Philippines

Labor Compliance Guide

Labor Requirements

Labor relations in the Philippines are governed by the Labor Code of the Philippines, Constitution, Presidential decrees, executive orders, etc. The Labor Code governs the terms and conditions of employment such as working hours, holidays and rest periods, wages, overtime, employment relationships, and labor protection. The other acts that govern employment relationships are The Magna Carta of Women, The Solo Parents’ Welfare Act, etc.

Hours & Pay Regulations

Normal Working Hours

The normal working hours of an employee shall not exceed 8 hours per day. The hours worked shall include all the time during which an employee is required to be on duty or at a prescribed workplace and all the time during which an employee is suffered or permitted to work. Labor Code of the Philippines, Article 83 – 84.

Overtime

An employee who works for more than 8 hours is entitled to an additional payment of 25% for each hour in excess of the standard hours of work. Undertime work on any particular day shall not be offset by overtime work on any other day.

 

Emergency Overtime Work

An employee may be required by the employer to perform overtime work in any of the following cases: 

      • When the country is at war or when any other national or local emergency has been declared;
      • When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;
      • When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;
      • When the work is necessary to prevent loss or damage to perishable goods; and
      • Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.

Labor Code of the Philippines, Article 87 – 90.

Night Work

Night shift is defined as work performed between 10 pm and 6 am. An employee who works in the night shift is entitled to an additional pay of 10% of the regular wage for each hour of work at night. Labor Code of the Philippines, Article 86.

Breaks

The employer shall provide not less than 60 minutes of unpaid time off for regular meals to employees. Rest periods or coffee breaks of  5 to 20 minutes, if provided,  shall be considered paid time. Labor Code of the Philippines, Article 85.

 

Weekly Rest

An employer shall provide a rest period of not less than 24 consecutive hours after every 6 consecutive normal workdays.

 

Work On Rest Days

Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent of his regular wage.  An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.

 

Overtime on a rest day shall be paid an additional compensation equivalent to the rate of the first 8 hours on a holiday/rest day plus at least 30% thereof.

The employer may require his employees to work on any day:

      • In case of actual or impending emergencies caused by a serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property or imminent danger to public safety;
      • In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer;
      • In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;
      • To prevent loss or damage to perishable goods;
      • Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and
      • Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

Labor Code of the Philippines, Article 91 – 93.

Public Holidays

The Philippines comprises of different categories of holidays called as a regular holiday or special holidays. Employees are entitled to following 9 holidays in the Philippines:

      • New Years’ Day
      • Maundy Thursday
      • The Day of Valor
      • Good Friday
      • Labor Day
      • Independence Day
      • National Heroes’ Day
      • Bonifacio Day
      • Christmas Day

In addition, the government each year announces several special holidays, which may change from year to year. Following are some special non-working days:

        • Chinese New Year
        • People power revolution
        • Black Saturday
        • End of Ramadan
        • Ninoy Aquino Day
        • All Saint’s Day
        • All Soul’s Day
        • Immaculate Conception Day
        • New Year’s Eve

Overtime work on a holiday shall be paid an additional compensation equivalent to the rate of the first 8 hours on a holiday/rest day plus an additional 30%. Employees should be present on a paid leave of absence on the workday immediately preceding the regular holiday. Labor Code of the Philippines, Article 94 – 96.

Payment of Wages on a Regular Day

 

Payment of Wages on a Regular Day

      • An employee who does not work on a regular holiday is entitled to be paid 100% of the salary for that day.
      • An employee who works on a regular holiday is entitled to 200% of salary for that day.
      • An employee who works more than 8 hours (overtime work) shall be paid an additional 30% of the hourly rate.
      • An employee who works on a regular holiday which falls on his/her rest day shall be paid an additional 30% of his/her daily rate of 200%.
      • An employee who works for more than 8 hours(overtime) during a regular holiday which falls on his/her rest day, shall be paid an additional 30% of his/her hourly rate.
      • An employee who works in the night shift on a regular holiday shall be paid at an additional 10% of his/her daily rate of 200%.
      • An employee who works overtime in the night shift on a regular holiday shall be paid an additional 30% of his/her daily rate of 200%, in addition to wages for the night shift.
      • An employee who works in the night shift on a regular holiday which falls on his/her rest day shall be paid at his/her daily rate of 200%, in addition to wages for the night shift.
      • An employee who works overtime in the night shift on a regular holiday, which falls on his/her rest day, shall be paid an additional 30% of his/her daily rate of 200%, in addition to wages for the night shift.

