Republic of the
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD - IX
Regional Office No. 9
RULES AND REGULATIONS IMPLEMENTING
ORDER NO. RIX-14
Pursuant to Section 6, Rule IV of the National Wages and
Productivity Commission (NWPC) Amended Rules of Procedure on Minimum
Wage Fixing and Section 24 of Wage Order No. RIX-14, the following
implementing rules and regulations are hereby issued for guidance and
compliance by all concerned:
Section 1. TITLE. This
Rules shall be known as the “Implementing
Rules of Wage Order No. RIX-14.”
Sec. 2. DEFINITION OF
TERMS. As used in this Rules:
a.chanrobles virtual law library
Act refers to Republic Act No. 6727
otherwise known as the “Wage Rationalization Act of 1989”.
b.chanrobles virtual law library
AGRICULTURE refers to farming in all
its branches and among others, includes the cultivation and tillage of
the soil, production, cultivation, growing and harvesting of
agricultural and horticultural commodities, dairying, raising of
livestock or poultry, the culture of fish and other aquatic products in
farms or ponds, any other activities performed by a farmer or on a farm
as an incident to or in conjunction with such farming operations, but
does not include the manufacturing and/or processing of sugar, coconut,
abaca, tobacco, pineapple, aquatic and other farm products
c.chanrobles virtual law library
WAGE ” means
all the remunerations or earnings paid by an employer to a worker for
services rendered on normal working days and hours but does not include
cost-of- living allowances, profit-sharing- payments, premium payments,
13th month pay or other monetary benefits which are not considered as
part of or integrated into the regular wage or salary of the workers on
the date the wage increases become effective;
d.chanrobles virtual law library
WORKERS” are those working in branches or agencies of
e.chanrobles virtual law library
refers to the cost –of- living allowance;
f.chanrobles virtual law library
COMMISSION refers to the National
Wages and Productivity Commission (NWPC).
g.chanrobles virtual law library
refers to one engaged in an economic endeavor in which the products are
primarily done in the home or such other places for profit, which
requires manual dexterity and craftsmanship.
h.chanrobles virtual law library
” refers to the Department of Labor and Employment.;
i.chanrobles virtual law library
“means Department of Trade and Industry;
j.chanrobles virtual law library
to an economic unit which engages in one area or predominantly one kind
of economic activity at a single fixed location.
k.chanrobles virtual law library
WORKERS" are those, who by nature of their work, have to
travel or move from one place to another;
l.chanrobles virtual law library
means National Economic Development Authority;
m.chanrobles virtual law library
“PLANTATION AGRICULTURAL ENTERPRISE”
refers to one engaged in agriculture with an area of more than twenty
four (24) hectares in a locality or which employs at least twenty (20)
workers. Any other agricultural enterprises shall be considered as
n.chanrobles virtual law library
act increasing the penalty and imposing the double indemnity for
violation of the prescribed wage increases in the
wage rates amending
for the purpose Sec. 12 of RA 6727 otherwise known
as the “Wage
Rationalization Act” of 1989 ‘ ;
o.chanrobles virtual law library
an act providing for the rehabilitation, self-development of disabled
persons and their integration into the mainstream of society and for
p.chanrobles virtual law library
is one principally engages in the sale of goods to the end users for
personal or household use. A retail establishment that regularly
engages in wholesale activities loses its retail character;
q.chanrobles virtual law library
BOARD” refers to the Regional Tripartite Wages and
Productivity Board (RTWPB), Region IX;
DAILY MINIMUM WAGE RATE” refers to the lowest wage rates that
an employer can pay the workers, as fixed by the Regional Board;
is the geographical area covering the Zamboanga Peninsula Region
comprising the Provinces of Zamboanga del Sur, Zamboanga del Norte,
Zamboanga Sibugay and the Cities of Zamboanga, Pagadian, Dipolog,
Dapitan and Isabela
is one principally engaged in the sale of services to individuals for
their own or household use and is generally recognized as such;
refers to Wage Order No. RIX-14;
refers to a situation where an increase in prescribed wage rates
results in the elimination or severe contraction of intentional
quantitative differences in wage or salary rates between and among
employee groups in an establishment as to effectively obliterate the
distinction embodied in such wage structure based on skills, length of
service or other logical basis of differentiation.
COST OF LIVING ALLOWANCE
Section 1. AMOUNT OF THE COST OF
LIVING ALLOWANCE. Upon the effectivity of this Wage
minimum wage workers and employees in the private sector in the
shall receive an additional cost-of-living allowance in the amount
Php 10.00 (Ten Pesos) per day.
- he daily regional minimum wage rates shall be as follows:
Wage under Wage
under W. O. No. R1X-14
Minimum Wage Rate
hospital, educational institutions, security agencies, janitorial,
retail/service establishments employing more than 30 workers
- Plantation Agricultural Enterprise
more than 30 workers
c) After one
(1) year from the effectivity of this Wage Order, the Regional Board
shall assess/review the effects of the TEN PESOS COLA for a possible
integration into the basic minimum wage.
