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M INIMUM W AGE
Republic Act No. 6727 (also known as the Wage Rationalization
Act) mandates the fixing of the minimum wages applicable to
different industrial sectors, namely, non-agriculture, agriculture
plantation, and nonplantation, cottage/handicraft, and retail/service,
depending on the number of workers or capitalization or annual
gross sales in some sectors.

The Rules Implementing RA 6727 define the industrial sectors as

follows:

Agriculture refers to farming in all its branches and, among

others, includes the cultivation and tillage of the soil,
production, cultivation, growing and harvesting of any
agricultural or horticultural commodities, dairying, raising of
livestock or poultry, the culture of fish and other aquatic
products in farms or ponds, and any activities performed by a
farmer or on a farm as an incident to or in conjunction with
such farming operations, but does not include the
manufacturing and/or processing of sugar, coconut, abaca,
tobacco, pineapple, aquatic or other farm products.

Plantation Agricultural Enterprise is one engaged in

agriculture with an area of more than 24 hectares in a locality
or which employs at least 20 workers. Any other agricultural
enterprise shall be considered as Non-plantation Agricultural
Enterprise.

Retail Establishment is one principally engaged in the sale of

goods to end-users for personal or household use.

Service Establishment is one principally engaged in the sale

of service to individuals for their own or household use and is
generally recognized as such.

Cottage/Handicraft Establishment is one engaged in an

economic endeavor in which the pr oducts are primarily done in
the home or such other places for profit which requires manual
dexterity and craftsmanship and whose capitalization does not

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 exceed P500,000.00, regardless of previous registration with
the defunct NACIDA.

The said law rationalized wage determination by establishing the

mechanism and proper standards through the creation of Regional
Tripartite Wages and Productivity Boards (RTWPBs) authorized to
determine the daily minimum wage rates in the following different
regions based on established criteria:

National Capital Region (NCR) or Metro Manila

Cordillera Administrative Region (CAR)
Region 1 - Northern Luzon or Ilocos
Region 2 - Cagayan Valley
Region 3 - Central Luzon
Region 4-A - CALABARZON (Cavite, Laguna, Batangas,
Rizal, Quezon)
Region 4-B - MIMAROPA (Mindoro, Marinduque, Romblon,
Palawan)
Region 5 - Bicol
Region 6 - Western Visayas
Region 7 - Central Visayas
Region 8 - Eastern Visayas
Region 9 - Western Mindanao or Zamboanga Peninsula
Region 10 - Northern Mindanao
Region 11 - Southern Mindanao or Davao
Region 12 - Central Mindanao or SOCCSKSARGEN (South
Cotabato, North Cotabato, Sultan Kudarat,
- Sarangani, General Santos)
Region 13 - Caraga
Autonomous Region in Muslim Mindanao (ARMM).

The Regional Wage Orders prescribe the daily minimum wage

rates per industry per locality within the region and in some
instances depending on the number of workers and the
capitalization of enterprises. The Wage Orders likewise provide the
basis and procedure for application for exemption from compliance
therefrom. Some Wage Orders grant allowances instead of wage
increases.

A. Coverage

A.1 The wage increases prescribed under Wage Orders apply to

all private sector workers and employees receiving the daily
minimum wage rates or those receiving up to a certain daily wage
ceiling, where applicable, regardless of their position, designation,

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 or status, and irrespective of the method by which their wages are
paid, except the following:

1. Househelpers, including family drivers and workers in the

personal service of another whose conditions of work are
prescribed in Republic Act No. 7655.

2. Workers of registered Barangay Micro Business Enterprises

(BMBEs) with Certificates of Authority issued by the Office of
the Municipal or City Treasurer.

A.2 Upon application with and as determined by an RTWPB,

based on documentation and other requirements in accordance with
applicable rules and regulations issued by the National Wages and
Productivity Commission (NWPC), a company/establishment may be
exempted from compliance with a Wage Order for a period not to
exceed one (1) year.

