Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Cordillera Administrative Region
WAGE ORDER RB-CAR-12
RULES AND REGULATIONS
GRANTING COST OF LIVING
IN THE CORDILLERA ADMINISTRATIVE REGION
6727, otherwise known as the Wage Rationalization Act, empowers the
Regional Tripartite Wages and Productivity Boards to determine and fix
minimum wage rates applicable in the regions and to issue the
corresponding Wage Orders subject to the guidelines issued by the
National Wages and Productivity Commission;
the Regional Tripartite Wage and Productivity Board, Cordillera
Administrative Region (RTWPB-CAR), after evaluating the socioeconomic
conditions in the region, decided to conduct public hearings for the
purpose of determining possible adjustments on the wage levels of the
private sector workers in the region;
after due notice to all concerned sectors, the Board conducted Public
Hearings on November 14, 2007 in Bontoc, Mountain Province (for
Mountain Province and Ifugao Province); on November 15, 2007 in Tabuk
City (for Kalinga and Apayao Provinces); and on November 21, 2007 in
Baguio City (for Baguio City and Provinces of Benguet and Abra);
after due public hearings and deliberations, the Board finds the need
to grant relief to private sector workers in Region-CAR to help them
cope with the rising cost of living without impairing the productivity
and viability of business and industry therein;
consistent with the government’s policy of achieving higher level of
productivity to preserve and generate jobs and to augment the income of
workers, there is a need to build the capacity of business enterprises
to be competitive through productivity improvement and gain sharing
THEREFORE, by virtue of the power and authority vested under Republic
Act No. 6727, the RTWPB-CAR hereby issues this Wage Order.
Section 1. Coverage.
All private sector workers and employees receiving the minimum wage in
the Cordillera Administrative Region regardless of their position,
designation or status and irrespective of the method their wages are
paid are covered by this Wage Order, except for household or domestic
helpers; persons employed in the personal service of another including
family drivers; and workers in the registered Barangay Micro Business
Enterprises with Certificates of Authority pursuant to Republic Act
9178, otherwise known as “Barangay Micro Business Enterprises Act of
2. Amount of Cost of Living Allowance.Upon
the effectivity of this Wage Order, all covered workers in the
different industrial classifications and geographical locations shall
receive a daily Cost of Living Allowance in the amount as follows:cralaw
City, Municipalities of La Trinidad, Itogon, Sablan and Tuba, Benguet:
||Ten Pesos (P10.00)
||Five Pesos (P5.00)
& Service employing ten (10) workers and below
||Ten Pesos (P10.00)
areas in the Cordillera Administrative Region:
(including Retail & Service establishments employing more than ten
||Four Pesos (P4.00)
The daily minimum wage rates shall be:cralaw
||Daily Minimum Wage Rates
|Baguio City, La Trinidad,
Tuba, Itogon and Sablan
|Other Areas in the Region
|Employing more than 10 workers
|Employing 10 workers or less
Sec. 3. Basis of Minimum Wage.The
minimum wage rates prescribed under this Order shall be for the normal
working hours, which shall not exceed eight hours work a day.
Sec. 4. Application to
Private Educational Institutions.In
the case of private educational institutions the share of covered
workers and employees in the tuition fees for School Year 2007-2008
shall be applied as compliance to this Wage Order. However, payment of
any shortfall in compliance with this Wage Order shall be covered
starting School Year 2008-2009.
Educational institutions which have not increased their tuition fees
for the School Year 2007-2008, may defer compliance with the provisions
of this Wage Order until School Year 2008-2009.
In any case, all
private educational institutions shall implement this Wage Order
starting School Year 2008-2009.
Sec. 5. Application to
the case of contracts for construction projects and for security,
janitorial and other similar services, the prescribed Cost of Living
Allowance shall be borne by the principals or clients of the
construction/service contractors and the contract shall be deemed
amended accordingly. In the event, however, that the principals or
clients fail to pay the prescribed Cost of Living Allowance, the
construction/service contractors shall be jointly and severally liable
with their principals or clients.
Sec. 6. Workers Paid by
workers paid by results, including those who are paid on piecework,
takay, pakyaw, or task basis, shall receive not less than the Cost of
Living Allowance for the normal working hours which shall not exceed
eight (8) hours per day or a proportion thereof for working less than
eight (8) hours.
Sec. 7. Apprentices and
employed under Apprenticeship or learnership agreement shall be
entitled to not less than Seventy Five Percent (75%) of the new minimum
wage rate under this Order.
learnership and apprenticeship agreements entered into before the
effectivity of this Order shall be automatically modified insofar as
their wage clauses are concerned to reflect the new prescribed wage
Mobile and Branch Workers.The
minimum wage rates of workers, who by the nature of their work have to
travel, shall be those applicable in the domicile or head office of the
minimum wage rates of workers working in branches or agencies of
establishments in or outside the Region shall be those applicable in
the place where they are stationed.
