Service Charges

Question 1

What article govern the service charges

Answer 1

Article 96 as amended by RA 11360

Question 2

Who are the covered employees of Service Charges?

Answer 2

All employees, except managerial employees as defined by law, under the direct employ of the covered establishment, regardless of their positions, designations or employment status, and irrespective of the method by which their wages are paid.

Question 3

What is the modality or way of distributing the service charges?

Answer 3

shall be distributed completely and equally, based on actual hours or days of work or service rendered

Question 4

What is the frequency of distribution to Service Charges

Answer 4

The service charges collected shall be distributed and paid to the covered employees once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.

Question 5

Is true that in case there is an increase in minimum wage the service charges paid to employees is not included in the computation of increase in minimum wage?

Answer 5

Yes. Service charge is not included in the computation