Republic of the Philippines
Labor and Employment
Wages and Productivity Commission
NWPC Guidelines No. 01
Series of 2003
GUIDELINES ON THE
ISSUANCE OF WAGE ADVISORIES FOR BARANGAY
MICRO BUSINESS ENTERPRISES
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
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
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
Section 2. Definition of Terms. As used in this
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.
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.
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.
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.
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.
Criteria. In the
determination of advisory wage rates for BMBEs, the RTWPBs may consider
factors which may significantly affect BMBE workers and enterprises.
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.
Procedure in Setting Wage Advisories
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.
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
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
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
Manila, Philippines, 2003.
CEDRIC R. BAGTAS
FRANCISCO R. FLORO
DAVID L. DIWA, JR.
EDUARDO T. RONDAIN
REBECCA J. CALZADO