Night Shift Differential Pay Overtime Work Pay Premium Pay Holiday Pay 13th Month Pay

(Art 86) (Art 87) (Art 91-93) (Art 94)

Definition equivalent to 10% of employee's regular Work rendered after normal eight (8) additional payment of the regular daily wage for any unworked regular one-twelfth (1/12) of the basic salary of
wage for each hour of work performed hours of work is called overtime work compensation for holiday. an employee within a calendar year.
between 10:00 p.m. and 6:00 a.m. of the work performed within
following day. eight (8) hours on
nonwork days, such
as rest days and
special days.

Coverage This benefit applies to all employees
except:
1. Government employees
2. Managerial employees
3. Officers or members of a managerial
Staff
4. Domestic Helpers
5. Persons in the personal service of
another;
6. Field personnel and other employees
whose time and performance is
unsupervised by the employer
7.Employees of retail and service
establishments employing not more 5
workers
8. Workers who are engaged in task or
contract basis, paid on fixed amount
irrespective of time consumed in work
When may an employee be This benefit applies to This benefit applies to all employees Who are entitled to 13th month pay?
compelled to perform overtime all employees All rank-and-file employees are entitled to
work? except: a 13th-month pay regardless of the
except: 1. Government employees and GOCCs amount of basic salary that they receive in
1. The general rule remains that no 1. Governmen a month and regardless of their
employee may be compelled to render t employees & 2. Managerial Employees designation or employment status, and
overtime work against his will. GOCCs 3. Officers and members of a managerial staff irrespective of the method by which their
2. Managerial wages are paid, provided that they have
2. Exceptions when employee may be Employees 4. Domestic Servant worked for at least one (1) month during
compelled to render overtime work: 3. Officers 5. Persons in the personal service of another a calendar year.
and members of
a. war/ emergency situation- a managerial 6. Field Personnel and other employees whose time and Who are exempted employers from the
b. Disaster / Calamity- staff performance is unsupervised by the employer coverage of 13th month pay?
c. Urgent Repairs- 4. Domestic 7. Retail and services establishments regularly
d. Preservation of Perishable Goods- Servant employing less than 10 workers The following are exempted employers:
e. Completion of Work- 5. Persons in a. The government except those
f. Take advantage of Favorable the personal corporations operating essentially as
Weather Condition service of private subsidiaries of the government.
another
May an employee validly refuse to 6. Non- b. Employers already paying their
render overtime work under any of Agricultural field employees 13th-month pay or more in a
the afore-said circumstances? Personnel calendar year or its equivalent at the
time of this issuance.
An employee cannot validly refuse to 7. Members of
render overtime work if any of the the family of the c. Employers of household helpers and
afore-mentioned circumstances is employer who persons in the personal service of another
present. When an employee refuses to are depended in relation to such workers.
render emergency overtime work under upon him for
any of the foregoing conditions, he may support d. Employers of those who are paid on
be dismissed on the ground of 8. Workers purely commission, boundary, or task
insubordination or willful disobedience paid by results basis, and those who are paid a fixed
of the lawful order of the employer. amount for performing a specific work,
irrespective of the time consumed in the
performance thereof, except where the
workers are paid on piece-rate basis in
which case, the employer shall be covered
by the 13th month pay law insofar as such
workers are concerned.

