Handbook on Workers' Statutory Monetary Benefits (2024)

Premium Pay: Definition

Premium pay refers to the additional compensation for work performed within eight hours on rest days and special days.

Premium Pay: Coverage

This benefit applies to all employees except: 1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws; 2. Managerial employees, if they meet all of the following conditions: 2.1 Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof; 2.2 They customarily and regularly direct the work of two or more employees therein; and 2.3 They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight. 3. Officers or members of a managerial staff, if they perform the following duties and responsibilities: 3.1 Primarily perform work directly related to management policies of their employer; 3.2 Customarily and regularly exercise discretion and independent judgment; 3.3 (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and 3.4 Do not devote more than 20% of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 3.1, 3.2, and 3.3 above. 4. Kasambahay and persons in the personal service of another; 5. Workers who are paid by results, including those who are paid on piece rate, takay, pakyaw, or task basis, and other non-time work, if their output rates are in accordance with the standards prescribed in the regulations, or where such rates have been fixed by the Secretary of Labor and Employment; and 6. Field personnel, if they regularly perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

Premium Pay: Special Days 1. Special (Non-Working) D

Unless otherwise modified by law, order or proclamation, the following special (non-working) days shall be observed in the country: Ninoy Aquino Day - August 21 All Saints’ Day - November 1 Feast of the Immaculate Conception of Mary - December 8 Last Day of the Year - December 31 In addition to the above, the following are also traditionally declared as additional special (non-working) days: Chinese New Year - Movable date Black Saturday - Movable date All Souls' Day - November 2 Christmas Eve - December 24 Annually, the President of the Philippines issues a Proclamation declaring specific dates as special (non-working) days to be observed nationwide. 2. Special (Working) Days For work performed on a declared special (working) day, an employee is entitled only to his/her daily wage. No premium pay is required since work performed on said day is considered work on an ordinary workday.

Premium Pay: Premium Pay Rates

The “no work, no pay” principle applies during special days and on such other special days as may be proclaimed by the President or by Congress. Workers who are not required or permitted to work on special days are not entitled to any compensation. This, however, is without prejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for days declared as special days even if Section 26, Chapter 7, Book I of Executive Order No. 292, otherwise known as the “Administrative Code of 1987,” as amended and Republic Act No. 10966. unworked. On the other hand, work performed on special (non-working) days merits additional compensation of at least 30% of the basic wage or a total of 130%. Where the employee works on a special (non-working) day falling on his rest day, he/she shall be entitled to an additional compensation of 50% of his/her basic wage or a total of 150%. The minimum statutory premium pay rates are as follows: 1. If the employee does not work, the “no work, no pay” principle shall apply unless there is a favorable company policy, practice, or CBA granting payment on a special day. 2. For work done during a special (non-working) day, the employer shall pay the employee an additional 30% of the basic wage on the first eight hours of work. (basic wage x 130%) 3. For work done during a special (non-working) day that also falls on the employee’s rest day, the employer shall pay the employee an additional 50% of the basic wage on the first eight hours of work. (basic wage x 150%) 4. For work done during a regular holiday that also falls on the employee’s rest day, the employer shall pay the employee an additional 30% of the basic wage on the basic wage of 200%. (basic wage x 200% x 130%)