Working Hours and Travel Time Pay Under Philippine Labor Law
This article provides a general overview of the applicable laws, rules, and regulations in the Philippines concerning working hours and compensation for travel time. It is intended for informational purposes only and should not be taken as legal advice. For specific cases, always consult a qualified Philippine labor law practitioner or the Department of Labor and Employment (DOLE).

I. Introduction

In the Philippines, working hours and travel time pay are primarily governed by the Labor Code of the Philippines (Presidential Decree No. 442, as amended) and various regulations issued by the Department of Labor and Employment (DOLE). Employers and employees alike must be mindful of the legal requirements surrounding hours of work, overtime pay, rest periods, and whether or not travel time is compensable.

II. Legal Framework and Definitions

Labor Code of the Philippines
- The Labor Code sets out the basic parameters for employment relationships, including hours of work, overtime, rest days, and special rules for certain industries or occupations.
Implementing Rules and Regulations (IRR)
- The DOLE issues implementing rules and regulations that clarify and elaborate on the provisions of the Labor Code, including guidelines on how to treat travel time and how to determine compensable working hours.
Jurisprudence (Court Decisions)
- The Supreme Court of the Philippines occasionally issues decisions interpreting or clarifying the Labor Code’s provisions on working hours and pay. Such case law can influence how rules are applied.
Key Definitions
- Hours Worked: The time during which an employee is required to be on duty or to be at a prescribed workplace, and all time during which an employee is permitted or required to work.
- Normal Work Hours: Usually 8 hours per day (excluding certain breaks), for 6 days a week or as agreed upon, unless otherwise modified by a compressed workweek or flexible work arrangement.
- Travel Time: The time spent by an employee traveling in connection with the performance of their duties, which may or may not be considered as hours worked depending on the circumstances.

III. Standard Hours of Work

1. Normal Working Hours

Under the Labor Code, the normal working hours for an employee shall not exceed eight (8) hours a day.
A workweek commonly runs for 6 days, with a standard total of 48 hours per week. Some employers, however, adopt a 5-day workweek totaling 40 working hours.
Meal Breaks: Employees are generally entitled to a 60-minute uninterrupted meal break that is not counted as hours worked, unless the employee is required to remain on-duty or on-call during the break.
Rest Periods: Short rest periods of 5 to 20 minutes may be considered compensable if they are counted as part of the workday, depending on company policy or collective bargaining agreements.

2. Overtime Work

Work performed beyond eight (8) hours in a day is generally considered overtime.
The Labor Code mandates that employees who work overtime shall receive additional compensation equivalent to their regular wage plus at least 25% of the hourly rate, for work performed beyond eight hours on ordinary working days.
If the overtime work is performed on a rest day or holiday, the premium rate increases (e.g., 30%, 50%, or more, depending on the nature of the holiday or rest day).

3. Compressed Workweek and Flexible Work Arrangements

Compressed Workweek: This arrangement allows employees to complete the required weekly working hours in fewer than six days (e.g., four 10-hour days). DOLE regulations require that the arrangement not reduce the total weekly or monthly pay of employees, and it must be mutually agreed upon by the employer and employees.
Flexible Work Arrangements: In certain circumstances (e.g., business continuity, the rise of remote work), employers and employees may adopt flextime schedules or work-from-home setups. Under these schemes, the total hours worked each week should still comply with labor regulations, including provisions on overtime if actual hours exceed the daily or weekly threshold.

IV. Travel Time Pay

Whether travel time is counted as compensable hours worked in the Philippines depends on when, why, and how the travel takes place. The general principle is that regular commute from home to the usual place of work (and vice versa) is not compensable, while travel that is integral to the performance of duties or occurs during working hours may be compensable.

1. Commuting to and from the Usual Place of Work

Not Compensable: The standard daily commute from an employee’s home to the normal workplace (and back) is typically not counted as work hours.
Exceptions: If an employer requires the employee to do work-related tasks en route or sets the employee’s official workday to begin from a certain point during the commute, those specific tasks might be compensable. For example, if the employer requires the employee to pick up supplies or equipment on the way to work, the time spent performing that task (not the general commute) may be deemed compensable.

