Labor Laws in the Philippines

This Article Covers:

• What Are Philippine Time Management Laws?
• What Are the Hiring, Working, and Termination Laws in the Philippines?
• What Are the Key Labor Laws in the Philippines?
• Philippine Payment Laws
• What Are Philippine Overtime Laws?
• What Are Philippine Time Off/Break Laws?
• Philippine Leave Laws
• What Are Philippine Child Labor Laws?

What Are Philippine Time Management Laws?

In the Philippines, working conditions and labor rights are covered by the Labor Code of the Philippines (Presidential Decree No. 442). It was issued in 1974 to define and protect the rights of Filipino workers. The Code is a comprehensive law divided into seven books, covering topics like the minimum working age, work hours, wages, holidays, hiring and termination, employee benefits (such as 13th-month pay, retirement pay, and holiday pay), and rules on forming or joining labor unions.

The Labor Code of the Philippines contains the specifications of conditions of employment such as normal hours of work, overtime, holidays, service incentive leaves, and service charges. Normal hours of work shall not exceed 8 hours a day and include short rest periods and at least an hour of time off for regular meals. The right to a weekly rest day is also defined in this legislation, which amounts to 24 consecutive hours after six consecutive working days.

There is no single national minimum wage in the Philippines. Instead, wage rates vary by region, as set by the Regional Tripartite Wages and Productivity Boards.

The Philippines Labor Code has undergone many amendments to better protect workers’ rights, and it will continue to evolve as society and labor needs change.

In 2017, Congress passed House Bill No. 6152, or the Compressed Workweek Scheme. It allows businesses to extend daily work hours beyond the usual 8, as long as the 48-hour weekly limit is not exceeded. This setup shortens the workweek to fewer than six days and gives employees longer rest periods, from at least 24 hours to 48-72 consecutive hours. Rest schedules are set by the employer but must consider collective bargaining agreements, directives from the Department of Labor, and employees’ religious preferences.

Beyond the Labor Code and its amendments, other laws, presidential decrees, and Department of Labor and Employment (DOLE) orders also protect Filipino workers, especially women, minors, house helpers, and home-based workers, who historically had fewer rights. The Code guarantees equal pay and opportunities for women, protects against discrimination due to pregnancy, and ensures fair treatment in promotions, training, and benefits.

What Are the Hiring, Working, and Termination Laws in the Philippines?

Hiring, firing, and working laws are exhaustively discussed in the Labor Code of the Philippines. It specifies the minimum employable age, conditions for work, and the procedures and various causes for termination that employers and employees must follow in order to avoid penalties.

The minimum employable age for Filipino workers is 15 years old provided that their employment does not interfere with their schooling, and persons under 18 years old are prohibited from being employed in jobs that are considered hazardous according to the Secretary of Labor and Employment.

What Are the Hiring Laws in the Philippines?

Hiring in the Philippines falls under two main categories, casual and regular. 

• Casual employment is when someone is hired for a specific project or a short-term job (not more than 12 months). Once the project ends, the employment ends.
• Regular employment is when someone is hired to do work that is essential to the business. This usually happens after at least one year of service, or if a casual job lasts longer than 12 months, the employee becomes regular. 

Employment discrimination is prohibited by the Labor Code of the Philippines. When hiring, employers are not allowed to discriminate against employees based on, but not limited to the following:

• Sex, gender, and sexual orientation
• Age
• Ethnicity or race
• Religion or lack of one
• Marital and pregnancy status
• Solo parent status
• Disability including mental health conditions
• Medical conditions and diseases, including HIV, tuberculosis, Hepatitis B, and cancer
• Union membership

The Code directs organizations to ensure that policies aimed at preventing and punishing discrimination according to the tenets of the law are in place and enforced.

What Are Termination Laws in the Philippines?

Unlike most other countries, at-will employment is non-existent in the Philippines, and the right to security of tenure is guaranteed by the Labor Code and subsequent legislation. 

Termination of employment in the Philippines requires just causes or authorized causes.

Just causes are grounds for dismissal based on undesirable behavior that the employee exhibits during the period of their employment. These include serious misconduct or improper actions against the employer, co-workers, or the organization, such as the following: 

• Serious improper behavior
• Deliberate refusal to follow lawful orders
• Repeated and serious neglect of duties
• Fraud or violation of trust
• Committing a crime or offense against the employer, their family, or representative
• Other similar causes

By contrast, authorized causes are valid reasons for dismissal due to business or health considerations, not employee misconduct. These include:

• Installation of labor-saving devices
• Redundancy
• Retrenchment to prevent losses
• Closure and cessation of business
• Disease / illness

When dismissing an employee for a valid reason, the employer must follow due process. This means giving a written notice at least 30 days before termination, explaining the reason and evidence, and sending a copy to DOLE. The employee has the right to respond and, if they contest, must be given a fair hearing. If dismissal is confirmed, the employer must issue a final notice, inform DOLE, and pay the required benefits.