B. Minimum Wage Rates

DAILY MINIMUM WAGE

National Capital Region
As of November 2009
C it ie s /M unic i pa l it y
Caloocan, Las Pias, Makati, Malabon,
M a n d a l u yo n g , M a n i l a , M a r i k i n a ,
Muntinlupa, Navotas, Paranaque,
Pasay, Pasig, Quezon, San Juan,
Taguig, Valenzuela, and Pateros
S e cto r / In du st r y Minimu m B a s ic W a ge COLA T ot a l
Wa ge un de r u nd er W .O. u nd er
W .O . N o . No. NCR -14 b W .O . N o .
NCR- 13 a NCR- 14 c
N o n-a gr i cu l t u re 3 62 .0 0 1 5 .00 5 . 00 3 82 .0 0

A g r ic u ltu re
Plan ta tion 3 25 .0 0 1 5 .00 5 . 00 3 45 .0 0
N o np lan ta t io n 3 25 .0 0 1 5 .00 5 . 00 3 45 .0 0

P r i va t e H os p ita l s
W i th b ed c a pac i t y o f 1 00 o r l es s 3 25 .0 0 1 5 .00 5 . 00 3 45 .0 0

Retail/Service Establishments
Emplo ying 15 wo rkers o r less 3 25 .0 0 1 5 .00 5 . 00 3 45 .0 0

M an uf a ctur i ng E st a bl i s h men t s
Emplo ying less th an 1 0 work ers 3 25 .0 0 1 5 .00 5 . 00 3 45 .0 0

a
Effec tivity d a te is on 2 8 Augus t 2 007 .
b
E ff ec ti v i t y d a te is on 1 4 J un e 200 8 .
c
In te gra tion o f P5 .00 CO LA in to th e bas ic wa ge o n 28 Au gus t 2 008 .

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 CURRENT REGIONAL DAILY MINIMUM WAGE RATES
(As of November 2009)*
Agriculture
Region Non-agriculture
WO No./Date of Effectivity Plantation Nonplantation
NCR a/ WO 14/14 Jun 2008 382.00 345.00 345.00

