Implementing Rules on Wage Order No. Ncr-13 & 14

7/30/2019 Implementing Rules on Wage Order No. Ncr-13 & 14

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NCR - NATIONAL CAPITAL REGIONMINIMUM WAGE RATES

Republic of the PhilippinesDepartment of Labor and Employment

National Wages and Productivity CommissionREGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD

National Capital Region

RULES IMPLEMENTING

WAGE ORDER NO. NCR-13

RULE IGENERAL PROVISIONS

Pursuant to Section 5, Rule IV of the National Wages and Productivity CommissionGuidelines No. 001-95, otherwise known as the Revised Rules of Procedure on MinimWage Fixing and Section 23 of Wage Order No. NCR 13, the following Rules are her

issued for the guidance and compliance by all concerned:

ection 1.TITLE. This shall be known as The Rules Implementing Wage Order No. N13.

Sec. 2.DEFINITION OF TERMS. As used in these Rules:a) Order means Wage Order No.

NCR 13.b) Department means the

Department of Labor andEmployment.

c) Commission means the NationalWages and Productivity Commission.

d) Board means the RegionalTripartite Wages and ProductivityBoard National Capital Region.

e) Regional Office refers to theregional office of the Department of
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Labor and Employment in theNational Capital Region.

f) National Capital Region covers theCities of Caloocan, Las Pias, Makati,Mandaluyong, Manila, Marikina,Malabon, Muntinlupa, Paraaque,Pasay, Pasig, Quezon, San Juan,Taguig and Valenzuela, and theMunicipalities of Navotas andPateros.

g) griculture refers to farming in allits branches and among others,includes the cultivation and tillage ofthe soil, production, cultivation,

growing and harvesting of anyagricultural or horticulturalcommodities, dairying, raising oflivestock or poultry, the culture offish and other aquatic products infarms or ponds, and any activityperformed by a farmer or on a farmas an incident to or in conjunctionwith such farming operations, butdoes not include the manufacturing

and/or processing of sugar, coconut,abaca, tobacco, pineapple, aquaticor other farm products.

h) Establishment refers to aneconomic unit, which engages in oneor predominantly one kind ofeconomic activity at a single fixedlocation. For purposes ofdetermining eligibility for exemption,establishments under the sameowner/s but separately registeredwith the Securities and ExchangeCommission (SEC), Department ofTrade and Industry (DTI) orCooperative Development Authority(CDA) as the case may be,irrespective of their location, shall be


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treated as individual and distinctestablishments.

i) Retail Establishment refers to anentity principally engaged in the saleof goods to end users for personal orhousehold use.A retail establishment that regularlyengages in wholesale activities losesits retail character.

j) Service Establishment refers to anentity principally engaged in the saleof services to individuals for theirown or household use and isgenerally recognized as such.

k) Distressed Establishments refer toestablishments which meet thecriteria enumerated in Section 3A ofthe National Wages and ProductivityCommission (NWPC) Guidelines No.01 Series of 1996, otherwise knownas the Rules on Exemption from

Compliance with the PrescribedWage Increases/Cost of LivingAllowances Granted By the Regional

Tripartite Wages and ProductivityBoards.

l) Establishments Facing PotentialLosses refer to establishments asdefined in the National Wages andProductivity Commission (NWPC)Policy Guidelines No. 01, series of2001.

m)Barangay Micro Business Enterprise(BMBE) refers to any businessentity or enterprise granted aCertificate of Authorityunder Republic Act No. 9178,otherwise known as the "BarangayMicro Business Enterprises Act of2002".

n) Capital refers to the paid up
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capital at the end of the last fullaccounting period in the case ofcorporations or total invested capitalat the beginning of the period underreview, in the case of partnershipsand single proprietorships.

o) Capital Impairment refers to thediminution of capital due toaccumulated losses.

p) Stockholders Equity refers to theresidual interest in the assets of anentity that remains after deductingits liabilities. It is total assets minustotal liabilities. It is the same as

equity and net worth.q) Full Accounting Period refers to aperiod of twelve (12) months ofbusiness operations.