Separation Pay

After termination, employers must immediately calculate and disburse the appropriate amount of separation pay for the affected employees as dictated by the Labor Code:

• Termination due to the installment of labor-saving devices or redundancy: One month’s salary or an amount equivalent to one month’s salary multiplied by the number of years they’ve served in the company, whichever is higher.
• Termination due to retrenchment, closure, or illnesses and diseases: One month’s salary or an amount equivalent to a half-month’s salary multiplied by the number of years in service, whichever is higher.

Wrongful or illegal dismissal

Wrongful or illegal dismissal defined as termination of employment without just cause or authorized cause.

If an employee is illegally dismissed, the employer may be required to reinstate them, pay their lost wages, award them separation pay, cover damages, and shoulder attorney’s fees.

Voluntary work termination

Retirement can be considered a form of voluntary termination.

Employees can retire once they reach the retirement age stated in their contract or collective bargaining agreement. If no retirement plan exists, the Labor Code allows employees to retire at 60 (optional) and requires retirement at 65 (mandatory), as long as they have worked at least 5 years for the company.

Upon retirement, they must receive at least half a month’s salary for every year of service. Any service of six months or more is counted as a full year.

Employees may also end their employment by resigning. They can do this without giving a reason, as long as they submit a written notice, usually a resignation letter, at least 30 days before leaving. If they fail to give notice and just stop reporting to work (commonly called “AWOL,” or absent without leave), the employer may hold them liable for damages.

When there are just causes for the termination of the working relationship by the employee, they are not required to serve a written notice when terminating their working relationship with their employer. These causes include the following: 

• Insults to the person and honor of the employee by the employer or their duly appointed representative
• Inhuman and unbearable treatment
• Commission of a crime or offense by the employer or their authorized representatives against the employee and/or their immediate family members
• Any similar causes

What Are the Key Labor Laws in the Philippines?

Aside from the Labor Code of the Philippines and its amendments that were discussed previously, there are also other legislation that govern labor relations in the Philippines. Here is a list of significant Philippine labor laws and their brief descriptions.

• Worker Protection Laws: The Herrera Law (R.A. No. 6175) strengthens workers’ rights to participate in policy-making decisions that affect their rights, duties, and welfare. It also outlines terms for collective bargaining, mediation, conciliation, arbitration, and free trade unionism. All of this aims to promote industrial peace and protect workers from unfair practices.
• Social Security Laws: The Social Security Law of 1954 (R.A. No. 1161) creates the social security system which requires contributions during employment in exchange for benefits when needed most. These benefits include monetary support in cases of sickness, unemployment, retirement, disability, and death.
• Determination of Wage: The Wage Rationalization Act (R.A. No. 6727) sets fair minimum wages that ensure workers and their families have a decent standard of living. It also establishes different minimum wage rates per region. For household workers, the Domestic Workers Act/Kasambahay Law (R.A. 10361) offers protection by setting the minimum standards for wages, benefits, and working conditions.
• Tipped Wages: The Service Charge Law (R.A. No. 11360) states that all service charges collected by hotels, restaurants, and similar businesses must go entirely to their employees. However, this benefit does not include those holding managerial positions.
• 13th-Month Pay:The 13th-Month Pay Law (P.D. No. 851) requires all employers to provide a 13th-month pay equivalent to a month’s salary before the end of the year. The minimum pay for the 13th-month should be at least one-twelfth (1/12) of the total salary earned by an employee within the calendar year.
• Protection from Discrimination: Equal employment opportunities are explicitly outlined in the Labor Code of the Philippines. Additional laws expand this protection, such as the Magna Carta for Persons with Disability (R.A. 7277), which prohibits denying jobs or benefits to persons with disabilities, and the Anti-Age Discrimination in Employment Law (R.A. 10911), which bans unfair age limits in hiring, dismissal, or retirement.
• Anti-Harassment and Violence: The Anti-Violence Against Women and Their Children Law (R.A. 9262) grants victims paid leave and additional support under protection orders, while the Anti-Sexual Harassment Act (R.A. 7877) makes workplace harassment by superiors unlawful, including when used as a condition for hiring.

