Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
Regional Tripartite Wages and Productivity Board - I
City of San Fernando
WAGE ORDER NO. RB 1-12
IMPLEMENTING
RULES & REGULATIONS
Setting New Minimum Wage Rates for Private
Sector
Employees/Workers in Region-I
WHEREAS,
the Regional Tripartite Wages and Productivity Boards are mandated
pursuant to Republic
Act No. 6727 otherwise known as the Wage
Rationalization Act to determine and fix minimum wage rates applicable
in their regions;
WHEREAS,
in the light of the changes in the socio-economic factors of the
region, this Board declared motu proprio in its Resolution No. 04,
series of 2007 dated July 18, 2007, to conduct a thorough and
comprehensive study and review of the prevailing minimum wage levels;
WHEREAS,
the Rosario Pepsi Employees and Workers Union filed a verified petition
asking for an P18.00 per day across the board wage increase;
WHEREAS,
this Board conducted a series of public hearings on wage issue in
Pangasinan, La Union, Ilocos Sur, and Ilocos Norte on October 22, 2007,
October 23, 2007, October 25, 2007, and October 26, 2007, respectively.cralaw:red
WHEREAS,
the results of the Board’s study, and public hearings conducted
disclose the need to adjust the amount of minimum wage levels to
provide relief to the workers and enable them to cope with the rising
costs of living brought about by the changes in the socio-economic
factors without endangering the viability of business and industry;
WHEREAS,
pursuant to NWPC Polity Guidelines No. 01, Series of 2005 (Policy
Directions and Program Thrusts: 2006-2010), the Board further
simplified the existing wage structures in the Region.cralaw:red
WHEREAS,
coherent with the policy thrust to achieve higher levels of
productivity as an approach for increasing worker’s wages above the
minimum and to preserve gainful employment, there is therefore a need
to strengthen the capacity of businesses to be competitive through
productivity improvement and gain sharing mechanisms.cralaw:red
NOW THEREFORE,
by virtue of the power and authority vested upon it by Republic
Act.
No. 6727, the Regional Tripartite Wages and Productivity
Board-1
(RTWPB-1) hereby issues this Wage Order.cralaw:red
Section 1. NEW DAILY MINIMUM WAGE RATES
Upon
the effectivity of this Wage Order, the daily minimum wage rates of
workers and employees in the private sector shall be increased as
follows:cralaw:red
INDUSTRY/SECTOR |
WAGE ORDER NO. RB 1-12 |
Wage Order No. RB 1-11 |
Amount of Increase |
New Minimum Wage Rates |
NON-AGRICULTURE |
|
|
|
Banks & Financial Intermediaries |
P225.00 |
P5.00 |
P230.00 |
Construction |
225.00 |
5.00 |
230.00 |
Real Estate, Renting & Business Activities |
225.00 |
5.00 |
230.00 |
Commercial Fishing |
225.00 |
5.00 |
230.00 |
Tertiary Care Hospitals |
225.00 |
5.00 |
230.00 |
Private Education Institutions |
220.00 |
10.00 |
230.00 |
Transport, Storage & Communications |
220.00 |
10.00 |
230.00 |
Electricity, Gas & Wager |
220.00 |
10.00 |
230.00 |
Manufacturing (Medium/Large) |
220.00 |
10.00 |
230.00 |
Wholesale and Retail Trade, Repair of: |
|
|
|
Motor
Vehicle, Motorcycle and Personal |
|
|
|
and
Household Goods |
|
|
|
- Large, Medium and Wholesale |
220.00 |
10.00 |
230.00 |
Other
Community, Social and Personal |
|
|
|
Service
Activities |
|
|
|
- Community and Social Services |
220.00 |
10.00 |
230.00 |
Mining and Quarrying |
220.00 |
10.00 |
230.00 |
Secondary Case Hospitals |
215.00 |
3.00 |
218.00 |
Manufacturing - Small |
205.00 |
5.00 |
210.00 |
Primary Care Hospitals and
Clinics |
205.00 |
5.00 |
210.00 |
Hotel and Restaurants |
|
|
|
- Small,
Medium/Large |
205.00 |
5.00 |
210.00 |
Wholesale and Retail
Trade, Repair of: |
|
|
|
Motor Vehicle,
Motorcycle and Personal |
|
|
|
and
Household Goods |
|
|
|
- Small |
205.00 |
5.00 |
210.00 |
Other Community, Social and
Personal |
|
|
|
Service
Activities |
|
|
|
-
Small/Medium/Large |
205.00 |
5.00 |
210.00 |
AGRICULTURE |
|
|
|
Plantation |
195.00 |
15.00 |
210.00 |
Non-Plantation |
170.00 |
15.00 |
185.00 |
MICRO ESTABLISHMENTS |
|
|
|
Cooperative - Micro |
205.00 |
5.00 |
210.00 |
Manufacturing
- Micro |
180.00 |
5.00 |
185.00 |
Hotel and Restaurant -
Micro |
180.00 |
5.00 |
185.00 |
Wholesale
and Retail Trade, Repair of |
|
|
|
Motor
Vehicle, Motor Cycle and Personal |
|
|
|
and
Household Goods |
|
|
|
- Micro |
180.00 |
5.00 |
185.00 |
Other
Community, Social and Personal |
|
|
|
Service
Activities |
|
|
|
- Micro |
180.00 |
5.00 |
185.00 |
Small Municipal
Fishing
|
170.00 |
15.00 |
185.00 |
Sec. 2.
