FAQ: Service Charges

1. In General

See: FAQ: Statutory Monetary Benefits.

The above FAQ covers frequently asked questions with their answers (FAQ) involving statutory monetary benefits in terms of general application, i.e., the questions and answers apply to all forms of statutory monetary benefits, including this current benefit. Thus, the following questions and answers are specific only to the present benefit.

2. Specific to Service Charges

Are managerial employees entitled to service charges?

No, managerial employees are not entitled to service charges. Only rank-and-file employees of covered establishments are entitled to service charges.

a. Entitlement

Are employees of DO-174 contractors or subcontractors entitled to service charges?

No, employees of DO-174 contractors or subcontractors are not entitled to service charges.

NB: In an earlier DOLE regulation, it stated that employee’s of contractors or subcontractors in covered establishments are entitled to service charges. However, this has now been overturned.

b. The Benefit

What happens if a covered establishment which previously collected service charges changed its policy and now no longer collects such amount?

If a covered establishment which previously collected service charges has changed its policy and no longer collects such amount, then the establishment shall pay the covered employees the average of what they would have regularly received in a year via service charges.

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