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?
- Service incentive leave. An employee with at least one year of service gets five days of leave with pay a year under Article 95, also quoted in Atienza v. Saluta (2019). Some employees are excluded, such as those who already have at least five days of paid vacation leave and those in establishments regularly employing less than ten employees. Unused days are converted to cash at the end of the year under the implementing rules. See service incentive leave and Service incentive leave.
- 13th month pay. It comes from Presidential Decree No. 851, not from the Labor Code. Under the 1987 Revised Guidelines quoted in Honda Phils. v. Samahan ng Malayang Manggagawa sa Honda (2005), it is at least one-twelfth of the total basic salary earned in the calendar year. See 13th month pay, the 13th month pay guide and the 13th month pay calculator.
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:
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.
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?
- Article 83, Labor CodeNormal hours of work: eight hours a day
- Article 86, Labor CodeNight shift differential
- Article 87, Labor CodeOvertime work
- Article 93, Labor CodePay for rest day, Sunday or holiday work
- Article 94, Labor CodeRight to holiday pay
- Article 95, Labor CodeService incentive leave
- Article 100, Labor CodeNo elimination or reduction of benefits
- Article 106, Labor CodeContractor or subcontractor
- Article 111, Labor CodeAttorney's fees in wage cases
- Article 113, Labor CodeDeductions from wages
- Article 129, Labor CodeSmall money claims before the DOLE Regional Director
- Article 306 [291], Labor CodeMoney claims: three years
- Article 82, Labor CodeWho the hours-of-work rules cover
- Article 84, Labor CodeHours worked
- Article 85, Labor CodeMeal periods
- Article 88, Labor CodeUndertime not offset by overtime
- Article 89, Labor CodeEmergency overtime work
- Article 91, Labor CodeRight to a weekly rest day
- Article 92, Labor CodeWhen work on a rest day may be required
- Article 96, Labor CodeService charges
- Article 99, Labor CodeRegional minimum wages
- Article 102, Labor CodeForms of payment
- Article 103, Labor CodeTime of payment
Which questions does it cover?
- Are Meal Breaks Paid in the Philippines?Is lunch break paid in the Philippines? The one-hour meal period, when a shorter 20-minute break counts as paid work, coffee breaks, and a 2022 ruling.
- Can You Be Made to Work on Your Rest Day?Rest day rules in the Philippines: 24 hours after six work days, rest days for religious reasons, when rest day work may be required, and premium pay.
- Can Your Employer Deduct From Your Salary?Which salary deductions are legal in the Philippines under Article 113 of the Labor Code, why cash bonds were refunded in two cases, and where to complain.
- Late or Unpaid Salary: What the Law Says and Where to ComplainUnpaid or delayed salary in the Philippines: DOLE conciliation, the Regional Director for small claims, inspections, attorney's fees and the 3-year limit.
- Can an Employer Take Away Benefits You Already Get?The non-diminution rule in the Philippines: when a bonus, allowance or other benefit becomes a company practice that the employer can no longer withdraw.
- Service Incentive Leave: 5 Days Paid Leave and Cash ConversionAfter one year of service, most private employees get 5 days of service incentive leave with pay. Who is excluded, cash for unused days, and how to claim.
- How Long Do I Have to File a Claim for Unpaid Wages?Money claims from employment must be filed within 3 years from when each claim accrued. What this means for unpaid wages, benefits and leave pay.
- How to File a Labor Complaint: SEnA, DOLE and NLRCMost labor complaints start with 30 days of mandatory conciliation at a DOLE SEnA desk. Where to file, what happens, and where unsettled cases go next.
- Can Your Employer Require You to Work Overtime?Can your employer force you to work overtime? The cases in Article 89 of the Labor Code, overtime pay of at least 25% more, and when you may refuse.
- Is Waiting Time, On-Call Time or Training Paid?When waiting time, on-call time, short breaks, overtime work and training count as paid hours worked under Article 84 of the Labor Code and its rules.
- Are Managers and Field Workers Paid Overtime?Who is excluded from overtime and the hours-of-work rules under Article 82 of the Labor Code: managers, managerial staff, field personnel and others.
- Service Charges: How They Must Be Shared With WorkersWho gets the service charge in hotels and restaurants under Article 96 of the Labor Code and RA 11360: equal shares, no managers, and where disputes go.
- Wage Distortion: When a Raise Erases the Pay GapWhat wage distortion means under Article 124 of the Labor Code, the four elements in Prubankers, and how a distortion is corrected with or without a union.
- Can Your Employer Require a Cash Bond or Deposit?When an employer may require a cash bond or deposit under Articles 113 and 114 of the Labor Code, the rules on losses, and cases that ordered refunds.
- Your Employer Went Bankrupt: What Happens to Unpaid Wages?What Article 110 of the Labor Code means for unpaid wages when an employer goes bankrupt or is liquidated, and why a bank mortgage can come first.
How do the options compare?
Which terms should I know?
- Holiday Pay: Meaning Under the Labor CodeHoliday pay is the regular daily wage paid on a regular holiday even without work, and twice that rate when the employee works. Who is covered.
- Night Shift Differential: MeaningNight shift differential is extra pay of at least 10% of the regular wage for each hour worked between 10 p.m. and 6 a.m. Its rules and who is excluded.
- Service Incentive Leave (SIL): MeaningService incentive leave (SIL) is the yearly five days of paid leave the Labor Code gives employees with at least one year of service. Who is excluded.
- 13th Month Pay: Legal Meaning (PD 851)13th month pay is a yearly benefit under PD 851 of at least 1/12 of the basic salary earned in a calendar year. Its legal basis and what Honda (2005) held.
Which Supreme Court rulings are relevant?
- Honda v. Samahan (G.R. No. 145561)Honda v. Samahan explained: why an employer could not cut 13th month pay for the month workers were on strike, and when 13th month pay is prorated.
- Auto Bus v. Bautista (G.R. No. 156367)Auto Bus v. Bautista explained: why a bus driver paid on commission still gets service incentive leave, and when the three years to claim it begin.
Which reference tables apply?
- Leave Benefits Under Philippine LawMaternity leave is 105 days with full pay, paternity leave 7 days, solo parent leave up to 7 working days, VAWC leave up to 10 days, SIL 5 days.
- Labor Claim Deadlines (Prescription)Labor money claims prescribe in 3 years. An appeal from a Labor Arbiter to the NLRC is due in 10 calendar days, and from a DOLE Regional Director in 5.
- Premium Pay Rates: Overtime and HolidaysOvertime, night shift, rest day and holiday pay rates under the Labor Code: 25% overtime, 10% night pay, 30% rest day premium and 200% on regular holidays.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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