Wage and Wage Benefits in the Philippines


One of the most common questions we receive from our readers is regarding compensation and benefits in the Philippines.  We summarized the details of wage benefits implemented by the Department of Labor and Employment (DOLE) in the country.  Here you will find the complete information on the different “pays” and leave benefits that employees are entitled to.

All the following information were lifted from the website of the DOLE.

  1. How much is the minimum wage in Metro Manila?
    • P491.00 where the basic wage is P481.00 + COLA of P10.00.
  2. What is the basis for entitlement to COLA?
    • A worker paid the basic pay is entitled to the COLA, whether he worked or not.
  3. What is Holiday Pay?
    • Refers to the payment of the regular daily wage for any unworked regular holiday.
  4. What are the conditions so that an employee will be entitled to holiday pay?
    • The employee should be present on the workday immediately preceding the regular holiday; or
    • He should be on leave of absence with pay on the day immediately preceding the regular holiday.
  5. How much is the holiday pay of an employee?
    • For any unworked regular holiday: 100% of the employee’s daily wage rate (basic pay + COLA).
    • For work performed on a regular holiday: plus 100% or a total of 200% of the employee’s daily wage rate (basic pay + COLA).
  6. What is Premium Pay?
    • This refers to the additional payment for work within 8 hours on rest days or special days.
  7. How much is the premium pay of an employee?
    • Additional 30% of the daily basic rate or a total of 130% for work performed on rest day or special day.
    • Additional 50% of the daily basic rate or a total of 150% for work performed on special day falling on the employee’s rest day.
    • Additional 30% of the daily basic rate or a total of 260% for work performed on a regular holiday falling on the employee’s last day.
  8. What is overtime pay?
    • This is additional pay for work performed in excess of 8 hours a day.
  9. How much should be the overtime pay of an employee?
    • Additional 25% of the hourly rate for work performed in excess of 8 hours on an ordinary day.
    • Additional 30% of the hourly rate for work performed in excess of 8 hours on rest day, special day, or regular holiday.
  10. What are the leave benefits that an employee is entitled to under existing laws?
    • 5-day Service Incentive Leave – With pay for employees who rendered at least one year of service. (Article 95 of the Labor Code, as amended).
    • Maternity Leave
      • With pay of 60 days for normal delivery and 78 days for Caesarian section delivery.
      • Pregnant employees, whether married or unmarried, are entitled to the maternity leave.
      • Female employees should be an SSS member and must have paid at least 3 monthly contributions within the 12-month period. (RA 1161, as amended by RA 8282).
    • Paternity Leave
      • 7 days leave with pay for all married male employees in the private sector regardless of status of employment, provided he is (RA 8187):
        • An employee at the time of the delivery of his child;
        • Cohabiting with his spouse at the time that  she  gives birth or suffers a miscarriage;
        • Applied for paternity leave with his employer within a reasonable period of time;
        • His wife has given birth or suffered a miscarriage.
    • 7-day Solo Parent Leave
      • Leave with pay
      • Granted to solo parents to enable them to perform parental duties and responsibilities where physical presence is required provided he/she has (RA 8972);
        • Rendered at least 1 year of service, whether continuous or broken which includes authorized absences and paid regular holidays;
        • Notified his/her employer that he/she will avail himself/herself of it, within a reasonable period of time; and
        • Presented Solo Parent Identification Card, which may be obtained from the DSWD office of the city or municipality where he/she resides.
    • 10-day Leave with pay for Victims of Violence Against Women and their Children (VAWC)
      • Granted to women employees who are victims of physical, sexual, psychological harm or suffering, or economic abuse.
      • Leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns provided that (RA 9262):
        • The victim woman employee presents to her employer a certification from the barangay chairman (Punong Barangay) or barangay kagawad or prosecutor or the Clerk of Court that an action relative to the matter is pending.
    • Special leave for women of maximum 2 months
      • With full pay
      • Employee must have rendered continuous aggregate employment service for six months for the last 12 months, following surgery caused by gynecological disorders (RA 9710).

For more information on labor laws, compensations and benefits, and separation and retirement pays, visit the DOLE website at http://www.dole.gov.ph

Source: http://bwc.dole.gov.ph/index.php/9-faqs/17-faqs-on-wage-and-wage-related-benefits



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6 thoughts on “Wage and Wage Benefits in the Philippines

  1. Good morning po. I would like to ask regarding to the overtime pay, the rules in overtime is, in excess of 8 hrs of work is considered as overtime. What if the scenario is, his/her duty is 8am-5pm (included 1hr break) and he/she out the office by 9pm. Where should I start counting the overtime? 5pm-6pm or 6pm-7pm? Thanks

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