Philippine Payment Laws

In this section, we’ll look into the details of minimum wage standards, including any exceptions that may apply.

What Is the Minimum Payment in the Philippines?

The Philippines does not have a standard minimum wage that covers all employees in the country, as wages are decided upon by the Regional Tripartite Wages and Productivity Board proper to each region.

Minimum wages also differ by sector, and in most cases, daily rates for the agricultural sector are lower than those of other sectors, and wages for domestic workers are prescribed in monthly terms in contrast to the daily rates of other sectors.

Here’s a rundown of the minimum wages for all 12 regions of the Philippines as of 2025.

Calculate payroll easily and accurately with our FREE Philippines Work Time Calculator.

What Are the Exceptions for Minimum Payment in the Philippines?

It is illegal for employers to pay less than the wage specified by the Regional Tripartite Wages and Productivity Board governing their business location. However, Republic Act No. 9178 automatically exempts BMBE-certified businesses classified as micro or sole proprietorships from paying minimum wage rates.

Small enterprises still recovering from the effects of the pandemic, natural calamities, or human-induced disasters may also apply for exemptions for a limited time. However, until and unless they have secured an exemption, they are still obligated to pay minimum wage rates.

The Labor Code also allows employers to pay employees classified as apprentices and learners up to 25% less than the minimum wage rate applicable to their location and sector.

What Is the Pay for Night Shifts in the Philippines?

The Labor Code of the Philippines states that employers should pay their workers a night shift differential for work conducted from 10:00 p.m. to 6:00 a.m. the following day. The night shift differential is defined as an addition of at least 10% to the basic pay rate. 

What Is the Payment Due Date in the Philippines?

According to the Labor Code of the Philippines, employers should pay their employees at least once every two weeks, with intervals of no more than 16 days. A degree of leniency is afforded with the stipulation that employers can pay once a month, but no less frequently than that. 

When force majeure or circumstances beyond the employer’s control interfere with their ability to pay according to the specifications of the code, they must pay the wages owed as soon as circumstances allow. 

What Are Philippine Overtime Laws?

In the Philippines, any work done over the 8 hours allotted as normal hours per workday is considered overtime. For this, employees must be paid their regular rate plus an additional OT pay of at least 25% of their regular rate. On rest days and holidays, employees must be paid the prescribed holiday and rest day rates plus an additional OT pay of at least 30% of their holiday or rest day rates.

The Code further states that undertime on any particular day cannot be offset by overtime on any other day.

What Are Overtime Exceptions and Exemptions in the Philippines?

According to the Labor Code of the Philippines, employees exempt from being paid overtime are managerial employees, and field personnel who are defined as non-agricultural employees working away from the main place of business and whose actual hours of work cannot be determined with absolute certainty.

Learn about Overtime Laws in the Philippines through our detailed guide.

What Are Philippine Time Off/Break Laws?

The Philippine Labor Code directs employers to give their workers “rest periods of short duration” within regular hours. However, it does not explicitly say when and how many of these breaks employees may take during the workday, though it is common practice for establishments to allow one rest period every four hours.

Short rest breaks during working hours are also counted as work time.

Employers must also give employees at least 60 minutes for their regular meal break, as required by law.

What Are Philippine Breastfeeding Break Laws?

Pursuant to R.A. No. 10028, the DOLE Department Order No. 143 s. 2015 dictates that employees who are lactating or breastfeeding their infants or young children should be given paid lactation periods of no less than 40 minutes for every 8-hour work period, separate from their regular meal breaks. 

Furthermore, establishments are directed to provide a lactation station or breastfeeding room where lactating or breastfeeding employees can safely and comfortably express their breast milk or breastfeed their infants or young children. Lactation stations must be private, clean, sanitary, and conducive for expressing breastmilk, storing it, and washing up afterward.

What Is the Philippine Day of Rest Law?

Employees in the Philippines are entitled to at least 24 consecutive hours of rest for every seven (7) consecutive days.

Employers decide the schedule of weekly rest days, subject to labor agreements and DOLE rules, but must respect employees’ religious preferences, such as Sunday rest for most Catholics.

In certain situations, like emergencies, disasters, urgent repairs, perishable goods, abnormal work demands, or operations that cannot stop, employers may require employees to work on their rest days. If this happens, employees must be paid at least 30% extra. If the rest day also falls on a holiday, they must receive at least 50% more than their holiday pay rate.