Computatio Computation of Night Shift Differential Illustrations on how overtime is How is premium computed for work rendered on a rest day, 13th-month pay of resigned or
Pay: computed: Sunday or holiday? separated employee.
n of Rates
a. Where night shift (10 p.m. to 6 a.m.)
work is regular work.
1. On an ordinary day: Plus 10% of the
basic hourly rate or a total of 110% of the
basic hourly rate.
2. On a rest day, special day or regular
holiday: Plus 10% of the regular hourly
rate on a rest day, special day or regular
holiday or a total of 110% of the regular
hourly rate.
b. Where night shift (10 p.m. to 6 a.m.)
work is overtime work.
Using P382.00 as basic daily rate and
P47.75 as basic hourly rate.
a. OT pay on an ordinary day, the
overtime pay is plus 25% of the basic
hourly rate.
125% of P47.75 = 1.25 x P47.75 =
P59.68 OT/hour
b. OT pay on a rest day or on a
special day, the overtime pay is plus
30% of the basic hourly rate which
includes 30% additional compensation
as provided in Article 93 [a] of the
Labor Code.
a. Premium pay for work on scheduled rest day- additional 30
% of his regular wage.
b. Premium pay for work on Sunday when it is employee’s
rest day -additional 30 % of his regular wage.
c. Premium pay for work performed on Sundays and
holidays when employee has no regular workdays and no
scheduled regular rest days- additional (30%) of his regular
wage for work performed on Sundays and holidays.
What are the premium pay for working on holidays?
1. during special days - 30% on top of basic pay.
2. during special days falling on scheduled rest day - 50% over
and above the basic pay.
An employee who has resigned or whose
services were terminated at any time
before the time for payment of the 13th-
month pay is entitled to this monetary
benefit in proportion to the length of time
he worked during the year, reckoned from
the time he started working during the
calendar year up to the time of his
resignation or termination from service.
Thus, if he worked only from January up to
September, his proportionate 13th-month
pay should be the equivalent of 1/12 of his
total basic salary which he earned during
that period.

1. On an ordinary day: Plus 10% of the
overtime hourly rate on an ordinary day or a
total of 110% of the overtime hourly rate on
an ordinary day.
2. On a rest day or special day or regular
holiday: Plus 10% of the overtime hourly
rate on a rest day or special day or regular
holiday.
c. For overtime work in the night shift.
Since overtime work is not usually eight (8)
hours, the compensation for overtime night
shift work is also computed on the basis of
the hourly rate.
1. On an ordinary day. Plus 10% of 125%
of basic hourly rate or a total of 110% of
125% of basic hourly rate.
2. On a rest day or special day or regular
holiday. Plus 10% of 130% of regular
hourly rate on said days or a total of 110%
of 130% of the applicable regular hourly
rate.
130% of (130% of P47.75) = 1.3 x (1.3
x P47.75)
= 1.3 x P62.07 = P80.69 OT/hr.
c. OT pay on a rest day which falls
on a special day, the overtime pay is
plus 30% of the basic hourly rate which
includes 50% additional compensation
as provided in Article 93 [c] of the
Labor Code.
130% of (150% of P47.75) = 1.3 x (1.5
x P47.75)
= 1.3 x P71.62 = P93.10 OT/hour
d. OT pay on a regular holiday, the
overtime pay is plus 30% of the basic
hourly rate which includes 100%
additional compensation as provided in
Article 94 [b] of the Labor Code.
130% of (200% of P47.75) = 1.3 x (2.0
x P47.75)
= 1.3 x P95.50 = P124.15 OT/hour
e. OT pay on a rest day which falls
on a regular holiday, the overtime pay
is plus 30% of the basic hourly rate
which includes 160% additional
compensation.
What are the effects of absences on entitlement to regular
holiday pay?
a. Employees on leave of absence with pay - entitled to
regular holiday pay.
b. Employees on leave of absence without pay on the day
immediately preceding a regular holiday - may not be paid the
required holiday pay if he has not worked on such regular
holiday.
c. Employees on leave while on SSS or employee's
compensation benefits- Employers shall grant the same
percentage of the holiday pay as the benefit granted by
competent authority in the form of employee’s compensation or
social security payment, whichever is higher, if they are not
reporting for work while on such benefits.
d. When the day preceding regular holiday is a non-working
day or scheduled rest day - Employee shall not be deemed to
be on leave of absence on that day, in which case, he shall be
entitled to the regular holiday pay if he worked on the day
immediately preceding the non-working day or rest day.
What is the rule in case of absence during successive
regular holidays?
An employee may not be paid for both holidays if he absents
himself from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which case, he is
entitled to his holiday pay on the second holiday.

