Philippines

Labor Compliance Guide

Labor Requirements

In the Philippines, relations between workers and employers are governed by the constitution, presidential decrees and executive orders, acts of Congress and the Labor Code. The constitution expressly requires the state to protect labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, regulate relations between workers and employers and ensure the rights of workers to self organization, collective bargaining, security of tenure and just and humane work conditions. The constitution also requires that all questions of the interpretation of the Labor Code be decided in favor of labor. The Department of Labor and Employment is the executive agency responsible for formulating labor policies,implementing worker programs and services and enforcing the Labor Code.

Hours & Pay Regulations

Normal Working Hours

A normal workday is eight hours. Hours worked include all time during which an employee is required to be on duty or at the workplace. Employees who are required to work on a rest day get an extra 30 percent of premium pay and higher premium pay if the rest day falls on a regular or special holiday. Any overtime worked on a rest day will entitle the employee to receive additional premium pay.

Overtime

For work done in excess of eight hours in a day, workers get their regular wage plus 25 percent. For overtime on a holiday or rest day, workers get the holiday or rest day rate plus 30 percent. Employers cannot avoid paying overtime rates by having employees work less on another day or through use of compensatory time off.

Night Work

Employees are entitled to extra pay of 10 percent of the regular wage for each hour of work performed between 10 p.m. and 6 a.m. If overtime work falls within the nighttime period, premiums for overtime work should be integrated into the regular hourly rate of the employee before computing night-shift pay.

Breaks

Rest periods of short duration during working hours are counted as time worked. Every employer must provide employees at least an hour break for regular meals

Work On Rest Days

For work done in excess of eight hours in a day, workers get their regular wage plus 25 percent. For overtime on a holiday or rest day, workers get the holiday or rest day rate plus 30 percent. Employers cannot avoid paying overtime rates by having employees work less on another day or through use of compensatory time off.

Public Holidays

The Philippines recognizes various holidays that are categorized as either regular holidays or special (nonworking) days. Employees covered under the Holiday Pay Rule are entitled to have regular holidays off with regular remuneration if they do not work and 200 percent of regular remuneration if they do work.If employees work on a holiday that falls on a rest day, they are entitled to receive 230 percent of regular pay. Employees who do not work on special days are not entitled to receive any pay.However, if employees work on a special day, they are entitled to 30 percent extra pay if the day is a weekday and 50 percent extra pay if the special day falls on a rest day. Holidays that fall on a weekend are moved to the next regular workday Employees are entitled to the following eight paid holidays:

  • Jan. 1: New Year's Day
  • Maundy Thursday
  • Good Friday
  • April 9: Bravery Day
  • May 1: Labor Day
  • June 12: Independence Day
  • Dec. 25: Christmas Day
  • Dec. 30: Rizal Da

In addition, the government each year announces several special holidays, which are unpaid days off and may change from year to year. These have included:

  • Chinese New Year
  • End of Ramadan
  • Festival of Sacrifice
  • Monday nearest Aug. 21: Ninoy Aquino Day
  • Last Monday in August: National Heroes Day
  • Nov. 1­2: All Saints Day
  • Monday nearest Nov. 30: Bonifacio Day
  • Dec. 24: Christmas Eve
  • Dec. 31: Last Day of the Year

Labor Code, 1974 (as amended), arts. 93-­94.

Annual Leave

Every employee of a business with 10 or more employees who has worked for that employer for at least a year is entitled to five days of leave paid at his or her regular rate, known as “service incentive leave.” Unused service incentive leave may be cashed in at the end of the year. Labor Code, 1974 (as amended), art. 95.

Special Leave

Sick Leave

The Labor Code does not provide for sick leave, but employers usually provide this through collective bargaining agreements. Workers who have used up or do not have any sick leave but have made at least three months of contributions into the Social Security System in the prior 12 months and whose injury or illness leaves them unable to work for at least four days are eligible for the social security sickness benefit. The sickness benefit pays about 90 percent of average salary for up to 120 days in a calendar year. Republic Act, No. 8282, 1997, § 14.

Maternity Leave

A pregnant employee who has worked for her present employer at least six months in the past 12 is entitled to paid maternity leave of at least two weeks prior to the expected date of delivery and four weeks after normal delivery or abortion. Before granting leave, an employer may require a medical certificate stating that delivery will probably take place within two weeks. If an illness related to pregnancy, delivery, abortion or miscarriage leaves an employee unfit for work, unless she has unused leave credits to which such extended leave may be charged, the maternity leave is extended without pay. An employee who already has four children cannot get maternity leave for any further pregnancies. Republic Act, No. 8282, 1997, § 1.

Paternity Leave

Every employer must grant seven days of paid paternity leave to all married male employees—regardless of employment status (e.g.,probationary, regular, contractual, project based)—after the birth of a child or a wife's miscarriage. The employer may allow the employee to use the leave before or during delivery as well, but this is not required. The leave can only be used for the employee's first four children. Republic Act, No. 8187, 1996, § 2.

Parents Leave

Solo parents—defined as single parents, parents otherwise left alone with the responsibility of parenthood because of the disability or imprisonment of a spouse or abandonment by a spouse or another family member who alone assumes responsibility for the care of a child—are entitled to seven days of paid leave a year after their first year of service with an employer. Employers must also accommodate solo parents through such measures as flexible work schedules and cannot discriminate against them. Republic Act, No. 8972, 2000, §§ 6­-8.

Last updated on: August 27th, 2018