MINIMUM WAGE RATES APPLICABLE TO BUSINESS ESTABLISHMENTS WITH
MULTIPLE
BUSINESS ACTIVITIES:
The
minimum wage rates applicable to business establishments performing
multiple business activities not separately registered with any
appropriate government agency shall be determined in accordance with
their dominant business activity based on their gross revenue
Sec. 3.
COVERAGE
All
private sector workers and employees receiving the minimum wage rates
in the Region are covered by the provisions of this Wage Order
regardless of their position, designation or status of employment and
irrespective of the method of their wages being paid.
Not
covered by this Wage Order are household or domestic helpers, persons
employed in the personal service of another including family drivers;
and workers and employees of registered Barangay Micro Business
Enterprises (BMBE) with Certificates of Authority pursuant to Republic
Act 9178.
Sec. 4. BASIS OF MINIMUM WAGE
The
minimum wage rates prescribed under this Order shall be for the normal
working hours which shall not exceed eight (8) hours work a day.cralaw:red
Sec. 5. CREDITABLE WAGE INCREASE
a. If expressly provided and agreed upon in the
Collective Bargaining Agreements, wage increases granted by
employers within three (3) months prior to the effectivity of
this Order shall be credited as compliance with the minimum wage
rates prescribed herein.cralaw:red
b. Wage increases granted by non-unionized
establishments within six (6) months prior to the effectivity of
this Order shall also be credited as compliance therewith.cralaw:red
c. Anniversary wage increases provided in Collective
Bargaining Agreements, merit wage increases and those resulting
from their regularization or promotion of employees shall not be
credited as compliance.cralaw:red
Sec. 6. WORKERS PAID BY RESULTS
All workers paid by results, including those who are
paid on piecework, “takay”, “pakyaw” or task basis, shall be entitled
to receive not less than the prescribed new minimum wage rates per
eight (8) hours work a day, or a proportion thereof for working less
than eight (8) hours.cralaw:red
Sec. 7. WAGES OF SPECIAL GROUPS OF
WORKERS AND EMPLOYEES
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.cralaw:red
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 prescribed wage rates.
All qualified handicapped workers shall
receive the full amount of increase in this Order pursuant to R.A.
7277.cralaw:red
Sec. 8. 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
applicable minimum wage rates prescribed herein. However, payment of
any shortfall shall be given starting School Year 2008-2009.cralaw:red
Private 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 the beginning
of School Year 2008-2009.cralaw:red
In any case, all Private Educational Institutions shall
implement the minimum wage rates prescribed herein starting School Year
2008-2009 whether or not they will increase their tuition fees during
the said school year.cralaw:red
Sec. 9. APPLICATION TO CONTRACTORS
In the case of contracts for construction projects and
for security, janitorial and similar services, the prescribed
adjustments in the wage rates of the workers and employees shall be
borne by the principals or clients of the construction/service
contractors and the contracts shall be deemed amended accordingly. In
the event, however, that the principal or client fails to pay the
prescribed increase or new minimum wage rates, the construction/service
contractor shall be jointly and severally liable with his principal or
client.
