Benefits of A Wage Earner

BENEFITS OF A
WAGE EARNER
 SSS  PHILHEALTH  Pag-ibig Fund
- Social Security System - Philippine Health - Home Development
- A state run, social Insurance Corporation Fund (HDMF)
welfare program within (PHIC) - Mandatory to all
the Philippines to - Attached to the DOH employees who are
workers within the - compulsorily covered
Offer health insurance
private, professional, by GSIS or SSS
coverage and ensure
and informal sectors.
affordable and accessible
health care services for
all Filipinos
 Maternity  Solo Parent
Leave Leave
- Allowed for every - For solo-parent
pregnant employee, employees
married or not.
- Not more than 7 days
- 105 days
 Paternity Leave  Sick Leave
- Allowed for every - Is paid time off from
married male employee work that workers can
- 7 days for first four use to stay home to
deliveries address their health
needs without losing pay
- Minimum of 5 days
 De Minimis Benefits
- To market the well-being of employees and their efficiency as well
Ex:
- Monetized unused vacation leave credits
- Medical cash allowance to dependents of employees
- Rice subsidy
 13th-month Pay
- All rank and file employees are entitled to receive 13th-month pay
regardless of the nature of their employment and regardless of the
methods by which their wages are paid, provided they worked a
minimum of 1 month during a calendar year.
 Night Shift Differential

- The extra compensation for work performed from 10:00 o’clock in the
evening to 6:00 o’clock in the morning.
- Atleast 10% of regular wage for each hour worked
 Holiday Pay
- Refers to the payment of the regular daily wage for any unworked
regular holiday
 Overtime Pay
- Additional pay for work performed in more than 8 hours a day
- Regular workday, holiday, rest day, or at night (10:00 PM – 6:00 AM)
- PLUS 25% of the hourly rate for work performed in more than 8 hours
on an ordinary day
- PLUS 30% of the hourly rate for work performed in excess of 8 hours
on the day of rest, special day, or regular holiday
 PREMIUM PAY
- Given on non-working days (rest days & holidays)
 Rest day or special holiday

– an employee is entitled to an additional 30% of his basic
rate.
 Rest day and special holiday
- an employee is entitled to an additional 50% of his daily
basic rate
 Regular holiday and Rest Day
- An employee is entitled to an additional 30% of the
regular holiday rate of 200%
If the overtime work is done
during:
A special holiday = 130% of the regular hourly rate
A special holiday and rest day at the same time = 150% of
the regular hourly late
A regular holiday = 200% of the regular hourly rate
A regular holiday and rest day at the same time = 260% of
the regular hourly rate.
Situation 1: Mrs. Rosanna Ronde earns ₱750.00 a day. She worked overtime for 12 hours on a
regular pay period for a total of 20 hours of service in a day. Assuming that the overtime took
place on ordinary days, how much is her overtime pay?
HINT: *Plus 25% of the hourly rate for work performed in excess of 8 hours on an ordinary day.
Solution 1:
1. Compute the Regular Hourly Rate
Regular Hourly Rate = (Daily Wage Rate)/8
= ₱750.00/8
= ₱93.75
2. Compute the Overtime Rate

Overtime Rate = Regular Hourly Rate + 25% of Regular Hourly Rate
= ₱93.75 + (0.25) (₱93.75)
= ₱93.75 + ₱23.44
= ₱117.19
3. Compute the Overtime Pay = (Overtime Rate) (Number of Overtime Hours)

= (₱117.19) (12)
= ₱1,406.28
Situation 4: Mrs. Franzene S. Porra worked overtime for 8 hours on Ninoy Aquino Day which is his rest
day. How much will Mrs. Porra earn on this day if her daily rate is ₱600.00?
HINT: A special holiday and rest day at the same time (150% of the regular hourly rate)
*Rest day and special holiday – an employee is entitled to an additional 50% of his daily basic rate.
*- Plus 30% of the hourly rate for work performed on rest day, special holiday or regular holiday.
Solution 4:
1. Compute the Hourly Rate
Hourly Rate = 150% of Regular Hourly Rate
= (1.50) [(₱600.00)/8]
= (1.50) (₱75.00)
= ₱112.50
Overtime Rate = Hourly Rate + 30% of Hourly Rate
= ₱112.50 + (0.30) (₱112.50)
= ₱112.50 + ₱33.75 = ₱146.25
= (₱146.25) (8)
= ₱1,170.00
Situation 5: Mrs. Brenda D. Tan worked overtime for 4 hours on Independence Day which is her rest
day. How much will she earn on this day if her daily rate is ₱500.00?
HINT: A regular holiday and rest day at the same time (260% of the regular hourly rate)
*- Plus 30% of the hourly rate for work performed on rest day, special holiday or regular holiday.
Solution 5:
= (2.6) [(₱500.00)/8]
= (2.6) (₱62.50)
= ₱162.50

= ₱162.50 + (0.30) (₱162.50)
= ₱162.50 + ₱48.75
= ₱211.25

= (₱211.25) (4)
= ₱845.00
Mr. Aldrin T. Reyes worked overtime for 2 hours on Labor Day. How much will he earn on this
day if his daily rate is ₱650.00?
HINT: A regular holiday (200% of the regular hourly rate)

*- Plus 30% of the hourly rate for work performed on rest day, special holiday or regular
holiday.
Solution 6:
= (2.0) [(₱650.00)/8]
= (2.0) (₱81.25)
= ₱162.50

= ₱162.50 + (0.30) (₱162.50)
= ₱162.50 + ₱48.75
= ₱211.25

= (₱211.25) (2)
= ₱422.50
TAXABLE NON-
TAXABLE
 OVERTIME PAY  SSS
 HOLIDAY PAY  PHIL HEALTH
 PREMIUM PAY  PAG-IBIG
 NIGHT  DE
MINIMIS
DIFFERENTIAL BENEFITS

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BENEFITS OF A

 Night Shift Differential

 Rest day or special holiday

2. Compute the Overtime Rate

3. Compute the Overtime Pay = (Overtime Rate) (Number of Overtime Hours)

2. Compute the Overtime Rate

3. Compute the Overtime Pay = (Overtime Rate) (Number of Overtime Hours)

HINT: A regular holiday (200% of the regular hourly rate)

2. Compute the Overtime Rate

3. Compute the Overtime Pay = (Overtime Rate) (Number of Overtime Hours)

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