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-14
RULES IMPLEMENTING WAGE ORDER NO.
NCR-14
PROVIDING
AN INCREASE
IN THE DAILY MINIMUM WAGE
IN
THE NATIONAL CAPITAL REGION
WHEREAS
, the Regional
Tripartite Wages and Productivity Board – National Capital Region
(RTWPB-NCR)
is mandated under R.A. 6727 (The Wage Rationalization Act), to
periodically
assess wage rates and conduct continuing studies in the determination
of the
minimum wage applicable in the region or industry;
WHEREAS
, Wage Order No.
NCR-13 took effect on 28 August 2007 and under Section 3, Rule IV of
the
Amended Rules of Procedure on Minimum Wage Fixing issued by the
National Wages
and Productivity Commission (NWPC), the Wage Order may not be disturbed
for a
period of twelve (12) months from its effectivity unless there is a
supervening
condition, such as extraordinary increase in prices of petroleum
products and
basic goods/services, as determined by RTWPB-NCR and confirmed by the
NWPC;
WHEREAS
, over the last eight
months from August 2007 to April 2008 the price of Dubai crude oil shot
up from
US$67.38 to 106.42 (58%) per barrel and the price of rice in the world
market
suddenly surged over a three month period from January to April 2008,
from US$
375.00 to 795.00 (112.0%) per metric ton, with further increases
expected due
to tight supplies and other reasons;
WHEREAS
, these price surges
exert great pressure on local oil, rice and food prices, following the
world-wide trend, as shown by the big increase in the NCR’s consumer
price
index (CPI) from 146.0 in August 2007 to 152.9 in April 2008, while
inflation
rate increased from 2.6% in August 2007 to 7.4% as of April 2008;
WHEREAS
, the Trade Union
Congress of the Philippines (TUCP) filed on April 15, 2008 a petition
for an
Eighty Pesos (P80.00) per day across-the-board wage increase and
National
Federation of Labor Union (NAFLU) filed on May 12, 2008 a petition for
a Fifty
Pesos (P50.00) Cost of Living Allowance for those employees receiving
up to
P400.00 per day;
WHEREAS
, the RTWPB-NCR
issued on 21 April 2008 Resolution No. 01, Series of 2008, declaring
the
existence of supervening condition in the Region which was confirmed by
the NWPC
in its Resolution No. 01, Series of 2008 dated 24 April 2008;
WHEREAS
, after due notice to
all concerned sectors, the RTWPB-NCR pursuant to its power under
Article 123 of
the Labor Code conducted consultations with labor and employer sectors
on the
1st and 2nd of May 2008, respectively, and a public hearing on the 13th
of May
2008, to determine the propriety of issuing a new wage order;
WHEREAS
, considering the
result of the thorough evaluation of the existing socio-economic
conditions of
the Region, showing the ripple effects of price increases in basic and
prime
commodities including fuel and oil, the RTWPB-NCR has determined the
need to
provide workers with immediate relief measures to enable them to cope
with the
rising cost of living without impairing the viability of business and
industry;
NOW
THEREFORE
,
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, all private sector minimum wage
workers
and employees in the National Capital Region shall receive an increase
in the
amount of Twenty Pesos (P20.00) per day consisting of Fifteen Pesos
(P15.00)
Basic Wage and Five Pesos (P5.00) Cost of Living Allowance. The Five
Pesos
(P5.00) COLA shall be automatically integrated into the basic wage on
28 August
2008.
a) The new
daily
minimum wage rates of covered workers in the private sector in the
National
Capital Region shall be as follows:
|
Sector/Industry
|
Minimum Wage under Wage Order No. NCR 13
|
Basic Wage Under W.O. No-NCR 14
|
Cost of Living Allowance under W.O. NCR 14*
|
New Minimum Wage Rates
|
|
Non-Agriculture |
P 362.00 |
P15.00 |
P 5.00 |
P 382.00 |
|
Agriculture (Plantation and Non Plantation) |
P 325.00 |
P15.00 |
P 5.00 |
P 345.00 |
|
Private Hospitals with bed capacity of 100 or
less |
P 325.00 |
P15.00 |
P 5.00 |
P 345.00 |
|
Retail/Service Establishments employing 15
workers or less |
P 325.00 |
P15.00 |
P 5.00 |
P 345.00 |
|
Manufacturing Establishments regularly
employing less than 10 workers |
P 325.00 |
P15.00 |
P 5.00 |
P 345.00 |
* To
be integrated
into the basic wage on 28 August 2008.
