Kasambahay Law (RA 10361): Every Obligation You Have as an Employer of a Helper, Yaya or Family Driver

What Is the Kasambahay Law, and Does It Cover Family Drivers?

The Kasambahay Law is RA 10361, effective 2013, which sets a floor of protections for domestic workers — written contract, regional minimum wage, social contributions, weekly rest, 13th month pay and paid leave — implemented through DOLE regulations. It is the source of every duty in this article.

Who is covered: the statute enumerates general househelp, a nursemaid or yaya, cook, gardener and laundry person, together with anyone who regularly performs domestic work in one household on an occupational basis.

Who is not: someone who performs domestic work only occasionally or sporadically and not as an occupation, and cleaning staff employed by a company rather than a household — the latter fall under general labor law instead.

What about the family driver? This is the most frequently asked question. The enumerated list does not spell out "family driver," and the point has been argued historically; DOLE's current position treats a driver regularly employed by one household as falling within domestic work. The safe operating rule is straightforward: apply the kasambahay standard anyway — written contract, contributions, rest day, 13th month. Doing so leaves you compliant regardless of how the classification is refined, whereas the reverse exposes you to back payments and indemnity. See hiring a driver in the Philippines for the practical process, and confirm current coverage with DOLE.

The Employer's Checklist: Ten Duties, None Optional

Here is the complete list first; each item is expanded below. Run through it before anyone starts work.

1. Execute a written employment contract in a language both parties understand, with a copy for each.
2. Register the worker with your barangay, entering the employment in the local roster.
3. Pay at least the regional minimum wage for domestic workers, as periodically adjusted by the regional wage board.
4. Pay wages in cash, in full and on time, without deducting the value of food or lodging.
5. Issue a pay slip and keep records, one copy to the worker and one retained for your own file.
6. Register and remit the three contributions: SSS, PhilHealth and Pag-IBIG.
7. Pay 13th month pay.
8. Provide rest: a continuous daily rest period and at least one full rest day each week.
9. Grant paid annual leave after one year of service.
10. Provide board, lodging and basic necessities for a live-in worker, and respect privacy, communication and access to education.

A separate prohibition list sits alongside it — withholding documents, deducting recruitment costs from wages, debt bondage, restricting family contact, and employing anyone below the legal minimum age. Those are prohibitions, not recommendations; see the dedicated section below.

It reads as a lot, but items 1, 2 and 6 are one-time setup. After that, ongoing compliance is three recurring tasks: pay the wage, issue the slip, remit the contributions. Most disputes trace back to item one never being done.

What Goes Into a Yaya or Helper Contract

A compliant contract needs at least ten elements, written in a language both parties actually understand, signed, with each side holding a copy. It does not need a lawyer to draft. It does need to exist.

• Identities of both parties and the household address.
• Role and scope of duties. Critical for a yaya: state explicitly whether the job is childcare only or childcare plus housework, so the boundary is not renegotiated weekly.
• Wage amount, pay period and method of payment.
• Working hours and rest periods.
• Which day of the week is the rest day, and how substitutions are handled.
• Board and lodging arrangements for live-in workers, plus basic necessities provided.
• Contract term and renewal.
• Social contribution registration and remittance.
• Termination grounds and notice period.
• Any additional agreed benefits: transport, communications allowance, training, home leave.

One step is skipped constantly: barangay registration. The law requires domestic workers to be entered in the local roster, and some localities offer a unified registration channel that also handles the social contribution enrollment. This is both an obligation and a protection — it evidences that the employment was open and compliant from the start. Confirm the current office and document list with your own barangay.

If you are unsure how to phrase specific clauses, or you employ a helper, a yaya and a driver simultaneously and need each covered properly, the Yixing visa and HR team can prepare a template and registration guide for your situation.

Do You Have to Pay SSS for a Household Helper?

Yes, and both enrollment and remittance are the employer's legal responsibility, not something the worker sorts out herself. Three schemes apply: SSS, PhilHealth and Pag-IBIG. This is the duty households most often miss entirely.

The process has three steps: register yourself as a household employer and obtain an employer number; enroll the worker (if she has worked before she will already have a number, which carries over); and remit monthly through the counter, partner banks or the online systems.

Who pays? The law sets a monthly wage threshold: below it, the employer shoulders the entire contribution; at or above it, the worker contributes her proportionate share, which the employer withholds and remits together with the employer portion. Thresholds and contribution rates are adjusted from time to time and the three agencies do not use identical rules, so verify each against its current issuances.

For what each scheme covers and how the contribution base is computed, see the SSS, PhilHealth and Pag-IBIG explainer. One risk worth stating plainly: unpaid contributions do not quietly expire. They surface when a former worker claims maternity benefits, hospitalization or a pension, and catching up later typically means penalties on top — see catching up on SSS arrears.

Is 13th Month Pay Required for a Kasambahay?

Yes. Domestic workers are entitled to 13th month pay as a legal obligation, not as a gesture. A Christmas envelope is a gift and does not discharge the duty.

How it is computed: the standard formula is total basic wage actually earned during the calendar year divided by twelve. A worker who started mid-year is therefore paid pro rata on the months actually worked — "she has only been here eight months so it does not apply" is a misunderstanding, not an exemption. For the full method and edge cases (mid-year wage changes, unpaid absences, final pay), see how 13th month pay is computed.

