Minimum Wages

Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No. 6727, June 9, 1989). Art. 13, Section 3 (Consti) The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. 1. General Principles a. Right to a living wage

Art. 13, Section 3 (Consti) The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. b. No Work, No pay/A fair day's wage for a fair day's labor c. Equal pay for work of equal value - 135 (a), 248 (e) Art. 135. Discrimination prohibited. It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. The following are acts of discrimination: a. Payment of a lesser compensation, including wage, salary or other form remuneration and fringe benefits, to a female employees as against a male employee, for work of equal value Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice: e. To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized collective bargaining agent as a condition for employment, except those employees who are already members of another union at the time of the signing of the collective bargaining agreement. Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such non-union members accept the benefits under the collective bargaining agreement: Provided, that the individual authorization required under Article 242, paragraph (o) of this Code shall not apply to the non-members of the recognized collective bargaining agent.

d. Form: agreement for compensation of services - Art. 97 (f) Art. 97. Definitions. As used in this Title: (f.) "Wage" paid to any employee shall mean the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of board, lodging, or other facilities customarily furnished by the employer to the employee. "Fair and reasonable value" shall not include any profit to the employer, or to any person affiliated with the employer. e. Exemption from income tax - RA No. 9504 (June 17,2008), Amended the National Internal Revenue Code of 1997,Sec. 2 SEC. 2. Section 24(A) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended to read as follows: "SEC. 24. Income Tax Rates. "(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the Philippines. "(1) (c) On the taxable income defined in Section 31 of this code, other than income subject to tax under Subsections (B), (C) and (D) of this Section, derived for each taxable year from all sources within the Philippines by an individual alien who is a resident of the Philippines. "(2) Rates of Tax on Taxable Income of Individuals. - The tax shall be computed in accordance with and at the rates established in the following schedule: "Not over P10,000 "Over P10,000 but not over P30,000 "Over P30,000 but not over P70,000 "Over P70,000 but not over P140,000 "Over P140,000 but not over P250,000 "Over P250,000 but not over P500,000 "Over P5000,000 ........ 5% ........ P500+10% of the excess over P10,000 ........ P2,500+15% of the excess over P30,000 ........ P8,500+20% of the excess over P70,000 ........ P22,500+25% of the excess over P140,000 ........ P50,000+30% of the excess over P250,000 ........ P125,000+32% P500,000 of the excess over

"For married individuals, the husband and wife, subject to the provision of Section 51 (D) hereof, shall compute separately their individual income tax based on their respective total taxable income: Provided, that if any income cannot be definitely attributed to or identified as income exclusively earned or realized by either of the spouses, the same shall be divided equally between the spouses for the purpose of determining their respective taxable income. "Provided, That minimum wage earners as defined in Section 22 (HH) of this Code shall be exempt from the payment of income tax on their taxable income: Provided, further, That the holiday pay, overtime pay, night shift differential pay and hazard pay received by such minimum wage earners shall likewise be exempt from income tax. 2. Coverage - 97 (b) (c) (e); 98; Book lll, Rule Vll, Sec 3 Art. 97. Definitions. As used in this Title: (b) "Employer" includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches, subdivisions and instrumentalities, all government-owned or controlled corporations and institutions, as well as non-profit private institutions, or organizations.

(c) "Employee" includes any individual employed by an employer. (e)"Employ" includes to suffer or permit to work. Art. 98. Application of Title. This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in their respective homes in needle work or in any cottage industry duly registered in accordance with law. BOOK 3, rule 7, SEC. 3. Amount of Minimum Wage Increase. Effective July 1, 1989, the daily statutory minimum wage rates of covered workers and employees shall be increased as follows: a) P25.00 for those in the National Capital Region; b) P25.00 for those outside the National Capital Region, except for the following: P20.00 for those in plantation agricultural enterprises with an annual gross sales of less than P5 million in the fiscal year immediately preceding the effectivity of the Act; P15.00 for those in the following enterprises: 1. Non-plantation agriculture 2. Cottage/handicraft 3. Retail/Service regularly employing not more than 10 workers 4. Business enterprises with a capitalization of not more than P500,000 and employing not more than 20 workers. 3. Minimum Wage - 99, 97(f), 61, 75(c), 8O(b); Wage Order No. NCR- 14, May 16, 2008; Wage Order No. NCR-16 (May 9, 2011) ; Wage Order No. NCR-17 (July 2, 2012) R.A.7323 of 1992, Sec.2; Omnibus Rules, Book lll, RuleVll, Secs.4-7 Art. 99. See above Art. 97 (f). See above Art. 61. Contents of apprenticeship agreements. Apprenticeship agreements, including the wage rates of apprentices, shall conform to the rules issued by the Secretary of Labor and Employment. The period of apprenticeship shall not exceed six months. Apprenticeship agreements providing for wage rates below the legal minimum wage, which in no case shall start below 75 percent of the applicable minimum wage, may be entered into only in accordance with apprenticeship programs duly approved by the Secretary of Labor and Employment. The Department shall develop standard model programs of apprenticeship. (As amended by Section 1, Executive Order No. 111, December 24, 1986) Art. 75. Learnership agreement. Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include: b. The wages or salary rates of the learners which shall begin at not less than seventy-five percent (75%) of the applicable minimum wage;