130% of (260% of P47.75) = 1.3 x (2.6 What is the rule in case two regular holidays falling on the
x P47.75) same day?
= 1.3 x P124.15 = P161.39 OT/hour 1. If employee did not work: 200% of basic pay;
2. If employee worked: 300% of basic pay.

Waiver The right to night shift differential is Waiver of OT Pay

founded on public policy, hence it cannot
 be waived.
However, a claim for unpaid night shift
differential can be compromised. What is
compromised is not the right to NSD but the
claim for unpaid NSD. The compromise
does not relieve the employer from paying
future NSD.
The right to be paid for OT services
cannot be waived because it is against
public policy. However, a claim for
unpaid OT pay may be waived or
compromised.

Distinction Night shift differential and overtime pay,
distinguished –
with other When the work of an employee falls at
benefits nighttime, the receipt of overtime pay shall
not preclude the right to receive night
differential pay. The reason is, the payment
of the night differential pay is for the work
done during the night;
While the payment of the overtime
pay is for work in excess of the regular
eight (8) working hours.
Premium and overtime pay,
distinguished.
“Premium pay” refers to the additional
compensation required by law for work
performed within eight (8) hours on
non-working days, such as rest days
and special days. (No. III, DOLE
Handbook on Workers Statutory
Monetary Benefits).
“Overtime pay” refers to the additional
compensation for work performed
beyond eight (8) hours a day. Every
employee who is entitled to premium
pay is likewise entitled to the benefit of
overtime pay. (No. IV, Ibid.).
What are the distinctions between “regular holidays” and
“special days”?
The following are the distinctions between “regular holidays” and
“special days”:
a. A covered employee who does not work during regular
holidays is paid 100% of his regular daily wage; while a covered
employee who does not work during a special day does not
receive any compensation under the principle of “no work, no
pay.”
b. A covered employee who works during regular holidays is paid
200% of his regular daily wage; while a covered employee who
works during special days is only paid an additional
compensation of not less than 30% of the basic pay or a total of
130% and at least 50% over and above the basic pay or a total
of 150%, if the worker is permitted or suffered to work on special
days which fall on his scheduled rest day.
What is the rule in case an employee
has multiple employers?
Government employees working part-time
in a private enterprise, including private
educational institutions, as well as
employees working in two or more private
firms, whether on full or part-time basis,
are entitled to the required 13th-month pay
from all their private employers regardless
of their total earnings from each or all their
employers.
Pre-

What is the distinction between “special holidays” and

“special days”?

There is none. “Special holidays” are now known as “special

days.” (NOTE: R. A. 9177 uses “Special Holidays” instead of
“Special Days” in describing All Saints Day and Last Day of the
Year which were described as such under Executive Order No.
203 [June 30, 1987]).

Premium Pay excluded from the 13 th month pay- Premium

pay is an addtl compensation other than and added to the
regular wage or basic salary. It should not be considered in the
computation of 13th month pay.

