⌛ Maid Pay

Larry.....you must have had a very hard day yesterday :D
Or was it only the beer ?
But we all know what you mean and you are right in what you probably ment.

 

Addendum: How do you treat holidays, pay or time off, how many holidays recognized, pay double if they work a holiday? Thanks

 

Maybe just not awake enough yet to express reality coherently. Paying a maid more than a nurse makes working in a local hospital is asinine in my opinion, but whatever.

Larry

 

I've never hired a maid. But I sometimes "hire" friends who need "loans" to do some of the tedious chores that come with living here. I don't mind dropping my laundry off at the labanderia. But I hate paying bills, getting my motorcycle tuned, going to LTO, etc. Take my bike to Du Ek Sam for a tune-up? Glad to pay P100. Wait in line for me at the LTO? Here's 500 and big thank you.
Living in Dumaguete is very inconvenient. It's only worthwhile because of the great people here. I'm happy to pay generously (by local standards) for stuff like that.

 

I have always paid my house helper above the local going rate. In Pampanga, we started them on 2500 per month, live in with food and private room, working 6 days per week. Generally they ended up working the 7th day so we paid them for the extra day. We review the base rate every 6 month based upon performance. We generally give P 500.00 per 6 month increases if I am happy.

We provide and pay for all medical, so a doctors checkup is advisable before you hire them to make sure you are not getting into a nightmare scemnario

A good background check is also advisable, if they are married with a family, expect things to disappear out of the pantry. Things will always be "borrowed" ..

If the helper is single with a boyfriend, expect trouble, especially when you go away ..

Our current helper is so happy that she wanted to come with us from Pampanga to Dumaguete. We will help her after one year of service here to achieve her dream of completing a caregiver course in return for her loyalty.

Seeing some of the comments regarding salaries, I am a firm believer in NOT paying high salaries, however, I do believe in just compensating by providing opportunities for a better life like education, dental work, etc)

After one month service, we pay SSS. The SSS is actually mandated by the Labor Code of The Philippines which has a special section dedicated to live in house helpers which is specifies EXACTLY their entitlements and your responsibilities as an employer.

Here is the link to the relevant section Official Website of the Department of Labor and Employment

The relevant text is:

Chapter III
EMPLOYMENT OF HOUSEHELPERS

Art. 141. Coverage. This Chapter shall apply to all persons rendering services in households for compensation.

"Domestic or household service" shall mean service in the employer’s home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employer’s household, including services of family drivers.

Art. 142. Contract of domestic service. The original contract of domestic service shall not last for more than two (2) years but it may be renewed for such periods as may be agreed upon by the parties.

Art. 143. Minimum wage.

Househelpers shall be paid the following minimum wage rates:

Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay, and Caloocan cities and municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly urbanized cities;

Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first-class municipalities; and

Five hundred fifty pesos (P550.00) a month for those in other municipalities.
Provided, That the employers shall review the employment contracts of their househelpers every three (3) years with the end in view of improving the terms and conditions thereof.

Provided, further, That those househelpers who are receiving at least One thousand pesos (P1,000.00) shall be covered by the Social Security System (SSS) and be entitled to all the benefits provided thereunder. (As amended by Republic Act No. 7655, August 19, 1993)

Art. 144. Minimum cash wage. The minimum wage rates prescribed under this Chapter shall be the basic cash wages which shall be paid to the househelpers in addition to lodging, food and medical attendance.

Art. 145. Assignment to non-household work. No househelper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or non-agricultural workers as prescribed herein.

Art. 146. Opportunity for education. If the househelper is under the age of eighteen (18) years, the employer shall give him or her an opportunity for at least elementary education. The cost of education shall be part of the househelper’s compensation, unless there is a stipulation to the contrary.

Art. 147. Treatment of househelpers. The employer shall treat the househelper in a just and humane manner. In no case shall physical violence be used upon the househelper.

Art. 148. Board, lodging, and medical attendance. The employer shall furnish the househelper, free of charge, suitable and sanitary living quarters as well as adequate food and medical attendance.

Art. 149. Indemnity for unjust termination of services. If the period of household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that for fifteen (15) days by way of indemnity.

If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not exceeding fifteen (15) days.

Art. 150. Service of termination notice. If the duration of the household service is not determined either in stipulation or by the nature of the service, the employer or the househelper may give notice to put an end to the relationship five (5) days before the intended termination of the service.

Art. 151. Employment certification. Upon the severance of the household service relation, the employer shall give the househelper a written statement of the nature and duration of the service and his or her efficiency and conduct as househelper.