r) Interim Period refers to a financialreporting period shorter than a fullfinancial year (most typically aquarter or half year).

s) Deficit refers to the negativebalance of the retained earnings

account of a corporation.Retained earnings represent thecumulative balance of periodicearnings, dividend distributions,prior period adjustments and othercapital adjustments.

t) Total Assets refers to things ofvalue owned by the business such ascash, machines, building and landwhich can be measured or expressedin money terms.

u) Net Loss refers to actual losssuffered by a company afterdeducting expenditures includingoverhead and interest charges fromrevenues.

v) Financial Statement refers to a


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written report which quantitativelydescribes the financial health of acompany. This includes thefollowing: balance sheet, incomestatement, statement of changes inequity, cash flow statement andnotes to financial statement.

w)Stock Corporation refers to acorporation, duly registered withSecurities and Exchange Commission(SEC), organized for profit andissues shares of stock to itsmembers.

x) NonStock, NonProfit

Organization refers to anorganization, duly registered withSecurities and ExchangeCommission, organized principallyfor public purposes such ascharitable, educational, cultural orsimilar purposes, and does not issueshares of stock to its members.

y) Partnership refers to anassociation, duly registered with

Securities and Exchange Commission(SEC), of two or more persons whobind themselves to contributemoney, property, or industry to acommon fund with the intention ofdividing the profits amongthemselves or for the exercise of aprofession.

z) Single Proprietorship refers to abusiness unit, duly registered withDepartment of Trade and Industries(DTI), owned and controlled by onlyone person.

aa)Cooperative refers to a dulyregistered association of personswith the Cooperative DevelopmentAuthority (CDA) who voluntarily join


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together to form a businessestablishment which theythemselves own, control andpatronize, and which may fall underany of the following types: credit,consumers, producers, marketing,service or multi purpose.

bb)Emergency Cost of Living Allowance(ECOLA) refers to the emergencycost of living allowance prescribed bythe Board for covered private sectorworkers and employees in theNational Capital Region.

cc)Wage Distortion as defined under

Article 124 of Presidential DecreeNo. 442, as amended, otherwiseknown as the Labor Code of thePhilippines, as amended, refers to asituation where an increase in theprescribed wage rates results in theelimination or severe contraction ofintentional quantitative differences inwage or salary rates between andamong employee groups in an

establishment as to effectivelyobliterate the distinctions embodiedin such wage structure based onskills, length of service, or otherlogical bases of differentiation.

dd)Establishments with Total Assets ofThree Million Pesos (P3,000,000.00)or Less refers to establishmentswhose total assets, including thosearising from loans but exclusive ofthe land on which the businessentitys office, plant and equipment

are situated, are not more thanThree Million (P3,000,000.00) andsaid establishments are notregistered as BMBEs.

RULE II


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NEW MINIMUM WAGE RATES

Section 1. INTEGRATION OF THE COST OF LIVING ALLOWANCES. Effective 2August 2007, the existing Cost of Living Allowances (COLAs) in the total amount of F

Pesos (P50.00) per day under Wage Order Nos. NCR 09 and NCR 10 shall beintegrated into the basic wage of covered workers in the National Capital Region.

Sec. 2. AMOUNT OF INCREASE. Also, effective 28 August 2007, all minimum wagworkers in the private sector in the National Capital Region shall receive an increase

TWELVE PESOS (P12.00) per day in their basic pay.ec. 3. THE NEW MINIMUM WAGE RATES. The new daily minimum wage rates in

National Capital Region shall be as follows:

ndustry/SectorBasic WageAfter COLAIntegration

WageIncreaseunder W.O.

