It's based on your hourly wage. Night-Shift Differential Pay. Here’s how to compute it: With PayrollHero this computation is done automatically for you. 3 thoughts on “ THE LABOR CODE OF THE PHILIPPINES – BOOK 3 ” Jamier June 10, 2020 at 11:30 am. The rates stack on Sunday nights but I don't remember if it's 35% or calculated another way. 01-19 Guidelines on the computation of salary differential of female workers during her maternity leave and its criteria for exemption pursuant to Republic Act No. Night shift differential at 10% increment for work done from 10:00 PM to 6:00 AM Minimum wage earners in the Philippines are not subject to withholding tax and are not required to file income tax returns at the end of the year for obviously, they, will not be any tax due under such exemption. It is founded on public policy, hence cannot be waived (Art. If you worked overtime, you’ll get an additional 30% of your hourly rate. Above-industry salary package with monthly performance bonuses With an hourly rate of PHP 125 and two hours of overtime work, here’s how to calculate your pay during a special non-working day: PHP 125 x 1.30 x 1.30 x 10 hours = PHP 2,112.50. d. It is computed as a percentage of the employee's rate of basic pay (including any applicable locality payment or special rate supplement). Night work is regulated under the Labour Code which provides for a night shift differential. $1,000 base pay + $80 night differential = $1,080 total pay Payroll deductions are based on the total pay. 13, series of 2019, prescribing the appropriate determination of holiday pay rules for 2020. It is computed as a percentage of the employee's rate of basic pay. The Labor Code of the Philippines, otherwise known as Presidential Decree No. 2. MANILA, Philippines – The Senate Committee on Civil Service, Government Reorganization, and Professional Regulation, led by its Chairman Sen. Bong Revilla, and the Senate Committee on Finance has jointly approved Comm. Night shift differential cannot be waived. People Power Anniversary People Power Anniversary in the Philippines commemorates the successful non-violent demonstration in Manila in 1986 that saw a change of government for the nation. I have started working Friday June 5, 2020 From 5 am to 2pm. 11210 and its Implementing Rules and Regulations. The differential is fixed and can only be changed in some future round of bargaining. Hourly rate x 300% = your hourly pay ; 2. Employers must also take note of the night shift differential rate. Some companies have an hourly rate of the ND while some give out the full rate once your working hours touch the range to where the night differential applies. Salaries vary drastically between different careers. As far as the rate of night work is concerned, night shift employees must be paid a differential of at least 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. Night Shift Differential during leave with pay if the employee received a Night Shift Differential for the last shift worked before leave began. Fill up the data, Press Calculate button below and we will do the BIR TRAIN Withholding Tax Computation for you. Ordinary Day (110% x basic hourly rate) Rest Day, Special Day or Regular Holiday (110% x overtime hourly rate) Computing 13th Month Pay. Both the overtime and night shift differential rates apply to the employee’s hourly rate. Deposit Interest Rate in Philippines remained unchanged at 1.50 percent in December from 1.50 percent in November of 2020. Report No. my normal next Rest day supposed to be on June 2 to 10, but on June 9 5 in the morning they changed my Rest day Instead of June 9 to June … Number of hours in excess of 8 hours (130% x hourly rate) On a Night Shift. The employee is paid night pay for all night hours scheduled, including the ones during which leave is taken. Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential pay divided by 12 = 13thmonth pay The Senate approved Monday on third and final reading a bill setting government workers' night differential pay to up to 20 percent of their hourly rate from 6 p.m. to 6 a.m. Hourly rate of the basic wage x 130% x 130% x number of hours worked. Labor Code of the Philippines Gender and Development LABOR ADVISORY NO. 87) Overtime Work overtime compensation • additional pay for service or work rendered or performed n excess of 8 hours a day by the employees in employment covered by the 8-hour labor law. Night Shift Differential is paid for hours worked between 6 PM and 6 AM. Every employee who has rendered at least one year of service is entitled to a yearly service incentive of five days with pay. Best Employer Brand Awardee in 2020 25% Night differential rate (higher than the industry average!) CEBU, Philippines — The Department of Labor and Employment has issued Labor Advisory No. 13 which seeks to institutionalize the night shift differential pay for government employees. Simply consult this table every payroll period for quicker calculations. However, if a GS employee takes 8 or more hours of leave during a pay period, then night differential is paid only for the regularly scheduled hours between 6 p.m. and 6 a.m. during which the employee actually performs work. I came from Rest Day From Wednesday( June 3, 2020) to