710 ]9710 ]
SEC. 18. Special Leave Benefits of Women. – A woman employee having rendered continuous aggregate employment service of at least six (6) months for the last twelve (12) months shall be entitled to a special leave benefit of two (2) months with full pay based on her gross compensation following surgery caused by gynecological disorders.
Signed into law by PGMA : August 14, 2009 Published at PDI & Malaya : August 31, 2009 Took effect on : September 15, 2009
Bureau of Working Conditions38
1313thth Month Pay Month Pay [ PD 851 ][ PD 851 ]
CoverageRank-and-file employees who worked for at least 1 month during a calendar year, regardless of :
• amount of basic salary receive per month • designation or employment status • method by which wages are paid
Minimum amount of 13th month pay: not less than 1/12 of the total basic
salary earned by an employee within a calendar year.
Bureau of Working Conditions39
Definition of “basic salary”
includes all remunerations or earnings paid by his employer for services rendered.
NOT included are allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as:
• cash equivalent of unused vacation leave and sick leave credits.
• overtime, premium, nightshift differential and holiday pay.
• cost-of-living allowances.
1313thth Month Pay Month Pay cont…cont…
Bureau of Working Conditions40
Time of payment:
not later than December 24 of each year.
employer may give 1/2 of the 13th month pay before the opening of the regular school year and the other half on or before December 24 of every year.
frequency of payment may be the subject of agreement
1313thth Month Pay Month Pay cont…cont…
Bureau of Working Conditions41
13th Month Pay of Resigned or Separated
Employee
proportionate to the length of time worked during the year reckoned from the start of work during the calendar year up to the time of resignation or termination from the service.
Formula:
Total Basic Salary = 13th
Month Pay 12 months
1313thth Month Pay Month Pay cont…cont…
Bureau of Working Conditions42
Separation Pay Separation Pay [ Articles 283-[ Articles 283-294 ]294 ]
One-Half (1/2) Month Pay Per Year of Service
Retrenchment to prevent losses
Closure or cessation of operation of an establishment not due to serious losses
or financial reverses
disease of an employee not curable within six (6) months and his continued employment is prejudicial to his health or to the health of his co- employees
Bureau of Working Conditions 43
One (1) Month Pay Per Year of Service
Installation of labor-saving devices Redundancy When an employee is illegally dismissed
but reinstatement is no longer feasible
NOTE: In computing separation pay - basic salary + regular
allowances
Bureau of Working Conditions
Separation Pay Separation Pay cont…cont…
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Retirement Pay Retirement Pay [ RA 7641 ][ RA 7641 ]
Coverage: all employees regardless of their position,
designation or status and irrespective of the method by which their wages are paid.
includes part-time employees, employees of service and other job contractors and domestic helpers or persons in the personal service of another.
Optional Retirement: Compulsory Retirement: 60 years old 65 years old 5 years service no retirement planBureau of Working Conditions
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Amount of Retirement Pay : “one-half month salary”
Component of “one-half month salary”:
15 days salary
cash equivalent of 5 days of SIL
1/12 of the 13th month pay
or a total of 22.5 days [Capitol Wireless, Inc. vs. Sec.
Confesor, Nov. 13, 1996]
Formula:
Minimum retirement pay
= Daily Rate x 22.5 days x years in service
Retirement Pay Retirement Pay cont…cont…
Bureau of Working Conditions46
Total Benefits a retired employee should receive from employer at the time of retirement:
Retirement pay (RA 7641) Proportionate 13th month pay Cash equivalent of leave benefits, if
demandable
Retirement Pay Retirement Pay cont...cont...
Bureau of Working Conditions47
have a nice day…..
Bureau of Working Conditions 48
For more information, visit or For more information, visit or contact: contact:
DOLE – Regional/Provincial Offices or
WEBSITE: www.dole.gov.phwww.dole.gov.ph
In Metro Manila:
DOLE - National Capital Region
NCR Bldg. (formerly WASMIYA Bldg.)
967 Maligaya St., Malate, Manila 339-2013 / 339-2017339-2013 / 339-2017 Fax: 400-6241Fax: 400-6241
Bureau of Working Conditions
DOLE CALL CENTER:
908-2917
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