Art. 152. Employment record. The employer may keep such records as he may deem necessary to reflect the actual terms and conditions of employment of his househelper, which the latter shall authenticate by signature or thumbmark upon request of the employer.

 

Househelper Do's and Don'ts

1. A Househelper is a Job, thats what it is under law. A person performs a service and gets compensated for it
2. Treat Househelpers fairly and as an employee and pay them what you agree and on time.
3. Always remember that you are inviting someone into your private and personal life. This can be fantastic, or your worst nightmare
4. Do NOT hire relatives as househelp, it rarely works.
5. SSS is very important to Filipinos, it gives them security, benefits, privelages and is their entitlement under law. It is amazing how grateful employees are when their SSS is always paid and up to date. (Especially the women as they get Maternity benefits that really help them when the have kids
6. Always let your wife choose the househelper, especially if she is pretty. For obvious reasons related to a peaceful existance.
7. If you get the right person, take care of them in simple but effective ways, rice for the family at Xmas, fix the teeth, help the niece go to schoo, etc. Cash is NOT a good thing and generally just gets wasted
8. A Boob Job is NOT a good way to take care of a househelper as a friend of mine found out the hard way.:D

Some one may like to add this list

 

PatO, we pay additional for the seventh day of work, it is only fair and reasonable. We do not pay Overtime or holiday pay, however, we generally take our house helper on family excursions.

On Holidays, we do not pay the double pay, etc but we do not ask our house helper to do anything specific either, we basically leave it up to her ..

The labor code is not very specific and I am not aware of any cases that set a precedence. Common sense prevails, if yo ask your house helper to work over Holy Week and not go to church, then do something for them. Trade days off or whatever.

Cheers

 

Oh, and three more things:

1. If your househelper earns ABOVE the Deducible threshold you are required collect and remit Withholding Tax (PAYE Tax in some countries) and pay it to the BIR. Currently they have an amnesty for minim wages earners, but one peos over the minimum wage, you must collect and remit taxes, this you do NOT want to get involved in for one person.. trust me

2. If you hire someone with a professional skill level and that person uses those skills in the course of their work, then it is HIGHLY PROBABLE that they will be considered a regular skilled employee, entitled to severance pay, 13th month pay, Service Incentive leave, holiday pay, Overtime, Withholding Tax, Philhealth, Pagibig, etc. In other words, they are a skilled worker, not an unskilled household helper. You will almost CERTAINLY lose any case filed against you by such an employee in the Department of Labor.

3. ALL employees are entitled to a 13th month pay, irregardless, and there are NO exceptions to this rules unless they are management staff, and even then, most companies still pay it. This includes house helpers. If you do not know how it works, it is quite simple, just add up their gross salary for the past 12 months (or time they have worked for you) and divide it by 12 and thats what you pay them. Do not include any Overtime or extra payments, just the Gross Salary before deductions. Let me dispel a common myth, an employee is entitled to 13th month pay even if they work just one day. Some people believe they have to be there for a minimum period of time, this is NOT true. 13th month pay is required to be paid before Dec 24th every year, most employers pay it earlier as a way of helping the families with their Xmas.

Here is the Presidential Decree covering 13th Month Pay:

PRESIDENTIAL DECREE NO. 851

RULES AND REGULATIONS IMPLEMENTING
PRESIDENTIAL DECREE NO. 851


By virtue of the powers vested in me by law, the following rules and regulations implementing Presidential Decree No. 851 are hereby issued for the guidance of all concerned.

Section 1. Payment of 13th-month Pay. - All employers covered by Presidential Decree No. 851, hereinafter referred to as the "Decree", shall pay to all their employees receiving a basic salary of not more than P1,000 a month a thirteenth-month pay not later than December 24 of every year.

Sec. 2. Definition of certain terms. - As used in this issuance:
(a) "Thirteenth-month pay" shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year;

(b) "Basic salary" shall include all remunerations or earnings paid by an employer to an employee for services rendered but may not include cost-of-living allowances granted pursuant to Presidential Decree No. 525 or Letter of Instructions No. 174, profit-sharing payments, and all allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary of the employee at the time of the promulgation of the Decree on December 16, 1975.
Sec. 3. Employers covered. - The Decree shall apply to all employers except to:
(a) Distressed employers, such as (1) those which are currently incurring substantial losses or (2) in the case of non-profit institutions and organizations, where their income, whether from donations, contributions, grants and other earnings from any source, has consistently declined by more than forty (40%) percent of their normal income for the last two (2) years, subject to the provision of Section 7 of this issuance;

(b) The Government and any of its political subdivisions, including government-owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the Government;

(c) Employers already paying their employees 13-month pay or more in a calendar year or its equivalent at the time of this issuance;

(d) Employers of household helpers and persons in the personal service of another in relation to such workers; and

(e) Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing a specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall be covered by this issuance insofar as such workers are concerned.
As used herein, workers paid on piece-rate basis shall refer to those who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated, without regard to the time spent in producing the same.

