An employer is required by law to pay his employees the following mandated economic benefits:
Minimum Wage: The amount is determined per region or per industry by the Regional Tripartite Wage and Productivity Boards. Minimum wages, therefore, vary from one region to another. Minimum wages in the provinces are generally lower than in the cities.
Overtime Pay Work in Excess of Eight Hours: If ordinary days: +25 percent of basic hourly rate, if special holidays, rest day and holidays: +30 percent of regular hourly rate on said day.
Premium Pay for Work within Eight Hours: If special holiday or rest day: +30 percent of basic daily rate, rest day falling on a special holiday: +50 percent of basic daily rate, rest day falling on a regular holiday +30 percent of 200 percent of the basic daily rate.
Nightshift Differential Pay: Plus 10% of the basic / regular rate for work rendered from 10PM to 6AM.
Service Incentive Leave of Five Days: An employee must have rendered at least one year of service to be entitled to service incentive leave pay.
Paternity Leave: 7 days with full pay to attend to needs of legal wife before, during and after delivery.
Holiday Pay : Includes January 1 or New Year’s Day, Maundy Thursday, Good Friday, May 1 (Labor Day), June 12 (Independence Day), Last Day of August (National Heroes Day), November 30 (Bonifacio Day), December 25 (Christmas) and December 30 (Rizal Day).
Benefits under Collective Bargaining Agreements (CBA)
- For unionized companies, union members are entitled to CBA benefits.
- Other existing benefits extended by employer to his employees cannot be withdrawn under the principle of “non-diminution” rule.
