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
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