Statutory benefits, Private Security

1. Coverage of benefits

Security guards and other private security personnel are entitled to not less than the following benefits depending on the working hours, work shift and workdays and other analogous conditions, which benefits should be included in the cost distribution in the Service Agreement:

a. Basic salary

1) Basic salary for all actual workdays and for the twelve (12) regular holidays (as holiday pay) which must not be lower than the minimum wage rates described in Subsection 7.3, to be computed by using the factors recommended herein. Whenever work is rendered on a regular holiday, an additional pay of one hundred percent (100%) of the minimum wage rate should be paid; (Section 7.5[a], D.O. No. 150, Series of 2016)

b. Allowance

2) Allowance in addition to the basic salary, if prescribed by the applicable Regional Wage Order; (Section 7.5[b], Ibid.)

c. Premium pay

3) Premium pay of thirty percent (30%) of the daily rate for work on special days or on rest days, which is increased to fifty percent (50%) whenever work is performed coinciding the rest days and special days; (Section 7.5[c], Ibid.)

d. Overtime pay

4) Overtime pay for work rendered in excess of eight (8) hours a day, equivalent to at least twenty-five percent (25%) of the regular hourly rate on ordinary days and thirty percent (30%) of the hourly rate on regular holidays, special days and rest days; (Section 7.5[d], Ibid.)

e. Night shift differential

5) Night shift differential equivalent to ten percent (10%) of the regular hourly rate for work rendered between 10:00 p.m. and 6:00 a.m. of the following day; (Section 7.5[e], Ibid.)

f. Service incentive leave

6) Five (5) days service incentive leave for every year of service which benefits can be availed of during days of absence and, if not used, are convertible into its cash equivalent. A proportionate leave benefit per month may be derived by dividing five (5) days by twelve (12) months multiplied by the current daily rate; (Section 7.5[f], Ibid.)

g. Maternity leave

7) Maternity leave as provided for under Republic Act No. 1161 , as amended by Republic Act No. 8282, otherwise known as the “Social Security Law,” for female security guards and other private security personnel who are unable to work due to childbirth or miscarriage, up to the first four (4) deliveries or miscarriages; (Section 7.5[g], Ibid.)

h. Paternity leave

8) Paternity leave of seven (7) days with full pay for male security guards and other private security personnel under Republic Act No. 8187, otherwise known as the “Paternity Leave Act of 1996,” which shall be granted after the delivery, without prejudice to an employer’s policy of allowing the employee to avail of the benefit before or during the delivery. The paternity leave with pay is granted for the first four deliveries, including miscarriages, of the male employee’s lawful wife with whom he is cohabiting; (Section 7.5[h], Ibid.)

i. Parental leave

9) Parental leave of seven (7) days every year for solo parents security guards and other private security personnel who are left alone with the responsibility of parenthood as defined under Republic Act No. 8972, otherwise known as the “Solo Parents’ Welfare Act of 2000”; (Section 7.5[i], Ibid.)

j. VAWC leave

10) Leave for Victims of Violence Against Women and their Children of ten (10) days for qualified victim-female security guards and other private security personnel under Republic Act No. 9262, otherwise known as “Anti-Violence Against Women and Their Children Act of 2004”; (Section 7.5[j], Ibid.)

k. Special leave for women

11) Special Leave for Women of not more than two (2) months with full pay based on her gross monthly compensation following surgery caused by gynecological disorders, under Republic Act No. 9710, otherwise known as “The Magna Carta of Women”; (Section 7.5[k], Ibid.)

l. 13th month pay

12) 13th month pay which is one-twelfth (1/12) of the total basic salary earned within a calendar year; (Section 7.5[l], Ibid.)

m. Separation Pay

13) Separation Pay if the termination of employment is for authorized cause as provided by law and as enumerated below:

a) One-half (1/2)-month pay per year of service, but guaranteed to one (1) month pay if separation is due to:

(i) Retrenchment or reduction of personnel effected by management to prevent serious losses;

(ii) Closure or cessation of operation of an establishment not due to serious losses or financial reverses;

(iii) Illness or disease not curable within a period of six (6) months and continued employment is prohibited by law or prejudicial to the employee’s health or that of his/her co-employees; or

(iv) Lack of service assignment for a continuous period of six (6) months. (Section 7.5[m][1], Ibid.)

b) One (1) month pay per year of service if separation is due to:

(i) Installation of labor-saving device, such as replacement of employees by equipment/machinery;

(ii) Redundancy, as when the position has been found to be a surplusage or unnecessary in the operation of the agency;

(iii) Impossible reinstatement of the employee to his/her former position or to a substantially equivalent position for reasons not attributable to the fault of the employer, as when the reinstatement ordered by a competent authority cannot be implemented due to closure or cessation of operations of the establishment/security service contractor, or the position to which the employee is to be reinstated no longer exists and there is no substantially equivalent position to which he/she can be assigned; or

(iv) Lack of service assignment by reason of age. (Section 7.5[m][2], Ibid.)

n. Employees compensation program nenefits

14) Benefits under the Employees Compensation Program pursuant to Presidential Decree 626; (Section 7.5[n], Ibid.)

o. PhilHealth benefits

15) PhilHealth benefits under Republic Act No. 7875, as amended by Republic Act No. 9241; (Section 7.5[o], Ibid.)

p. Social security benefits

16) Social Security benefits under Republic Act No. 1161, as amended by Republic Act No. 8282; (Section 7.5[p], Ibid.)

q. Safe and healthful working conditions

17) Safe and healthful working conditions as provided in the Occupational Safety and Health Standards; (Section 7.5[q], Ibid.)

r. Retirement pay

18) Retirement pay granted under Republic Act No. 7641 to any security guard and other private security personnel which shall be billable monthly to the principal or client of the SSC/PSA. (Section 7.5[r], Ibid.)

The fund shall be administered and maintained by a trust company bank, investment house, pre-need company, or corporation duly authorized to perform trust function exclusively for collective investment or re-investment of certain money received in its capacity as trustee, or similar arrangement as may be agreed upon in accordance with law. (Paragraph 2, Section 7.5[r], Ibid.)

The SSC/PSA may establish a retirement plan for the payment of the retirement benefits of its security guards or other private security personnel. From this a Retirement Trust Fund (RTF) shall be created out of contributions from the principal. The trust fund agreement shall be executed by and between the SSC/PSA as trustor and a trust entity as trustee in favor of security guards or other private security personnel employed by the trustor. The trust entity as trustee shall administer the retirement plan and manage the trust fund in accordance with the retirement plan agreed upon by the SSC/PSA and its security guards or other private security personnel. (Paragraph 3, Section 7.5[r], Ibid.)

The SSC/PSA may also register with the Securities and Exchange Commission (SEC), a non-stock Retirement Fund Company (RFC) owned and managed by its members who are officers, employees, security guards, or other private security personnel. The RFC shall manage and reinvest the retirement fund, and shall pay the retirement benefits of its members upon his/her retirement. (Paragraph 4, Section 7.5[r], Ibid.)

As such, any payment for retirement benefits collected in advance from the principal shall immediately be deposited by the SSC/PSA or trustor to the trustee or retirement fund company in favor of the security guard and other private security personnel as benefit upon retirement; (Paragraph 5, Section 7.5[r], Ibid.)

s. Other benefits

19) Other benefits granted by law, individual or collective agreement, or company policy or practice. (Section 7.5[s], Ibid.)

References

⦁ DOLE D.O. No. 150, Series of 2016

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/Updated: January 4, 2023