FAQ: Premium pay

Answers to frequently asked questions on premium pay in the Philippines.

What is a premium pay?

A premium pay is an additional pay granted to an employee who render work on a rest day or a special non-working day.

What are the conditions for an employee to be entitled to premium pay?

These are the conditions for an employee to be entitled to premium pay:

1) The employee is a covered employee;

2) There is work done on a rest day or a special non-working day.

Are all employees entitled to premium pay?

No, only covered employees are entitled to premium pay. On the other hand, there are employees who are excluded from the coverage of the benefit. For instance, Government employees, kasambahay or domestic workers, managerial employees are not entitled to premium pay.

For a complete list, see: Premium pay

When should premium pay be paid to the employee?

The premium pay should be paid to the employee on the next pay cycle. The additional pay should be included in the employee’s compensation.

What if a wok is required on a regular holiday which falls on a rest day or special non-working day?

If there is work performed on a regular holiday which is also a rest day or a special non-working day, a covered employee is entitled to a premium pay of 30% of the regular holiday rate of 200% based on his/her daily basic wage or a total of 260%.

See: Computation of premium pay

May an employee refuse to work on a rest day or a special non-working day...

 



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