NCR 13

New MinimuWage Rates

on Agriculture P 350.00 P 12.00 P 362.00griculture (Plantation and Nonlantation)

P 313.00 P 12.00 P 325.00

rivate Hospitals with bed capacityf 100 or less

P 313.00 P 12.00 P 325.00

etail/Service Establishmentsmploying 15 workers or less

P 313.00 P 12.00 P 325.00

Manufacturing Establishmentsegularly employing less than 10

workers

P 313.00 P 12.00 P 325.00

Sec. 4. COVERAGE. The wage increase prescribed herein shall apply to all minimuwage earners in the private sector within the Region, regardless of their position,

designation or status and irrespective of the method by which their wages are paidThe P 50.00 per day COLA integration shall apply to all covered workers under Wag

Order Nos. NCR 09 and NCR 10.This Wage Order shall not cover household or domestic helpers; persons in the persoservice of another, including family drivers; and workers of registered Barangay Mic

Business Enterprises (BMBEs) with Certificates of Authority pursuant to R.A. 9178Sec. 5. BASIS OF MINIMUM WAGE RATES. The minimum wage rates prescribe

under this Order shall be for the normal working hours which shall not exceed eight (hours of work a day.

Sec. 6. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the caseprivate educational institutions, the share of covered workers and employees in the

increase in tuition fees for School Year 2007 2008 shall be considered as complianwith the increase prescribed herein. However, payment of any shortfall in the wage

increase set forth herein shall be covered starting School Year 2008 2009.


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Private educational institutions, which have not increased their tuition fees for Schoear 2007 2008, may defer compliance with the provisions of this Wage Order until

beginning of School Year 2008 2009.In any case, all private educational institutions shall implement the increase prescrib

herein starting School Year 2008 2009.Sec. 7. APPLICATION TO CONTRACTORS. In case of contracts for construction

rojects, security, janitorial and other similar services, the increase in the minimum wprescribed herein shall be borne by the principal or client of the contractor and thecontract shall be deemed amended accordingly as mandated by the Labor Code.

n the event, however, that the principal or client fails to pay the prescribed wage rate construction/service contractor shall be jointly and severally liable with his princip

client.Sec. 8. WORKERS PAID BY RESULT. All workers paid by result, including those ware paid on piecework, takay, pakyaw or task basis, shall receive not less than th

pplicable minimum wage rates prescribed under the Order for the normal working howhich shall not exceed eight (8) hours work a day, or a proportion thereof for workiless than the normal working hours.

The adjusted minimum wage rates for workers paid by result shall be computed inaccordance with the following steps:

a. Amount of Increase in AMW* = % Increase

Previous AMW

P 12.00 = 3.4 % Increase

P 350.00

b. Existing rate/piece x 0.034 = Increase in rate/piecec. Existing rate/piece + Increase in rate/piece = Adjusted rate/piece

*WhereAMWis theApplicable Minimum Wagerate.The wage rate of workers who are paid by result shall continue to be established in

accordance with Article 101 of the Labor Code of the Philippines, as amended, and iimplementing rules and regulations.

Sec. 9. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices andlearners shall in no case be less than seventy five percent (75%) of the applicabl

minimum wage rates prescribed in this Order.All recognized learnership and apprenticeship agreements entered into before the

ffectivity of the Order shall be considered automatically modified in so far as their wclauses are concerned to reflect the adjustments prescribed under the same Order

l qualified handicapped workers shall receive the full amount of the minimum wage


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rescribed herein pursuant toRepublic Act No. 7277, otherwise known as the Magna Cfor Disabled Persons.

Sec. 10. SUGGESTED FORMULA IN DETERMINING THE EQUIVALENT MONTHREGIONAL MINIMUM WAGE RATES. Without prejudice to existing company practicagreements or policies, the following formula may be used as guides in determining t

equivalent monthly minimum wage rates:a) For those who are required to work everyday including Sundays o

rest days, special days and regular holidays:Equivalent = Applicable Daily Wage Rate (ADR) x 392.80 days

Monthly Rate (EMR)

12Where 392.80 days are:300 days Ordinary working days

20 days 10 regular holidays x 2002.6 days 1 regular holiday (falling on last Sunday of August x