Philippine Leave Laws

The right to service incentive leaves is outlined in the Labor Code of the Philippines. However, beyond that, the Code does not say much else about leave rights. Thankfully, subsequent legislation has expanded on the concept, resulting in the current legal guidelines governing leaves in the Philippines. 

What Is Philippine Required Leave?

he original stipulations of the Labor Code of the Philippines require employers to provide their workers who have served the establishment for at least a year with service incentive leaves of five full days of leave with pay every year. These paid leave days may be used for vacation or sickness. However, it does not apply to employees already enjoying paid vacation leaves of at least five days. If these leaves are unused at the end of the year, the Code directs employers to convert them to cash.

Other types of leave beyond the labor code core include:

• Maternity Leave: Under Philippine law, new mothers are entitled to 105 days of paid maternity leave, plus an optional 30 days without pay. Solo mothers get an extra 15 days paid leave. In cases of miscarriage or emergency pregnancy termination, employees are entitled to 60 days of paid leave.
• Paternity Leave: Married male employees are entitled to 7 days of paid paternity leave when their wife gives birth or has a pregnancy-related loss. This can be extended to 14 days if the wife works in the same company and transfers her leave credits. Paternity leave can only be used up to 4 times, and it applies only if the couple is legally married and living together. It does not cover children born out of wedlock.
• Parental Leave for Solo Parents: Solo parents are entitled to 7 days of paid parental leave per year under Philippine law. This applies to employees raising children alone due to situations like rape, death of a spouse, a spouse’s imprisonment, incapacity, abandonment, legal separation, or annulment, provided they have custody of the child.
• Leave for Victims of Violence Against Women and Their Children is provided by R.A. No. 9262 for female employees who may be experiencing such, amounting to 10 fully paid days, intended to give them time to attend to medical and legal concerns. This leave may be extended as the need arises according to the specifications of protection orders issued by the barangay or the court.
• Special Leave for Women: R.A. No. 9710, also known as the Magna Carta Of Women, provides Special Leave Benefits for women who undergo operations for gynecological disorders. The law entitles women who have served for at least six months continuously for the last twelve months before surgery to a two-month leave with pay. 

What Is Philippine Non-Required Leave?

The Labor Code of the Philippines only requires certain types of leave. Other kinds of leave are not mandatory by law, but many employers still give them as a common practice or employee benefit. Examples of these include:

• Sick leave (outside of the Special Incentive Leave), up to 15 days
• Bereavement leave (for the death of immediate family members, grandparents, and parents-in-law), usually three to five days
• Vacation leave, usually 10 to 15 days depending on company policies 

What Are Philippine Holiday Laws?

The Philippines is noted for having a lot of holidays, which are classified as either regular or special non-working holidays. On these days, employees may take the day off unless required to work by their employers. 

The Labor Code dictates that employers should pay employees their full daily rate on regular holidays even when they don’t show up for work, and if they are required to work on those days, they are entitled to double wages. On special non-working holidays, employees can take the day off without pay, but if they are required to work on those days, they are entitled to receive an additional payment of at least 30% of their daily rate.

Here’s a rundown of holidays in the Philippines for 2025.

Learn about Leave Laws in the Philippines through our detailed guide.

What Are Philippine Child Labor Laws?

In the Philippines, The Labor Code specifies the minimum employable age for Filipino workers is 15 years old. It is legal to employ minors 15 to 18 years old, provided that their employment does not interfere with their schooling. The Labor Code states that children aged 15 to 18 years old may only work jobs that are not considered to be hazardous or deleterious as defined by the Secretary of Labor and Employment, such as those with a risk of exposure to harmful chemicals, exposure to viral or bacterial agents, operation of dangerous machinery, and similar jobs.

Children below 15 years old may be permitted to work according to the Labor Code provided that their job is under the direct and sole responsibility of a parent or guardian in an establishment where only family members are employed. Such employment should not involve any hazardous undertakings.

P.D. No. 603, otherwise known as the Child and Youth Welfare Code, stipulates that the employment of children below 16 years old must not prejudice their attendance in school. R.A. 7610, also known as the Special Protection of Children Against Child Abuse, Exploitation, and Discrimination Act, further specifies that the employment of children below 15 years old should not be detrimental to their health, morals, development, and safety.

Learn about Child Labor Laws in the Philippines through our detailed guide.

Important Cautionary Note

When making this guide, we have tried to make it as accurate as possible. However, we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you to seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred by the use of this guide.