OMNIBUS RULES IMPLEMENTING THE LABOR CODE

SECTION 21. Contents of employment contracts. — The employment contracts shall in no case provide
for terms of employment below the standards established by the Department, which shall not be below
the basic requirements of Philippine labor and social legislation or practices, and shall include the
following: (Modified by Sec. 1 Rule I, Book V, POEA Rules and Regulations)

(a) Guaranteed wages for regular working hours and overtime pay for services rendered in excess of
basic working hours as established by the Ministry;

SECTION 7. Compensation on rest day/Sunday/holiday. — (a) Except those employees referred to under
Section 2, Rule I, Book Three, an employee who is made or permitted to work on his scheduled rest day
shall be paid with an additional compensation of at least 30% of his regular wage. An employee shall be
entitled to such additional compensation for work performed on a Sunday only when it is his established
rest day.

(b) Where the nature of the work of the employee is such that he has no regular work days and no
regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his
regular wage for work performed on Sundays and holidays.

(c) Work performed on any special holiday shall be paid with an additional compensation of at least 30%
of the regular wage of the employees. Where such holiday work falls on the employee's scheduled rest
day, he shall be entitled to additional compensation of at least 50% of his regular wage.

(d) The payment of additional compensation for work performed on regular holiday shall be governed
by Rule IV, Book Three, of these regulations.

(e) Where the collective bargaining agreement or other applicable employment contract stipulates the
payment of a higher premium pay than that prescribed under this Section, the employer shall pay such
higher rate.

Handbook on Statutory Monetary Benefits

D. Stipulated Overtime Rates Generally, the premium pay for work performed on rest days, special days,
or regular holidays is included as part of the regular rate of the employee in the computation of
overtime pay for overtime work rendered on said days, especially if the employer pays only the
minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in
their collective agreement the payment for overtime work at rates higher than those provided by law.

Art. 93. Compensation for rest day, Sunday or holiday work.

1. Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of
at least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work
performed on Sunday only when it is his established rest day.
2. When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be
scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work
performed on Sundays and holidays.
3. Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the
regular wage of the employee. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to
an additional compensation of at least fifty per cent (50%) of his regular wage.
4. Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher
premium pay than that prescribed under this Article, the employer shall pay such higher rate.