Manpower Resources

Manpower Resources (Labor):
The laws on labor standards and employment relations are consolidated in the Labor Code of the Philippines. The salient points of employment conditions and employee benefits under the Philippine labor laws are as follows:

Hours of Work

Eight (8) hours per day or 48 hours per week. Rest periods of short duration during work hours shall be counted as hours worked.

Work Day

A day is the 24-hour period which commences from the time the employee regularly starts to work.

Minimum Wage (Manufacturing Sector)

The minimum wage rate for agricultural and non-agricultural workers in every region are determined by the Regional Tripartite Wages and Productivity Board.

Regions
Daily Minimum Wage
(in Pesos/day)
- As of January 2003
Metro Manila) private sector workers & employees
  • Wage Order # NCR 08 (Oct. 6, 2000)
  • private sector workers and employees
P 280.00
CAR (Cordillera Autonomous Region)
P 190.00
Region I
P 190
Region II
P 185.00
Region III
P 228.50
Region IV
P 237.00
Region V
P 182.00
Region VI
P 180.00
Region VII
P 200.00
Region VIII
P 188.00
Region IX
P 175.00
Region X
P 192.00
Region XI
P 195.00
Region XII
P 180.00
CARAGA
P 179.00
ARMM
P 140.00
Source: Department of Labor and Employment (http://www.dole.gov.ph/)
Note: Minimum wage ranges are provided inasmuch as rates vary from province to province within each region.

Table A - Average Monthly Wage Rates Of Selected Occupations in Selected
Non-Agricultural Industries, Metro Manila

(Non-agricultural establishments employing 50 and over. Wage rates are defined as including basic pay and regular/guaranteed cash allowances)

Benchmark Occupations

Accounting and Bookkeeping Clerks except in Non-Metallic Mining and Quarrying

10,955
Unskilled Workers (except janitors, messengers and freight handlers) except in Metallic Ore Mining and Manufacture of Office, Accounting and Computing Machinery
7,751

Emerging Occupations

Customer Service Representatives
Telemarketers

 

12,841
10,764

Supervisory

Production Supervisors and Foreman
Sales Supervisors
Transport and Communications Service Supervisors

 

13,242
15,148
19,324

Professional Workers

Accountants and Auditors
Engineers
Doctors
Professional Nurses
Teaching Professionals in Private Education Services
Computer Programmers

 

17,113
19,595
12,971
9,869
18,255
23,146

Technicians and Associate Professionals

Engineering Technicians
Quality Inspectors
Ship’s Engineers (Water Transport)
Ship’s Deck Officers and Pilot
Aircraft Pilots, Navigators and Flight Engineers
Clearing and Forwarding Agents
Travel Consultants and Organizers
Bookkeepers
Securities and Finance Dealers and Brokers
Insurance Representatives
Appraisers and Valuers
Computer Assistants
Computer Equipment Operator
Draftsman
Medical Equipment Operators

 

13,295
8,435
20,688
21,019
72,070
8,793
12,153
10,213
16,096
14,480
11,972
11,007
11,516
12,691
10,001

Clerical Workers

Production Clerks
Debt Collectors and Related Workers
Stock Clerks
Receptionists and Information Clerks
Transport Clerks (Dispatchers)
Travel Agency Clerks and Related Workers
Telefax/Teleprinters/Telex Clerks
Telephone Switchboard Operators
Statistical and Finance Clerks
Tellers
Data Entry Operators

 

8,736
15,479
8,643
10,839
11,896
10,457
8,262
18,641
11, 545
10,148
8,346

Service Workers

Shop Salesperson and Demonstrators
Service Crew
Housekeepers and Related Workers
Cooks
Waiters, Waitresses and Bartenders
Bus Conductors
Travel attendants and Travel Stewards
Travel Guides

 

8,379
7,982
11,808
11,752
10,165
8,199
14,505
8,323

Table B – Average Monthly Wage Rates Of Selected Trade and Machine Operating Skills in Selected Non-Agricultural Industries, Metro Manila: June 2002
(Non-agricultural establishments employing 50 and over. Wage rates are defined as including basic pay and regular/guaranteed cash allowances)

Trade Skills
8,251
Machine Operators and Assemblers
9,172
Source : Bureau of Labor and Employment statistics, 2002 Occupational Wages survey.
LABOR STANDARDS STATISTICS DIVISION
BLES c/o Databank, 3/F DOLE Bldg. Gen. Luna St., Intramuros, Manila 1002
http://www.manila-online.net/bles/download/vol7_14.pdf
Fringe Benefits

This refers to goods, services, or other benefits furnished by an employer in cash or kind, in adddition to basic salaries; to managerial or supervisory employees such as but not limited to the following:

  • Housing
  • Expense Account
  • Vehicle of Any Kind
  • Household personnel, such as maid, driver and others
  • Interest on loans at less than market rate to the extent of the difference between the market rate and actual rate granted;
  • Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations;
  • Holiday and vacation expenses
  • Educational assistance to the employee or his dependents; and
  • Life or health insurance and other non-life insurance premiums or similaramounts in excess of what the law allows

Managerial employees refer to those who are given powers or prerogatives to lay down and execute managerial policies and or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.

Supervisory employees are those who effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requirres the use of independent judgment.

