Course Code: BAM 200

Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Lesson Title: WAGES AND PREMIUMS Materials:

Lesson Objectives: Student Activity Sheet
At the end of this module, I can:
1. explain the forms, time and place of payment of wages. References:
2. define minimum wage and basic pay The Labor Code Volume 1
3. explain the concept of night shift differential and overtime by C.A. Azuncena
pay

Productivity Tip:
It is amazing how one morning you wake up so energized and refreshed and find it
easier to do the tasks at hand only to wake up another morning feeling the total
opposite. The truth is, you cannot always wait for amazing feeling to come again
before you start the tasks at hand. To maintain consistency, try finding the meaning in
what you do and how it will impact your life for the better. Happy learning!

A. LESSON PREVIEW/REVIEW

1) Introduction (2 mins)

One of the main reasons why people work is for the

monetary benefit.

Giving proper compensation to employees shows that the

employer gives importance to their contribution to the business.
When people feel valued, they feel better about coming in to
work. The morale of the employee increases and they are
motivated to do a good job.

Proper compensation is one of the factors why the employees are likely to stay with the company. Happy
employees are productive employees. The longer the employees are with the company, the more they
know and the more efficient they are in performing their job. All of this leads to increased productivity
which is favorable to the business.

2) Activity 1: What I Know Chart, part 1 (3 mins)

Try answering the questions below by writing your ideas under the first column What I Know.

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 Course Code: BAM 200
Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

What I Know Questions: What I Learned

1. Define basic pay.

2. Define night shift differential.

3. Define overtime pay.

B. MAIN LESSON

1) Activity 2: Pre-Printed Content Notes (13 mins)

FORMS, TIME AND PLACE OF PAYMENT OF WAGES:

Wage:

It shall mean the remuneration or earnings, however designated (salary,

wage, fee, etc.) and is capable of being expressed in terms of money;
Maybe fixed or ascertained on a time, task, piece or commission basis, or
other method of calculating the same;
Payable by an employer to an employee under a written or unwritten
contract of employment for work done or to be done, or for services rendered
or to be rendered;
It includes the fair and reasonable value, as determined by the Secretary
of labor, of board, lodging or other facilities customarily furnished by the
employer to the employee.

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 Course Code: BAM 200
Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Forms of Payment:

The employer must pay the employee in money which is the legal tender of
the Philippines.
Payment of wages by check or money order shall be allowed if necessary.
Employers cannot pay the wages of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits or any other objects, even
when expressly requested by the employee.

Time of Payment:

Wages shall be paid at least once every 2 weeks or twice a month at

intervals not exceeding 16 days.
No employer shall make payment with less frequency than once a month.
If wages cannot be made because of fortuitous events or circumstances
beyond the control of the employer, he must pay the wages immediately after
such event or circumstances ceased.

Place of Payment:

General Rule: Payment of wages shall be made at or near the place of undertaking.
Payment in a place other than the workplace shall be permissible only under the following circumstances:
o When payment cannot be effected at or near the place of work by reason of the deterioration of
peace and order conditions, or by reason of actual or impending emergencies caused by fire,
flood, epidemic or other calamity rendering payment thereat impossible;
o When the employer provides free transportation to the employees back and forth; and
o Under any other analogous circumstances; provided that the time spent by the employees in
collecting their wages shall be considered as compensable hours worked.
Payment of wages through ATMs is allowed under a labor advisory dated November 25, 1996.
We just started our company. We
cannot afford to give our employees
MINIMUM WAGE AND BASIC PAY: the minimum wage this time, sir! But that is illegal! You need to pay
your employees wages not lesser
than the minimum wage!
Statutory minimum wage is the lowest wage rate fixed by law
that an employer can pay his workers.
The payment of minimum wages is not dependent on the
employer’s ability to pay.
Basic pay means the regular basic pay which necessarily
excludes money received in different concepts such as
Christmas bonus and other fringe benefits.

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 Course Code: BAM 200
Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

NIGHT SHIFT DIFFERENTIAL:

Every employee shall be paid a night shift differential of not

less than 10% of his regular wage for each hour of work
performed between ten o’clock in the evening and six o’clock
in the morning.

When the tour of duty of a laborer falls at nighttime (between

10 p.m. and 6:00 a.m.) the receipt of overtime pay will not
preclude the right to night differential pay. The latter is
payment for work done during the night while the other is
payment for the excess of the regular eight-hour work.

OVERTIME WORK:

Work may be performed beyond 8 hours a day provided that the

employee is paid for the overtime work an additional compensation
equivalent to his regular wage plus at least 25% thereof.

