Philippines

Labor Compliance Guide

Labor Requirements

The Labor relations in the Philippines are governed by the Labor Code of the Philippines, Constitution, Presidential decrees, executive orders, etc. The Labor Code primarily 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 Republic Act No. 11210, The Republic Act No.11210, 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 asked 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. Less work than the usual working time on a particular day cannot be equalized/counterbalanced by working overtime on any other day.

 

Emergency Overtime Work

An employee may be required by the employer to perform overtime work in case of war, in order to prevent loss of life or property, etc due to actual or impending emergency in the locality by serious accidents, or in case of urgent work to be performed on machines to avoid a serious loss to the employer, etc. Labor Code of the Philippines, Article 87 – 90

Night Work

Night shift is defined as work performed between 10 pm and 6 am.

 

Pay for night work – An employee who works in the night shift is entitled to an additional payment 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 unpaid meal break 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. However, the employee shall consider the employee’s preference as to their weekly rest day based on religious grounds. Labor Code of the Philippines, Article 91 – 93. 

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 30% 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. 

 

When the nature of the work of the employee is such that an employee has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays.

 

Pay for Overtime on Weekly Rest – Overtime on a rest day shall be paid an additional compensation of least 30% thereof.

 

When an employer may require work on a rest day

The employer may require his employees to work on any day in case of impending emergencies caused by serious accidents or to perform urgent work to be performed on the machinery to avoid a serious loss to the employer, in the event of abnormal pressure of work, or to prevent loss or damage to perishable goods, etc. Labor Code of the Philippines, Article 91 – 93. 

Public Holidays

The Philippines comprises different categories of holidays called regular holidays or special holidays. Employees are entitled to the following 10 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
      • Rizal 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

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. Following are some of the common special working days – 

          • All Soul’s Day
          • Christmas Eve
          • Last day of the year

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, unless he works on the first holiday, in which case he is entitled to holiday pay (100% of the regular wages) on the second holiday.

 

For example – In case, Thursday and Friday are both holidays, and an employee is absent on Wednesday, in such a scenario, the employee will not get paid for both the holidays unless he has worked on Wednesday. But, if an employee has worked on Thursday, then he will get paid for the holiday on Friday. 

 

Considering the same scenario, but the employee is absent on both Wednesday and Thursday, in such a case he will not get paid for Friday.

 

Double Holiday

A double holiday happens when there are two holidays which fall on the same day. For example, if Araw ng Kagitingan falls on the same day as Maundy Thursday or Good Friday. Labor Code of the Philippines, Article 94.

 

Rule of Absences for Holidays

In case, an absent employee is paid the workday immediately preceding a regular holiday, then he/she is entitled to holiday pay for regular holidays. An absent employee is said to be paid when he/she has applied for leave for the day’s absence and the same was approved by the employer. 

 

The same rule applies even in the case of successive holidays. If an absent employee is paid for the workday immediately preceding a regular holiday, then he/she is entitled to holiday pay for successive holidays. And, if an absent employee is not paid for the workday immediately preceding a regular holiday, but performs work on the first regular holiday, in such case, he/she is entitled to holiday pay for the next holiday. Labor Code of the Philippines, Article 94 – 96. 

 

Payment of Wages on a Regular Holiday

            • An employee who does not work on a regular holiday is entitled to be paid 100% of 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) on a holiday 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.

RT- Regular time

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 Holiday

              • 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) on a special holiday 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 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 at work on a double holiday shall be paid 300% of his/her regular wage.
                • 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 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 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 the night shift on a double holiday is paid at the rate of 330%.
                • An employee who works on the 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 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.

Please refer to the Holiday Calculation Table. 

Annual Leave

An employee who has provided 1 year of service is entitled to a yearly, service incentive leave of at least 5 days with pay. 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 grant of this leave to employees by the government authorities. Labor Code of the Philippines, Article 95. 

Minimum Wage

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

 

 

 

Please refer to the link 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. The compulsory leave post-childbirth shall not be less than 60 days.

 

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 child’s birth.

 

Allocation of maternity leave credits – A female employee can allocate 7 paid days to the child’s father, irrespective of the marital status. In case of death of the female employee or permanent incapacity, the balance of her maternity leave benefits shall accrue to the father of the child or to a qualified caregiver.

 

Breastfeeding Break

A nursing employee shall be granted paid breaks in addition to the regular time off for meals to breastfeed her child, the duration of which shall include the time an employee takes to get to and from the workplace lactation station, which shall not be less than 40 minutes for every 8 hours of working time. Republic Act No.11210 § 2 – 9  and 12.

Paternity Leave

A male employee is entitled to a paid leave for a period of 7 days. The leave can only be used for the employee’s first four children. The married father of the child is entitled to as many as 14 days of paid leave. Republic Act No. 8187 § 2.

Parental Leave for Solo Parents

A solo parent who has rendered one year of service is eligible for paid parental leave for a duration of 7 days every year. Republic Act No. 8972 § 8.

 

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  § 18

Last updated on: July 6th, 2021