Service Charges / Tips

All rank-and-file employees of an employer collecting service charges are entitled to an equal share in the 85% of the total of such charges. The remaining 15% of the charges may be retained by the management to answer for losses and breakages and for distribution to managerial employees, at the discretion of the management in the latter case. Service charges are collected by most hotels and some restaurants, night clubs, cocktail lounges, among others.

It shall be distributed to employees once every two (2) weeks or twice a month. Where the company stopped collecting service charges, the average share previously enjoyed by the employees for the past twelve (12) months immediately preceding such stoppage shall be integrated into their basic wages.

Notes: Some stores don't mention what the price in the menu included/excluded. Sometimes, you may get surprised seeing the bill with 12% VAT and 12% service charge. Total 24% additional...TT

Premium Pay

Premium pay refers to the additional compensation for work performed within eight (8) hours on non-work days, such as rest days and special days. Premium Pay (additional 30% if worked) wise, “No work, No Pay” rule will be applied.

Special Non-Working Holiday

For declared special days such as Special Non-Working Day, Special Public Holiday, Special National Holiday, in addition to the two (2) nationwide special days (November 1, All Saints Day and December 31, Last Day of the Year) listed under EO 203, as amended, the following rules shall apply:
 

Holiday Pay

Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.

All covered employees shall be entitled to holiday pay (additional 100%) when they are on leave of absence with pay on the workday immediately preceding the regular holiday. 

Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they do not work on such regular holiday.

Where the day immediately preceding the holiday is a non-work day in the establishment or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to the holiday pay if he/she worked on the day immediately preceding the non-work day or rest day.

Where there are two (2) successive regular holidays, like Maundy Thursday and Good Friday, an employee may not be paid for both holidays if he/she absents himself/herself from work on the day immediately preceding the first holiday, unless he/she works on the first holiday, in which case he/she is entitled to his/her holiday pay on the second holiday.

Regular Holiday

1. If it is an employee's regular workday

Basic Salary and Minimum Wage

“Basic salary” shall include all remunerations or earnings paid by an employer to an employee for services rendered, but does not include allowances and monetary benefits which are not considered, or integrated as part of the regular/basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay. For minimum wage earners, Cost-of-living allowances (COLA) will be included in the concept of Basic Salary.

The Wage Rationalization Act, Republic Act No. 6727, mandates the fixing of the daily minimum wage applicable to different regions and industrial sectors.  For non-daily paid workers, the estimated equivalent monthly rate can be used for compliance with the minimum wage rate.

The basis of the minimum wage rates shall be the normal working hours of eight (8) hours a day. You’d better check the latest minimum wage rate applicable to your business from DOLE national wages and productivity commission since it is reviewed regularly.

Bubble Characteristics

The economist Hyman P. Minsky identified five stages in a typical credit cycle--displacement, boom, euphoria, profit taking and panic.

1. Displacement: A displacement occurs when investors get enamored by a new paradigm, such as an innovative new technology or interest rates that are historically low. A classic example of displacement is the decline in the federal funds rate from 6.5% in May 2000 to 1% in June 2003. Over this three-year period, the interest rate on 30-year fixed-rate mortgages fell by 2.5 percentage points to a historic lows of 5.21%, sowing the seeds for the housing bubble.

2. Boom: Prices rise slowly at first, following a displacement, but then gain momentum as more and more participants enter the market, setting the stage for the boom phase. During this phase, the asset in question attracts widespread media coverage. Fear of missing out on what could be an once-in-a-lifetime opportunity spurs more speculation, drawing an increasing number of participants into the fold.

3. Euphoria: During this phase,caution is thrown to the wind, as asset prices skyrocket. The "greater fool" theory plays out everywhere.