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Wages, Hours and Pay Under the Labor Code

Quick answer

Book Three of the Labor Code, on conditions of employment, sets the basic rules on pay and time at work. The normal workday is eight hours, and work beyond that is overtime with a premium. The law and its implementing rules also give paid short breaks, a weekly rest day, holiday pay, a night shift differential, five days of service incentive leave and, under a separate decree, 13th month pay. Deductions from wages are allowed only in a few cases, and unpaid wages must be claimed within three years.

Each part links to a page with the full rule, and the premium pay rates table puts the overtime, night, rest day and holiday rates side by side. This page does not compute amounts: use the calculators linked below.

How many hours is a normal workday?

Eight hours. Article 83 of the Labor Code, also quoted by the Supreme Court in Coca-Cola Bottlers v. Iloilo Coca-Cola Plant Employees Labor Union (2018), says: "The normal hours of work of any employee shall not exceed eight (8) hours a day."

Work beyond eight hours is overtime. Article 87, quoted in the same decision, says the employee is paid "an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof." Work beyond eight hours on a holiday or rest day is paid at the rate for the first eight hours of that day plus at least 30% of it. The Court also said that "overtime work is work exceeding eight hours within the worker's 24-hour workday", so work inside the normal eight hours is not overtime.

The implementing rules exclude some employees from several of these benefits, such as managerial employees and field personnel whose work is unsupervised. For the amounts, use the overtime pay calculator.

Are meal breaks and coffee breaks paid?

The regular meal break is at least one hour and, as a rule, it is not paid. In Bonpack Corporation v. Nagkakaisang Manggagawa sa Bonpack (2022), the Supreme Court said the one-hour meal break is not part of the normal working hours. The implementing rules allow a shorter meal break of at least 20 minutes in four cases, such as an establishment that regularly operates at least 16 hours a day, but then the shorter break must be paid as hours worked. Rest periods or coffee breaks of 5 to 20 minutes are paid working time. See Are meal breaks paid?

How many rest days do you get?

Under the implementing rules, an employee gets a rest period of at least 24 consecutive hours after every six consecutive normal work days. A rest day chosen for religious reasons is, as a rule, respected. The employer may require work on a scheduled rest day only in the emergencies and exceptional conditions the rules list, and the work is paid with a premium of at least 30% of the regular wage. The 30% rest day premium is also in Article 93 of the Labor Code. See Can you be made to work on your rest day?

What is holiday pay?

On a regular holiday, a covered worker is paid the regular daily wage even without working, and twice the regular rate if the employer requires work. This is Article 94 of the Labor Code, also quoted by the Supreme Court in Atienza v. Saluta (2019). Retail and service establishments regularly employing less than ten workers are excluded. Work on a special non-working day is paid differently: at least 30% more than the regular wage under Article 93(c), or at least 50% more when it is also the employee's rest day.

See holiday pay and Regular holiday vs special non-working day. Which days are holidays each year is set by law and by yearly proclamations, not by the old list printed in the Labor Code: see the 2026 holidays, the 2027 holidays and the holiday pay rules guide. For the amounts, use the holiday pay calculator.

What is the night shift differential?

Extra pay of at least 10% of the regular wage for each hour of work between ten o'clock in the evening and six o'clock in the morning, under Article 86 of the Labor Code. The Supreme Court applied this 10% rule to a security guard on 12-hour shifts in Zonio v. 1st Quantum Leap Security Agency (2021). See night shift differential and the night differential calculator.

What paid leave and yearly pay does the law give?

Leaves from special laws, such as maternity, paternity and solo parent leave, are listed in the leave benefits table.

Who sets the minimum wage?

The Regional Tripartite Wages and Productivity Boards, under Republic Act No. 6727 (the Wage Rationalization Act). Rates differ by region and change by wage order. This site does not list the amounts.

What can an employer deduct from your salary?

Only what Article 113 allows. Its number did not change in the 2015 renumbering. It opens:

No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except:

Article 113, Labor Code

The three cases are insurance premiums when the worker is insured with his or her consent, union dues where check-off is authorized, and deductions authorized by law or by regulations of the Secretary of Labor and Employment. The employee's share of SSS, PhilHealth and Pag-IBIG contributions and the withholding tax on compensation fall under the third case, because laws require them. In Agapito v. Aeroplus Multi-Services (2022), a monthly cash bond deducted from wages was found illegal and ordered refunded. See Can your employer deduct from your salary? and the take-home pay calculator.

Can an employer take away a benefit you already get?

As a rule, not if the benefit comes from a policy, a contract or a company practice. This is the non-diminution rule of Article 100:

Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.

Article 100, Labor Code

The Supreme Court applies it to benefits given later too. In Beltran v. AMA Computer College-Biñan (2019), it said a company practice must be given consistently and deliberately over a significant period of time. In Nippon Paint Philippines v. Nippon Paint Philippines Employees Association (2021), additional holiday pay given for two years had ripened into a company practice that the employer could not withdraw. See Can an employer take away benefits you already get?

Who pays the wages of agency workers?

Under Article 106, if a contractor or subcontractor does not pay its workers' wages as the Code requires, the company that hired the contractor is jointly and severally liable with it, to the extent of the work done under the contract. In labor-only contracting, the company is treated as the direct employer. See the employment status topic and labor-only contracting.

What can you do about unpaid or late wages?

  • Conciliation first. Under the 2010 Single Entry Approach (SEnA) rules, claims for any sum of money, regardless of amount, go through conciliation-mediation at a DOLE desk, which is done within 30 calendar days unless both sides agree otherwise.
  • Small claims at DOLE. Under Article 129, the DOLE Regional Director or a hearing officer can decide a wage claim in a summary proceeding if it does not include a claim for reinstatement and each employee's total claim does not exceed ₱5,000.
  • Inspection. Under Article 128, as quoted in Del Monte Land Transport Bus Co. v. Armenta (2021), DOLE can inspect the employer and issue compliance orders while the employment still exists. The Court said this power is not limited by the ₱5,000 amount.
  • Attorney's fees. Under Article 111, in cases of unlawful withholding of wages, the culpable party may be assessed attorney's fees equal to ten percent of the wages recovered.
  • Deadline. Under [Article 306 [291]](/law/labor-code/article-306), money claims must be filed within three years from the time the cause of action accrued.

See Late or unpaid salary, How to file a labor complaint, Labor money claims: how long do you have? and the labor claim deadlines table. In Auto Bus Transport Systems v. Bautista (2005), the Court explained when the three years start for unpaid service incentive leave.

How does this work in real life?

These are made-up examples to show how the rules work. They are not advice for any real case.

Jessa works in an office from 8 am to 5 pm with a one-hour lunch break. She is paid for eight hours. One day she stays until 7 pm: the two extra hours are overtime, paid at her regular rate plus at least 25%.

Arnel is a security guard who works from 6 pm to 6 am. The hours from 10 pm to 6 am earn a night shift differential of at least 10% of his regular wage for each hour, and the hours beyond eight are overtime.

Tess sees a "cash bond" taken from every payslip. A deduction that does not fall under one of the cases of Article 113 can be questioned. In Agapito, a cash bond deducted this way was ordered refunded.

When do you need a lawyer?

Talk to a lawyer if your employer refuses to pay wages, overtime or holiday pay after you ask, if you were dismissed or threatened after complaining, or if a large amount or many workers are involved. A lawyer can check which rules cover your job and which office should hear the claim. If you cannot afford a lawyer, see Free legal help in the Philippines.

Which provisions apply?

Which questions does it cover?

How do the options compare?

Which terms should I know?

Which Supreme Court rulings are relevant?

Which reference tables apply?

General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.

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