Book III — Conditions of Employment
Article 96Service charges.
ELI5— what this means for you
If you work in a hotel, restaurant, or similar service establishment, 85% of all service charges collected must be distributed equally among all covered employees. Management only gets 15%. If the establishment abolishes service charges, that share gets integrated into your basic wage.
Key point
Trabaho ka sa restaurant? You're entitled to 85% of the service charge pool, split equally.
Official text — PD 442
Service charges.
All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty-five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages.
Title II
WAGES
Chapter I
PRELIMINARY MATTERS
Source: lawphil.net (PD 442 as amended)
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Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on your specific employment situation, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.