Basics of Labor Standards leave of absence with pay on the work day

immediately preceding the holiday

Labor Code is subcategorized into Labor Standards and
200% of the pay if work is performed of that day
Labor Relations
300% of the pay if work is performed on a
What’s the difference of a wage and a salary? double holiday

Wage Does not apply to

 Compensation paid for Manual Skilled or  Government Employees

Unskilled Labor  Retail or Service establishments with less than
 Not subject to execution or attachment or 10 workers
garnishment (taking of properties held by 3rd  Kasambahay
parties)  Managerial Employees
 Field personnel and other employees whose
Salary
time and performance is unsupervised by the
 Compensation paid for Higher or superior level employer
of employment
EXAMPLE:
 Not EXEMPT from execution, or attachment or
garnishment Jose receives P26,000 monthly salary for a 26-work
 Fixed compensation day/month. Two days in a month is declared as a regular
 Managerial employees are more appropriate to holiday. How much will be Jose’s totay pay if he:
have salaries, being technically or specially lined
1. Did not work on those holidays: 26,000
What is a Minimum Wage? 2. If he rendered service on those holidays
3. If he rendered service on those holidays and
Applicable to different industrial sectors, one of those holidays is a double holiday
namely, non-agriculture, agriculture plantation,
and such Premium Pay
Determined by the Regional Tripartite Wages
 refers to the additional compensation for work
and Productivity Board, attached with
performed within eight (8) hours on rest days
Basis shall be the normal working hours of eight
and special days (30%)
hours a day
Overtime Pay
Taxability of Minimum Wage
 Additional compensation for work performed
 EXEMPT FROM TAXES
beyond 8 hours per day
o Statutory Minimum Wage inclusive of
o 25%- In excess of 8 hours per ordinary
COLA
working day
o Holiday Pay
o 30%- In excess of 8 hours per special
o Overtime Pay
day, rest day, or regular holiday
o Night Shift Differential
o Hazard Pay Night Shift Differential
 Taxable Income is 144,000, but Tax Due is zero,
 refers to the additional compensation of ten
in case wage is more then Minimum Wage
percent (10%) of an employee’s regular wage for
Holiday Pay each hour of work performed between 10 p.m.
and 6 a.m.
Pay that you receive for working or not working
on a regular holiday 1343.75 2715 4072.5
100% of the pay even if he/she did not report
1764.75 3529.5
for work, provided that he/she is present or is in
2036.25
Service Incentive Leave Seven work days every year, with full pay consisting of
basic pay and mandatory allowances
Service incentive leave refers to the paid leave of five (5)
days granted to an employee who has rendered at least Employee must have rendered at least 1 year of service
one (1) year of service that may be used for sick,
Withholding Tax on Compensation
vacation, and other leave purposes.
 Basic Pay less Mandatory contributions (SSS,
Maternity Leave
PhilHealth, PAGIbig, Employee’s Share ONLY) =
Applicable to all covered female employees, regardless  Mere estimate of year end taxes
of civil status, employment status, and the legitimacy of
TAX DUE = TAX WITHHELD
her child
2 Ways to Withhold
105 days with full pay and additional 15 days with full
pay in case the employee qualifies as a solo parent  Annualization- estimated tax due for the total
In case of miscarriage of emergency termination of year / 12, will be equal to Monthly Withholding
pregnancy, the maternity leave will be 60 days with full  Withholding Tax Table- only consider Regular
pay Compensation, not the Total Compensation with
Supplementary Compensation
Eligibility
Regular Compensation
 Must have at least 3 monthly contributions to
the SSS in the 12-month period immediately - Fixed
preceding the semester of childbirth, - Every payroll period
miscarriage, or emergency termination of Supplementary Compensation
pregnancy
 Notified her employer of her pregnancy, and the - Variable
probable date of birth which notice shall be - “Performance based pay”
transmitted to SSS in accordance its rules and Add Supplementary before multiplying Total Taxable
regulations. Compensation by rate.
Paternity Leave

Paternity leave refers to the paid leave granted to a

married male employee allowing him to lend support to
his lawful wife during her period of recovery and/or in
nursing of their newborn child, including miscarriage.

The paternity leave grants male employees his full pay

for the seven (7) days during which he is allowed not to
report for work.

Shall apply to the first four deliveries of the employee’s

lawful wife

Seven calendar days (including weekends and holidays),

with full pay consisting of basic pay and mandatory
allowances

Paternal Leave for Solo Parents

Granted to solo parents or individual who is left alone

with the responsibility of parenthood