Premium Pay

Premium pay is an additional pay provided to a covered employee who renders work during non-workdays, such as a rest day or a special non-working day. An employee is entitled to one (1) rest day per week.

1. Concept

Premium pay is an additional pay of 30% of the day’s wage of a covered employee for work done on a rest day or a special non-working day. (Article 93[a], P.D. 442, Labor Code; Section 9, Rule I, Omnibus Rules Implementing the Labor Code; 2022 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits)

NB: In corporate/business, premium pay is also referred to as “rest day premium pay”. This is not entire accurate as premium pay also applies to work on special non-working days, and not just to work on rest days.

2. Covered and excluded employees

GENERAL RULE:The benefit applies to all employees.

EXCEPTIONS: …except:

1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws;

2. Managerial employees, if they meet all of the following conditions:

2.1. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;

2.1. They customarily and regularly direct the work of two or more employees therein; and

2.3. They have the authority to hire or fire other employees of lower rank; or their suggestions and reco...

 



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