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

SIXTEENTH CONGRESS
First Regular Session

House Bill No, 2268

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 Sec. 2 Rule Il “an
employee shall be paid night differential of no less than ten per cent
(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 do not allow work at night except in extreme cases of urgency
on account of the additional costof 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 oralmost nil and therefore the work
flow > is faster.

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

This bill proposes to amend Sec. 2 Rule II Book III of the Labor
Code quoted above, by EXEMPTING government construction of
infrastructure projects from the application of the payment of night shift
differential OR by GRANTING the builders or contractors 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.

Bu 0. OY

ERIC L. OLIVAREZ


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

SIXTEENTH CONGRESS
First Regular Session

House Bill No.__2268

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT CREATING INCENTIVES FOR UNDERTAKING
GOVERNMENT INFRASTRUCTURE CONSTRUCTION WORKS AT NIGHT
AMENDING CERTAINPROVISIONS OF THE LABOR CODE AND THE
TTAXCODE AND FOR OTHER PURPOSES.

Be it enacted by Congress in session assembled:

Section 1. Government infrastructure projects shall be exempt
from the application of night shift differential as required under Section
2 Rule III 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
night shift differential paid, to be deducted from the income taxes due
from said builder/ contractor for the current or succeeding years.

Section 2. Sec, 2 Rule II Book III of the Labor Code (P.D. 442) shall
be amended to read as follows:

“Sec. 2. 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 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,