Frequently Asked Questions 

1. What is the minimum wage of an Employee?

 

MINIMUM WAGE

            The Wage Rationalization Act, Republic Act No. 6727, sets the minimum wage rates applicable per region, province and industry sector. The industry sectors are: non-agricultural, agriculture (plantation and non-plantation), cottage and handicraft, retail and service sectors.  Minimum wage may vary depending on the number of employees and gross-sales of an enterprise and its industry sector.

As of April 2015 the minimum wage of non-agricultural workers in Metro Manila is PHP 481 and PHP 444 for agricultural workers. Outside of Metro Manila, the minimum daily wage varies from PHP 279 to PHP 337 for non-agricultural workers, depending on the region.

 

2. What is the rate of the Employees Overtime?

 

OVERTIME

Minimum wage is based on a work week of 40 hours or 8 hours per day. The daily 60 minute mandatory lunch break is not included in the 8 hour work day and is not compensated.

Overtime pay rates vary depending on when the overtime work takes place: regular work day, holiday, rest day, or night (between the hours of 10pm to 6am).

Overtime Rates:

– Regular work day: plus 25% of the hourly pay rate.
– Rest day, regular/special holiday: plus 30% of the hourly rate on said day.

 

3. When will the Employees get their Premium Pay?

 

PREMIUM PAY

Premium pay is given on non-working days (rest days/special holidays)

There are 3 special holidays:

– Ninoy Aquino Day
– All Saints Day
– Last Day of the Year

Premium Pay Rates:

– On a rest day or special holiday, an employee is entitled to an additional 30% of his daily basic rate, or a total of 130%.

– On a rest day which is also a special holiday, an employee is entitled to an additional 50% of his daily basic rate, or a total of 150%.

– On a regular holiday which is also an employee’s rest day, an employee is entitled to an additional 30% of the regular holiday rate of 200%, or a total of 260%. Note that it is only applicable to employees covered by the holiday-pay rule.

The “no work, no pay” principle applies during special non-working days and such other special days as may be proclaimed by the President of the Philippines.  Workers who are not required or permitted to work on these days are, therefore, not entitled to any compensation.  This, however, is without prejudice to any voluntary practice or CBA providing for payment of wages and benefits for declared special days even if unworked.