Art. 80 (2). Employment agreement. Any employer who employs handicapped workers shall enter into an employment agreement with them, which agreement shall include: 2. The rate to be paid the handicapped workers which shall not be less than seventy five (75%) percent of the applicable legal minimum wage; Wage Order NCR-14. See attached file. (No section specified in the syllabus) Wage Order NCR-16. See attached file. (No section specified in the syllabus) Wage Order NCR-16. See attached file. (No section specified in the syllabus) RA 7323: AN ACT TO HELP POOR BUT DESERVING STUDENTS PURSUE THEIR EDUCATION BY ENCOURAGING THEIR
EMPLOYMENT DURING SUMMER AND/OR CHRISTMAS VACATIONS, THROUGH INCENTIVES GRANTED TO EMPLOYERS, ALLOWING THEM TO PAY ONLY SIXTY PER CENTUM OF THEIR SALARIES OR WAGES AND THE FORTY PER CENTUM THROUGH EDUCATION VOUCHERS TO BE PAID BY THE GOVERNMENT, PROHIBITING AND PENALIZING THE FILING OF FRAUDULENT OR FICTITIOUS CLAIMS AND FOR OTHER PURPOSES

SEC. 2. Sixty per centum (60%) of said salary or wage shall be paid by the employer in cash and forty per centum (40%) by the Government in the form of a voucher which shall be applicable in the payment of his tuition fees and books in any educational institution for secondary, tertiary, vocational or technological education. The amount of

the education voucher shall be paid by the Government to the educational institution concerned within thirty (30) days from its presentation to the officer or agency designated by the Secretary of Finance. The voucher shall not be transferable except when the payee thereof dies or for a justifiable cause stops in his duties in which case it can be transferred to his brothers or sisters. If there be none, the amount thereof shall be paid his heirs or to the payee himself, as the case may be. BOOK 3, RULE 7, Sec. 4-7 SECTION 4. When Wage Increase Due Other Workers. a) All workers and employees who, prior to July 1, 1989, were already receiving a basic wage above the statutory minimum wage rates provided under Republic Act 6640 but not over P100.00 per day shall receive a wage increase equivalent to that provided in the preceding Section. b) Those receiving not more than the following monthly basic wage rates prior to July 1, 1989 shall be deemed covered by the preceding subsection:
(i) P3,257.50 where the workers and employees work everyday, including premium payments for Sundays or rest days, special days and regular holidays. (ii) P3,041.67 where the workers and employees do not work but considered paid on rest days, special days and regular holidays. (iii) P2,616.67 where the workers and employees do not work and are not considered paid on Sundays or rest days. (iv) P2,183.33 where the workers and employees do not work and are not considered paid on Saturdays and Sundays or rest days.

Workers and employees who, prior to July 1, 1989, were receiving a basic wage of more than P100.00 per day or its monthly equivalent, are not by law entitled to the wage increase provided under the Act. They may however, receive wage increases through the correction of wage distortions in accordance with Section 16, Chapter I of these Rules. SECTION 5. Daily Statutory Minimum Wage Rates. The daily minimum wagerates of workers and employees shall be as follows:

SECTION 6. Suggested Formula in Determining the Equivalent Monthly Statutory Minimum Wage Rates. Without prejudice to existing company practices, agreements or policies, the following formula may be used as guides in determining the equivalent monthly statutory minimum wage rates: a) For those who are required to work everyday including Sundays or rest days, special days and regular holidays: Equivalent Applicable daily wage rate (ADR) x 390.90 days Monthly = Rate (EMR) 12 Where 390.90 days = 302 days Ordinary working days ;20 days 10 regular holidays x 200%; 66.30 days 51 rest days x 130%; 2.60 days 2 special days x 130%; 390.90 days Total equivalent number of days. b) For those who do not work but considered paid on rest days, special days and regular holidays: ADR x 365 days EMR = 12 Where 365 days = 302 days Ordinary working days; 51 days Rest days ;10 days Regular holiday ;2 days Special days ; 365 days Total equivalent number of days c) For those who do not work and are not considered paid on Sundays or rest days: ADR x 314 days EMR = 12 Where 314 days = 302 days Ordinary working days;10 days Regular holidays; 2 days Special days (If considered paid; If actually worked, this is equivalent to 2.6 days);314 days Total equivalent number of days d) For those who do not work and are not considered paid on Saturdays or rest days: ADR x 262 days EMR = 12 Where 262 days = 250 days Ordinary working days; 10 days Regular holidays;2 days Special days (If c onsidered paid; If actually worked, this is equivalent to 2.6 days; 262 days Total equivalent number of days.
Note: For workers whose rest days fall on Sundays, the number of rest days in a year is reduced from 52 to 51 days, the last Sunday of August being a regular holiday under Executive Order No. 201. For purposes of computation, said holiday, although still a rest day for them, is included in the ten regular holidays. For workers whose rest days do not fall on Sundays, the number of rest days is 52 days, as there are 52 weeks in a year. Nothing herein shall be considered as authorizing the reduction of benefits granted under existing agreements or employer practices/policies.

