Page 411 - PARAMETER B

C. Wages and Wage-Related Benefits

Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered for an

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employer. This includes overtime, night differential, rest day, holiday and 13 month pay. It also include
a fair and reasonable value of board, lodging and other facilities customarily furnished by the employer.

Minimum Wage Coverage– all covered employees, regardless of position, designation or status and the

method by which their wages are paid.
1. For an 8-hour shall not be lower than the minimum daily wage applicable to the place of work
as determined by the Regional Tripartite Wages and Productivity Board having jurisdiction over the

employer.
2. If paid by result, the worker shall receive at least prescribed minimum wage for 8 hours of work.
The amount may be increased or reduced proportionately if work is rendered for more or less than 8

hours a day.

Computation of Wages

Computation of wages is governed by the following rules:

a. Overtime Pay
On ordinary day– No. of hours in excess of 8 hours (125% x hourly rate)
On a rest day, special day or regular holiday– No. of hours in excess of 8 hours
(130% x hourly rate)
b. Computing pay for work done on

Special days (130% x basic pay)
Special days w/c is also scheduled rest day (150% x basic pay)
Regular Holiday (200% x basic pay)
Regular holiday w/c is also a scheduled rest day (260% x basic pay)

c. Night Shift Premium– where it is a regular work
On ordinary days (110% x basic hourly rate)
On a rest day, special day or regular holiday– No. of hours in excess of 8 hours
(110% x of regular hourly rate for a rest day, special day, regular holiday)

d. Overnight on Night Shift
On ordinary days (110% x overtime hourly pay)
On a rest day, special day or regular holiday- No. of hours in excess of 8 hours
(110% x of regular hourly rate for a rest day, special day, regular holiday)

e. 13 month pay– Total basic salary earned for the year exclusive of overtime, holiday
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and night shift differential pay divided by 12.

D. Safe Working Conditions

Employers must provide workers with every kind of on-the-job protection against injury, sickness or
death through safe and healthful work conditions such as:

a. Appropriate seats, lighting and ventilation
b. Adequate passageways and exits and fire fighting equipment.
c. Separate facilities for men and women
d. Appropriate safety devices like protective gears, masks, helmets, safety shoes,
boots, coats or uniforms.