The term "its equivalent" as used in paragraph c) hereof shall include Christmas bonus, mid-year bonus, profit-sharing payments and other cash bonuses amounting to not less than 1/12th of the basic salary but shall not include cash and stock dividends, cost of living allowances and all other allowances regularly enjoyed by the employee, as well as non-monetary benefits. Where an employer pays less than 1/12th of the employees basic salary, the employer shall pay the difference.

Sec. 4. Employees covered. - Except as provided in Section 3 of this issuance, all employees of covered employers shall be entitled to benefit provided under the Decree who are receiving not more than P1,000 a month, regardless of their position, designation or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one month during the calendar year.

Sec. 5. Option of covered employers. - A covered employer may pay one-half of the 13th-month pay required by the Decree before the opening of the regular school year and the other half on or before the 24th day of December of every year.

In any establishment where a union has been recognized or certified as the collective bargaining agent of the employees therein, the periodicity or frequency of payment of the 13th-month pay may be the subject of agreement.

Nothing herein shall prevent employers from giving the benefits provided in the Decree to their employees who are receiving more than One Thousand (P1,000) Pesos a month or benefits higher than those provided by the Decree.

Sec. 6. Special feature of benefit. - The benefits granted under this issuance shall not be credited as part of the regular wage of the employees for purposes of determining overtime and premium pay, fringe benefits, as well as premium contributions to the State Insurance Fund, social security, medicare and private welfare and retirement plans.

Sec. 7. Exemption of Distressed employers. - Distressed employers shall qualify for exemption from the requirement of the Decree upon prior authorization by the Secretary of Labor. Petitions for exemptions may be filed within the nearest regional office having jurisdiction over the employer not later than January 15, 1976. The regional offices shall transmit the petitions to the Secretary of Labor within 24 hours from receipt thereof.

Reposted From: http://www.chanrobles.com/presidentialdecreeno851rules.htm

 

PangitPilot, terrific informative and relative posts and greatly appreciated. Thank you.

 

You are very welcome. One of the hard things to do here is to balance our innate desire to help people with the true worth of the services and work done.

For example, a person who has gone to college and earned a degree works for a salary of, say, P11,000.00, and they find their cousin is working as a maid for an expat at a salary of P10,000, but the cousin has not slaved their way through a four year degree. How would they feel, it takes the value out of what they have tried to achieve, better to not go to school and find a rich expat, right??

This is an inherent problem with a lot of areas, just ask the families who send their daughters to Angeles or Manila to find the rich expat.

It is so hard to balance what you feel someone is worth against what their peers think they are worth. In all likelihood, anyone paying too high for househelp will probably CREATE problems, rather than help, the househelper will come to expect that level of renumeration, so will their families, but remember, their peers may have little respect for them, and when they leave that employment and are back out in the real world without the money and social elevation they enjoyed when employed by the expat, they will find that none of their peers will want to know them any more.

Over valuing employment is definitely prone to creating some social issues for the employees, if not while employed, a good chance afterwards. Like Pilots, a lot of people here tend to live above whatever means they have, hence the common use of "Utang"

I handle this by paying "on par" maybe a little bit higher, and then compensating in different non monetary ways to help families, etc. Giving food or rice as a bonus, fixing the teeth, niece's school fees, or whatever goes a looooong way here. However, you must be very clear on what basis the gift is being given for example, after 6 months, we will send you to the dentist. After 12 months,m we will pay 50% of your nieces school fees (never pay 100%, that takes away the value). Remember, they are an employee being compensated for work done ... so it is important to quantify the rewards clearly. (AND there are no tax issues, etc to worry about)

If they do not meet the objectives or goals you set, then do NOT pay the reward, or you lose face and respect, but you should renegotiate it for another goal.

Above all, if they meet the GOALS you set, GIVE the reward, or you will have no end of trouble. Do not go back on promises to employees, bad joss .. Be clear and simple on the GOALS so that there is NO confusion or misunderstanding, you will always be the person who is wrong in the event here is a dispute, irregardless of your intent at the time you set the goals ..

Finally, remember, once you give something, you cannot take it back .. If you give a high salary, you can NEVER reduce it, if you try, you will regret it for sure .. Never give or compensate more in any one year than you are prepared to do in following years. Whatever you do will be expected again on subsequent years .. forever ..

Just my simple way of doing things after 20 years employing here ..

Hope it helps ..

Cheers