Members of the family of the employer who are dependent on him for support
Workers paid by results
Persons in the personal service of another
Domestic helpers
The aforementioned employees are not entitled to overtime pay, premium pay for rest days and holidays, night shift differential pay, holiday pay, service incentive leave, and service charges
Normal Hours of Work
Shall not exceed 8 hours a day, as a rule. Outside of that, it would be overtime and subject to additional pay, unless it pertains to health personnel or compressed workweek situations
Work day
The 24-hour period which commences from the time the employee regularly starts to work
Compressed Workweek
A scheme where the normal workweek is reduced to less than 6 days but the total number of work-hours of 48 hours per week shall remain
Principles in Determining Hours Worked
All hours which the employee is required to give to his employer regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion
Rest period is excluded from hours worked even if employee does not leave his workplace, it being enough that: he stops working, may rest completely, may leave his workplace, to go elsewhere, whether within or outside the premises of the workplace
All time spent for work is considered hours worked if: the work performed was necessary, if it benefited the employer, the employee could not abandon his work at the end of his normal working hours because he had no replacement, provided the work was with the knowledge of his employer or immediate supervisor
The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working time: if the imminence of the resumption of the work requires the employee's presence at the place of work, or if the interval is too brief to be utilized effectively and gainfully in the employees' own interest
Maximum Hours of Work
Public utility bus drivers and conductors – 12 hours per 24-hour period
Movie and television industry worker/talent – shall not exceed 8 hours in a day. If required to work beyond 8 hours, the maximum actual hours of work shall not exceed 12 hours in any 24-hour period
Seafarers onboard ships engaged in domestic shipping – 14 hours per 24-hour period or 77 hours per 7 days
Meal Periods
Every employer shall give his employees not less than 60 minutes or 1 hour time-off for regular meals, which can be taken inside or outside company premises
Night Shift Differential
Every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour of work performed between 10PM and 6AM
Overtime Work
The service rendered in excess of and in addition to 8 hours on ordinary working days
Overtime Pay
The additional compensation of at least 25% on the regular wage for the service or work rendered or performed in excess of 8 hours a day by employees or laborers in employment covered by the Eight-hour Labor Law
Overtime Pay Rates
During a regular working day: Additional compensation of 25% of the regular wage
During a holiday or rest day: Rate of the first 8 hours worked on plus at least 30% of the regular wage; If done on a special holiday or rest day: 30% of 130% of regular wage; If done on a special holiday and rest day: 30% of 150% of regular wage; If done on regular holiday: 30% of 200% of regular wage
In case of compressed workweek, any work performed beyond 12 hours a day or 48 hours a week shall be subject to overtime premium
Where a worker incurs undertime hours during his regular daily work, said undertime hours should not be offset against the overtime hours on the same day or any other day
Rest Periods
Every employer shall give his employees a rest period of not less than 24 consecutive hours after every 6 consecutive normal work days
Premium Pay
The additional compensation for work rendered by the employee on days when normally he should not be working such as special holidays and rest days
Rates of Compensation for Rest Day, Sunday, or Holiday Work
Work on a scheduled rest day: +30% premium pay of 100% regular wage
Work performed on Sundays and holidays by an employee who has no regular workdays and rest days: +30% premium pay of 100% regular wage
Work on a Sunday (If also the rest day): +30% premium pay of 100% regular wage
Work performed on any Special Holiday: 1st 8 hours: +30% of premium pay of 100% regular wage, Excess of 8 hours: +30% of hourly rate on said date
Work performed on a Special Holiday and same day is scheduled rest day: 1st 8 hours: +50% of premium pay of 100% regular wage, Excess of 8 hours: +30% of hourly rate on said date
Work performed on a Special Working Holiday: Employee is entitled to his basic rate. No premium pay is required
Holiday Pay
A one-day pay given by law to an employee even if he does not work on a regular holiday. It is limited to the 12 regular holidays, also called legal holidays listed by law. The employee should not have been absent without pay on the working day proceeding the regular holiday
Regular Holidays
New Year's Day
Araw ng Kagitingan
Maundy Thursday
Good Friday
Labor Day
Independence Day
National Heroes Day
Eidl Fitr
Eidl Adha
Bonifacio Day
Christmas Day
Rizal Day
Special (Non-working) Holidays
Chinese New Year
EDSA People Power Anniversary
Black Saturday
Ninoy Aquino Day
All Saints Day
Feast of Immaculate Conception of Mary
Last day of the Year
Regular Holiday vs Special Holiday
Regular Holiday: If unworked, compensable, subject to certain conditions. If worked, rate is 200% of the regular rate. Limited to 12 holidays provided in the Labor Code
Special Holiday: If unworked, not compensable. If worked, additional 30% premium pay of 100% regular wage. Not exclusive
Double Holiday Pay
If two regular holidays fall on the same day, the employees should be paid 400% of the basic wage for both holidays provided he worked on that day or was on leave with pay or was on authorized absence on the day prior to the regular holiday
13th Month Pay
A form of monetary equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that the employee has rendered service to the employer. Employee should have worked for at least 1 month during a calendar year. It should be paid not later than December 24 of every year
Employees not entitled to Service Incentive Leave (SIL)
Government employees
Domestic helpers and persons in the personal service of another
Managerial employees, following certain conditions
Field personnel and those whose time and performance is unsupervised by the employer
Those already enjoying this benefit
Those enjoying vacation leave with pay of at least 5 days
Those employed in establishments regularly employing less than 10 employees
Service Incentive Leave (SIL)
A 5-day with pay for every employee who has rendered at least 1 year of service whether continuous or broken
Maternity Leave Benefits
Paid leave benefit granted to a qualified female worker in the public sector, for the duration of: 105 days for live childbirth, regardless of the mode of delivery, and an additional 15 days paid leave if the female worker qualifies as a solo parent under RA8972; or 60 days paid leave for miscarriage and emergency termination of pregnancy
Paid leave benefit granted to a qualified female worker in the private sector covered by the SSS, including those in the informal economy, for the duration of: Same as above; Full payment of SSS maternity benefit computed on their average daily monthly salary credit; and salary differential to be paid by the employer, if any
An option to extend for an additional 30 days without pay in case of live childbirth provided that the employer shall be given due notice in writing at least 45 days before the end of the maternity leave, except in case of medical emergency
Paternity Leave
Benefits granted to a married male employee allowing him not to report for work for 7 days but continues to earn the compensation on the condition that his spouse has delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/or in the nursing of the newly-born child. This may be availed before or during the delivery. In the event that this is not availed of, said leave is not convertible to cash
Parental Leave / Solo Parent's Welfare Act (R.A. No. 8972)
Leave benefits granted to a solo parent to enable him/her to perform parental duties and responsibilities where physical presence is required. Parental leave of not more than 7 working days every year shall be granted to any solo parent employee who has rendered service of at least 1 year. This shall be in addition to the legally mandated leaves, such as SIL, sick leave, maternity leave and paternity leave