HOUSE UF
RECEIVED
27 JUL 2016

KEL

DATE:
Tine:

Republic of the Philippines

HOUSE OF REPRESENTAT:
Constitution Hills, Quezon City

STATON UNIT

JENTATIVES

SEVENTEENTH (17th) CONGRESSLLS AND AX SERVICE

First Regular Session

aie
House Bill No. 24°

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

Under existing provisions of the Labor Code of the Philippines
(P.D. No. 442) on Night Shift Differential specifically Art. 86, Book III of
the said decree “every employee shall be paid night differential of not
less than ten percent (10%) of his regular wage for each hour of work
performed between ten o'clock in the evening and six o’clock in the
morning.”

Because of this provision in the Labor Code, builders and
contractors of government infrastructure projects such as roads and
bridges often do not allow constructions at night, except in extreme
cases of urgency, on account of the additional cost of labor. However,
an analysis of the work output of workers would show that their
efficiency is greater at night because it is cooler and they are spared of
the biting heat of the sun. Furthermore, the delays caused by traffic
are eliminated as traffic density at night is at a minimum almost nil
and therefor the work flow is faster.


On the part of the motorists, construction on roads and bridges
at night would be preferred because the flow of traffic during the day
would be unimpeded by the said road construction or repairs.

This bill proposes to amend Art. 86, Book III, of P.D, No. 442 or
the Labor Code quoted above, by EXEMPTING contractors of
government infrastructure projects from the application of the
payment of night shift differential, OR by GRANTING the said
contractors or builders of government infrastructure projects a TAX
INCENTIVE, equivalent to the amount of night shift differential
payments made by them which may be applied to payment of income
taxes for the current or succeeding year. The pertinent provisions of
the Tax Code shall also be considered modified or amended
accordingly.

Considering the benefits expected from the enactment of this
proposed measure and the practice in almost all other countries, it is
desired that this bill will merit the support of my colleagues.

gue 6. 0%,

ERIC OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH (17%) CONGRESS
First Regular Session

2067
House Bill No,

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT CREATING INCENTIVES FOR UNDERTAKING
GOVERNMENT INFRASTRUCTURE CONSTRUCTION AT NIGHT
AMENDING CERTAIN PROVISIONS OF THE LABOR CODE AND THE
TAX CODE AND FOR OTHER PURPOSES.

SECTION 1. Government infrastructure projects shall be exempt
from the application of night shift differential as required under Article
86, Book III of the Labor Code. However, should the builder or
contractor of such government infrastructure project decide to pay the
night shift differential for night labor, as required in the labor code,
such builder/contractor shall be allowed a tax credit equivalent to the
total of the night shift differential paid, to be deducted from the income
taxes due from said builder/contractor for the current or succeeding
years.

SECTION 2. Art. 86, Book III of the Labor Code (P.D. 442) shall
be amended to read as follows:

“Article 86. Night shift differential - an employee shall be paid
night shift differential of no less than ten percent (10%) of his regular
wage for each hour of work performed between ten o'clock in the


evening and six o’clock in the morning. Provided that, contractors or
builders of government infrastructure projects shall be exempted from
the application of this provision.

Provided, further, that should the builder/contractor of
government infrastructure projects decide to pay the night shift
differential such builder/contractor shall be allowed a tax credit
equivalent to the total amount of night shift differential paid deductible
from the income tax due from him for the current years.”

SECTION 3. This law shall take effect after publication in two (2)
newspapers of general circulation.

APPROVED