.' 
iPcllIlil' 
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SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
JUL -7 A10 :06 
SENATE 
Senate Bill No.. 2298 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR THE INCREASE IN THE RATE AND CHANGING OF THE 
TIME WINDOW OF THE NIGHT SHIFT DIFFERENTIAL, AS PROVIDED BY 
THE LABOR CODE OF THE PHILIPPINES 
EXPLANATORY NOTE 
Section 3, Article XIII of the 1987 Constitution mandates the State to 
afford full protection to labor, local and overseas, organized and unorganized, 
and promote full employment and equality of employment opportunities for all. 
Likewise, labor shall be entitled to security of tenure, humane conditions of work, 
and a living wage. 
The Business Process Outsourcing (BPO) industry in the country has 
grown dramatically in the past several years, employing almost a million workers. 
In 2012, ITO-BPO in tile Philippines generated more than $13 billion in revenues, 
an increase of $2 billion from the $11 billion in 2011. The Business Processing 
Association of the Philippines (BPAP) projects that revenues of the said industry 
will hit $13 billion in 2013 and have 926,000 full-time employees. The call center 
sector comprises 80% of the total BPO industry in the country. [Wiklpedia] 
Considering the contribution of BPOs to the economy and the increasing 
number of BPO workers, this measure seeks to promote the interests and 
welfare of night shift workers, including employees in the BPO sector by 
increasing the night shift differential rate from ten percent (10%) to fifteen percent 
(15%), as provided for in the Labor Code of the Philippines. Night shift workers 
have peculiar work program and arrangement which may adversely affect the 
health condition of the employees. With the additional benefits to night shift 
workers, it is hoped that it will lessen the financial and emotional stress of the 
employees. 
The immediate passage of this bill is eamestly sought. 
Senator 


, ' 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
JUL -7 AlO :06 
SENATE 
Senate Bill No, 2298 
INTRODUCED BY SEN, JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR THE INCREASE IN THE RATE AND CHANGING OF THE 
. TIME WINDOW OF THE NIGHT SHIFT DIFFERENTIAL, AS PROVIDED BY 
THE LABOR CODE OF THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Night Workers' 
2 
Additional Compensation Act of 2014". 
3 
4 
5 
SEC. 2. Declaration of Principles and Policies: 
6 
7 
(a) The State, in light of the ever growing demands of modern businesses and 
8 
industries for round-the-clock supply of labor, recognizes the rights of 
9 
employees to be properly compensated for hours worked, which by the 
10 
ordinary and natural course of things, are supposed to be time spent for 
11 
rest and recreation. Cognizant of this, the legislature, exercising its 
12 
wisdom as entrusted by the people, hereby declare that additional 
13 
compensation shall be granted in exchange for the foregone health and 
14 
well ness benefits of following the ordinary and natural biological rhythm of 
15 
the human body; 
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17 
(b) The State, in the exercise of its duty to safeguard the safety and welfare of 
18 
the people and mindful of the growing threat of criminal activities carried 
19 
out at the cover of the dead hours of night, hereby declare, through the 
20 
wisdom of the people entrusted upon their representatives, do hereby 
21 
declare that additional compensation shall be granted to nighttime 
22 
workers; 
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(c) The State, through the wisdom of the people as exercised by their 
25 
legislature, takes notice of the business practice of treating nighttime 
26 
workers as a separate and distinct class or category of worker within a 
27 
business entity, thereby avoiding the payment of the mandatory night time 
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differential to said nighttime workers which should have been in the first 
29 
place be over and above the regular wage of their daytime counterparts, in 
30 
the performance of highly similar duties and duties; 
31 
32 
1 


I 
SEC. 3. In the interests of tempering laissez faire with welfare economics, Article 
2 
86 of Presidential Decree No. 442, as amended, entitled "A DECREE 
3 
INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING 
4 
LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, 
5 
PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND 
6 
INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE," otherwise known 
7 
as "THE LABOR CODE OF THE PHILIPPINES," is hereby amended to read as 
8 
follows: 
9 
10 
Art. 86. Night shift differential. Every employee in the shall be paid a night 
11 
shift differential of not less than fifteen percent (15%) of his regular wage 
12 
for each hour of work performed between eight 0' clock in the evening and 
13 
four 0' clock in the moming. 
14 
15 
Employees working within said window, performing the same work, duties 
16 
and functions as employees working outside said window, shall be 
17 
deemed to have the regular wage equal to that of the latter, regardless of 
18 
different titles, designation, or other nomenclature of position between the 
19 
two. The night shift differential shall be computed over and above said 
20 
regular wage. 
21 
22 
23 
SEC. 4. 
Exemptions. -
The Department of Labor and Employment shall 
24 
promulgate the necessary rules and regulations for employers to apply for an 
25 
exemption from said increase in the night shift differential, PROVIDED, that such 
26 
exemption, if granted, shall not be exempted from the previous differential of ten 
27 
percent (10%). 
28 
29 
30 
SEC. 5. The proper ~Iovernment agencies are hereby directed to implement this 
31 
Act. 
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33 
SEC. 6. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
34 
following its complete publication in two (2) newspapers of general circulation. 
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36 
37 . 
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39 
40 
Approved, 
2