Retirement Benefits for Workers Paid by Results

Are workers paid by results entitled to retirement benefits?

ONE-HALF MONTH SALARY OF EMPLOYEES WHO ARE PAID BY RESULTS

For covered workers who are paid by results and do not have a fixed monthly rate, the basis for the determination of the salary for fifteen (15) days shall be their average daily salary (ADS) . The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period.

THE IMPLEMENTING RULES

Section 8, Rule VII-A, Book III of the Rules to Implement the Labor Code provides that:

[1] On petition of any interested party, or upon its initiative, the Department of Labor shall use all available devices, including the use of time and motion studies and consultation with representatives of employers’ and workers’ organizations, to determine whether the employees in any industry or enterprise are being compensated in accordance with the minimum wage requirements of this Rule.

[2] The basis for the establishment of rates for piece, output or contract work shall be the performance of an ordinary worker of minimum skill or ability.
[3] An ordinary worker of minimum skill or ability is the average worker of the lowest producing group representing fifty percent (50%) of the total number of employees engaged in similar employment in a particular establishment, excluding learners, apprentices and handicapped workers employed therein.

[4] Where the output rates established by the employer do not conform with the standards prescribed herein, or with the rates prescribed by the Department of Labor in an appropriate order, the employees shall be entitled to the difference between the amount to which they are entitled to receive under such prescribed standards or rates and that actually paid them by the employer.”

UNDERGROUND MINE EMPLOYEES PAID BY RESULTS

The rule mentioned above is the same for underground mine employees. Click here for more details.

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