Service Incentive Maternity Leave Paternity Leave Solo Parents Leave Leave for Victims of Violence
 Leave
Definition Every covered employee
who has rendered at
least one (1) year of
service shall be entitled
to a yearly service
incentive leave of five
(5) days with pay.
No. of Days five (5) days with pay
Coverage benefit applies to all
employees except:
1. Government
employees,
2. Househelpers and
persons in the personal
service of another;
3. Managerial
employees
4. Officers or members
of a managerial staff
5. Field personnel and
those whose time and
performance is
unsupervised by the
employer
6. Those already
enjoying this benefit
7. Those enjoying
vacation leave with pay
of at least five (5) days;
8. Those employed in
establishments regularly
employing less than ten
(10) employees.
Service Maternity Leave
A covered female employee who
has paid at least three monthly
maternity contributions in the
twelve-month period preceding the
semester of her childbirth, abortion
or miscarriage and who is currently
employed shall be paid a daily
maternity benefit equivalent to one
hundred percent (100%) of her
present basic salary, allowances
and other benefits or the cash
equivalent of such benefits for
sixty (60) days
sixty (60) days= normal delivery
78 days for caesarian delivery
This benefit applies to all female
employees, whether married or
unmarried.
Benefit granted to a married male
employee allowing him not to report for
work for seven (7) days (for each
delivery for the first 4 deliveries) but
continues to earn the compensation
therefor, on the condition that his
spouse has delivered a child or suffered
miscarriage for purposes of enabling
him to effectively lend support to his
wife in her period of recovery and/or in
the nursing of the newly-born child.
What is meant by “spouse”?
“Spouse” refers to the lawful wife. For
this purpose, lawful wife refers to a
woman who is legally married to the
male employee concerned.
What is meant by “cohabiting”?
“Cohabiting” refers to the obligation of
the husband and wife to live together.
seven (7) days with pay
Paternity Leave
Against Women and Children
Parental leave’ - shall mean leave benefits granted to a solo parent to
enable him/her to perform parental duties and responsibilities where “Violence against women and their
physical presence is required children,” as used in Republic Act
9262 (the “Anti-Violence Against
In addition to leave privileges under existing laws, parental leave of not Women and Their Children Act of
more than seven (7) working days every year shall be granted to any solo 2004”), “refers to any act or a series
parent employee who has rendered service of at least one (1) year.” of acts committed by any person
against a woman who is his wife,
Flexible work schedule” - is the right granted to a solo parent employee to former wife, or against a woman with
vary his/her arrival and departure time without affecting the core work hours whom the person has or had a sexual
as defined by the employer. or dating relationship, or with whom
he has a common child, or against
her child whether legitimate or
illegitimate, within or without the
family abode, which will result in or is
likely to result in physical, sexual,
psychological harm or suffering, or
economic abuse including threats of
such acts, battery, assault, coercion,
harassment or arbitrary deprivation of
liberty.”
seven (7) days with pay Ten (10) days with full pay
Coverage Private sector women employees who
Parental leave for solo parents is granted to any solo parent or individual are victims as defined in RA 9262
who is left alone with the responsibility of parenthood due to: shall be entitled to the paid leave
1. Giving birth as a result of rape or, as used by the law, other crimes benefit under such terms and
against chastity; conditions provided herein. The leave
2. Death of spouse; benefit shall cover the days that the
3. Spouse is detained or is serving sentence for a criminal conviction for at woman employee has to attend to
least one (1) year; medical and legal concerns.
4. Physical and/or mental incapacity of spouse as certified by a public
medical practitioner;
5. Legal separation or de facto separation from spouse for at least one (1)
year: Provided that he/she is entrusted with the custody of the
children;
6. Declaration of nullity or annulment of marriage as decreed by a court
or by a church: Provided, that he/she is entrusted with the custody of
the children;
7. Abandonment of spouse for at least one (1) year;
8. Unmarried father/mother who has preferred to keep and rear his/her
child/children, instead of having others care for them or give them up
to a welfare institution;
9. Any other person who solely provides parental care and support to
a child or children: Provided, that he/she is duly licensed as a foster
parent by the Department of Social Welfare and Development
(DSWD) or duly appointed legal guardian by the court; and
10. Any family member who assumes the responsibility of head of
family as a result of the death, abandonment, disappearance, or prolonged
absence of the parents or solo parent: Provided, that such abandonment,
disappearance, or prolonged absence lasts for at least one (1) year.
Solo Parents Leave Leave for Victims of Violence
 Incentive Against Women and Children
