Premium Pay refers to the additional compensation required by law for work performed within eight (8) hours on non-working days, such as rest days and special days.
B. Coverage
This benefits applies to all employees but not to the following persons if they qualify for exemption under the conditions set forth in the Implementing Rules of the Labor Code as follows:
Government employees whether employed by the National Government or any of its political sub-divisions, including those employed in government-owned and/or controlled corporations.
Managerial employees, if they meet all of the following conditions:
Their primary duty consists of the management of the establishment in which they are employed or of a department or sub-division thereof.
They customarily and regularly direct the work of two or more employees therein.
They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring and firing and as to the promotion or any other change of status of other employees are given particular weight.
Officers or members of a managerial staff if they perform the following duties and responsibilities:
The primary duty consists of the performance of work directly related to management policies of their employer;
Customarily and regularly exercise discretion and independent judgement; and
(i)Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed or sub-division thereof; or
(ii)Execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge; and
(iii)Execute under general supervision, special assignments and tasks, and;'
Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragraphs (1), (2) and (3) above.
Domestic servants and persons in the personal service of another if they perform such services in the employer's home which are usually necessary or desirable for the maintenance and enjoyment thereof, or minister to the personal comfort, convenience, or safety of the employer as well as the members of his employer's household.
Workers who are paid by results, including those are paid on piece-work, "takay", "Pakiao" or task basis and other non-time work if their output rates are in accordance with the standards prescribed the regulations, or where such rates have been fixed by the Secretary of Labor and Employment.
Non-agricultural 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.
C. Premium Pay Rates
The minimum statutory premium pay rates are as follows:
For work performed on rest days or on special days. Plus 30% of the daily rate of 100% or a total of 130%.
For work performed on a rest day which is also a special day. Plus 50% of the daily rate of 100% or a total of 150%.
For work performed on a regular holiday which is also the employee's rest day. Plus 30% of the regular holiday rate of 200% based on his daily basic wage rate or total of 260%.