200% + (30% of 200%)66.30 days 51 rest days x 130%3.90 days 3 special days x 130%

392.80 days Total equivalent number of days

b) For those who do not work but are considered paid on rest days,special days and regular holiday:

(EMR) = (ADR x 365 days) / 12

Where 365 days are:

300 days Ordinary working days51 days

Rest days

11 days Regular holidays3 days Special days

365 days Total equivalent number of days
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c) For those who do not work and are not considered paid on Sundays

or rest days:(EMR) = (ADR x 314.90 days) / 12

Where 314.90 days are:

300 days Ordinary working days11 days Regular holidays3.90 days 3 Special days (if worked) x 130%


d) For those who do not work and are not considered paid Saturday andSundays or rest days:

EMR = (ADR x 262.90 days) / 12Where 262.90 days are:

248 days Ordinary working days11 days Regular holidays3.90 days 3 Special days (if worked) x 130%


NOTE:For workers whose rest days fall on Sundays, the number of rest din a year is reduced from 52 to 51 days, the last Sunday of August being

egular holiday under Executive Order No. 203. For purposes of computati

said holiday, although still a rest day for them, is included in the elevenregular days.

For workers whose rest days do not fall on Sundays, the number of rest da

is 52 days, as there are 52 weeks in a year.ec. 11. MOBILE AND BRANCH WORKERS. The minimum wage rates of worke

who, by the nature of their work have to travel, shall be those applicable in tdomicile or head office of the employer.cralaw

The minimum wage rates of workers working in branches or agencies ofestablishments in or outside the National Capital Region shall be those

applicable in the place where they are stationed.cralaw


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Sec. 12. TRANSFER OF PERSONNEL. The transfer of personnel to areas outsihe Region shall not be a valid ground for the reduction of the wage rates benjoyed by the workers prior to such transfer. The workers transferred to otRegions with higher wage rates shall be entitled to the minimum wage rate

applicable therein.cralawSec. 13. APPEAL TO THE COMMISSION. Any party aggrieved by this Wage Or

may file an appeal to the Commission within ten (10) calendar days from thpublication of the Order. Pursuant to Section 5, Chapter III of the Rules

Implementing R.A. 6727, the Commission shall decide the appeal within six60) calendar days from the date of filing. The appeal shall be accompanied b

memorandum of appeal, which shall state the grounds relied upon, and thearguments in support of the appeal. cralaw

ec. 14. EFFECT OF APPEAL. The filing of the appeal does not operate to stay Order unless the party appealing such Order shall file with the Commission

undertaking with a surety or sureties satisfactory to the Commission forpayment to employees affected by the Order of the corresponding increase,

the event that such Order is affirmed.cralawRULE III

EXEMPTIONSection 1. WHO MAY BE EXEMPTED. Upon application with and as determinedthe Board, based on compliance with the requirements under the applicabl

rules and regulations, the following may be exempted from the applicabilitythis Order:

a) Retail/Service establishments regularly employing not more than ten (10)

workers.b) Distressed establishments in accordance with the criteria enumerated in the

National Wages and Productivity Commission (NWPC) Guidelines No. 01,series of 1996.

c) Establishments Facing Potential Losses as defined in the National Wagesand Productivity Commission (NWPC) Policy Guidelines No. 01, series of2001.

d) Establishments with total assets, including those arising from loans butexclusive of the land on which the particular business entity's office, plantand equipment are situated, are not more than THREE MILLION PESOS(P3,000,000.00), and said establishments are not registered as BMBEs;and,

e) Establishments adversely affected by natural calamities.Sec. 2. APPLICATION FOR EXEMPTION AND GENERAL DOCUMENTARY

REQUIREMENTS. Within seventy five (75) days from the date of publication of theRules, pursuant to Resolution No. 01, series of 1999, issued by the Commission, a

pplication for exemption with complete supporting documents as specified in the Ru