Sec.
2. COVERAGE.
The P 20.00 per day
Basic Wage and COLA increase prescribed in this 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.
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 9178.
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.
Sec.
4.
APPLICATION TO
CONTRACTORS. In the case of contracts for construction projects and for
security, janitorial and similar services, the Basic Wage and COLA
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.
Sec.
5.
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 2008-2009 shall be considered as
compliance with
the Basic Wage and COLA prescribed herein. However, payment of any
shortfall in
the wage increase set forth herein shall be covered starting School
Year
2009-2010.
Private
educational
institutions which have not increased their tuition fees for School
Year
2008-2009 may defer compliance with the Basic Wage and COLA prescribed
herein
until the beginning of School Year 2009-2010.
In any case,
all
private educational institutions shall implement the Basic Wage and
COLA
prescribed herein starting School Year 2009-2010.
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 Basic Wage and COLA 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 Persons.
Sec. 8.
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 NWPC, the following may be exempted from the applicability of
this Order:
1.
Distressed
Establishments;
2.
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 P3Million;
3.
Retail/Service
Establishments Regularly Employing Not More Than Ten (10) workers;
4.
Establishments
Adversely Affected by Natural Calamities;
5.
Micro and
small
indigenous exporters as certified by the Export Development Council,
subject to
the criteria and requirements to be provided for in its Implementing
Rules.
Sec.
9. APPEAL TO THE COMMISSION.
Any party aggrieved
by this Wage Order may file an appeal to the NWPC, through the Board,
in three
(3) printed copies, not later than ten (10) days from the publication
of this
Wage Order.
Sec.
10.
CREDITABLE WAGE
INCREASE. Any 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 Basic Wage
and COLA
prescribed in this Order.
In unorganized
establishments, any 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 Basic Wage and COLA, 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.
11.
EFFECTS ON
EXISTING WAGE STRUCTURE. Where the application of the Basic Wage and
COLA
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 Philippines.
Sec.
12.
COMPLAINTS FOR NON-COMPLIANCE
. Complaints for
non-compliance with
this Order shall be filed with the National Capital Region 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.
Sec.
13.
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 employers.
Sec. 14.
PROHIBITION AGAINST INJUNCTION
.
Pursuant to Article 126 of the Labor
Code, 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. 15. 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. 16. 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, 2009 and every year thereafter in accordance with the
form
prescribed by the National Wages and Productivity Commission.
Sec. 17. PENAL
PROVISION.
Any employer who refuses or fails to comply with this Order shall be
subject to
the penalties specified under RA 6727, as amended under R.A. No. 8188.
Sec. 18. 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.
Sec. 19.
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.
Sec. 20.
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.
Sec. 21.
EFFECTIVITY.
This Wage Order shall take effect fifteen (15) days after its
publication in a
newspaper of general circulation.
APPROVED:
Manila, Philippines, 16
May 2008.
(Sgd.) JESSIE L. AGUILAR
Labor Representative |
(Sgd.) VICENTE LEOGARDO, JR
Employer Representative |
Abstained
(Sgd.) GERMAN N. PASCUA, JR.
Labor Representative |
(Sgd.) ALBERTO R. QUIMPO
Employer Representative |
(Sgd.) MA. THERESA L. PELAYO
Vice-Chairperson |
(Sgd,) MYRNA CLARA B. ASUNCION
Vice-Chairperson |
(Sgd.) RAYMUNDO G. AGRAVANTE
Chairperson |
|