Transfer of Personnel. The
transfer of personnel from one province or region to another shall not
be a valid reason for the reduction of the wage rate being enjoyed by
the worker prior to the transfer.
10. Exemptions. Upon
proper application with and as determined by the Board, the following
categories of establishments maybe exempted from the applicability of
Distressed establishment as defined in the NWPC Guidelines
No. 02, series of 2007;
Business Enterprises duly registered and established outside Export
Processing Zone within two (2) years from effectivity of this Order
classified under any of the following:
a. Agricultural establishments
whether plantation or non-plantation; and
b. Establishments with total
assets after financing of five million (P5,000,000.00) pesos and below.
exporting firms, including indirect exporters, with at least fifty
percent (50%) export sale and with forward contracts with their foreign
buyers/principals entered into on or twelve (12) months before the date
of publication of this Order may be exempt during the lifetime of the
said contract but not to exceed twelve (12) months from the effectivity
of this Wage Order.
Extent and Duration of Exemption.A
full exemption of one (1) year shall be granted to all categories of
establishments that meet the applicable criteria for exemption under
Sec. 3 of NWPC Guidelines No. 02, series of 2007.
a partial exemption of 50% with respect to the amount or period of
exemption shall be granted only in the case of distressed
establishments in accordance with the NWPC Guidelines on Exemption.
Effect of Application for Exemption.An
application for exemption duly filed shall have the effect of deferring
any action on any complaint for non-compliance with this Order until
resolution of the application by the Regional Board. In case the
application for exemption is not approved, covered employees/workers of
the applicant-establishment shall be paid the mandated Cost of Living
Allowance under this Order plus one (1) percent simple interest per
month retroactive to the effectivity of this Order.
Productivity-Based Wages. To
attain higher levels of productivity for competitiveness, to preserve
and generate gainful employment and to augment the wages of workers,
business enterprises are encouraged to adopt productivity improvement
and gain-sharing programs.
Appeal to the Commission. Any party aggrieved by this
Wage Order may file a verified appeal with
the Commission through the Board within ten (10) calendar days from the
publication of this Order.
Effect of Filing of Appeal. The filing of the appeal
does not operate to stay the Order unless the
party appealing such Order shall file with the Commission an
undertaking with a surety or sureties satisfactory to the Commission
for payment of the corresponding Cost of Living Allowance to employees
affected by the Order in the event such Order is affirmed.
Non-Diminution of Benefits.Nothing
in this Order shall be construed to reduce any existing wage rates,
allowances and benefits of any form under existing laws, decrees,
executive orders and/or under any contract or agreement between the
workers and employers.
Effects on Existing Wage Structure.Where
the grant of the Cost of Living Allowance result in the distortion of
the wage structure within an establishment, the same shall be corrected
in accordance with the procedure provided for under Art. 124 of
Labor Code as amended. The following formula may be used to
|Previous Minimum Wage
(Wage Order RB-CAR-11)
||Amount of wage
adjustment due to
Sec. 18. Complaints for Non-Compliance.Complaints
for noncompliance with this wage order may be filed with the Regional
Office of the Department of Labor and Employment (DOLECAR) and shall be
the subject of enforcement proceedings under Article 128 of the Labor
Code, as amended, without prejudice to criminal prosecution which maybe
undertaken against those who fail to comply.
person, corporation, trust or firm, partnership, association or entity
who refuses or fails to pay the prescribed Cost of Living Allowance in
accordance with this Order shall be subject to the penal provisions
6727, as amended by R.A. 8188.
20. Prohibition Against Injunction.No
preliminary or permanent injunction or temporary restraining order
maybe issued by any court, tribunal or other entity against any
proceedings before the Board.
21. Freedom to Bargain.This
Order shall not be construed to prevent workers in particular firms or
enterprises or industries from bargaining for higher wages with their
person, company, corporation, partnership or any entity engaged in
business shall submit a verified itemized listing of their labor
component to the Board not later than January 31, 2008 and every year
thereafter in accordance with the form prescribed by the Commission.
orders, issuances, rules and regulations, or parts thereof inconsistent
with the provision of this Wage Order are hereby repealed, amended or
24. Rules Implementing this Order. The
Board shall prepare the necessary rules to implement this Order subject
to approval of the Secretary of Labor and Employment.
for any reason, a Sec. or provision of this Order is declared
unconstitutional or illegal, the other provisions or parts shall remain
Order shall take effect fifteen (15) days after its publication in at
least one (1) local newspaper of general circulation in the Region.
This 17th day of
December 2007, Baguio City, Philippines.
MILTON L. BALAGTEY
ALFONSO T. LAO
C. LARDIZABAL JR
JOHNNY R. DE LA CRUZ
CARMELITA C. USMAN
JUAN B. NGALOB
(Sgd.) ANA C.
December 23, 2007 - Baguio
Effectivity: January 7, 2008