Kasambahay Law Employers Guide: In a Nutshell ( Part 1)

Kasambahay LawThe law that has taken all household employers aback, has been signed into law by Pres. Aquino last January 18, 2013, and is enforceable last June 4, 2013. Thankfully our village conducted a short seminar plus a one-stop registration shop for SSS, Phil-health and Pag-ibig. Just to give you an idea of cost involved, I would be paying an extra P 781/ month per helper on contributions:(

Here is a gist of the seminar, forms to be filled up and procedure for payment and filing. Just click on the links.

Disclaimer: This is a direct copy from Q & A on Batas Kasambahay (Republic Act No. 10361) issued by the Department of Labor and Employment. The only thing changed was the order of presentation. Words in italics are my personal notes. For the complete rules and regulations please secure a copy of RA 10361.

Mandatory Benefits of a Helper:

a. Monthly Minimum Wage

b. Daily Rest of Period of a total of 8 hours

c. Weekly rest period of 24 hours (uninterrupted) Ergo, weekly day-off!

d. Service Incentive Leave of 5 days a year.

e. 13th month payI-budget na ito!  

f. SSS benefit (click here for kasambahay law rule / click here for details - benefits, registration, contribution chart etc.)

g. PhilHealth benefit (click here for kasambahay law rule / click here for details - benefits, registration, contribution chart etc.)

h. Pag-ibig benefit (click here for kasambahay law rule / click here for details - benefits, registration, contribution chart etc.)

Details:

A. Monthly Minimum Wage

NCR - P2,500

Cities and 1st class municipalities outside of NCR - P2,000

Other municipalities - P 1,500

B. Daily Rest of Period of a total of 8 hours

The 8 hour rest period must be observed and employers cannot require the helper to work beyond 16 hours ay any given workday in return for an equivalent hourly rate.

C. Weekly rest period of 24 hours (uninterrupted)

Employers and helper may agree to shorten the 24-hour rest day period of helpers, provided the employer pays for the hours worked during the shortened rest day.

The weekly rest period/day of the helper will be set based on the agreement of employer and helper. The employer shall respect the preferred weekly rest day of the helper on religious grounds.

D. Service Incentive Leave of (SIL) 5 days a year.

This benefit can be availed of only after one year of service. If the helper fails to avail of the SIL, it shall be forfeited and cannot be converted to cash.

The following arrangements may also be agreed upon by employer and helper:

• Offsetting a day of absence with a particular rest day;

• Waiving a particular rest day in return for an equivalent daily rate of pay;

• Accumulating rest day not exceeding 5 days;

• Adding the accumulated rest days (max of 5 days) to the 5-day SIL;

• Waiving a particular SIL in return for an equivalent daily rate of pay.

E. 13th Month Pay

Helper will be entitled to 13th month pay only after 1 month of service. In computing the 13th month pay, the total basic wage received in a given calendar year shall be divided by 12. The amount derived shall be paid not later than December 24.

F-G. SSS, PhilHealth and Pag-Ibig (SPG) General Rule

Helpers must be covered by SPG after 1 month of service. Membership and contributions in all 3 is mandatory and non-negotiable.

If the wage of the helper is less than P 5,000, employer assumes full payment.

If the wage of the helper is more than P 5,000, the helper will pay her share in the premium contributions as stipulated in the chart.

Helpers and employers cannot just direct premiums to helper in addition to his/her salary. Under the SPG laws, the employer has the obligation to register the helper, deduct and remit premiums and contributions. The employer shall incur certain liabilities, including criminal prosecution, if he fails or refuses to comply with her/her obligations.

Striking a deal with helpers to just direct the premiums directly to their wage is a very tempting arrangement to spare us of the hassle of remitting contributions. However, remember that on good times, our helpers may agree to this but if the tide turns this can be used against us. So it is better to just do it right at the start and enroll them.

For other rules and regulations relating to the Kasambahay Law like contract of employment forms, deposit slips, penalties and charges for non-compliance of the Law etc. please click my blog on Kasambahay Law Employers Guide: In a Nutshell ( Part 2).

I think the law is good since it protects our valued helpers who makes life so much easier for us. However, equal protection must be accorded employers against abusive helpers. And please, that retroactive law requiring all employers to pay past contributions - puh-lease it is WRONG!   You can't punish someone for a law that has just been implemented.

Hope you can share me your thoughts on the recently implemented Kasambahay Law. I would love to hear from you:-)

With you in this Happy Chaos called Parenting!

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