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and as may be further required by the Board, shall be filed with the Board in three (copies by the owner/manager or duly authorized representative of an establishment,person or by registered mail. The date of mailing shall be deemed as the date of filinailure to submit the required supporting documents within the said prescribed period

serve as sufficient basis for the dismissal of the application for exemption.All applications for exemption shall be:

a) under oath;b) supported by a proof of notice to the Union/s or if there is no Union, a copy o

the circular giving general notice to all workers that an application forexemption from compliance with the Order has been filed with the Board.The proof of notice, which may be translated in the vernacular, shall statethat the workers' representative was furnished a copy of the application withall the supporting documents. The notice shall be posted in a conspicuousplace in the establishment; and,

c) accompanied by an affidavit under oath:i) stating the principal economic activity of the applicant;ii) declaring the true and correct number of all its employees and workers;iii) indicating its wage structure, i.e., the total and complete list of all the

employed personnel with their corresponding wages and otherremunerations; and,

iv) subscribed and sworn to either by the Chairman of the Board ofDirectors, President, Chief Executive Officer, General Manager, Owner orProprietor of the business enterprise or establishment seeking anexemption from compliance with the Wage Order.

d) supported by a certificate of registration from the appropriate governmentagency (/ies) (e.g. Securities and Exchange Commission (SEC) in the case ofa corporation, partnership or association; Cooperative Development Authority(CDA) in the case of a cooperative; or Department of Trade and Industry(DTI) in the case of sole proprietorship); and,

e) Valid and updated Local Business Permit issued by the appropriate localgovernment unit and/or government agency/ies.

ec. 3. DURATION AND EXTENT OF EXEMPTION. A full exemption of one (1) yshall be granted to all categories of establishments that meet the applicablcriteria for exemption under Section 3 of NWPC Guidelines No. 01, Series o

1996.cralawHowever, a partial exemption of 50% with respect to the amount or period xemption may be granted in the case of distressed establishments pursuan

Section 8 of the same NWPC Guidelines No. 01, Series of 1996.cralawSec. 4. CRITERIA AND ADDITIONAL SUPPORTING DOCUMENTS FOR

EXEMPTION. In order to determine whether an applicant establishment isualified for exemption, the following are the criteria and additional support


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documents required:I. Retail/Service Establishments

A. Criteria:1. Engaged in the retail sale of goods or services to end

users/individuals for their own, personal or household use;and,

2. Regularly employing not more than ten (10) workersregardless of status except the owner/s for at least six (6)months in any calendar year.

B. Additional Supporting Documents:1. Business permit for the current year from the appropriate

government agency/ies; and,2. Affidavit stating under oath that the establishment is

engaged in the retail sale of goods or services to end

users/individuals for their own, personal or household use, asdefined in the Rules; and that it is regularly employing notmore than ten (10) workers regardless of status except theowner/s for at least six (6) months in any calendar year.

he Board may further require the submission of other supporting documents pertinenthe determination of Applicants eligibility for exemption.

II. Distressed Establishment:A. Criteria:

1. For stock corporations/cooperatives: a) when the deficit as of thelast full accounting period or interim period, if any, immediately

preceding the effectivity of the Order amounts to 20% or more ofthe paid up capital for the same period; or b) when anestablishment registers a capital deficiency i.e. negativestockholders' equity as of the last full accounting period or interimperiod, if any, immediately preceding the effectivity of the Order;

2. a)For single proprietorships/partnerships operating for two (2) yearsor more: i) when the net accumulated losses for the last two (2) fullaccounting periods and interim period, if any, preceding theeffectivity of the Order amounts to 20% or more of the totalinvested capital at the beginning of the period under review; or ii)when an establishment registers a capital deficiency i.e. negativenet worth as of the last full accounting period or interim period, ifany immediately preceding the effectivity of the Order.

b)Single proprietorships/partnerships operating for less than two (2)years may be granted exemption when the net accumulated lossesfor the period immediately preceding the effectivity of the Orderamounts to 20% or more of the total invested capital at the


