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 Standards | Legal Basis |
| 1) Minimum Wage | R.A. 6727, Wage Rationalization Act |
| 2) Holiday pay | P.D. 442, Labor Code, as amended |
| 3) Premium pay | P.D. 442, Labor Code, as amended |
| 4) Overtime pay | P.D. 442, Labor Code, as amended |
| 5) Night shift differential | P.D. 442, Labor Code, as amended |
| 6) Service charges | P.D. 442, Labor Code, as amended |
| 7) Service incentive leave | P.D. 442, Labor Code, as amended |
| 8) Maternity leave | R.A. 8282, Maternity Leave, as amended by R.A. 11210 |
| 9) Paternity leave | R.A. 8187, Paternity Leave |
| 10) Parental leave | R.A. 8297, Solo Parental Leave |
| 11) Leave for VAWC | R.A. 9262, Anti-VAWC |
| 12) Special leave for women | R.A. 9710, Special Leave for Women |
| 13) 13th month pay | P.D. 851, 13th Month Pay |
| 14) Separation pay | P.D. 442, Labor Code, as amended |
| 15) Retirement pay | P.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 Standards | Entitlement |
| 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 Standards | Employing 1 to 5 Workers | Employing 1 to 9 Workers |
| 1) Minimum Wage | ✓ | ✓ |
| 2) Holiday pay | N/A | N/A |
| 3) Premium pay | ✓ | ✓ |
| 4) Overtime pay | ✓ | ✓ |
| 5) Night shift differential | N/A | ✓ |
| 6) Service charges | ✓ | ✓ |
| 7) Service incentive leave | N/A | N/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 pay | N/A | N/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
⦁ Night shift differential pay
⦁ Retirement pay (private sector)
⦁ Retirement pay (Government service)
Additional Resources
⦁ Department of Labor and Employment (DOLE)
