Lecture Nwpc 2 Feb2010

NWPC Learning Session NWPC Learning Session on Wages and Productivityon Wages and ProductivityNWPC Learning Session NWPC Learning Session

on Wages and Productivityon Wages and Productivity

NICANOR V. BON Bureau of Working Conditions

Department of Labor and Employment

11Flr., Conference Room, Antonino Bldg., Kalaw St. Ermita, Manila

2 February 2010

LABOR STANDARDSLABOR STANDARDS andand 2010 HOLIDAYS2010 HOLIDAYS

Bureau of Working Conditions

What are Labor What are Labor StandardsStandards

the minimum requirements

prescribed by existing laws, rules

and regulations relating to

wages, hours of work, allowances

and other monetary and welfare

benefits, including those set by

occupational safety and health

standards.

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HOURS of WORKHOURS of WORK


Normal Hours of WorkNormal Hours of Work

not to exceed 8 hours a day.

Hours worked shall include:

All time during which an

employee is required to be on duty or to be at a prescribed workplace.

All time during which an

employee is suffered or permitted to work. Bureau of Working Conditions

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Meal and Rest PeriodsMeal and Rest Periods

not less than 60 mins. time-off for regular meals. [non-compensable]

- Rest periods or coffee breaks

running from 5 to 20 mins. are compensable working time.

Bureau of Working Conditions5

Weekly Rest PeriodsWeekly Rest Periods

not less than 24 consecutive hours after every 6 consecutive normal work days.

The employer shall determine and

schedule the weekly rest day of his

employees. He shall, however,

respect the preference of

employees as to their weekly rest day

when such preference is based on

religious grounds.Bureau of Working Conditions

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RULES FOR PAY RULES FOR PAY ONON

REGULAR HOLIDAYSREGULAR HOLIDAYS ANDAND

SPECIAL DAYSSPECIAL DAYS



For Regular HolidaysFor Regular Holidays

Holiday Pay - payment of regular daily wage for any unworked regular holiday.

if unworked - 100% of the regular daily wage if worked - 200% of the regular daily wage - 200% + 30% or a total of 260% (regular holiday falling on rest day)

Condition for entitlement: present or on leave with pay on the

workday prior to the holiday.

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Regular Holidays Regular Holidays [ RA 9492 ][ RA 9492 ]

New Year’s Day January 1Maundy Thursday Movable dateGood Friday Movable dateAraw ng Kagitingan Monday nearest April 9Labor Day Monday nearest May 1Independence Day Monday nearest June 12National Heroes Day Last Monday of AugustBonifacio Day Monday nearest Nov. 30Eidul Fitr Movable dateChristmas Day December 25Rizal Day Monday nearest Dec. 30



For Special Days For Special Days

Premium Pay - additional compensation for work performed within 8 hours on a special day.

if unworked - no pay, unless there is favorable company policy, practice or CBA

if worked - plus 30% - plus 50% [special day falling on

rest day]

National Special Days (RA 9492): Ninoy Aquino Day Monday nearest

Aug. 21 All Saints Day November 1 Last Day of the Year December 31 10

For Special Working DaysFor Special Working Days

For work performed, an employee is entitled only to his basic rate.

No premium pay is required since work on said days is considered work on ordinary working days.


2010 Regular Holidays Regular Holidays (Proclamation 1841)(Proclamation 1841)

New Year’s Day January 1Maundy Thursday April 1Good Friday April 2Araw ng Kagitingan April 9 (Friday)Labor Day May 1 (Saturday)Independence Day June 14 (Monday)National Heroes Day August 30 (Monday)Bonifacio Day November 29 (Monday)Eidul Fitr No proclamation

yetChristmas Day December 25 (Saturday)Rizal Day December 27 (Monday)

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2010 Special Days ays (Proclamation 1841)(Proclamation 1841)

Ninoy Aquino Day August 23 (Monday)

All Saints Day November 1 (Monday)

Additional Special Day December 24 (Friday)

Last Day of the Year December 31 (Friday)

Special Holiday for all schools

EDSA Revolution February 22 (Monday Anniversary nearest February 25)

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Other provisions of of

Proclamation 1841Proclamation 1841

•Eid’l Fitr – date of observance to be declared later by the President. (Regular Holiday)

•Eid’l Adha – to be declared a national holiday by the President based on the recommendation of OMA as to the date of observance.