a. b. c.

Determination of compliance with minimum wage Facilities and Supplements/ Allowances - Book lll, Rule Vll, Secs. 4-7 (see above) Cash Wage/Commission 97(f) ; Book lll, Rule Vll-A, Sec. 4 Art. 97 (f) See above Book 3, Rule 7-A, Sec. 4 Sec. 4. Acceptance of facilities. In order that the cost of facilities furnished by the employer may be charged against an employee, his acceptance of such facilities must be voluntary. NOTE: Theres a confusion in this part because 7-A is an insertion (its a circular in 1994 credits to Mr. Raneses for finding a copy of it); Sec.4 is as quoted above, however, a book in labor laws citing sec. 4 under the topic minimum wages quoted sec.1 of the said circular. Hence, to be sure, Im pasting the entire circular here: Rule VII-A WAGES (Memorandum Circular No. 2, November 4, 1992) Sec. 1. Cash Wage. The minimum wage rates prescribed in Section 1 hereof shall be basic, cash wages without deducting therefrom whatever benefits, supplements or allowances which the employees enjoy free of charge aside from the basic pay. An employer may provide subsidized meals and snacks to his employees provided that the subsidy shall not be less than 30% of the fair and reasonable value of such facilities. In such case, the employer may deduct from the wages of the employees not more than 70% of the value of the meals and snacks enjoyed by the employees, provided that such deduction is with the written authorization of the employees concerned. Sec. 2. Facilities. The term facilities as used in this Rule shall include articles or services for the benefit of the employee or his family but shall not include tools of the trade or articles or services primarily for the benefit of the employer or necessary to the conduct of the employers business.

Sec. 3. Value of facilities. -- The Secretary of Labor may from time to time fix in appropriate issuances the fair and reasonable value of board, lodging, and other facilities customarily furnished by an employer to his employees both in agricultural and nonagricultural enterprises. The fair and reasonable value of facilities is hereby determined to be the cost of operation and maintenance, including adequate depreciation plus reasonable allowance (but not more than 5 1/2 % interest on the depreciated amount of capital invested by the employer); provided that if the total so computed is more than the fair rental value (or the fair price of the commodities or facilities offered for sale) the fair rental value (or the fair price of the commodities or facilities offered for sale) shall be the reasonable cost of the operation and maintenance. The rate of depreciation and depreciated amount computed by the employer shall be those arrived at under good accounting practices. The term good accounting practices shall not include accounting practices which have been rejected by the Bureau of Internal Revenue for income tax purposes. The term depreciations shall include obsolescence. Sec. 4. Acceptance of facilities. In order that the cost of facilities furnished by the employer may be charged against an employee, his acceptance of such facilities must be voluntary. Sec. 5. Payment of Results. On petition of any interested party, or upon its initiative, the Department of labor shall use all available devises, including the use of time and motion studies and consultation with representatives of employers and workers organizations, to determine whether the employees in any industry or enterprise are being compensated in accordance with the minimum wage requirements of this Rule. (b) The basis for the establishment of rates for piece, output or contract work shall be the performance of an ordinary worker of minimum skill or ability. (c) An ordinary worker of minimum skill or ability is the average worker of the lowest producing group representing 50% of the total number of employees engaged in similar employment in a particular establishment, excluding learners, apprentices and handicapped workers employed therein. (d) Where the output rates established by the employer do not conform with the standards prescribed herein, or with the rates prescribed by the Department of Labor in an appropriate order, the employees shall entitled to the difference between the amount to which they are entitled to receive under such prescribed standards or rates and that actually paid them by the employer. Sec. 6. Payment by results in government projects. In government projects, payment of wages by results, such as payment on pakiaw, task, or piece-work basis, may be used by employers: Provided, however, That the output rates shall be in accordance with the standards prescribed in the immediately preceding Section, whenever applicable, or with such rates as may be established by the Department of Labor. d. e. Gratuity and Salary/Wages, Difference Effect on Benefits 100 Art. 100. Prohibition against elimination or diminution of benefits. Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.