Sec. 10. MOBILE AND BRANCH WORKERS/EMPLOYEES
The minimum wage rates of workers and employees, who by
the nature of their work have to travel, shall be those that are
applicable in the domicile or head office of the employer.cralaw:red
The minimum wage rates of workers and employees working
in branches or agencies of establishments within or outside Region-I
shall be those that are applicable in the place where they are
stationed.cralaw:red
Sec. 11. TRANSFER OF WORKERS AND EMPLOYEES
The transfer of workers and employees from one region
to another shall not diminish the wage rates being enjoyed by them
prior to such transfer. The workers and employees transferred to other
regions with higher wage rates shall be entitled to the minimum wage
rate applicable therein.cralaw:red
Sec. 12. EXEMPTIONS
Upon application with and as determined by the Board in accordance
with applicable Rules issued by the Commission, distressed
establishments (except conditional exemption) as defined in the NWPC
Guidelines No. 02, series of 2007 may be exempted from the coverage of
this Order.cralaw:red
Sec. 13. DURATION AND EXTENT OF EXEMPTION
Establishments that applied for exemption and found
qualified may be granted a partial or full exemption of one (1) year in
accordance with the NWPC Guidelines No. 02, series of 2007.cralaw:red
Sec. 14. 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
the Order until resolution of the application by the Regional Board.cralaw:red
In case the application for exemption is not approved,
covered workers and employees of the applicant-establishment shall be
paid the prescribed minimum wage rates under this Order plus one
percent (1%) simple interest per month retroactive to the effectivity
of this Order.cralaw:red
Sec. 15. 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.cralaw:red
Sec. 16. EFFECT OF FILING OF APPEAL
The filing of an appeal does not operate to stay this
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 increase to workers and
employees affected by the Order in the event such Order is affirmed.cralaw:red
Sec. 17. EFFECTS ON EXISTING WAGE
STRUCTURE
Where the application of the new minimum wage rates
under this Order results in distortion of the wage structure within an
establishment, the same shall be corrected in accordance with the
procedure provided for under Art. 124 of the Labor Code as amended.cralaw:red
Sec. 18. COMPLAINTS FOR NON-COMPLIANCE
Complaints for non-compliance with this Order shall be
filed with the Regional Office of the Department of Labor and
Employment (DOLE-Region I) and shall be the subject of enforcement
proceedings under Article 128 of the Labor Code, as amended, without
prejudice to criminal prosecution which may be undertaken against those
who fail to comply.cralaw:red
Sec. 19. 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/employees and employers.cralaw:red
Sec. 20. PENAL PROVISION
Any person, corporation, trust, firm, partnership,
association or entity which refuses or fails to pay the prescribed
increase in this Order, shall be punished by a fine of not less than
P25,000.00 nor more than P100,000.00 or imprisonment of not less than
two (2) years nor more than four (4) years or both such fine and
imprisonment at the discretion of the court pursuant to the provision
of Sec. 12 of R.A.
6727, as amended by R.A. 8188.
Sec. 21. PROHIBITION AGAINST INJUNCTION
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.cralaw:red
Sec. 22. FREEDOM TO BARGAIN
This Order shall not be construed to prevent workers in
particular firms or enterprises of industries from bargaining for
higher wages with their respective employers.cralaw:red
Sec. 23. PRODUCTIVITY-BASED WAGES
To attain higher levels of productivity for
competitiveness, to preserve and generate gainful employment and to
augment the wages of workers/employees, business enterprises are
strongly encouraged to adopt Productivity Improvement and Gain Sharing
Programs.cralaw:red
Business establishments are likewise encouraged to
avail of the technical assistance which this Board and/or the National
Wages and Productivity Commission provides such as the ISTIV
Productivity Improvement Program and other Productivity Improvement
Schemes.cralaw:red
Sec. 24. REPORTING REQUIREMENT
Any 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 31 January 2008 and
every year thereafter in accordance with the form prescribed by the
Commission.cralaw:red
Sec. 25. REPEALING CLAUSE
All orders, issuances, rules and regulations, or parts
thereof inconsistent with the provision of this Wage Order are hereby
repealed, amended or modified accordingly.cralaw:red
Sec. 26. IMPLEMENTING RULES
The Board shall prepare the necessary rules to
implement this Order subject to approval of the Secretary of Labor and
Employment.cralaw:red
Sec. 27. SEPARABILITY CLAUSE
If, for any reason, any Sec. or provision of this Order
is declared unconstitutional or illegal, the other provisions or parts
shall remain valid.cralaw:red
Sec. 28. EFFECTIVITY
This Wage Order shall take effect fifteen (15) days
after its publication in a newspaper of general circulation in the
Region.cralaw:red
APPROVED this 19th day of November, San
Fernando City, La Union, Philippines.
(Sgd.)
Atty. AMADO T. ADQUILEN
Workers’ Representative |
(Sgd.)
DEMETRIO E. RUIZ, JR.
Workers’ Representative |
(Sgd.)
JERRY V. PARLAN
Employers’ Representative |
(Sgd.)
SALVADOR R. POSERIO
Employers’ Representative |
(Sgd.)
FLORANTE O. LEAL
Vice-Chairperson |
(Sgd.) LEONARDO N.
QUITOS, JR.
Vice-Chairperson |
|
|
(Sgd.) HENRY JOHN S.
JALBUENA
Chairperson
Attested
by:
(Sgd.)
EXEQUIEL
A. GUZMAN
Board Secretary VI
Published on December 16, 2007 at Sunday Punch
Effectivity: December 31, 2007 | |