Leave
Limitation/ Maternity benefits shall be paid only for the first four deliveries Paternity benefits shall be paid only for the first four Termination of the Benefit
deliveries A change in the status or circumstance
Termination of the parent claiming the benefit under
the law, such that he/she is no longer
left alone with the responsibility of
parenthood, shall terminate his/her
eligibility
Requirement Conditions for Entitlement Conditions for Entitlement Conditions for Entitlement Requirement for Entitlement
(a) That the employee shall have notified her employer of her A married male employee shall be entitled to A solo parent employee shall be entitled To be entitled to the leave benefit, the
s for pregnancy and the probable date of her childbirth which paternity leave benefit provided that he has met the to the parental leave, provided that: only requirement is for the victim-
Entitlement notice shall be transmitted to the SSS in accordance with following conditions: 1. Rendered at least one (1) year of employee to present to her employer
the rules and regulations it may provide; 1. He is an employee at the time of the delivery of service, continuous or broken; a certification from the barangay
(b) That the payment shall be advanced by the employer in two his child; 2. Has notified his/her employer that chairman (Punong Barangay) or
equal installments within thirty (30) days from the filing of 2. He is cohabiting with his spouse at the time that he/she will avail himself/herself of it, barangay councilor (barangay
the maternity leave application; she gives birth or suffers a miscarriage; within a reasonable period of time; kagawad) or prosecutor or the Clerk
(c) That in case of caesarian delivery, the employee shall be paid 3. He has applied for paternity leave with his and of Court, as the case may be, that an
the daily maternity benefit for 78 days; employer within a reasonable period of time 3. He/she has presented to his/her action relative to the matter is
(d) That payment of daily maternity benefits shall be a bar to the from the expected date of delivery by his employer a Solo Parent Identification pending.
recovery of sickness benefits provided by this Act for the pregnant spouse, or within such period as may Card, which may be obtained from
same compensable period of sixty (60) days for the same be provided by company rules and regulations, the DSWD office of the city or
childbirth, abortion or miscarriage; or by collective bargaining agreement; and municipality where he/she resides.
(e) That the maternity benefits shall be paid only for the first four 4. His wife has given birth or suffered a miscarriage.
deliveries after March 13, 1973;
(f) That the SSS shall immediately reimburse the employer of one
hundred percent (100%) of the amount of maternity benefits
advanced to the employee by the employer upon receipt of
satisfactory proof of such payment and legality thereof; and
(g) That if an employee should give birth or suffer abortion or
miscarriage without the required contributions having been remitted
for her by her employer to the SSS, or without the latter having
been previously notified by the employer of the time of the
pregnancy, the employer shall pay to the SSS damages equivalent
to the benefits which said employee would otherwise have been
entitled to, and the SSS shall in turn pay such amount to the
employee concerned. (R. A. 7322, March 3, 1992).
Crediting of may be used 1. If the existing paternity leave benefit under the If there is an existing or similar benefit In addition to other paid leaves under
for sick and collective bargaining agreement, contract, or under a company policy or a collective existing labor laws, company policies,
Existing vacation leave company policy is greater than seven (7) calendar bargaining agreement, the same shall and/or collective bargaining
Benefits purposes days as provided for in RA 8187, the greater benefit be credited as such. If the same is agreements, the qualified victim-
shall prevail. greater than the seven (7) days employee shall be entitled to a leave
2. If the existing paternity leave benefit is less than provided for in RA 8972, the greater of up to ten (10) days with full pay,
that provided in RA 8187, the employer shall adjust benefit shall prevail. Emergency or consisting of basic salary and
the existing benefit to cover the difference. contingency leave provided under a mandatory allowances fixed by the
Where a company policy, contract, or collective company policy or a collective Regional Wage Board, if any. The
bargaining agreement provides for an emergency or bargaining agreement shall not be said leave shall be extended when
contingency leave without specific provisions on credited as compliance with the the need arises, as specified in the
paternity leave, the employer shall grant to the parental leave provided for under RA protection order issued by the
employee (7) calendar days of paternity leave. 8972. barangay or the court.
Convertabilit commutable be convertible to cash and shall be cumulative. not be convertible to cash and shall not be not be convertible to cash, unless not be convertible into cash and shall
to cash cumulative. specifically agreed on previously. not be cumulative.
y to Cash