Labor Standards

Labor standards refer to legally-mandated benefits required to be given to the employees by the employer or, in some cases, by the Government.

Summary

▪ Labor standards refer to legally-mandated benefits required to be given to the employees by the employer or, in some cases, by the Government.

▪ In order for a benefit to be considered as a labor standard, it is required that there be a legal basis for the granting of such benefit.

1. Concept

Labor standards refer to legally-mandated benefits required to be given to the employees by the employer or, in some cases, by the Government.

Labor standards are also known as “General Labor Standards” or “Legally-Mandated Benefits.”

a. List of Labor Standards

Currently, these are the labor standards:

1) Minimum Wage

2) Holiday pay

3) Premium pay

4) Overtime pay

5) Night shift differential

6) Service charges

7) Service incentive leave

8) Maternity leave

9) Paternity leave

10) Parental leave

11) Leave for VAWC

12) Special leave for women

13) 13th month pay

14) Separation pay

15) Retirement pay

16) ECC benefits*

17) PhilHealth benefits*

18) SSS benefits*

19) Pag-IBIG benefits*

b. Legal basis

In order for a benefit to be considered as a labor standard, it is required that there be a legal basis for the granting of such benefit.

To illustrate:

Labor StandardsLegal Basis
1) Minimum WageR.A. 6727, Wage Rationalization Act
2) Holiday payP.D. 442, Labor Code, as amended
3) Premium payP.D. 442, Labor Code, as amended
4) Overtime payP.D. 442, Labor Code, as amended
5) Night shift differentialP.D. 442, Labor Code, as amended
6) Service chargesP.D. 442, Labor Code, as amended
7) Service incentive leaveP.D. 442, Labor Code, as amended
8) Maternity leaveR.A. 8282, Maternity Leave, as amended by R.A. 11210
9) Paternity leaveR.A. 8187, Paternity Leave
10) Parental leaveR.A. 8297, Solo Parental Leave
11) Leave for VAWCR.A. 9262, Anti-VAWC
12) Special leave for womenR.A. 9710, Special Leave for Women
13) 13th month payP.D. 851, 13th Month Pay
14) Separation payP.D. 442, Labor Code, as amended
15) Retirement payP.D. 442, Labor Code, as amended
16) ECC benefits*P.D. 626, ECC Program
17) PhilHealth benefits*R.A. 7875, NHIP, as amended by R.A. 9241 and R.A. 10606
18) SSS benefits*R.A. 1161, SSS Law, as amended by R.A. 11199
19) Pag-IBIG benefits*R.A. 9679, HDMF/Pag-IBIG

2. Compliance Guide

Labor standards refer to legally-mandated benefits required to be given to the employees by the employer or, in some cases, by the Government.

a. Non-agricultural establishments

Labor StandardsEntitlement
1) Minimum Wage
2) Holiday pay
3) Premium pay
4) Overtime pay
5) Night shift differential
6) Service charges
7) Service incentive leave
8) Maternity leave
9) Paternity leave
10) Parental leave
11) Leave for VAWC
12) Special leave for women
13) 13th month pay
14) Separation pay
15) Retirement pay
16) ECC benefits*
17) PhilHealth benefits*
18) SSS benefits*
19) Pag-IBIG benefits*

* will be paid by the Government

** employed not more than 10 workers

See: 2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits

b. Retail and service establishments

Labor StandardsEmploying 1 to 5 WorkersEmploying 1 to 9 Workers
1) Minimum Wage
2) Holiday payN/AN/A
3) Premium pay
4) Overtime pay
5) Night shift differentialN/A
6) Service charges
7) Service incentive leaveN/AN/A
8) Maternity leave
9) Paternity leave
10) Parental leave
11) Leave for VAWC
12) Special leave for women
13) 13th month pay
14) Separation pay
15) Retirement payN/AN/A**
16) ECC benefits*
17) PhilHealth benefits*
18) SSS benefits*
19) Pag-IBIG benefits*

* will be paid by the Government

** employed not more than 10 workers

See: 2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits

References

Presidential Decree No. 442, a.k.a. Labor Code of the Philippines

Book IIII, Omnibus Rules Implementing the Labor Code

2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits

⦁ Cited Labor Law Jurisprudence (a.k.a. Supreme Court Decisions)

Related

Holiday pay

Night shift differential pay

Premium pay

Retirement pay (private sector)

Retirement pay (Government service)

Additional Resources

Law Mentoring Center

Department of Labor and Employment (DOLE)

DOLE – Bureau of Working Conditions

Official Gazette of the Republic of the Philippines

Disclaimer: All information is for educational and general information only. These should not be taken as professional legal advice or opinion. Please consult a competent lawyer to address your specific concerns. Any statements or opinions of the author are solely his own and do not reflect that of any organization he may be connected.

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