Dear Attorney,

We are a company operating in the National Capital Region (NCR), and we hire on-call repackers for temporary work. We compensate them at a rate of PHP 500 per day. I would like to know if this pay rate complies with labor laws in the Philippines. Specifically, is it permissible to pay such workers PHP 500 daily, or could this present a legal issue under existing minimum wage regulations?

Sincerely,
Concerned Employer

Insights

In the Philippines, labor laws are very specific about minimum wage requirements, especially for non-regular workers like on-call or temporary employees. The Department of Labor and Employment (DOLE) sets minimum wage rates depending on the region where the work is performed, and these rates are regularly updated.

For companies in the National Capital Region (NCR), the daily minimum wage, as of the latest order from the Regional Tripartite Wages and Productivity Board, is currently higher than PHP 500. Thus, compensating your on-call repackers at a daily rate of PHP 500 may fall below the legally mandated minimum wage. Paying workers below the required minimum can expose your company to potential legal consequences, including administrative penalties and back-pay liabilities.

It is also important to note that all workers, regardless of whether they are regular, casual, or on-call, are generally entitled to statutory benefits, such as Social Security System (SSS) contributions, Pag-IBIG Fund, and PhilHealth coverage. Neglecting these obligations could lead to legal complications and penalties from the relevant government agencies.

Additionally, even for temporary or on-call workers, they are entitled to receive overtime pay, night shift differential, and other legally mandated benefits if they meet the necessary conditions (e.g., working beyond 8 hours a day).

To ensure compliance, I strongly recommend you review the latest wage orders applicable to your region, and adjust your pay rates accordingly. It may also be prudent to seek professional advice to assess the classification of your workers (whether they are employees or independent contractors) and determine the appropriate benefits and obligations.