2. Travel During Normal Working Hours

Compensable: Travel that is part of the employee’s principal activity or required during the employee’s normal working hours is considered hours worked. For instance, if an employee is required to attend off-site meetings, visit clients, or conduct deliveries during the regular work schedule, that travel time is compensable.
Meal Breaks and Waiting Time: If travel time overlaps with meal breaks or waiting time that is not spent working, whether it is compensable depends on whether the employee is required to be on duty or on-call. Generally, purely personal meal breaks or personal errands are not compensable.

3. Overnight Travel or Out-of-Town Assignments

Compensable Portion: If the employee is traveling as part of an out-of-town assignment or project, the hours that fall within the employee’s normal work schedule or actual time spent working (e.g., checking email, coordinating with team, etc.) are compensable.
Non-Work Periods: Time spent outside the employee’s regular working hours, such as sleeping or engaging in personal recreation during an overnight trip, is typically not compensable unless the employee is required to remain on duty or on-call.
Waiting Time / Layovers: If the layover is for personal convenience (e.g., sightseeing, extended personal stay), this is not compensable. If the layover is purely operational (e.g., the next available flight is on the following day) and the employee is required to remain on standby for the employer, then a portion may be considered compensable.

4. Company Policy or Collective Bargaining Agreements (CBAs)

Certain employers may adopt more generous policies on travel time pay.
CBAs may incorporate provisions on compensable travel time that go beyond statutory minimums. For instance, a CBA might specify that employees traveling outside normal hours must be paid at overtime rates, or may receive a flat allowance for travel time in addition to their wages.

V. Computation of Pay for Travel Time

Regular Hourly Rate
- If travel time is deemed compensable and falls within the employee’s normal work schedule, it is paid at the regular hourly rate.
Overtime Rate
- If travel time extends beyond the regular eight-hour workday, or falls on an employee’s rest day or holiday, the employee is typically entitled to overtime pay or the relevant premium pay rate.
Per Diems, Meal Allowances, and Other Benefits
- For out-of-town or overnight assignments, employers often provide additional allowances or per diems to cover lodging, meals, and incidental expenses. While these allowances are not part of the basic wage, they are governed by company policy, contracts, or CBAs.

VI. Enforcement and Remedies

Department of Labor and Employment (DOLE)
- Employers must keep proper records of employees’ work hours, including overtime, on-call schedules, and any compensable travel time.
- Employees who believe their travel time has not been properly compensated can file a complaint or request an inspection through the DOLE.
NLRC Complaints
- If disputes or claims remain unresolved, employees may file a case before the National Labor Relations Commission (NLRC) for illegal deductions, nonpayment of overtime, or underpayment of wages.
Penalties for Non-Compliance
- Employers who fail to comply with labor standards may be subject to administrative fines, penalties, and orders to pay back wages, among other remedies.

VII. Key Takeaways

Standard Work Hours: The maximum normal hours is eight (8) hours a day. Work beyond that is subject to overtime pay.
Commuting: Commute from home to the usual workplace is generally not considered hours worked.
Travel Time During Work: When travel is part of the employee’s official duties and done during work hours, it is compensable.
Overnight or Out-of-Town: Only the hours spent performing duties (or hours within the normal work schedule) are compensable; purely personal or off-duty hours generally are not.
Company Policies / CBAs: Employers and unions may negotiate more generous terms than the Labor Code minimum standards.
Compliance and Enforcement: DOLE, the NLRC, and Philippine courts enforce compliance with labor standards, including proper compensation for travel time when warranted.

VIII. Conclusion

Proper management of working hours and travel time pay is crucial for maintaining a harmonious employer-employee relationship in the Philippines. Understanding the distinctions between compensable and non-compensable travel, as well as being aware of lawful rates for overtime and premium pay, helps ensure compliance with labor standards. Employers should maintain clear policies consistent with the Labor Code and DOLE regulations, and employees should be vigilant in monitoring their hours to protect their rights.

For further guidance on specific cases—especially where there is a dispute or uncertainty—it is advisable to consult with legal counsel or directly approach the Department of Labor and Employment (DOLE) for clarifications or to seek the most updated regulations.