Labor Laws: Wages, Overtime, and Employee Benefits

Wage Unit-VI

Wage means the compensation, whatever its denomination or method of calculation, that can be assessed in cash. It is payable by an employer to an employee for services or work already performed or to be performed, in accordance with the contract of employment. It is stipulated freely but may not be less than the minimum set according to the requirements of the law. For work of equal value, of the same nature or not, duration, and effectiveness, equal compensation shall correspond.

• Overtime work will be paid with 50% at least on the agreed salary for the ordinary workday.
• Night work will be paid with 30% of the regular wage set for work by day.
• Overtime at night will be paid a premium of 100% of the regular hourly wage.
• Hours worked on holidays shall be paid an extra 100% of the regular business day wage.

Other Remuneration

• Overtime work will be paid with 50% at least on the agreed salary for the ordinary workday.
• Night work will be paid with 30% of the regular wage set for work by day.
• Overtime at night will be paid a premium of 100% of the regular hourly wage.
• Hours worked on holidays shall be paid an extra 100% of the regular business day wage.

Aguinaldo (Annual Bonus)

This is the additional annual compensation equivalent to the 12th part of the salaries earned during the calendar year in favor of the employee, in every respect. "Wages, overtime, commissions, or other", which will be paid by December 31st or at the time the work ends if the reaction occurs before the year's end.

Ways and Means of Payment of Wages, Discounts, Seized

Article 231, wages are paid in legal tender; it is forbidden to pay them in vouchers, payment vouchers, or other records to any representative signs it seeks to replace money.

Discounts

An employer may not withhold or deduct any amount that lowers the amount of wages, except for the following concepts:

• Compensation for any loss or damage to equipment, instruments, products, goods, machinery, and installation of the employer, due to the fault or misconduct of the worker and set by court order.
• Deductible advance of wages made by the employer.
• Check contributions for mandatory social insurance.
• Payment of regular union dues, cooperatives, or mutual worker.
• Retention written permission of the competent authority to meet legal obligations of employees.

Foreclosed

Wages may be garnished within the following limits:

• Up to 50% for the payment of alimony in the manner provided by law.
• Up to 40% to pay for the living room where the worker or food items were purchased for consumption or family living and economically dependent.
• Up to 25% in other cases, purchasing furniture, appliances, etc.

In no case may it exceed 50% of the worker's salary.

Wage Discrimination

Discrimination between workers on ethnic grounds of sex, age, religion, social status, political or trade union affiliation, or working people with limited or specially protected mental health is not permitted.

Minimum Wage

This is enough to satisfy the normal requirements of the worker's life, consisting of food, clothing, transportation, housing, culture, and honest recreation, considering them as head of household.

Standard Setting Criteria and Salary Protection

The living wage and minimum wage will be fixed periodically in order to improve the standard of living, taking into account certain factors:

• The cost of living of working families.
• The general level of wages in the country.
• Economic conditions.

The territory of the Republic is divided into urban and rural areas, setting the minimum wage in general for each regulation of minimum wage rates. This will be a proposal from an organization called the National Minimum Wage Council, which will work at the headquarters of the Labor Management Authority.

Family Bonus

Allowance is equal to 5% of the minimum wage that the employer must pay the worker for each child in a marriage, illegitimate or adopted, whose parenting or education is at their expense.