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beginning of the period under review.3. a)For non stock, non profit organizations operating for two (2)

years or more, when the net accumulated losses for the last two fullaccounting periods and interim period, if any, immediatelypreceding the effectivity of the Order amounts to 20% or more ofthe fund balance/members' contribution at the beginning of theperiod under review; or when an organization registers capitaldeficiency, i.e. negative fund balance/members' contribution as ofthe last full accounting period or interim period, if any, immediatelypreceding the effectivity of the Order.

b) Non stock, non profit organizations operating for less than two(2) years may be granted exemption when the net accumulatedlosses for the period immediately preceding the effectivity of theOrder amounts to 20% or more of the fund balance/members'

contribution at the beginning of the period under review.4. For banks and quasibanks under receivership/liquidation, acertification from the Bangko Sentral ng Pilipinas (BSP) that it isunder receivership or liquidation on account of insolvency asprovided in Section 30, R.A. No. 7653, otherwise known as the NewCentral Bank Act.Banks under controllership/conservatorship may apply forexemption as a distressed establishment.

B. Additional Supporting Documents:1. For corporations, cooperatives, single proprietorships, partnerships,

non stock, non profit organizations:a. Audited financial statements (together with the Auditor's

opinion and notes thereto) for the last two full accountingperiods immediately preceding the effectivity of the Order,filed with and stamped "received" by the Securities andExchange Commission (SEC) and/or the Bureau of InternalRevenue (BIR)/Bank;

b. Audited interim quarterly financial statements (together withthe Auditor's opinion and notes thereto) for the first quarter of2007, where applicable, or un audited financial statementsfor the first quarter of 2007, made under oath by theapplicants internal accountant or auditor and noted by its

president or any authorized officer;c. Annual Income tax returns for the last two taxable periods,

filed with and stamped "received" by the BIR; and,d. First and second quarter income tax returns for 2007 filed with

and stamped "received" by the BIR, where applicable.


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2. For Banks and Quasi Banksa. Certification from the Bangko Sentral ng Pilipinas that it is

under receivership/liquidation.he Board may further require the submission of other supporting documents pertinen

the determination of Applicants eligibility for exemption.III. Establishments Facing Potential Losses

A. Criteria:1. For single proprietorships, partnerships and stock and non stock

corporations charging fees for services rendered, when projectedlosses during the current year of effectivity of the Order and, ifapplicable, the next full accounting year, amount to 20% or moreof total paid up capital of the current year.

2. In the case of non stock, non profit organizations, whenpotential deficit (i.e. total receipts net of total expenses) during th

current year of effectivity of the Order and, if applicable, the nextfull accounting year amounts to 20% or more of the fundbalance/members' contribution of the current year.

B. Additional Supporting Documents:1. Projected financial statements for the current year of effectivity of

the Order and, if applicable, the next full accounting year.2. Audited financial statements (together with the Auditor's opinion

and notes thereto) for the last full accounting period immediatelypreceding the effectivity of the Order, filed with and stamped"received" by the Securities and Exchange Commission (SEC)

and/or Bureau of Internal Revenue (BIR)/Bank, or a verifiedstatement under oath containing the following information:a) paid up capital;b) retained earnings at the beginning of the fiscal/calendar

year; and,c) actual start of operation.

3. Annual Income tax returns for the last two taxable periods, filedwith and stamped "received" by the BIR, where applicable, and,

4. First and second quarter income tax returns for 2007, filed withand stamped "received" by the BIR, where applicable

C. Confirmation of the grant of exemption.1. To confirm the grant of exemption, audited financial statements fo

the full accounting period/s referred to in Section B 1 hereof,stamped "received" by the Securities and Exchange Commission(SEC) and/or the Bureau of Internal Revenue (BIR)/Bank to besubmitted within twenty (20) days from submission to the said


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agencies; and,2. Annual Income Tax Return for the full accounting period referred

to in Section B 1 hereof, stamped "received" by the Securities andExchange Commission (SEC) and/or the Bureau of InternalRevenue (BIR)/Bank to be submitted within twenty (20) days fromsubmission to the said agencies.