Work performed beyond 8 hours on a holiday or rest day shall be

paid an additional compensation equivalent to the rate of the first eight
hours on a holiday or rest day rate plus at least 30% thereof.

When a worker spends additional time to his work, the effect upon him is multi-faceted; he puts in more
effort, physical and/or mental; he is delayed in going home to his family to enjoy the comforts thereof; he
might have no time for relaxation, amusement or sports; he might miss important pre-arranged
engagements; etc. It is thus the additional work, labor or service employed and its adverse effects that
justify the extra compensation that is called overtime pay. (PNB vs PEMA and CIR, 115 SCRA 507 1982)

Undertime work on any particular day shall not be offset by

overtime work on any other day. Daily Rate Amount
P481.00 P481/8 x 125% = P60.13
When the tour of duty of a laborer falls at nighttime (between P60.13 x125% x OT hours
10 p.m. and 6:00 a.m.), the receipt of overtime pay will not
preclude the right to night differential pay. The latter is If the employee spent 3
payment for work done during the night while the other is hours of overtime,
payment for the excess of the regular 8-hour work.
P60.13 x 125% x 3 hours
=P225.49
The COLA shall not be included in the computation of
overtime pay. See the illustration for work in excess of 8 Source: Handbook of Workers’ Statutory Monetary
hours performed on ordinary working days: Plus 25% of the Benefits, Bureau of Working Conditions, 2016 pp 20-21
hourly rate.
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 Course Code: BAM 200
Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

EMERGENCY OVERTIME WORK:

Any employee may be required by the employer to perform overtime work in any of the following cases:
o When the country is at war or when any other national or local emergency has been declared by
the National Assembly or the Chief Executive;
o When it is necessary to prevent loss of life or property or in case of imminent danger to public
safety due to an actual or impending emergency in the locality caused by serious accidents, fire,
flood, typhoon, earthquake, epidemic or other disaster or calamity;
o When there is urgent work to be performed on machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or some other cause of similar nature;
o When the work is necessary to prevent loss or damage to perishable goods; and
o Where the completion or continuation of the work started before the eighth hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer.

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)

Exercise I

1. May the wages be paid in form of goods such as prepaid load? Explain
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

2. Is it lawful to pay the wages every other month? Explain.

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

3. Explain the effect of the non-payment of the employer of minimum wage to his employees.
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

4. Can an employee be obligated to perform an overtime work? Explain.

________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

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 Course Code: BAM 200
Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

3) Activity 4: What I Know Chart, part 2 (2 mins)

It’s time to answer the questions in the What I know chart in Activity 1. Log in your answers in the table.

4) Activity 5: Check for Understanding (5 mins)

Exercise I. TRUE or FALSE

__________1. The provisions with regards to hours of work are also applicable to government
employees, managerial employees and field personnel.
__________2. Wages shall be paid at least once every 2 weeks or twice a month.
__________3. No employer shall make payment with less frequency than once a month.
__________4. As a general rule, payment shall be through the use of Automated Teller Machines or
ATMs.
__________5. Every employee shall be paid a night shift differential of not less than 25% of his regular
wage for each hour of work performed between 10 pm and 6 am.
__________6. Work may be performed beyond 8 hours.
__________7. Work performed beyond 8 hours shall be compensated to additional compensation
equivalent to his regular wage plus at least 25% thereof.
__________8. Basic pay is also known as the regular base pay which includes fringe benefits.
__________9. Undertime may be offset by overtime.
__________10. Employers may not legally compel his workers to render overtime work.

A. LESSON WRAP-UP

Activity 6: Thinking about Learning

Congratulations for finishing this module! Shade the number of the module that you finished

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 Course Code: BAM 200
Module #11

Name: ________________________________________ Class number: __________________

Section: _________ Schedule: _____________________ Date: _________________________

Did you have challenges learning the concepts in this module? If none, which parts of the module helped you
learn the concepts?
________________________________________________________________________________________
________________________________________________________________________________________
______________________________.

Some question/s I want to ask my teacher about this module is/are:

________________________________________________________________________________________
________________________________________________________________________________________
______________________________.

Learning Scores Action Plan

Date
Target/Topic

What module# did you What contributed to the quality of your

What were your
What’s the do? What were the performance today? What will you do next
scores in the
date today? learning targets? What session to maintain your performance or
activities?
activities did you do? improve it?

FAQs

Where the employee alleges non-payment of wages, the employer has the burden to prove payment.
Night shift differential is not waivable.

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