2. COVERAGE. The
wage increase prescribed herein shall apply to all private sector
workers and employees receiving the minimum wage in Region IX,
regardless of their position, designation or status and irrespective of
the method by which their wages are paid.
Not covered are household or
domestic helpers; persons employed
in the personal service of another including family drivers; and
employees and workers of registered Barangay Micro Business
(BMBEs) pursuant to RA 9178 otherwise known
as the Barangay Micro
Business Enterprises Act.
3. BASIS OF MINIMUM WAGE. The
minimum wage rates prescribed in this Wage Order shall be for the
normal working hours, which shall not exceed eight (8) hours work a
Sec. 4. WAGES
OF SPECIAL GROUP 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 the
recognized learnerhip and apprenticeship agreements entered into before
the effectivity of the Wage Order shall be considered automatically
modified insofar as their wage provisions are concerned to reflect the
increase prescribed under this Wage Order.All qualified handicapped
workers shall receive the prescribed
minimum wage rate pursuant to R. A. 7277.
Sec. 5. APPLICATION TO CONTRACTORS. In
case of contracts for construction projects, security, janitorial and
other similar services, the increase in the minimum wage prescribed
herein shall be borne by the principal or client of the contractor and
the contract shall be deemed amended accordingly as mandated by the
event, however, that the principal or client fails to pay the
prescribed wage rates, the construction/service contractor shall be
jointly and severally liable with his principal or client.
Sec. 6. APPLICATION TO WORKERS PAID BY RESULTS.
All workers paid by results, including those who are paid on piece
work, “takay”, “pakyaw” or task basis, shall receive not less
applicable minimum wage rates prescribed under this Wage Order for the
normal working hours which shall not exceed eight
hours work a day or
a proportion thereof for work of less than normal working hours.
The wage rates of workers who are paid by results shall continue
to be established in accordance with Article 101 of the Labor Code, as
amended and its implementing rules and regulations
Sec. 7. APPLICATION TO PRIVATE
EDUCATIONAL INSTITUTIONS. In
the case of private educational institutions, the share of workers and
employees covered in the increase in tuition fees for School Year
2007-2008 shall be considered as compliance with the Wage
Order. Payment of any shortfall in the wage increase set forth
shall be covered starting school year 2008-2009.
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 School Year 2008-2009.
In any case, all private educational institutions shall implement
the minimum wage rates prescribed herein starting School Year
Sec. 8. APPLICATION TO INDUSTRIES WHOSE
REVENUES ARE REGULARLY REGULATED BY LAW.
Industries whose revenues are regulated by law (such as arrastre,
transportation , utilities, etc,) shall apply with this Wage Order
immediately upon approval of an adjustment in their rates by the
concerned government agencies , but not later than tree (3)
the effectivity of this Wage Order.
Sec. 9. MOBILE AND BRANCH WORKERS.
The minimum wage rate of workers, who by nature of their work have to
travel, or move from one place to another shall be those
the domicile or head office of their employer.
minimum wage rates of workers working in branches of establishments
shall be those applicable in the place where they are stationed.
Sec. 10. TRANSFER OF PERSONNEL.
The transfer of personnel to areas with lower rates shall in no case be
a valid ground for the reduction of the higher wage rates being enjoyed
by the worker prior to such transfer. However, where the worker is
transferred to an area with higher minimum wage rate, he or she
be entitled to the higher minimum wage rate.
EXEMPTION. Application for exemption from this Wage Order
shall not be considered.
Section 1. APPEAL TO THE
Not later than ten (10) days from the date of the publication of this
Wage Order, any party aggrieved by the Wage Order issued by this
may appeal such Order to the Commission by filing a verified
appeal with the Board in three (3) printed legible copies. The
shall be accompanied by a memorandum of appeal which state the grounds
relied upon, the arguments in support of the appeal and the relief
Sec. 2. EFFECT OF FILING OF APPEAL.
The filing of the appeal does not operate to stay the 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 employees affected by this
Wage Order in the event such Order is affirmed.
Section 1. EFFECT ON EXISTING WAGE
Should any dispute arise as a result of wage distortion, the employer
and the union shall negotiate to correct the distortions through the
grievance procedure under their collective bargaining agreement, and if
it remains unresolved, through voluntary arbitration. Unless
agreed by the parties in writing, such dispute shall be decided by the
voluntary arbitrator or panel of voluntary arbitrators within ten (10)
calendar days from the time said dispute was referred for voluntary
where there are no collective bargaining agreements (CBA) or recognized
labor unions, the employers and workers shall endeavor to correct such
distortions. Any dispute arising therefrom shall be settled
National Conciliation and Mediation Board and if it remains unresolved
after ten (10) calendar days of conciliation, the same shall be
referred to the appropriate branch of the National Labor Relations
Commission (NLRC). The NLRC shall conduct continuous hearings and
decide the dispute within twenty (20) calendar days from the time said
dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from wage distortion shall not
in any way delay the applicability of any increase prescribed
Sec. 2. COMPLAINTS FROM NON-COMPLIANCE.
