Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
National Capital Region
WAGE ORDER No. NCR-13
INCREASING THE DAILY MINIMUM WAGE RATES
INTEGRATING OF EXISTING P50.00 ECOLA IN THE
NATIONAL CAPITAL REGION
WHEREAS, the Regional Tripartite Wages and
Productivity Board- National Capital Region (RTWPB-NCR) is mandated
6727 (The Wage Rationalization Act), to periodically assess the
wage rates and conduct continuing studies in the determination of the
minimum wage rates applicable in the region or industry;
WHEREAS, the Trade Union
Congress of the Philippines (TUCP) filed on April 12, 2007 a petition
for a Seventy-Five Pesos (P75.00) per day across-the-board wage
after due notice to all concerned sectors, the RTWPB-NCR conducted
consultations with labor and employers sectors on the 21st and 31st of
May 2007, respectively, and a public hearing on the 14th of June 2007,
to determine the propriety of issuing a new wage order;
after a thorough evaluation of the existing socio-economic conditions
of the region, the RTWPB-NCR determined the need to provide workers
with immediate relief, without impairing business viability by
integrating the existing cost of living allowances under Wage Order No.
NCR-9 and Wage Order No. NCR-10 into the basic wage, and providing an
additional basic wage increase to compensate the projected erosion of
the minimum wage rates due to inflation;
consistent with the government’s policy of achieving higher levels of
productivity to promote economic growth and generate employment, and to
augment the income of workers, there is a need to build the capacity of
business enterprises to be competitive through productivity improvement
by virtue of the power and authority vested under Republic
Act No. 6727, the RTWPB-NCR hereby issues this Wage Order.
Section 1. NEW MINIMUM
WAGE RATES. Upon effectivity of this Wage Order:cralaw
The Cost of Living Allowances of
THIRTY PESOS (P 30.00) per day under Wage Order No. NCR-09 and TWENTY
PESOS (P 20.00) per day under Wage Order No. NCR-10 shall be integrated
into the basic wage;
After the integration of the Cost of
Living Allowances, all minimum wage workers in the NCR shall receive an
increase in the basic wage of P 12.00 per day;
The new daily minimum wage rates of
covered workers in the private sector in the National Capital Region
shall be as follows:
Basic Wage After
New Minimum Wage
|Agriculture (Plantation and Non
|Private Hospitals with bed capacity
of 100 or less
employing 15 workers or less
regularly employing less than 10 workers
Sec. 2. COVERAGE.
The P12.00 wage increase prescribed in this Wage Order shall apply to
all minimum wage earners in the private sector in the Region,
regardless of their position, designation or status of employment and
irrespective of the method by which they are paid.
The P50.00 per day COLA
integration shall apply to all covered workers under Wage Order Nos.
NCR-09 and NCR-10.
This Wage Order shall not
cover household or domestic helpers; persons in the personal service of
another, including family drivers, and workers of duly registered
Barangay Micro Business Enterprises (BMBEs) with Certificates of
Authority pursuant to Republic Act
Sec. 3. BASIS OF
MINIMUM WAGE RATES. The minimum wage rates prescribed under
this Order shall be for the normal working hours which shall not exceed
eight (8) hours of work a day.
APPLICATION TO CONTRACTORS. In the case of contracts for
construction projects and for security, janitorial and similar
services, the wage increase prescribed in this Order 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 wage rates, the
construction/service contractor shall be jointly and severally liable
with his principal or client.
APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case
of private educational institutions, the share of covered workers and
employees in the increase in tuition fees for School Year 2007-2008
shall be considered as compliance with the increase prescribed herein.
However, payment of any shortfall in the wage increase set forth herein
shall be covered starting School Year 2008-2009.
institutions which have not increased their tuition fees for the School
Year 2007-2008 may defer compliance with the increase prescribed herein
until the beginning of School Year 2008-2009.
In any case, all private
educational institutions shall implement the increase prescribed herein
starting School Year 2008-2009.
Sec. 6. WORKERS
PAID BY RESULT. All workers paid by result, including those
who are paid on piecework, “takay”, “pakyaw” or task basis, shall be
entitled to receive the prescribed increase per eight (8) hours work a
day, or a proportion thereof for working less than eight (8) hours.
Sec. 7. WAGES OF
SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners
shall in no case be less than seventy-five percent (75%) of the
applicable minimum wage rates prescribed in this Order.
All recognized learnership and
apprenticeship agreements entered into before the effectivity of this
Order shall be considered automatically modified insofar as their wage
clauses are concerned to reflect the new minimum wage rates.
