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This page features the full text of
Republic Act No. 6640
AN
ACT PROVIDING FOR AN INCREASE IN THE WAGE OF PUBLIC OR GOVERNMENT
SECTOR
EMPLOYEES ON A DAILY WAGE BASIS AND IN THE STATUTORY MINIMUM WAGE AND
SALARY
RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR AND FOR OTHER
PURPOSES.
REPUBLIC
ACT NO. 6640
AN
ACT PROVIDING FOR AN INCREASE IN THE WAGE OF PUBLIC OR GOVERNMENT
SECTOR
EMPLOYEES ON A DAILY WAGE BASIS AND IN THE STATUTORY MINIMUM WAGE AND
SALARY
RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR AND FOR OTHER
PURPOSES.
Section
1. All workers and employees
in the public or government sector on a daily wage basis shall receive
an increase in the sum of ten pesos (P10.00) a day.chan
robles virtual law library
The
Department of Budget and Management shall promulgate such rules and
regulations
to carry out the salary adjustment under this section.
Sec.
2. The statutory minimum wage
rates of workers and employees in the private sector, whether
agricultural
or non-agricultural, shall be increased by ten pesos (P10.00) per day,
except non-agricultural workers and employees outside Metro Manila who
shall receive an increase of eleven pesos (P11.00) per day: Provided,
That
those already receiving above the minimum wage up to one hundred pesos
(P100.00) shall receive an increase of ten pesos (P10.00) per day.
Excepted
from the provisions of this Act are domestic helpers and persons
employed
in the personal service of another. chanrobles virtuallaw libraryred
Sec.
3. Where the application of the
minimum wage increase prescribed under Section 2 results in distortions
in the wage structure within an establishment which gives rise to a
dispute
therein, such dispute shall first be settled voluntarily between the
parties
and in the event of a deadlock, such dispute shall be finally resolved
through compulsory arbitration by the National Labor Relations
Commission's
arbitration branch having jurisdiction over the workplace.cralaw:red
It
shall be mandatory for the NLRC to conduct continuous hearings and
decide
any dispute arising under this section within thirty (30) days from the
time said dispute is formally submitted to it for arbitration. The
pendency
of a dispute arising from a wage distortion shall not in any way delay
the applicability of the wage increase covered by this Act. chanrobles virtuallaw libraryred
For
the purpose of this Act, wage distortion shall mean a situation where a
legislated increase in minimum wages results in the elimination or
severe
contraction on intentional quantitative differences in wage or salary
rates
between and among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure based on
skills,
length of service, or other logical basis of differentiation.chanrobles virtuallaw libraryred
Sec.
4. All workers paid by result,
including those who are paid on piecework, takay, pakyaw or task basis,
shall receive not less than the applicable statutory minimum wage
prescribed
herein per eight (8) hours work a day, or a proportion thereof for
working
less than eight (8) hours.cralaw:red
Sec.
5. Learners, apprentices and
handicapped workers shall be entitled to not less than seventy-five
percent
(75%) of the applicable adjusted minimum wage. A handicapped worker is
one whose efficiency or quality of work is impaired by his disability
in
relation to the work performed.cralaw:red
All
recognized learnership and apprenticeship agreements entered into
before
the effective date of this Act shall be considered as automatically
modified
insofar as their wage clauses are concerned to reflect the increase
provided
in this Act.cralaw:red
Sec.
6. In this case of contracts
for construction projects and for security, janitorial and similar
services,
the increase in the minimum wage of the workers shall be borne by the
employers
of the construction workers, security guards, janitors, and others
similarly
situated: Provided, however, That the principal or client of the
construction
and service contractor shall be subsidiarily liable: Provided, further,
That the subsidiary liability shall not apply to construction of family
homes worth not more than two hundred thousand pesos
(P200,000.00).cralaw:red
Sec.
7. Nothing in this Act shall
be construed to reduce any existing allowances and benefits of any form
under existing laws, decrees, issuances, executive orders, and/or under
any contract or agreement between workers and employers.cralaw:red
Sec.
8. The Department of Labor and
Employment may, upon application by an employer in the retail business
regularly employing not more than ten (10) workers, grant him exemption
from compliance with the provisions of this Act.cralaw:red
Whenever
an application for exemption has been duly filed with the National
Wages
Council, action by the Regional Office of the Department on any
complaint
for alleged non-compliance with this Act shall be deferred pending
resolution
of the application for exemption by the Council.cralaw:red
In
the event that applications for exemption are not granted, employees
shall
receive the appropriate compensation due them as provided for by this
law
plus interest of one percent (1%) per month retroactive to the
effectivity
of this law. chanrobles virtuallaw libraryred
Sec.
9. The Secretary of Labor and
Employment shall promulgate the necessary rules and regulations to
implement
this Act.cralaw:red
Sec.
10.Any person, corporation, trust,
firm, partnership, association or entity violating this Act shall be
punished
by a fine not exceeding twenty-five thousand pesos (P25,000.00) and/or
imprisonment for not less than one (1) year nor more than two (2)
years:
Provided, That any person convicted under this Act shall not be
entitled
to the benefits provided for under the Probation Law.cralaw:red
If
the violation is committed by a corporation, trust or firm,
partnership,
association or any other entity, the penalty of imprisonment shall be
imposed
upon the entity's responsible officers, including, but not limited to,
the president, vice-president, chief executive officer, general
manager,
managing director or partner.chanrobles virtuallaw libraryred
Sec.
11. The wage increase under Section
1 hereof shall be funded from the Compensation and Organizational
Adjustment
Fund, the Contingent Fund, and other savings under Executive Order No.
87, otherwise known as the General Appropriations Act for Fiscal Year
1987,
or from any unappropriated funds of the National Treasury. Any
deficiency
shall be charged against the personal services savings of the National
Government: Provided, That the corresponding amount for the increase
therein
will be included in the annual General Appropriations Act for the
succeeding
years.cralaw:red
Sec.
12. All laws, orders, issuances,
rules and regulations or part thereof inconsistent with the provisions
of this Act are hereby repealed or amended accordingly. If any
provision
or part of this Act, or the application thereof to any person or
circumstance,
as held invalid or unconstitutional, the remainder of this Act or the
application
of such provision or part thereof to other persons or circumstances,
shall
not be affected thereby. chanrobles virtuallaw libraryred
Sec.
13. This Act shall take effect
the day following its publication in two (2) national newspapers of
general
circulation.
Approved:
December 10, 1987
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