When: the law requires payment on or before 24 December each year. If employment ends mid-year, the pro-rated amount forms part of the final pay.

Three misconceptions worth clearing up:

• Board and lodging cannot be offset against it. For a live-in worker those are conditions of the job, not wages.
• Gifts and Christmas bonuses are not 13th month pay. You may give both; only one of them is legally required.
• A verbal claim that "the wage already includes it" generally will not hold. Payment records and pay slips are the only proof that you paid.

Hours, Rest Days and Paid Leave: Where the Floor Sits

Three floors: a continuous daily rest period, at least one full rest day per week, and paid annual leave after one year of service. "She lives here, so she is available" is both the most common violation and the fastest way to lose a good employee.

• Daily rest. The law provides for a continuous daily rest period, commonly stated as not less than eight consecutive hours. For live-in workers the difficulty is that presence is not the same as duty, so the contract should state when the working day ends and how night care for an infant is rotated or compensated.
• Weekly rest day. At least twenty-four consecutive hours per week, with the specific day agreed between the parties. Written agreement can allow limited accumulation or alternative arrangements, but not effective cancellation. The operative words are "in writing" — a verbal understanding is worth nothing when it is contested.
• Paid annual leave. A worker with at least one year of service is entitled to paid service incentive leave, commonly five days per year. Treatment of unused days follows current regulations and the contract.
• Holidays and overtime. Domestic employment does not track the corporate rules exactly, so apply the Kasambahay Law and DOLE issuances rather than copying the company holiday pay rules across.

Practical tip: write the weekly schedule on a single sheet and put it on the fridge — start time, end time, rest day, how occasional extra hours are made up. More than half of household disputes are not about money; they are about how long "on call" is supposed to last.

Five Things That Are Prohibited Outright

These are express prohibitions under the Kasambahay Law, not matters of good practice. Employers usually cross these lines out of a fear that the worker will leave — which is precisely the outcome they produce.

1. Withholding identity or travel documents. An employer may not hold a worker's ID, passport or other personal documents for any reason. The principle is identical to an employer holding a foreign employee's passport.
2. Deducting recruitment costs from wages. Agency or placement costs may not be charged to the worker or recovered through payroll deduction.
3. Debt bondage. Loans or advances may not be structured so that the worker cannot leave. Advances themselves are permissible; using them as a tether is not.
4. Restricting family contact. Communication with family may not be prohibited or unreasonably limited, and personal belongings and messages are not open to inspection.
5. Employing anyone under the legal minimum age. The statute sets a minimum age of fifteen, bars anyone under eighteen from hazardous work, and requires access to education be preserved. Informal arrangements involving a relative's teenager need particular care.

One more that gets overlooked: the value of food and lodging cannot be deducted from wages. For a live-in worker those are conditions the employer is required to provide. Wages must be paid in cash or by agreed transfer, not settled in kind.

Read the other way, these rules protect employers too: an employer holding a contract, a registration, contribution records and pay slips is in a strong position in any complaint or mediation. Non-compliance is rarely deliberate — it is usually inherited from "how everyone does it."

Ending the Employment: Lawful Grounds, Notice and Final Pay

Terminating during the contract term requires a lawful ground and prior notice; dismissing without one means paying earned wages plus a statutory indemnity; and a certificate of employment must be issued within the prescribed period regardless of how the relationship ended.

Grounds available to the employer include serious misconduct, willful disobedience of lawful orders, fraud or serious loss of trust, commission of a crime, and other analogous causes. The worker may also terminate for reasons including abuse or verbal mistreatment, non-payment of agreed wages, and conditions dangerous to health or safety.

Without a lawful ground, the law responds symmetrically: an unjustly dismissed worker is paid the compensation already earned plus an indemnity commonly stated as the equivalent of fifteen days of work; a worker who leaves without justifiable reason forfeits the corresponding portion of unpaid wages. Confirm the exact periods against the current statute.

Three closing steps that get missed:

• Prior notice. Either party intending to end the contract should give written notice in advance — five days is the customary practice — and keep a record of it.
• Certificate of employment. Required within the prescribed period after termination, typically five days, stating the period of service and the nature of the work. It is essential for the worker's next job, and refusing it becomes a complaint in itself. See how a certificate of employment is issued.
• Final pay. Unpaid wages, pro-rated 13th month pay, any convertible unused leave, and any unremitted contributions. An unsettled final pay is the single most common reason a household dispute escalates to DOLE.

Once a matter is genuinely contested, follow the process rather than settling it with an informal conversation — see the household dispute guide — and if the amounts are significant or the other side has counsel, engage a Philippine lawyer promptly (how foreigners hire a lawyer here).

⚠️ General information only, not legal advice. Ten-question compliance check: Is there a written contract? Is the worker registered with the barangay? Does the wage meet the regional rate? Are pay slips issued? Are all three contributions enrolled and remitted monthly? Was 13th month pay made in full and on time? Is the weekly rest day real? Was annual leave granted after one year? Are any documents or recruitment costs being withheld? Were the COE and final pay settled on exit? Ten ticks and you are a compliant employer.

Ten questions above, and not sure how many you would actually pass? Have Yixing run the compliance check before DOLE does →