Thursday ( June 4, 2020). Overtime and Night Shift Differential … Implementing Rules and Regulations of Republic Act No. Lending Rate in Philippines remained unchanged at 2.50 percent in December from 2.50 percent in November of 2020. Meal and Rest Infographic: Calculating Overtime, Holiday, Rest Day, and Night Differential. If you are working on a double holiday in a night shift: Hourly rate x 330% = your hourly pay ; 4. In my area it's 10% for any time past 6 pm and 25% for Sundays. Hi Good Day! Deposit Interest Rate in Philippines averaged 2.89 percent from 2016 until 2020, reaching an all time high of 4.25 percent in October of 2018 and a record low of 1.50 percent in November of 2020. A person working in Philippines typically earns around 44,600 PHP per month. The night shift differential rate applies to employees working at any point between 10:00 pm and 6:00 am. Payroll Salary Compensation and Benefits in the Philippines as provided under the Labor Code of the Philippines and other relevant laws. The additional pay will compensate the sleep lost by night shift workers like anti-narcotics agents and Customs and Immigration personnel, said CSC Commissioner Aileen Lizada. Overtime rate/hour = (hourly rate o n rest day and special holiday X 260%) Php 148.20 = (Php 57.00 X 2.60%) On Regular Holiday and at the same time Rest day Overtime. Current differentials for employees covered by the 2015 National Agreement are here. This is the average monthly salary including housing, transport, and other benefits. Senate of the Philippines (MANILA BULLETIN FILE PHOTO) Under the bill, night shift differential pay shall be given to government employees at a rate of 20 percent of their hourly basic rate for each hour of work performed from 6 p.m. to 6 a.m. Fact Sheet: Night Shift Differential for Federal Wage System Employees Description. (5 CFR 532.505(e)(4)) 10 Rate of basic pay Night Pay differential is in addition to overtime, Sunday, or holiday pay, and it is not included in the rate of basic pay used to compute overtime, Sunday, or Below, we round up all pay rate combinations based on the Department of Labor and Employment (DOLE). Chinese New Year is not considered an official holiday in the Philippines but it is widely celebrated, particularly in Chinese communities. You should already have some knowledge about the different compensation related regulations in the Philippines. Labor and Social Legislation. For Employees Covered by the National Agreement 4 Simple Charts to explain Philippines Premium Pay Rate FIND OUT THE OVERTIME PAY RATE, NIGHT SHIFT DIFFERENTIAL PAY RATE, REST DAY PAY RATE AND HOLIDAY PAY RATE. If you are working on a double holiday with overtime: Hourly rate x 390% = your hourly pay (Read: A Guide To Philippine Holidays In 2020) 3. Night Shift Differential For time worked between the hours of 6:00 p.m. and 6:00 a.m., employees shall be paid additional compensation at the applicable flat dollar amount at each pay grade and step. In this guide, I will be breaking down the payroll process into simple steps with an example. If you are working on a double holiday that falls on a rest day: In call centers, having a night differential is truly a blessing since you will be saying goodbye to the taxes and deductions if you have a full night differential (ND). 442., governs all employee-employer relations, their rights and obligations.. Employee Coverage Let’s say that your employee’s hourly rate is Php 57.00 and they report for work during the hours covered by the Night Differential premium. 11 – 2018 (RR 11-2018), the implementing rule of Tax Reform for Acceleration and Inclusion (TRAIN) or Republic Act No. Feel free to download the infographic below for your business’ payroll needs. Let say the employee hourly rate is Php 57.00/hour To determine the overtime rate per hour: Overtime rate/hour = (hourly rate o n rest day and special holiday X 338%) Salaries range from 11,300 PHP (lowest average) to 199,000 PHP (highest average, actual maximum salary is higher).. 13 SERIES OF 2020 – PAYMENT OF WAGES FOR THE REGULAR HOLIDAYS ON APRIL 9 AND 10, 2020 AND SPECIAL DAY ON APRIL 11, 2020 2021 Philippines BIR TRAIN Withholding Tax Calculator. Night-shift employees must be paid a differential of not less than 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. Service Incentive Leave. Fact Sheet: Night Pay for General Schedule Employees Description. Department Advisory No. Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. Night shift differential means the differential paid for work performed when the majority of a prevailing rate employee's regularly scheduled nonovertime hours fall between 3 p.m. and 8 a.m. Lending Rate in Philippines averaged 9.82 percent from 1986 until 2020, reaching an all time high of 45 percent in August of 1993 and a record low of 2.50 percent in November of 2020. To further appreciate the tax exemptions, below is the updated list of de minimis benefits in the Philippines both to managerial and rand-and-file employees with some items updated in amounts by Revenue Regulations No. Women and young persons are prohibited from night work. For those who do not know how to compute Payroll in the Philippines, this is a simple payroll computation guide.