Statutory Monetary Benefits

Statutory Monetary Benefits

Minimum Wage

R.A. six thousand seven hundred twenty-seven "Wage Rationalization Act"

Basis for wage classification:

Agriculture farming in all its branches

Retail establishment principally engaged in the sale of goods to end-users regularly engages in wholesale activities loses its retail character

Service establishment principally engaged in the sale of service to individuals

Regional Tripartite Wages and Productivity Boards authorized to determine the daily minimum wages in different regions based on established criteria

Regional Wage Orders prescribe daily minimum wage rates per industry per locality within the region depends on the number of workers and the capitalization of enterprises provide bases and procedure for application for exemption from compliance

Coverage wage increases apply to:

private sector workers receiving daily minimum wage rates or those receiving up to a certain daily wage ceiling

EXCEPT: workers of Barangay Micro Business Enterprises with Certificate of Authority an establishment may be exempted from compliance with a Wage Order for at most one year

Rules in Determining Compensable Working Hours basis of minimum wage is normal working hours of eight hours a day

Hours worked all time during which an employee is required to be on duty or is permitted to work

Principles in determining hours worked

All hours are hours worked regardless of whether or not the hours are spent in productive labor or involve physical or mental exertion

Rest period is considered when the employee stops working. Employee does not need to leave the premises during rest period

The work performed was necessary, benefited the employer, or employee could not abandon his work at the end of his normal working hours due to no replacement, the hours spent is considered work hours, provided that it is upon the knowledge of the employer time during which an employee is inactive due to interruptions in their work beyond their control shall be considered working time

Treatment on waiting time waiting time equals working time if employee is obligated to wait as part of their work or as tasked by the employer being on call is considered working

Attendance at lectures, meetings, training programs, etc.

Attendance in such activities are not counted as working time if all conditions are met:

attendance is outside employee's regular working hours attendance is voluntary employee does not perform productive work during attendance