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Overtime Pay Overtime Pay [ Art. 87 ][ Art. 87 ]

additional compensation for work performed beyond 8 hours.

25% - ordinary work days 30% - rest days, special days &

regular holidays


Night Shift Pay Night Shift Pay [ Art. 86 ][ Art. 86 ]


• additional compensation for work performed between 10 pm and 6 am.

10% or regular for each hour of work

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Payment of WagesPayment of Wages

Forms of Payment

shall be paid in legal tender.

Payment by check or thru ATM - allowed where the following conditions are met:

with written consent of employees.

bank or ATM facility within 1 km from workplace.

Employees are given reasonable time during banking hours to withdraw wages from bank facility.


Time of Payment

not less often than once every 2 weeks or twice a month at intervals not exceeding 16 days.

at or near the place of undertaking.

Payment of Wages Payment of Wages cont…cont…


Place of Payment

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Direct Payment of Wages

shall be made direct to the employee.

Exceptions:

Employer is authorized in writing by employee to pay wages to a member of his family.

Payment to another person of any part of the employee’s wages is authorized by existing law.

Employee’s death.

Payment of Wages Payment of Wages cont…cont…


Prohibitions on WagesProhibitions on Wages

Non-interference in disposal of wages

Withholding of wages and kickbacks prohibited

Deduction to ensure employment

Retaliatory measures

False reportingBureau of Working Conditions

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Wage DeductionWage Deduction

Employer should not make any deduction from wages of employees.

Exceptions:

authorized by law.

with written authorization of employees for payment to a third person and the employer agrees to do so.


Deposits/Deductions for Loss or Deposits/Deductions for Loss or DamagesDamages

Conditions: Employee is clearly shown to be responsible for the loss or damage.

Employee is given reasonable opportunity to show cause why deduction should not be made.

Amount of deductions is fair and reasonable and shall not exceed the actual loss or damage.

Deduction from wages/salaries does not exceed 20% of the employee’s wages in a week.


THE USE OF FACTORSTHE USE OF FACTORS

Guidelines for the Computation Guidelines for the Computation of the Estimated Equivalent of the Estimated Equivalent

Monthly Rate (EEMR) of Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Monthly-Paid and Daily-Paid

Employees Employees

Guidelines for the Computation Guidelines for the Computation of the Estimated Equivalent of the Estimated Equivalent

Monthly Rate (EEMR) of Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Monthly-Paid and Daily-Paid

Employees Employees


Distinction b/w Monthly-Paid and Distinction b/w Monthly-Paid and

Daily-Paid Employees Daily-Paid Employees Monthly-Paid Employees - paid every day

of the month, including unworked rest days, special days and regular holidays.

Daily-Paid Employees - paid on the days they actually worked except unworked regular holidays when they are paid their basic wage if they are present or on leave with pay on the workday before the regular holiday.


Procedure in Computing the Procedure in Computing the EEMR of EEMR of Monthly-Paid Employees:Monthly-Paid Employees:

Applicable Daily Rate x 365

12 = EEMR

365 days/year:

299 ordinary workdays

52 rest days

11 regular holidays

3 special days

365 Total equivalent no. of

days/yearBureau of Working Conditions

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For those who work everyday including For those who work everyday including Rest Days, Special Days & Regular Rest Days, Special Days & Regular HolidaysHolidays

Applicable Daily Rate x 392.50

12 = EEMR

392.50 days/year:

299 ordinary workdays

22 eleven regular holidays x 200% 67.60 52 rest days x 130%

3.90 3 special days x 130%

392.50 Total equivalent no. of days/year


For those who do not work and are not For those who do not work and are not paid on Sundays or Rest dayspaid on Sundays or Rest days


12 = EEMR

313 days/year:

299 ordinary working days

11 regular holidays

3 special days (if considered paid; if actually worked = 3.9 days)

313 Total equivalent no. of days/year Bureau of Working Conditions

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For those who do not work and are not For those who do not work and are not paid on Saturdays & Sundays or Rest paid on Saturdays & Sundays or Rest daysdays


12 = EEMR

261 days/year :

247 ordinary working days 11 regular holidays 3 special days (if considered

paid; if actually worked = 3.9 days)

261 Total equivalent no. of days/year

Bureau of Working Conditions 28


LEAVE LEAVE BENEFITSBENEFITS

Service Incentive Leave Service Incentive Leave [ Art. 95 ][ Art. 95 ]

employees who rendered 1 year of service are entitled to 5 days leave with pay.

Usage/Commutation to Cash:

• for sick and vacation leave

purposes.

• The unused SIL is commutable to its money equivalent at the end of the year.


Maternity LeaveMaternity Leave [ RA 8282 ][ RA 8282 ]

Coverage

•Female employee who has paid at least 3-monthly contributions in the 12-month period prior to child birth or miscarriage, and who is currently employed.

Benefit

•The daily maternity benefit is equivalent to 100% of her average daily salary credit.

60 days for normal delivery or miscarriage 78 days Caesarian section delivery


Paternity LeavePaternity Leave [ RA 8187 ][ RA 8187 ]

Coverage - MARRIED male employees

Benefit 7 days leave with pay for the 1st four deliveries of his lawful wife.

Conditions for entitlement employee at the time of delivery of his child. cohabiting with spouse at the time of delivery or miscarriage. applied for paternity leave w/n reasonable

period. his wife has given birth or suffered a miscarriage.


Parental LeaveParental Leave of Solo Parents of Solo Parents [ RA 8972 ][ RA 8972 ]

Coverage

• Any individual under the 10 categories provided by law

Benefit

7 working days with pay

Conditions for Entitlement rendered 1 year of service. notified employer of usage within a reasonable

time. presented a Solo Parent ID Card to employer

which may be obtained from the DSWD Office of the City or municipality of residence.


Any individual who is left alone with the responsibility of parenthood due to:

1. giving birth as a result of rape or crimes against chastity.

2. death of spouse.

3. spouse is detained, or is serving sentence for a criminal conviction for at least 1 year.

4. physical and/or mental incapacity of spouse as certified by a public medical practitioner.

5. declaration of nullity or annulment of marriage.

10 categories10 categories


6. legal separation or de facto separation from spouse for at least 1 year.

7. abandonment of spouse for at least 1 year.

8. Unmarried mother/father who has preferred to keep and rear the children.

9. Any other person who solely provides parental care and support to a child provided he/she is licensed as foster parent or appointed legal guardian.

10. Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance or prolonged absence of the parents or solo parent for at least 1 year.

10 categories 10 categories cont…cont…


Violence Against Women & their Children (VAWC) - any act or a series of acts committed by any person against a woman with whom the person has or had a sexual or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which will result in or is likely to result in physical, sexual, psychological harm or suffering, or economic abuses including threats of such acts, battery, assault, coercion, harassment or arbitrary deprivation of liberty.

Leave for Victims of VAWCLeave for Victims of VAWC [ RA9262 ]


Leave for Victims of VAWCLeave for Victims of VAWC cont…cont…

Benefit

• leave with pay up to 10 days, extendible when the necessity arises as specified under the protection order.

Requirement for entitlement

• certification from the Punong Barangay or kagawad, or Prosecutor or the Clerk of Court, as the case may be, that an action is pending.