All qualified handicapped
workers shall receive the full amount of the minimum wage rate
prescribed herein pursuant to Republic
Act No. 7277, otherwise known as the Magna Carta for Disabled
EXEMPTIONS. Upon application with and as determined by the
Board, based on documentation and other requirements in accordance with
applicable rules and regulations issued by the Commission, the
following may be exempted from the applicability of this Order:cralaw
Establishments Facing Potential
Employing Not More Than Ten (10) Workers;
Establishments whose total assets,
including those arising from loans, but exclusive of the land on which
the particular business entity’s office, plant and equipment are
situated, are not more than Three Million Pesos (P3,000,000.00); and,
Establishments adversely affected by
APPLICATIONS FOR EXEMPTION. Pursuant to the rules and
regulations of the National Wages and Productivity Commission, all
applications for exemption from compliance with this Order shall be
filed within seventy-five (75) days from the date of publication of the
Rules Implementing this Order, with complete supporting documents as
specified in the Rules and as may be further required by the Board.
Failure to submit the required supporting documents within the
prescribed period will be sufficient basis for the dismissal of the
application for exemption.
The Board may grant a maximum
period of exemption of one (1) year in accordance with the NWPC Rules
on Exemption, but in no case shall any exemption exceed one (1) year
from the effectivity of this Order.
Sec. 10. EFFECT
OF APPLICATION FOR EXEMPTION. Whenever an application for
exemption has been duly filed with the Board, action on any complaint
for alleged non-compliance with this Wage Order shall be deferred
pending its resolution.
In the event that the
application for exemption is not granted in accordance with the Rules,
the employees of the applicant firm shall receive the mandated wage
increase under this Order, plus one percent (1%) interest per month
retroactive to the effectivity of this Order.
Sec. 11. APPEAL
TO THE COMMISSION. Any party aggrieved by this order Wage
Order may file an appeal to the Commission, through the Board, in three
(3) printed copies, not later than ten (10) days from the publication
of this Wage Order.
CREDITABLE WAGE INCREASE. An increase granted by an employer
in an organized establishment within three (3) months prior to the
effectivity of this Order shall be credited as compliance with the
prescribed increase set forth herein, provided that an agreement to
this effect has been forged between the parties or a collective
bargaining agreement provision allowing creditability exists. In the
absence of such an agreement or provision in the CBA, any increase
granted by the employer shall not be credited as compliance with the
increase prescribed in this Order.
In unorganized establishments,
an increase granted by the employer within five (5) months prior to the
effectivity of this Order shall be credited as compliance therewith.
In case the increases given
are less than the prescribed adjustment, the employer shall pay the
difference. Such increases shall not include anniversary increases,
merit wage increases and those resulting from the regularization or
promotion of employees.
Sec. 13. EFFECTS
ON EXISTING WAGE STRUCTURE. Where the application of the
increase prescribed in this Order results in distortions in the wage
structure within the establishment, it shall be corrected in accordance
with the procedure provided for under Article 124 of Presidential Decree
No. 442, as amended, otherwise known as the Labor Code of the
COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance
with this Order shall be filed with the National Capital Regional
Office of the Department of Labor and Employment, and shall be the
subject of enforcement proceedings under Articles 128 and 129 of the
Labor Code, as amended.
PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS. In
order to sustain rising levels of wages and enhance competitiveness,
labor and management as partners are encouraged to adopt productivity
improvement schemes that will improve the quality of life of workers
and in turn enable them to produce more and earn more, such as time and
motion studies, good housekeeping, quality circles, labor and
management cooperation as well as implement gain-sharing and other
performance incentive programs.
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, issuances, executive orders
and/or under any contract or agreement between the workers and
PROHIBITION AGAINST INJUCTION. No preliminary or permanent
injunction, or temporary restraining order may be issued by any court,
tribunal or other entity against any proceedings before the Board.
Sec. 18. 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 respective employers.
Sec. 19. REPORTING REQUIREMENT. Any
person, company, corporation, partnership or any entity engaged in
business shall submit a verified report on their wage structure to the
Board not later than January 31, 2008 and every year thereafter in
accordance with the form prescribed by the National Wages and
Sec. 20. PENAL
PROVISION. Any employer who refuses or fails to comply with
this Order shall be subject to the penalties specified under R.A.
6727, as amended under R.A.
REPEALING CLAUSE. All orders, issuances, rules and regulations
or parts thereof inconsistent with the provisions of this Wage Order
are hereby repealed, amended or modified accordingly.
SEPARABILITY CLAUSE. If any provision or part of this Wage
Order is declared unconstitutional, or in conflict with existing law,
the other provisions or parts thereof shall remain valid.
IMPLEMENTING RULES. The Regional Tripartite Wages and
Productivity Board-National Capital Region shall submit to the
Commission the necessary Rules and Regulations to implement this Order
subject to approval of the Secretary of Labor and Employment not later
than ten (10) days from the publication of the Wage Order.
EFFECTIVITY. This Order shall take effect fifteen (15) days
after its publication in a newspaper of general circulation.
Philippines, 06 August 2007.
(Sgd.) DANIEL R. ANG
(Sgd.) VICENTE LEOGARDO, JR.
(Sgd.) GERMAN N. PASCUA, JR.
(Sgd.) ALBERTO R. QUIMPO
(Sgd.) MA. THERESA L. PELAYO
(Sgd,) DENNIS M. ARROYO
(Sgd.) RAYMUNDO G. AGRAVANTE
RULES IMPLEMENTING WAGE ORDER NO. NCR-13