NOTE: When a regular holiday falls on a Sunday, the following Monday shall not be a holiday, unless an order is issued declaring it a special day.

 

Payment of Wages on a Special Day

      • An employee who does not work on a special holiday will not be paid unless any collective agreement exists for payment on such a holiday.
      • An employee who works on a special day shall be paid an additional 30% of his/her basic wage for the first 8 hours.
      • An employee who works in excess of 8 hours(overtime) shall be paid an additional 30% of his/her hourly rate on that day.
      • An employee who works on a special day which falls on his/her rest day shall be paid an additional 50% of his/her basic wage
      • for the first 8 hours.
      • An employee who works overtime on a special day which falls on his/her rest day shall be paid an additional 30% of his/her hourly rate on that day.
      • An employee who works the night shift on a special holiday shall be paid in addition to his/her daily wage of 130% in addition to wages for the night shift.
      • An employee who works overtime during the night shift on a special holiday shall be paid an additional 30% in addition to wages for the night shift.
      • An employee who works the night shift on a special holiday which falls on his/her rest day shall be paid at the rate of 150% in addition to wages for the night shift.
      • An employee who performs overtime work during the night shift on a special holiday shall be paid at an additional 30% of his/her work on a rest day 150% in addition to wages for the night shift.

Payment of Wages on a Double Holiday

        • An employee who does not work on a double holiday shall be paid at the rate of 200% of their daily wage.
        • An employee who reports working on a double holiday shall be paid 300% of his/her regular wage.
        • An employee who works on a double holiday that falls on his/her rest day shall be paid an additional 30% of his/her daily rate of 300%.
        • An employee who works the night shift on a double holiday is paid at the rate of 330%.
        • An employee who works overtime on a double holiday shall be paid an additional 30% of his/her daily rate of 300%.
        • An employee who works in a night shift on a double holiday which falls on his/her rest day shall be paid an additional 30% of his/her daily rate of 300% in addition to wages for the night shift.
        • An employee who works overtime on a double holiday which falls on his/her rest day shall be paid an additional 30% for his/her work rate of 390%.
        • An employee who works overtime during the night shift on a double holiday shall be paid an additional 30% of his/her daily rate of 300% in addition to wages for the night shift.
        • An employee who works overtime during the night shift on a double holiday which falls on his/her rest day shall be paid an additional 30% of his/her work at 390% in addition to wages for the night shift.

Special Working Holidays

An employee who works on a special working holiday is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days.

 

Successive Regular Holidays

In case of 2 successive regular holidays, like Maundy Thursday and Good Friday, an employee may not be paid for both holidays, if absent from work on the day immediately preceding the first holiday. Labor Code of the Philippines, Article 94.

Annual Leave

An employee who has provided 1 year of service is entitled to yearly service incentive leave of at least 5 days. This leave is called Service Incentive Leave.

 

This does not apply to employees who have been provided vacation with pay of at least 5 days and those employed in establishments with less than 10 employees or exclusively exempted from the grant of this leave to employees by the Secretary of Labor and Employment. Labor Code of the Philippines, Article 95.

Minimum Wage

There is no national minimum wage. The daily minimum wage rates that vary from region to region. 

 

Minimum Wage may not be up to date & subject to change. Please refer to the link http://nwpc.dole.gov.ph/. for updated minimum wages.

Special Leave

Maternity Leave

A pregnant employee is entitled to paid leave for a period of 105 days, with an option to extend for an additional 30 days without pay. If the pregnant employee is a solo parent, the leave can be extended for an additional 15 days with full payment. Women who suffer a miscarriage or have an emergency termination can take up to 60 days of maternity leave with full payment. The Leave shall be taken as a single, uninterrupted period at the time of the child’s birth. Republic Act No. 11210.

Paternity Leave

A male employee is entitled to paid leave for a period of 7 days. The leave can only be used for the employee’s first four children. Republic Act No.  8187. 

Parents Leave

A solo parent who has rendered one year of continuous or broken service is eligible for paid parental leave for a duration of 7 days.

Republic Act No.  8972.

Leave for Victim of Violence against Women and their Children

A woman employee who is a victim of violence against her and her children (below the age of 18 years) is entitled to paid leave of up to 10 days. Republic Act No.  9262.

Special Leave for Women

A woman employee who undergoes surgery caused by gynecological disorders is entitled to a special leave benefit of up to 2 months with full pay, provided she has provided continuous aggregate service of at least 6 months in the last 12-month period.

Republic Act No. 9710

Last updated on: July 13th, 2020