Overtime (OT) Remuneration

Overtime premium is allotted for work exceeding the maximum prescribed period. The OT rates per hour for overtime work rendered on the specified days:

Category
Computation(in Pesos)
OT Work on Regular Day 125% * Rate/Hour
OT work during Rest Day or Special Public Holiday
   First 8 hours
   In excess of the 1st 8 hours


130% * Rate/Hour
130% * Rate/Hour+30% of(130% of Rate/Hour)
OT work on Special Public Holiday falling on employee’s rest day
   First 8 hours
   In excess of the 1st 8 hours
150% * Rate/Hour
150% * Rate/Hour+30% of(150% of Rate/Hour)
OT work on Regular Holiday
   First 8 hours
   In excess of the 1st 8 hours

200% of Rate/Hour
200% of Rate/Hou + 30% of (200% of Rate/Hour)
OT work on Rest Day falling on a Regular Holiday
   First 8 hours
   In excess of the 1st 8 hours


260% of Rate/Hour
260% of Rate/Hour + 30% of (260% of Rate?Hour)
Night-Shift Differential Pay

Night-shift employees must be paid a differential of not less than 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m.

Service Incentive Leave

Every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay.

Meal and Rest Periods

One-hour time-off for regular meals.

MANDATORY EMPLOYMENT CONTRIBUTION
13th Month Pay

By law, companies are required to give its employees a 13th pay equivalent to one (1) month salary.

Social Security Systems (SSS) Contributions

As mandated by law, both employer and employees are to contribute for the social security benefits of the employees in accordance with the following schedule:

Compensation Ranges
Monthly Salary Credit
Monthly Contributions
Total
Employer
Employee
P 1,000-1,249.99
P 1,000
70.70 P 33.30
P 104.00
1,250-1,749.99
1,500
101.00 50.00
151.00
1,750-2,249.99
2,000
131.30 66.70
198.00
2,250-2,749.99
2,500
161.70 83.30
245
2,750-3,249.99
3,000
192.00 100.00
292
3,250-3,749.99
3,500
222.30 116.70
339
3,750-4,249.99
4,000
252.70 166.70
386
4,250-4,749.99
4,500
283.00 150.00
433
4,750-5,249.99
5,000
313.30 166.70
480
5,250-5,749.99
5,500
343.70 183.30
527
5,750-6,249.99
6,000

374.00

200.00
574
6,250-6,749.99
6,500
404.30 216.70
621
6,750-7,249.99
7,000
434.70 233.30
668
7,250-7,749.99
7,500
465.00 250.00
715
7,750-8,249.99
8,000
495.30 266.70
762
8,250-8,749.99
8,500
525.70 283.30
809
8,750-9,249.99
9,000
556.00 300.00
856
9,250-9,749.99
9,500
586.70 316.70
903
9,750-10,249.99
10,000
616.70 333.00
950
10,250-10,749.99
10,500
647.00 350.00
997
10,750-11,249.99
11,000
677.30 366.70
1,044
11,250-11,749.99
11,500
707.70 383.30
1,091
11,750-12,249.99
12,000
738.00 400.00
1,138
12,250-12,749.99
12,500
768.30
416.70
1,185.00
12,750-13,249.99
13,000
798.70
433.30
1,232.00
13,250-13,749.99
13,500
829.00
450.00
1,279.00
13,750-14,249.99
14,000
859.30
466.70
1,326.00
14,250-14,749.99
14,500
889.70
483.30
1,373.00
14,750-over
15,000
920.00
500.00
1,420.00
Employer's monthly contribution includes P10.00 for Employees Compensation (EC) that coveers disability/accident benefits.
Contribution to National Health Insurance Program (NHIP) As mandated by R.A. 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth), both employers and employees are to contribute for the medical insurance/benefits of hte employees in accordance with the following schedule effective January 1, 2004:
PHILHEALTH CONTRIBUTION RATES
Montly Salary Range
Salary Base
Monthly Contribution
Employee Share
Employer Share
P 4,999.99 & below
P 4,000.00
P100.00
P 50.00
P 50.00
5,000.00 to 5,999.99
5,000.00
125.00
62.50
62.50
6,000.00 to 6,999.99
6,000.00
150.00
75.00
75.00
7,000.00 to 7,999.99
7,000.00
175.00
87.50
87.50
8,000.00 to 8,999.99
8,000.00
200.00
100.00
100.00
9,000.00 to 9,999.99
9,000.00
225.00
112.50
112.50
10,000.00 to 10,999.99
10,000.00
250.00
125.00
125.00
11,000.00 to 11,999.99
11,000.00
275.00
137.50
137.50
12,000.00 to 12,999.99
12,000.00
300.00
150.00
150.00
13,000.00 to 13,999.99
13,000.00
325.00
162.50
162.50
14,000.00 to 14,999.99
14,000.00
350.00
175.00
175.00
15,000.00 and up
15,000.00
375.00
187.50
187.50
Source: Philippine Health Insurance Corp. http:www.philhealth.gov.ph
Note: Payment of monthly premium contributions for public and private ssector employees is on or before 10th of the month following the applicable month thru nearest Philhealth Accredited Collecting Banks (ACB'S)
Contribution to Home Development and Mutual Fund Companies/employers are also required to contribute at least P100 per month to HDMF for employee benefits. Ccompanies/employers remit this contribution plus that of hte employees' which will be deducted from their payroll, in accordance with the periodic remittance schedule provided by HDMF.
 

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