Philippines Labor Code – Final Notes

Final Notes on Philippines Labor Code:


Re: Paid Vacation and Sick Leaves

. Minimum of 5 vacation and/or sick days is mandatory per year for all regulars. The 5 days is inclusive of sick days and vacation days. An employer can opt to offer more at their discretion, but a minimum of 5 in totality is required.

. A company must have a minimum of 10 employees in order to fall under this mandatory rule. The 10 employees can be a combination of regulars, probationary status, and trainees.

. Managers are excluded from this mandatory vacation and sick day leave rule. Managers are not eligible for any paid vacation or paid sick leaves unless freely given by his/her employer.

. Exactly how the sick days and vacation days are doled out during the year is up to the employer. eg. Vacation/ Sick leaves can be subject to proper notification, maybe combined, or even paid in cash if unused.

Re: Overtime Pay Clarification

Regular Work Day – eg Monday – Friday and/or Monday – Saturday (depending on your labor agreement)

. Regular 8hr Work day pay = Your normal rate
. Beyond 8hrs, the rate is at 125% of your normal rate.

Non-Regular Work Day – eg Saturday or Sunday
. First 8hr Work day pay = 130% of normal rate
. Beyond 8hrs, the rate is at 160%

Holiday Pay Rate (on a day you would normally work)
. First 8hr Work day pay = 200% of normal rate
. Beyond 8hrs, the rate is 230%

Working on a Holiday (on a day you would not normally work)
. First 8hr Work day pay = 230% of normal rate
. Beyond 8hrs, the rate is at 260%.

Contact the Philippines Department of Labor at:  632-527-8000 / M-F 7am to 7pm. (Manila, Philippines)

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