CAR b/ WO 13/16 Jun 2008 243.00 - 260.00 226.00 - 242.00 226.00 - 242.00

1 c/ WO 13/22 Jun 2008 220.00 - 240.00 220.00 195.00

2 d/ WO 13/15 Jun 2008 227.00 - 235.00 215.00 - 223.00 215.00 - 223.00

3 e/ WO 14/16 Jun 2008 251.00 - 302.00 236.00 - 272.00 216.00 - 256.00

4-A f/ WO 13/1 Jun 2008 236.00 - 320.00 216.00 - 295.00 196.00 - 275.00

4-B g/ WO 4/19 Jun 2008 240.00 - 252.00 198.00 - 207.00 178.00 - 187.00

5 h/ WO 13/1 July 2008 196.00 - 239.00 207.00 - 217.00 187.00 - 197.00

6 i/ WO 16/6 July 2008 208.00 - 250.00 218.00 208.00

7 j/ WO 14/16 Jun 2008 222.00 - 267.00 202.00 - 249.00 202.00 - 249.00

8 k/ WO 15/16 Jun 2008 238.00 219.00 219.00

9 l/ WO 15/3 July 2008 240.00 215.00 195.00

10 m/ WO 14/1 Jun 2008 241.00 - 256.00 229.00 - 244.00 229.00 - 244.00

11 n/ WO 15/16 Jun 2008 265.00 255.00 255.00

12 o/ WO 15/16 Jun 2008 245.00 225.00 220.00

CARAGA p/ WO 9/20 Jun 2008 233.00 223.00 203.00

ARMM q/ WO 11/ July 2008 210.00 210.00 210.00

a / Granted a P20/day consisting of P15 basic wage & P5 COLA/day. The COLA shall be integrated into the basic wage on
28 August 2008.
b/ Granted P10 & 15 COLA/day depending on the area and industry classification.
c/ Granted P10 COLA/day.
d/ Granted P12 basic wage/day and integrated P8 COLA under WO No. RTWPB-II-09 into the basic wage.
e/ Granted P15/day consisting of P5 basic wage & P10 COLA; integrated the P9 COLA under WO No. RB III-13 into the basic
wage.
f/ Granted P12-20 wage/day as follows: P16-20 (Growth Corridor Area), P14 (Emerging Growth Area), P12 (Resource-Based Area).
g/ Granted P10 wage/day to all minimum wage workers & P5 COLA to non-agriculture sector only.
h/ Granted P13 COLA/day, the P6 from P13 COLA shall be integrated into the basic wage on 1 January 2009.
i/ Granted P15 Emergency Relief Allowance (ERA)/day until 15 October 2008.
j/ Granted P17 wage/day.
k/ Granted P10 COLA/day.
l/ Granted P15 wage/day consisting of P5 basic wage and P10 COLA for a period of three months; thereafter, P5 out of the
P20 COLA under WO No. IX-14 shall be integrated into the basic wage.
m/ Granted P12 COLA & integrated the P16 COLA under WO No. RX-12 into the basic wage. The P10 COLA under WO No. RX-13
shall be integrated into the basic wage on 16 November 2008.
n/ Granted P15 COLA & integrated the P16 COLA under WO No. RTWPB XI-13 into the basic wage. The P10 COLA under WO No.
RX-14 shall be integrated into the basic wage on 16 September 2008.
o/ Granted P7-10.50 wage/day & P3-5 COLA/day, depending on the industry classification.
p/ Granted P13/day consisting of P8 basic wage & P5 COLA.
q/ Granted P10 wage/day.

*For updates on the amount of applicable minimum wage rates and/or allowances, pls. contact the National Wages and
Productivity Commission (NWPC) located at 11/F, G. E. Antonino Bldg., J. Bocobo St. cor T. M. Kalaw St., Ermita, Manila
Telefax: 627-5155 and 400-6765, or your Regional Tripartite Wages and Productivity Board (RTWPB). Pls. also visit
www.nwpc.gov.ph

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C. Basis

The basis of the minimum wage rates prescribed by law shall be

the normal working hours of eight (8) hours a day.

D. Monthly-Paid Employees and Daily-Paid Employees

Monthly-paid employees are those who are paid every day of the
month, including unworked rest days, special days, and regular
holidays.

Daily-paid employees are those who are paid on the days they
actually worked and on unworked regular holidays.

E. Computation of the Estimated Equivalent Monthly Rate

(EEMR) of Monthly-Paid and Daily-Paid Employees

For monthly-paid employees:

Factor 365 days in a year is used in determining the equivalent

annual and monthly salary of monthly-paid employees. To compute
their Estimated Equivalent Monthly Rate (EEMR), the procedure is
as follows:

Applicable Daily Rate x 365 = EEMR

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where 365 days/year = 299 ordinary working days

52 rest days 1
11 regular holidays
3 special days
____
365 Total equivalent no. of days in a year

1
F or wo rkers wh ose res t da ys fa ll on Sund a ys , the n umber o f r est da ys in a
y e ar is n ow 52 d a ys . U nd er R A 949 2 , t he N a t io na l H er oes' D a y, a r e gu lar
h olid a y pr evious ly o bse r ved o n the las t Su nda y o f Au gus t, w ill n ow b e obs er ved
o n the las t M on da y o f A u gus t .

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 For daily-paid employees:

The following factors and formula may be used in computing the

EEMR of different groups of daily-paid employees for purposes of
entitlement to minimum wages and allied benefits under existing
laws.

1. For those who are required to work everyday, including

Sundays or rest days, special days, and regular holidays

Applicable Daily Rate x 392.50 = EEMR

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where 392.50 days/year = 299 ordinary working days

22 eleven regular holidays x 200%
67.60 52 rest days x 130%
3.90 three (3) special days x 130%
______
392.50 Total equivalent number
of days in a year

2. For those who do not work and are not considered paid on
Sundays or rest days

Applicable Daily Rate x 313 = EEMR

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where 313 days/year = 299 ordinary working days

11 regular holidays
3 special days (if considered paid; if
actually worked, this is equivalent
to 3.9 days)
____
313 Total equivalent number of days
in a year 2

3. For those who do not work and are not considered paid on
Saturdays and Sundays or rest days

2
F ac tor 3 10 ma y be use d ins tead o f 3 13 , if the two (2 ) s pec ia l d a ys und er EO
2 03 a nd o ne ( 1) s p ecia l d a y un de r R A 9 25 6 ar e n ot c ons id ere d pa id .

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