The Department of Labor and Employment explained tha revisions to the Implementing Rules and Regulations (IRR) for the Service Charge Law saying it would encompass more employees.
 

"The revised IRR, Department Order (DO) No. 242, series of 2024, expanded the coverage of service charge distribution by removing the direct employment clause from the previous IRR," said DOLE in a statement. 

According to the labor department, this meant that the "equal payment of service charges to all covered employees of service charge-collecting establishments."

"Dapat maisama pati mga manggagawa ng service providers for as long as bahagi sila ng pagbibigay ng serbisyo... Lalawak ang bilang ng mga manggagawa na dapat pag-ukulan ng nasabing service charges,” DOLE Secretary Bienvenido Laguesma said.

He explained that the new IRR also specified that "the non-diminution of benefits, which means the new rules on service charge distribution shall not diminish the existing benefits of the covered employees."

“Covered employees refer to all employees, except managerial employees as defined herein, regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid,” according to the IRR.

Meanwhile, Laguesma said that service providers on maximum service charge may only be up to 10%. He also said that 85% of the total should be for rank-and-file employees, while the remaining 15% will be allocated to management. 

“85% sa mga rank and file at 15% sa management [ang hatian]... Mayroon ding kompanya na 100% na ang binibigay sa manggagawa,” said Laguesma.