RFBT-03 (Labor & Social Security)

• Coverage: Book III of the Labor Code on Labor Standards

  • Government employees
  • Managerial employees
  • Officers of the managerial staff
  • Field personnel
  • Persons in the personal service of another
  • Domestic helpers
  • Workers who are paid by results
  • Members of the family of the employer who are dependent on him for support
• Normal hours of work

  Should not exceed 8 hours
• Hours worked


  • All time during which an employee is required to be on duty or to be at a prescribed workplace
  • All time during which an employee is suffered or permitted to work
• Rest periods of short duration during working hours shall be counted as hours worked
• Meal periods


  Employer must give employees not less than 60 minutes time-off for their regular meals
• Health personnel in locality with population of at least 1M or in a hospital/clinic with bed capacity of at least 100


  • Regular hours of work is 8 hours a day for 5 days in a week
  • Exception: when there are exigencies, they may be required to work for 6 days or 48 hours in a week, in which case they are entitled to additional compensation of 30% of their regular wage on the 6th day
• Night shift differential


  Additional compensation of not less than 10% of an employee's regular wage for every hour of work done between 10:00 PM and 6:00 AM
• Overtime pay


  Additional compensation of 25% when work is rendered on the regular working day of the employee or 30% when work is rendered on one's rest day or holiday
• For purposes of computing overtime and other additional remuneration, the "regular wage" of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer
• Cases where an employee may be required by the employer to perform emergency overtime work


  • When the country is at war or when any other national or local emergency has been declared
  • When it is necessary to prevent loss of life or property or in case of imminent danger to public safety
  • When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage
  • When the work is necessary to prevent loss or damage to perishable goods
  • Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer
• Right to weekly rest day

  Employer must provide each employee a rest period of not less than 24 consecutive hours after every 6 consecutive normal work days
• Cases where the employer may require an employee to work on a rest day


  • In case of actual or impending emergencies
  • In cases of urgent work to be performed on machinery, equipment, or installation
  • In the event of abnormal pressure of work due to special circumstances
  • To prevent loss or damage to perishable goods
  • Where the nature of the work requires continuous operations
  • Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment
• Compensation for rest day, Sunday or holiday work

  • At least 30% of regular wage for work on scheduled rest day or Sunday
  • At least 30% of regular wage for work on holidays
  • At least 50% of regular wage for work on scheduled rest day that falls on a holiday
• Regular holidays


  • New Year's Day
  • Maundy Thursday
  • Good Friday
  • Araw ng Kagitingan - April 9
  • Labor Day - May 1
  • Eid'l Fitr
  • Independence Day - June 12
  • Eid'l Adha
  • National Heroes Day
  • Bonifacio Day - November 30
  • Christmas Day - December 25
  • Rizal Day - December 30
  • The day designated by law for holding a general election
• Regular holidays are compensable even if unworked, while special holidays are not compensable if unworked
• Service incentive leave


  Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of 5 days with pay
• Paternity leave


  Every married male employee is entitled to 7 days with full pay for the first 4 deliveries (including miscarriages) of his legitimate spouse
• Solo parent leave


  Parental leave of not more than 7 working days every year for solo parent employees who have rendered at least 6 months of service
• VAWC victims' leave


  Up to 10 days paid leave for victims of violence against women and their children
• Special leave benefits for women

  2 months with full pay based on gross monthly compensation following surgery caused by gynecological disorders, for women with at least 6 months continuous aggregate employment in the last 12 months
• Maternity leave


  105 days with full pay, plus 15 additional days if qualified as a solo parent, plus optional 30 days without pay; 60 days with pay for miscarriage or emergency termination of pregnancy
• 13th month pay


  Additional income equivalent to 1/12 of the total basic salary earned by an employee within a calendar year, payable anytime not later than Dec. 24
• All rank-and-file employees regardless of their designation or employment status and irrespective of the method by which their wages are paid, are entitled to 13th month pay, provided they have worked for at least one month during the calendar year
• Free rice, electricity cash, stock dividends, Cost Of Living Allowances are not valid substitutes for 13th month pay
• It is the policy of the Philippines to establish, develop, promote and perfect a sound and viable tax-exempt social security service suitable to the needs of the people throughout the Philippines which shall provide to covered employees and their families protection against the hazards of disability, sickness, old age and death, with a view to promoting their well-being in the spirit of social justice
• Compulsory coverage in the SSS

  • All employees not over sixty years of age
  • Their employers
• When an employee under compulsory coverage is separated from employment, his employer's contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation, but said employee shall be credited with all contributions paid on his behalf and entitled to benefits
• Voluntary coverage in the SSS

  Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage
• Compulsory coverage


  Coverage in the SSS that is required by law
• Voluntary coverage


  Coverage in the SSS that is optional
• Persons covered under compulsory coverage

  • All self-employed professionals
  • Partners and single proprietors of businesses
  • Actors and actresses, directors, scriptwriters and news correspondents
  • Professional athletes, coaches, trainers and jockeys
  • Individual farmers and fishermen
• Effect of interruption of business or professional income

  1. If the self-employed realizes no income in any given month, he shall not be required to pay contributions for that month

  2. He may be allowed to continue paying contributions under the same rules and regulations applicable to separated employee member

  3. No retroactive payment of contributions shall be allowed other than prescribed under a schedule as the Commission may specify
• Persons covered under compulsory coverage of OFWs

  • Sea-based OFWs
  • Land-based OFWs
• Compulsory coverage of OFWs

  1. DFA, DOLE and SSS shall ensure compulsory coverage through bilateral social security and labor agreements and other measures for enforcement

  2. Upon termination of employment overseas, OFWs may continue to pay contributions on a voluntary basis to maintain their rights to full benefits
• Effective date of compulsory coverage

  • For employer - first day of operation
  • For employee - day of employment
  • For self-employed - upon registration with SSS
• Monthly pension


  Highest of: 300 + 20% of average monthly salary credit + 2% of average monthly salary credit for each credited year of service in excess of 10 years, or 40% of average monthly salary credit, or 1000
• Minimum pension


  • 10 credited years of service - 1200
  • 20 credited years of service - 2400
• Additional benefit allowance


  1000 pesos per month for all retirement, death, and disability pensioners receiving monthly pensions in or after January 2017
• Dependent's pension


  10% of monthly pension or 250, whichever is higher, for each dependent child up to 5
• Retirement benefits


  1. Member must have paid at least 120 monthly contributions and be 60+ years old and separated from employment/self-employment, or 65+ years old

  2. Option to receive first 18 monthly pensions in lump sum

  3. If member doesn't qualify for pension, lump sum benefit of total contributions paid

  4. Option to continue paying contributions to qualify for full pension

  5. Pension suspended upon re-employment/self-employment under 65