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Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission

Pursuant to Section 8 of RA No. 9178 and Section 2 of DOLE Department Order No. 45-03, Series of 2003, the following guidelines are hereby adopted for the proper guidance and information of all concerned.

Section 1. Rationale. RA No. 9178, known as the Barangay Micro Business Enterprises (BMBEs) Act of 2002, aims to hasten the country's economic development and alleviate poverty by encouraging the formation and growth of BMBEs through the rationalization of bureaucratic requirements, the active support and assistance of government, and the granting of incentives and benefits to generate employment.

One of the incentives granted to registered BMBEs is exemption from the coverage of the Minimum Wage Law. The Constitution and the Labor Code, however, mandate the State to regulate 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 on investments, and to expansion and growth. Guided by this Constitutional provision, the workers and owners of BMBEs are encouraged to set mutually acceptable wage rates in their respective enterprises.

This Guidelines is intended to guide the Regional Tripartite Wages and Productivity Boards (RTWPBs) in the issuance of Wage Advisories for BMBEs that can assist workers and owners when they set mutually acceptable wage levels and foster industrial peace and harmony.

Section 2. Definition of Terms. As used in this Guidelines:

1. Barangay Micro Business Enterprise - hereinafter referred to as BMBE, refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of land on which the particular business entity's office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00) subject to review and upward adjustment by the SMED Council. A BMBE shall include any individual owning such business entity/enterprise, partnership, cooperative, corporation, association or other entity incorporated and/or organized and existing under Philippine laws, and registered with the office of the treasurer of a city or municipality in accordance with RA 9178.
   
   "Services" shall exclude those rendered by anyone, who is duly licensed by the government after having passed a government licensure examination, in connection with the exercise of one's profession.
   
   

2. Acceptable Wage Rates - refer to the reasonable and agreed wage rates set by BMBE workers and owners taking into consideration the Wage Advisories issued by the RTWPBs.
   
   

3. Certificate of Authority - refers to the certificate issued to an applicant authorizing the same to operate as a BMBE and to be entitled to the benefits and privileges accorded to a registered BMBE.

        Section 3. Guidelines.

        A. Wage Advisories

1. Nature. The wage rates to be proposed in the Wage Advisories shall be advisory and not mandatory in nature. They are intended to exert a persuasive effect on BMBE owners and provide a benchmark for workers. Nothing in this Guidelines or in the Wage Advisories to be issued by the RTWPBs shall prevent workers and employers of BMBEs from bargaining or negotiating for higher wages and other benefits.
   
   

2. Compliance with Labor Laws and Regulations. The Wage Advisories shall contain an express provision that, except for the Minimum Wage, BMBE workers shall continue to be covered by all other pertinent labor laws and regulations, including the non-diminution of wages and the rights of workers to social security and health care benefits.
   
   

3. Criteria. In the determination of advisory wage rates for BMBEs, the RTWPBs may consider factors which may significantly affect BMBE workers and enterprises.
   
   

4. Applicable Wage Rate. To facilitate information dissemination and awareness of concerned workers and employers, the RTWPBs may propose a single wage rate applicable to all BMBEs in the entire region.

         B. Procedure in Setting Wage Advisories

1. The RTWPBs shall conduct studies of social and economic factors that may affect  BMBEs. In coordination with the DTI Regional Offices, the RTWPBs shall maintain a data base of BMBEs with valid Certificates of Authority.
   
   

2. The RTWPBs may enlist the assistance and cooperation of any government agency or private person or organization to furnish information in aid of its wage advisory function.
   
   

3. The RTWPBs shall conduct consultations / dialogues with affected sectors, after which they shall decide on the merits of issuing a Wage Advisory for BMBEs, and where appropriate, issue such Wage Advisory within a reasonable period of time.
   
   

4. The RTWPBs shall disseminate to workers and owners of registered BMBEs in their respective regions copies of their Wage Advisories.
   

Section 4. Submission of Wage Advisories to the Commission. The RTWPBs shall furnish the Commission copies of their Wage Advisories for information and review.

Section 5. Counseling Assistance. Any issue that may arise in the determination of acceptable wage rates in concerned BMBEs may be brought by the workers and owners to the appropriate RTWPB for counseling assistance.

Section 6. Effectivity. This Guidelines shall take effect 15 days after its publication in a newspaper of general circulation.

Manila, Philippines, 2003.