Philippine Labor Laws

Employment Status: Employees in the Philippines can be classified as either regular, probationary, contractual, or casual. 

Probationary Employment: The probationary period should not exceed six months. After that, employees should be regularized unless there is just cause for non-regularization.

Minimum Wage: The minimum wage rate varies depending on the region, industry, and type of work. Regional wage boards set the minimum wage levels.

Overtime Pay: Employees who work beyond eight hours a day are entitled to overtime pay at a rate of 125% of their regular hourly rate.

Holiday Pay: Employees are entitled to regular pay on national holidays. If they work on a holiday, they are entitled to additional compensation.

 13th Month Pay: Workers are entitled to a 13th-month pay, which is typically calculated as 1/12th of an employee’s basic salary within a calendar year. This must be paid before December 24.

Working Hours: The standard working hours are eight hours per day, not to exceed 48 hours per week.

Rest Days: Employees are entitled to at least one rest day per week, typically a Sunday.

Breaks: Employees should have a rest period of not less than one hour during working hours.

Social Security System (SSS): Employees are required to contribute to the SSS, which provides benefits like sickness, maternity, disability, and retirement pensions.

PhilHealth: This is the country’s national health insurance program, where employees and employers contribute.

Pag-IBIG Fund: A government program that provides housing loans and savings benefits. Both employees and employers make contributions.

Maternity Leave: Female employees are entitled to 105 days of paid maternity leave for live childbirth, with an additional 15 days for solo parents.

Paternity Leave: Fathers are entitled to seven days of paid paternity leave for the birth of their legitimate child.

Solo Parent Leave: Solo parents are entitled to an additional seven days of paid leave.

Just Causes for Dismissal: Employers can dismiss employees for reasons like serious misconduct, willful disobedience, gross negligence, fraud, or violation of company policies.

Authorized Causes for Termination: These include retrenchment due to business losses, closure of business, or illness of the employee.

Separation Pay: Employees terminated due to authorized causes are entitled to separation pay. It is calculated based on the length of service.  The employee is entitled to 1 month's salary per year for redundancy or half month's salary per year for business closure or illness.

Occupational Safety and Health Standards: Employers are required to provide a safe working environment that meets safety standards, ensuring employee protection from work-related hazards.

Health Insurance: Employers must contribute to PhilHealth to ensure that employees have access to health insurance benefits.

Equal Pay for Equal Work: Employees doing the same job should receive equal pay, regardless of gender, sexual orientation, or other factors.

Protection Against Discrimination: Employees cannot be discriminated against based on sex, age, disability, race, religion, or other personal characteristics.

Right to Unionize: Employees have the right to form or join labor unions to represent their interests.

Collective Bargaining: Employees through their unions can engage in collective bargaining with employers for better working conditions, wages, and benefits.

Special Leave for Women: Female employees who have undergone surgery related to gynecological conditions are entitled to special leave benefits for a period of up to two months.

Mandatory Retirement: The mandatory retirement age in the Philippines is 65. The retirement pay is at least one-half month salary for each year of service.

Labor Relations: Labor disputes in the Philippines are handled by the National Labor Relations Commission (NLRC). Workers can file complaints regarding unfair labor practices, illegal dismissal, or other employment issues.

Department of Labor and Employment (DOLE): This department enforces labor standards, investigates violations, and facilitates dispute resolution between employers and employees.