Complaints for non-compliance with the wage increase prescribed under
this Wage Order shall be filled with the Regional Office of the
Department of Labor and Employment having the jurisdiction over the
workplace and shall be the subject of the enforcement proceedings under
Articles 128 and 129 of the Labor Code, as amended.
Sec. 3. CONDUCT OF INSPECTION BY THE DEPARTMENT OF LABOR
The Department shall conduct inspections of establishments, as often as
necessary, to determine whether the workers are paid the prescribed
wage rates and other benefits granted by law or any Wage Order. In
conduct of inspection in unionized companies, Department inspectors
shall always be accompanied by the president or other responsible
officer of the recognized bargaining unit or of any interested
union. In the case of non-unionized establishment, a worker
representing the workers in the said company will accompany the
The workers’ representative shall have the
right to submit his or her own findings to the Department and to
testify on the same if he or she does not concur with the findings of
the labor inspector.
Sec. 4. NON-DIMINUTION OF BENEFITS. Nothing
in this Wage Order and this Rules shall be construed to
existing wage rates and benefits or any form under existing laws,
decrees, executive order, or any contract of agreement between
Sec. 5. PRODUCTIVITY BASED-WAGES. In
order to sustain rising levels of wages and enhance competitiveness,
businesses are encouraged to strongly adopt productivity improvement
schemes such as time and motion studies, good housekeeping techniques,
quality circle, ISTIV, labor-management cooperation as well as
implement gain-sharing programs. Accordingly, the Board shall provide
the necessary studies and technical assistance pursuant to Republic Act
No. 6971 otherwise known as the Productivity Incentives Act of
Sec. 6. PENAL PROVISONS. Pursuant
to the provisions of Section 12 of RA No. 6727, as amended
by RA 8188
or otherwise known as the Double Indemnity Act of 1996 any person,
corporation, trust, firm, partnership, association or entity which
refuses or fails to pay any of the prescribed increase in
the Order, shall be punished by a fine of not
less than Twenty Five
Thousand Pesos (PhP 25, 000.00 ) nor more than One Hundred
Thousand Pesos (PhP 100, 000.00 ) or imprisonment of not
less than two
(2) years nor more than four (4) years or both such
imprisonment at the discretion of the Court: Provided, That
any person convicted under this Wage Order shall not be entitled
benefits provided for under Presidential Decree No.
known as the Probation Law of 1976.
If violation is
committed by a corporation, trust or form, partnership, association, or
any other entity, the penalty of imprisonment shall be imposed upon the
entity’s responsible officer, including but not limited to the
president, vice-president, chief executive officer, general manager,
managing director as partner.
Sec. 7. PROHIBITION AGAINST INJUNCTION.
No preliminary or permanent injunction or temporary restringing order
(TRO) may be issued by the court, tribunal or other entity against any
proceedings before the Commission or the Regional Boards.
Sec. 8. FREEDOM TO BARGAIN.
The Wage Order shall not be construed to prevent workers in particular
firms or enterprises of industries from bargaining for higher wages and
flexible working arrangement with their respective employers.
Sec. 9. REPORTING REQUIREMENTS.
Any person, company, corporation, partnership or any entity engaged in
business shall submit a verified listing of their labor component to
the Board not later than 31 January 2008 and every year thereafter in
accordance with form prescribed by the Commission.
Sec. 10. REPEALING CLAUSE. All
orders, issuances, rules and regulations on wages, or parts thereof
inconsistent with the provisions of the Wage Order and this Rules are
hereby repealed, amended or modified accordingly.
Sec. 11. SEPARABILITY CLAUSE.
If any provision of this Wage Order is held unconstitutional or
illegal, the other provisions or parts thereof shall remain valid.
Sec. 12. EFFECTIVITY. This Rules shall
take effect on January 26, 2008.
this 27th day of
December 2007. Zamboanga City, Philippines.
(Sgd.) EDGAR B. LIM, CPA
(Sgd.) ROBERTO G. VALERIO
Member Employers' Representative
(Sgd.) JOSE J. SUAN
(Sgd.) GREGORIO DELA PENA
Member Workers' Representative
(Sgd.) RAFAEL G. EVANGELISTA, JR.
and NEDA–IX Director IV
(Sgd.) NAZRULLAH B. MANZUR
and DTI-IX Director IV
(Sgd.) CARLOS L. BOTEROS
Chairman and DOLE-IX Director IV
APPROVED, this 14th day of January 2008,
in the City of Manila, Philippines.
(Sgd.) ARTURO D. BRION
DEPARTMENT OF LABOR AND