Business Labor Forum Philippines

Regular vs. Special Allowance under Philippine Jurisdiction


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Under Philippine jurisdiction, the term "Wage" refers to any monetary paid to any employee shall mean the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is 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 and includes the fair and reasonable value of board, lodging, or other facilities customarily furnished by the employer to the employee. One of the usual question asked from us in our legal coaching sessions is whether the an allowance is part of the definition of wage or salary. In this episode, we will briefly discuss the difference between regular and special allowances given to employees.

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Business Labor Forum PhilippinesBy Marvyn Gaerlan