MINIMUM WAGE
 Republic Act 6727 (otherwise known as the Wage
Rationalization Act )
 Regional Tripartite Wage and Productivity Boards
determine the wage rates in different regions.
Coverage
 Applies to all private sector workers regardless of their
position or status, irrespective of the method by which
their wages are paid, except the ff.:
1. Household helpers, including family drivers
and workers in the personal service of another.
2. Employees of establishments regularly
employing not more than 10 workers
3. Workers of distressed establishments;
4. Workers of establishments which are exempted
from compliance for a fixed point.
 Formulae in determining the Estimated Equivalent
Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid
Employees
For those working even on Saturdays and Sundays:
Applicable Daily Rate x 365
12
Where 365 days/year=
300 ordinary working days
51 rest days
11 regular holidays
3 special days
365 TOTAL EQUIVALENT
NUMBER OF DAYS
IN A YEAR
 For those required to work everyday including
Sundays, rest days, special days and regular holidays
Applicable Daily Rate x 392.80
12
where 392.80 days/year=300 ordinary
working days
20 ten regular
holidays x 200%
2.60
one regular holiday/rest day
x 260%
66.30 51 rest days x 130%
3.90 3 special days x 130%
 For those who do not work and are not considered paid
on Sundays or rest days
Applicable Daily Rate x 314
12
300 ordinary working days
11 regular holidays
3 special days (if considered paid;
if actually worked, this is 3.9)
-----314
 For those who do not work and are not considered paid
on Saturdays and Sundays or rest days
Applicable Daily Rate x 262
12
Where 262 days/year:
248 ordinary working days
11 regular holidays
3 special days (if considered
paid; if actually worked, this is
3.9
----262
Minimum Wage of Workers Paid By
Results
ART. 101. Payment by results. - (a) The Secretary of Labor
and Employment shall regulate the payment of wages
by results, including pakyao, piecework, and other
non-time work, in order to ensure the payment of fair
and reasonable wage rates, preferably through time
and motion studies or in consultation with
representatives of workers’ and employers’
organizations.
Wage Order No. IVA-13
(June 1, 2008)
 GROWTH CORRIDOR AREA: Carmona, Cavite City,
Dasmarinas, Gen. Trias, Rosario, Cabuyao, Calamba
City, Los Banos, San Pablo City, Sta. Cruz, Sta Rosa:
Daily Rate:
P298.00
Monthly Rate:
P7748.00
 GROWTH CORRIDOR AREA
Kawit, Silang, Tagaytay City, Tanza, Trece Martirez,
Batangas City, Bauan, Lipa City, San Pascual, Santo
Tomas, Tanauan City, Lucena City
Daily Rate
P293.00
Monthly Rate
P7,618.00
Holiday Pay
(Article 94)
11 regular holidays (E.O. 203)
New Year
Maundy Thursday
Good Friday
Araw ng Kagitingan
Labor Day
Independence Day
National Heroes Day
Eidl Fitr
Bonifacio Day
Christmas Day
Rizal Day
January 1
Movable Date
Movable Date
April 9
May 1
June 12
Last Sunday of August
Movable Date
November 30
December 25
December 30
 Holiday pay refers to the payment of the regular daily
wage for any unworked regular holiday
 Applies to all employees except:
-govt. employees
-establishments not employing more than ten
workers
-househelp
-managerial employees
-officers or members of a managerial staff
-field personnel unsupervised
 Covered employees shall be entitled to holiday pay
when they are on leave of absence with pay on the
work day immediately preceding the regular holiday.
Premium Pay
(Articles 91-93)
 Exemptions: government employees, managerial
employees, officers/members of managerial staff,
househelp, workers paid by results, field personnel.
 For work performed on rest days or on special days:
plus 30% of the daily rate of 100% or a total of 130%
Special Days (EO 2030)
Ninoy Aquino Day
August 21
All Saints Day
November 1
Last Day of the Year
December 31
 For work performed on a rest day which is also a
special day: Plus 50% of the daily rate of 100% or a
total of 150%
 For work performed on a regular holiday which is also
the employee’s rest day: Plus 30 percent of the regular
holiday rate of 200% based on his/her basic wage rate
or a total of 260%
Overtime Pay
(Article 87)
 Exemptions: Same as in Premium Pay
 For work in excess of eight (8) hours performed on
ordinary working days: Plus 25% of the hourly rate
 For work in excess of eight hours performed on a
scheduled rest day, a special day, and a regular holiday:
Plus 30% of the hourly rate on said days.
Night Shift Differential
(Article 86)
 Exemptions: government employees, househelp,
managerial employees, officers/members of
managerial staff, field personnel
 Night shift differential refers to the additional
compensation of 10% of an employee’s regular wage for
each hour of work performed between 10 p.m. and 6
a.m.
Service Incentive Leave
(Article 95)
 Every employee who has rendered at least one year of
service is entitled to SIL of 5 days with pay
 Exemptions: government employees, househelp,
managerial employees, officers/members of
managerial staff, field personnel, those already
enjoying this benefit, those enjoying vacation leave
with pay at least 5 days, less than 10 employees.
Service Charge
(Article 96)
 All rank-and-file employees of employers collecting
service charges are entitled to an equal share in the
85% of the total of such charges. The remaining 15%
shall answer for losses and damages.
 Distributed 2x a month.
Maternity Leave
(RA 1161, as amended by RA 8282)
 Every pregnant employee in the private sector, whether
married or unmarried is entitled to maternity leave
benefit of 60 days in case of normal delivery or
miscarriage, or 78 days in case of Caesarian section
delivery, with benefits equivalent to 100% of the
average salary credit of the employee as defined under
the law.
Paternity Leave
(RA 8187)
 Granted to all male employees in the private sector
regardless of status
 Applies to 4 deliveries of the employee’s lawful wife
with whom he is cohabiting
 Shall be for 7 calendar days with full pay
 Not convertible to cash if not availed of
PARENTAL LEAVE FOR SOLO
PARENTS (RA 8972)
 Means leave benefits granted to a solo parent to enable
him/her to perform parental duties where physical
presence is required
 Must have rendered at least one year of service
 Seven working days every year with full pay.
Leave for Victims of Violence Against Women and their
Children(RA 9262)
 The leave benefit shall cover the days that the woman
employee has to attend to medical and legal concerns
 A certification from the Punong Barangay that a case is
pending
13th month pay
(PD 851)
 Paid to all employees who worked for at least one
month during a calendar year.
 Should be given to employees not later than December
24 every year.
 Should not be less than one-twelfth of the total basic
salary earned by an employee in calendar year
 Exemptions: government, those already paying at the
time of PD 851, househelp, commission, boundary or
task employees.
Separation Pay
(Article 283-84)
 One-Half month pay for every year of service:
-retrenchment to prevent losses
-closure or cessation of operation of an establishment
-disease
 One-Month Pay for every year of service:
-installation of labor-saving device
-redundancy
-impossible reinstatement
 Allowance should be integrated with the basic salary
 Fraction of six months considered one year
 Separation pay also paid to illegally dismissed
employees
Retirement Pay
(RA 7641)
 Employees should be retired upon reaching the age of
60 or more but not beyond 65 and have served for at
least 5 years.
 Exemptions: government, not more than ten
employees.
 ½ month pay for every year of service which includes:
15 days salary based on the latest salary rate; cash
equivalent of five days; one twelfth of the thirteenth
month pay or a total of 22. 5 days.
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