• Availment – option of the woman employee

Circumstances for availment• Medical and legal concerns


Special Leave of Women Special Leave of Women [ RA [ RA 9710 ]9710 ]

SEC. 18. Special Leave Benefits of Women. – A woman employee having rendered continuous aggregate employment service of at least six (6) months for the last twelve (12) months shall be entitled to a special leave benefit of two (2) months with full pay based on her gross compensation following surgery caused by gynecological disorders.

Signed into law by PGMA : August 14, 2009 Published at PDI & Malaya : August 31, 2009 Took effect on : September 15, 2009


1313thth Month Pay Month Pay [ PD 851 ][ PD 851 ]

CoverageRank-and-file employees who worked for at least 1 month during a calendar year, regardless of :

• amount of basic salary receive per month • designation or employment status • method by which wages are paid

Minimum amount of 13th month pay: not less than 1/12 of the total basic

salary earned by an employee within a calendar year.


Definition of “basic salary”

includes all remunerations or earnings paid by his employer for services rendered.

NOT included are allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as:

• cash equivalent of unused vacation leave and sick leave credits.

• overtime, premium, nightshift differential and holiday pay.

• cost-of-living allowances.

1313thth Month Pay Month Pay cont…cont…


Time of payment:

not later than December 24 of each year.

employer may give 1/2 of the 13th month pay before the opening of the regular school year and the other half on or before December 24 of every year.

frequency of payment may be the subject of agreement



13th Month Pay of Resigned or Separated

Employee

proportionate to the length of time worked during the year reckoned from the start of work during the calendar year up to the time of resignation or termination from the service.

Formula:

Total Basic Salary = 13th

Month Pay 12 months



Separation Pay Separation Pay [ Articles 283-[ Articles 283-294 ]294 ]

One-Half (1/2) Month Pay Per Year of Service

Retrenchment to prevent losses

Closure or cessation of operation of an establishment not due to serious losses

or financial reverses

disease of an employee not curable within six (6) months and his continued employment is prejudicial to his health or to the health of his co- employees


One (1) Month Pay Per Year of Service

Installation of labor-saving devices Redundancy When an employee is illegally dismissed

but reinstatement is no longer feasible

NOTE: In computing separation pay - basic salary + regular

allowances


Separation Pay Separation Pay cont…cont…

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Retirement Pay Retirement Pay [ RA 7641 ][ RA 7641 ]

Coverage: all employees regardless of their position,

designation or status and irrespective of the method by which their wages are paid.

includes part-time employees, employees of service and other job contractors and domestic helpers or persons in the personal service of another.

Optional Retirement: Compulsory Retirement: 60 years old 65 years old 5 years service no retirement planBureau of Working Conditions

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Amount of Retirement Pay : “one-half month salary”

Component of “one-half month salary”:

15 days salary

cash equivalent of 5 days of SIL

1/12 of the 13th month pay

or a total of 22.5 days [Capitol Wireless, Inc. vs. Sec.

Confesor, Nov. 13, 1996]

Formula:

Minimum retirement pay

= Daily Rate x 22.5 days x years in service

Retirement Pay Retirement Pay cont…cont…


Total Benefits a retired employee should receive from employer at the time of retirement:

Retirement pay (RA 7641) Proportionate 13th month pay Cash equivalent of leave benefits, if

demandable

Retirement Pay Retirement Pay cont...cont...


have a nice day…..


For more information, visit or For more information, visit or contact: contact:

DOLE – Regional/Provincial Offices or

WEBSITE: www.dole.gov.phwww.dole.gov.ph

In Metro Manila:

DOLE - National Capital Region

NCR Bldg. (formerly WASMIYA Bldg.)

967 Maligaya St., Malate, Manila 339-2013 / 339-2017339-2013 / 339-2017 Fax: 400-6241Fax: 400-6241


DOLE CALL CENTER:

908-2917

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Lecture Nwpc 2 Feb2010

Business

Transcript of Lecture Nwpc 2 Feb2010