Domestic Work in the Philippines

Dr. Axel Weber, Consultant

Introduction Domestic work is very common in the Philippines, as in many countries where the gap between salaries for lower qualified work on one side, and middle and higher household incomes on the other side, is very large. According to the October 2010 Labor Force Survey, it is estimated that some 1.924 million workers in the Philippines are employed as domestic workers. Moreover, the magnitude of domestic workers has increased in past decades. This number is likely substantially larger. The Philippines has given unified support to the recently approved International Labour Organization (ILO) convention and recommendation on domestic workers. But in the national debate, the proposed version of national legislation on domestic workers, which seeks to guarantee domestic workers the legal entitlements enjoyed by waged employees in the formal sector, faces more resistance. The proposed legislation challenges deep-rooted mind-sets and customs, which base the employment of domestic workers on personalized, paternalistic or master-servant relationships, and which regard domestic work as being completely in the service of the needs of the employer-household. In order to support the discussion on this topic, ILO has commissioned a study, which is supposed to formulate a conceptual and methodological framework for assessing the cost and benefits of extending basic entitlements to domestic workers, and improving the level of social protection above current levels. This study served as an input to the social partners' consultations in preparation for the International Labour Conference (ILC) discussion on a proposed Convention and Recommendations on Domestic Workers. It is intended for policy makers, governments, employers, workers and civil society working together to promote the rights and protection of domestic workers. Legal Position of Domestic Workers The legal position of domestic workers is substantially different from other private and public sector workers. The Labor Code and other laws basically place domestic workers in a position of personalized, paternalistic or master-servant relationship work which contributes to the fact that domestic work is regarded as completely in the service of the needs of the employer-household. The Philippine Labor Code explicitly mentions Employment of Househelpers. Domestic household service is defined as services in the employers home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers (Article 141 ff Labor Code). It is regulated that The original contract shall not last for more than two years but can be extended. There is a minimum wage of 800 Philippine Php (Php) per month in the National Capital Region (NCR), 650 Php in other major cities, and 550 Php for other municipalities. The employer has to review the contract every three years. Other workers in the private sector benefit from a much higher minimum wage (404 Php daily in NCR).

Househelpers with a wage of at least 1000 Php per month are covered by the Social Security System (SSS) (not by PhilHealth1 and not by the Employees Compensation Fund and Pag-IBIG2 . Other workers benefit from coverage by all branches of social security. The wage is in addition to lodging, food and medical attendance, which have to be granted by the employer. This is being regarded as a reason why cash wages of domestic workers are substantially lower than other private sector wages. However, the Law stipulates that if they are assigned to work in a commercial, industrial or agricultural enterprise, the regular minimum wage is applicable. If they are under 18 years of age, the employer has to provide an opportunity of at least elementary school. The costs are part of the salary. The employer may not dismiss the househelper unless there is just cause. Unlike other workers however, it is not specified what is meant by a just cause. If the employer dismisses the househelper, a compensation of 15 days salary has to be paid. Other workers have a right to one monthly salary for each year of service (severance pay, Articles 283284 Labor Code). The notice period required prior to dismissal, is 5 working days (30 days for other workers).

Domestic workers are not included in the legal obligation of employers to pay a 13th salary (Presidential Decree 851). Domestic workers are supposed to be insured with SSS if their salary is 1,000 Php or more. They are not automatically insured with PhilHealth and Employees Compensation Fund (this usually comes from SSS contributions though, as an additional 10 Php per month paid by the employer) and employers are not obliged to contribute to Pag-IBIG. According to RA 1161, pregnant workers are entitled to a maternity leave benefit of 60 days (78 days in case of caesarian section) from SSS. There is no provision which explicitly excludes domestic workers from this benefit. However, there is no mention of protection against retrenchment for pregnant domestic workers. The law foresees a minimum wage of, for example 404 Php per day in non-agricultural sectors for NCR (even if in practice it is not enforced). The minimum wage in the provinces is lower and ranges between 222 and 285 Php daily. The NCR minimum wage of 404 Php per day results in a monthly minimum wage of 10,504 Php. However, this minimum wage is not applicable to domestic workers. Their minimum wage is regulated in the Labor Code and is 800 Php per Month, which means a daily wage of 30.77 Php (25 or 21.15 in the non NCR and provinces respectively). This means that the regular minimum wage is up to more than 10 times higher than the one for domestic workers. Moreover, it is regularly adjusted. The minimum wage for domestic workers has not been adjusted for nearly 30 years. It has to be taken into account however, that the 800 Php minimum wage has little practical relevance as it will be difficult to find any workers for this pay. Nevertheless it contributes to the weakening of the legal position of domestic workers. According to article 87 Labor Code, overtime has to be paid for work performed beyond 8 hours a day. The rate is the hourly wage plus 25% on regular days and plus 30% on rest days. However, this regulation according to Art 82 is not applicable to domestic workers, which in practice means that they are excluded from both the 8 hour normal working time and the overtime payment. Presidential Decree (PD) 851, regulating the obligation of employers to pay a 13 th salary, explicitly excludes employers of household staff. Leave entitlements according to Article 95 Labor Code (service incentive leave) excludes domestic workers. Article 94 of the Labor Code, which refers to holiday pay, explicitly excludes domestic workers. Articles 283-284 Labor code regulates the separation pay (1 monthly salary per year of service). This regulation is not applicable to domestic workers.

1 2

PhilHealth is the national health insurance program. Pag-IBIG is an acronym that stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industrya at Gobyerno. It is a

government-controlled, Philippine corporation that serves as provident and housing fund.

Perspectives As demonstrated above, there are significant differences OTHER RESOURCES: between domestic workers and other workers covered by the Labor Code. The interesting situation is that the law PRESENTATION [PDF|28 describes domestic workers as a different category of slides ] workers with reduced rights and entitlements. This applies Philippine Labor Code: to important rights like the minimum wage, separation Employment of Househelpers. benefits, 13th salary and period of notice, to name the most important. The law provides no justification for this difference. The only explanation one can provide is that domestic workers are not regarded at the same level as other workers and are therefore not entitled to the same rights. The law reflects the paternalistic view that many employers have of their domestic workers. They are not regarded as proper workers but as dependent servants. It is customary, especially among the expat community in the Philippines to provide domestic workers with benefits and wages that are comparable to those of other workers. The ILO and local Philippine organizations are struggling to provide better standards to domestic workers. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.