Benefit

Coverage

Exemptions

1. Holiday Pay
(Article 94)

All employees

-Government employees whether

employed by National Government or
any of its political subdivisions
including those employed in GOCCs
with original charters or created under
special laws

If Unworked: 100% of minimum

wage rate

-Those of retail & service

establishments regularly employing
less than 10 workers

-holiday falls on scheduled rest

day: work performed on said day
merits at least an additional 30% of
regular holiday rate
So, 260% Wage Rate

-Kasambahay and persons in personal

service of another
-Managerial employees (take note of
conditions)
-Officers or members of managerial
staf

2. Premium Pay
(Article 91-93)

All employees

-Field personnel and other employees

whose time and performance is
unsupervised by employer (incl.
engaged in task or contract basis,
purely commission basis, paid a fixed
amount for performing work).
-Government employees whether
employed by National Government or
any of its political subdivisions
including those employed in GOCCs

Computation/Formula

If worked:
-within first 8 hours: 200% of
minimum wage rate

-holiday falls on a Sunday, the

following Monday shall not be a
holiday unless proclamation is issued
declaring it a special holiday.
-double holidays; if unworked,
employee is entitled to at least 200%
of daily wage. If worked, then 300%.

COLA IS NOT INCLUDED IN

COMPUTATION
*Workers who are not required or

with original charters or created under

special laws
-Managerial employees (take note of
conditions)
-Officers or members of managerial
staf
-Kasambahay and persons in personal
service of another

permitted to work on special days

(Ninoy Aquino Day, All Saints Day,
and Last day of the Year December
31st) are not entitled to
compensation.
-Work performed on special days
merits additional compensation of at
least 30% of basic pay (130%)
-Work performed on special day and
falls under his rest day: 150%

-Field personnel and other employees

whose time and performance is
unsupervised by employer (incl.
engaged in task or contract basis,
purely commission basis, paid a fixed
amount for performing work).
3. Overtime Pay
(Article 87)

All employees

-Government employees whether

employed by National Government or
any of its political subdivisions
including those employed in GOCCs
with original charters or created under
special laws
-Managerial employees (take note of
conditions)
-Officers or members of managerial
staf

COLA IS NOT INCLUDED IN

COMPUTATION
-Work in excess 8 hours of work
performed on ordinary working day,
plus 25% of hourly rate. So,
[BW/8 X125%= Quotient X 125% X
No. of hours of OT Work]
-Work in excess of 8 hours performed
on a scheduled rest day or special
day, plus 30% of hourly rate on said

-Kasambahay and persons in personal

service of another

day, So,
[BW/8 X 130% = Quotient X 130% X
130% X No. of hours of OT Work]

-Field personnel and other employees

whose time and performance is
unsupervised by employer (incl.
engaged in task or contract basis,
purely commission basis, paid a fixed
amount for performing work).

-Work in excess of 8 hours performed

on special day falling on his rest day,
plus 30% of hourly rate. So,
[BW/8 X 150% X 130% = Quotient X
150% X 130% X No. of hours of OT
work]
-Work in excess of 8 hours performed
on a regular holiday, plus 30% of
hourly rate. So,
[BW/8 X 150% X 130% = Quotient X
150% X 130% X No. of hours of OT
work

4. Night Shift
Diferential
(Article 86)

All Employees

-Government employees whether

employed by National Government or
any of its political subdivisions
including those employed in GOCCs
with original charters or created under
special laws

-Work in excess of 8 hours performed

on a regular holiday falling on his rest
day, plus 30% of hourly rate. So,
[BW/8 X 260% X 130% = Quotient X
260% X 130% X No. of hours of OT
Work]
COLA SHALL NOT BE INCLUDED IN
COMPUTATION
[BW/8 X 110%= Quotient X 110%
X No. of hours worked]

-Those of retail & service

establishments regularly employing
not more than 5 employees
-Kasambahay and persons in personal
service of another
-Managerial employees (take note of
conditions)
-Officers or members of managerial
staf
-Field personnel and other employees
whose time and performance is
unsupervised by employer (incl.
engaged in task or contract basis,
purely commission basis, paid a fixed
amount for performing work).
5. Service Charges
(Article 96)

All rank and

file
employees of
employers
collecting
service
charges are
entitled to an
equal share in
85% of total
of such
charge.

6. Service Incentive
Leave
(Article 95)

7. 13th Month Pay

(PD 851)

Remaining
15% may be
retained by
management.
Every
employee
who has
rendered at
least 1 year
of service is
entitled to SIL
of 5 days with
pay

All rank and

file
employees
provided they
worked for at
least 1 month
during a
calendar year.
(Should be
given not
later than
December
24th of every
year.

1. Government employees
2. Persons in personal service or
another
3. Managerial employees
4. Officers of members of a
managerial staf
5. Field Personnel
6. Those already enjoying benefits
7. Those enjoying vacation leave
with pay of at least 5 days
8. Those employed in
establishments regularly
employing less than 10
employees
-Government and any of its
political subdivisions including
GOCCs
-Those who are already paid by
their 13th month pay or more in
a calendar year
-those who are paid on purely
commission basis, boundary or
task basis and those who are
paid a fixed amount for
performing a specific work
-Persons in personal service of
another
-Managerial employees

*Pro rata basis

-SIL may be used for sick and
vacation leave purposes. Unused
service incentive leave is
commutable to its money equivalent
at the end of the year.

Total basic salary earned during

the year
12 months
*divided by na ha