3. Failure to submit the abovementioned audited financial statementwould result to a revocation of the conditional grant of exemption

he Board may further require the submission of other supporting documents pertinenthe determination of Applicants eligibility for exemption.

IV. Establishments with Total Assets of Not More Than Three Million Pesos(P3,000,000.00)A. Criteria:

1. Its total assets during the current year of effectivity of the Order

amount to not more than Three Million Pesos (P3,000,000.00).2. Total Assets refer to all kinds of properties, real or personal usedfor the conduct of business, including proceeds of loans, butexcluding the land on which the particular business entity's office,plant and equipment are situated.

3. Establishment is not a registered Barangay Micro BusinessEnterprise (BMBE).

B. Additional Supporting Documents:1. For New Establishments

a) Business permit for the current year from the appropriate

government agency/ies;b) Sworn Statement of Assets and Liabilities showing the list

and values of assets owned and to be used in the conduct obusiness, which shall be supported by the followinginformation:

i) date of acquisition;ii) acquisition cost; and,iii) depreciated value.c. Copy of Loan Contract/s and Duly Notarized Certification

of Amortization Payments on the Loan (if any); and,d) Duly notarized copy of Contract of Lease for assets used in

the conduct of business covered by lease agreement (ifany).

2. For Establishments operating for at least One (1) Year, thefollowing shall be submitted in addition to the aforementionedrequired documents:


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a) Audited Financial Statement for the last full accountingperiod; or Sworn Statement of Assets and Liabilitiesshowing the list and values of assets owned and beingused in the conduct of business, which shall be supported

by the following information:i) date of acquisition;ii) acquisition cost; and,iii) depreciated value.

3. Annual Income tax return for the last full taxable period, filed withand stamped "received" by the BIR; and,

4. First and second quarter income tax returns for 2007, filed withand stamped "received" by the BIR, where applicable.

5. Account Information Form duly filed with BIR.he Board may further require the submission of other supporting documents pertinen

the determination of Applicants eligibility for exemption.V. Establishments Adversely Affected by Natural Calamities

A. Criteria:1. The establishment must be located in an area declared by a

competent authority as under a state of calamity.2. The natural calamities, such as earthquakes, lahar flow, typhoons

volcanic eruptions, fire, floods and similar occurrences, must haveoccurred within 6 months prior to the effectivity of the WageOrder.

3. Losses suffered by the establishment as a result of the calamitythat exceed the insurance coverage should amount to 20% ormore of the stockholders equity as of the last full accountingperiod in the case of corporations and cooperatives, total investedcapital in the case of partnerships and single proprietorships andfund balance/members contribution in the case of non stock no profit organizations.Only losses or damage to properties directly resulting from thecalamity and not incurred as a result of normal business operationshall be considered.

4. Where necessary, the Board or its duly authorized representativshall conduct an ocular inspection of the establishment or engagethe services or experts to validate the extent of damages suffered

B. Additional Supporting Documents:1. 1. Affidavit from the General Manager or Chief Executive Officer o

the establishment regarding the following:a) Date and type of calamity


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b) Amount of losses/damages suffered as a direct result of thecalamity

c) List of properties damaged/lost together with estimatedvaluation

d) For properties that are not insured, a statement that thesame are not covered by insurance.

2. Copies of insurance policy contracts covering the propertiesdamaged, if any.

3. Adjusters report for insured properties.4. Audited financial statements for the last full accounting

period preceding the effectivity of the Order stampedreceived by the appropriate government agency.

The Board may require the submission of other pertinentdocuments to support the application for exemption.

Sec. 5. EFFECT OF FILING OF AN APPLICATION FOR EXEMPTION. Whenever application for exemption has been filed with the Board, the Regional Office of theDepartment shall be duly notified. Pending resolution of the said application, action

any complaint for alleged non compliance with the Order shall be deferred by theRegional Office of the Department.

