Answers on frequently asked questions about Philippine law on salary and leave benefits.
Before signing on a job offer, one of the first things that we check is the portion that details the monetary and leaves benefits. It plays a vital role on whether we will be accepting the job or the bargain is fair enough. Since every company has different rules and policies, it is important for us to be fully aware of what the rule of law says about the compensation and leave benefits of employees in the Philippines.
Here are some of the frequently asked questions and the answers to shed light:
- How do we compute the minimum wage in Metro Manila?
- 481 pesos (basic) plus 10 pesos (COLA)= 491 pesos minimum wage
- What COLA and how can we determine if an employee is entitled to get it?
- COLA stands for COST OF LIVING ALLOWANCE. If an employee is paid of the basic or minimum pay, he should also receive COLA.
- How do we classify a holiday pay?
- It is a salary received by an employee during regular or special holidays set by the government, which is equivalent to the daily rate.
- When should an employee receive holiday pay?
- If an employee reported during a day treated as holiday or he/she filed for it as a valid leave of absence, which is with pay.
- How much should an employee receive as his holiday pay?
- If an employee did not work on a regular holiday, it should be equivalent to a hundred percent of his daily rate. For those who reported for work, it must be two hundred per cent of his daily rate.
- How do we define Premium Pay?
- It is hours worked outside of the normal 8 hours during rest days. Under certain circumstances, an employee must receive a total of 130% of his hours work during day off or special holidays, 150% for special holidays that happen to be his day off, and 260% for regular holiday falling on the employee’s time off.
- How do we define overtime pay?
- This is an additional wage for employees who rendered extra hours outside the minimum working hours. 25% of the hourly rate must be provided during ordinary days and 30% during rest day, special or regular holiday.
Here are the government mandated leaves with pay that should be provided to an employee:
- 5 day Service Incentive Leave- This can be claimed upon reaching 1 year of service.
- Maternity leave-60 days for normal delivery and 78 days for Caesarean
- Paternity Leave- 7 days for male employees regardless of his employment status which can be claimed when his partner gives birth.
- Solo Parent Leave- An equivalent to 7 days, an employee who is rendering at least 1 year may avail this benefit.
- VAWC victims- for women who are victims of physical, sexual, psychological or domestic abuse and violence may avail of 10 days leave to attend to their medical and legal concerns.
- Leaves for women with gynecological problems may avail a maximum of 2 months, provided that they in service for at least 6 consecutive months in the span of 1 year.
If you want to know more of your rights as an employee, you may visit www.dole.gov.ph.