Sec. 6. APPLICATION FOR PROJECTS/BRANCHES/DIVISIONS. Where theexemption being sought for is for a particular project/branch/division not separatel

registered and licensed, the consolidated audited financial statements of theestablishment shall be used as basis for determining its distressed condition.

ec. 7. DISTRESSED PRINCIPAL. Exemption granted to a distressed principal shall

xtend to its contractor in case of contract(s) for construction, security, janitorial, andsimilar services, with respect to the employees of the latter assigned to the former

Sec. 8. EFFECT OF DISAPPROVED APPLICATION FOR EXEMPTION. In the evehat the application for exemption, as regards any of the categories, is not approved,

covered workers and employees shall be paid the mandated increase due them asprovided for under this Order retroactive to the date of its effectivity, plus a simple

interest of one percent (1%) per month.Sec. 9. MOTION FOR RECONSIDERATION. An aggrieved party may file with theBoard, a motion for reconsideration of the decision on the application for exemptionwithin ten (10) days from receipt of the decision, stating the particular grounds upo

which the motion is based, copy furnished the other party and the Regional Office of Department.

o second motion for reconsideration shall be entertained in any case. The decision ofBoard shall be final and executory unless timely and appropriately appealed to the

Commission.ec. 10. APPEAL. Any party aggrieved by the decision of the Board may file an appethe Commission, through the Board, in three (3) legible copies, not later than ten (1


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days from receipt of the decision. The appeal must be filed in the manner prescribedthe Commission and must be based on any of the following grounds:

a.) non conformity with the prescribed guidelines/procedures on exemption;b.) prima facie evidence of grave abuse of discretion on the part of the Board;

or,c.) questions of law.

RULE IVCREDITABLE INCREASE

ection 1. ORGANIZED ESTABLISHMENTS. Wage increases granted by an employean organized establishment within three (3) months prior to the effectivity of the Ordmay be credited as compliance with the prescribed increase set forth therein; Providat an agreement to this effect has been forged between the parties or a provision in

collective bargaining agreement allowing creditability exists.

the absence of such an agreement or provision in the CBA, any increase granted byemployer shall not be credited as compliance with the increase prescribed in this OrdSec. 2. UNORGANIZED ESTABLISHMENTS. In unorganized establishments, wag

increases granted by the employer within five (5) months prior to the effectivity of tOrder may be credited as compliance.

Sec. 3. CREDITABLE INCREASES GIVEN IN THE FORM OF ALLOWANCES. Whethe increase given by the employer is in the form of allowances, the employer sha

ntegrate the same into the basic wage of the workers to comply with the Three HundSixty Two Pesos (P362.00) per day or Three Hundred Twenty Five Pesos (P325.00) p

day minimum basic pay prescribed under the Order.

However, if the amount of the increase is greater than the increase granted under tWage Order, the employer has the option to integrate partially or in full the allowanc

earlier given. In the event of partial integration, any excess maybe retained asallowances.

Sec. 4. CREDITABLE INCREASES GIVEN LESS THAN THE PRESCRIBEDADJUSTMENTS. In case the increases given are less than the prescribed adjustmen

the employer shall pay the difference. Such increases shall not include anniversarycreases, merit wage increases, and those resulting from the regularization or promo

of employees.RULE V

SPECIAL PROVISIONSSection 1. EFFECT ON EXISTING WAGE STRUCTURE. In accordance with Article of the Labor Code, should any dispute arise as a result of wage distortion, the emploand the union shall negotiate to correct the distortions through the grievance proced

under their collective bargaining agreement; and, if it remains unresolved, througholuntary arbitration. Unless otherwise agreed by the parties in writing, such dispute sbe decided by the voluntary arbitrator or panel of voluntary arbitrators within ten (1


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calendar days from the time said dispute shall have been referred to voluntaryarbitration.

n cases where there are no collective bargaining agreements or recognized labor uniothe employers and workers shall endeavor to correct such distortions. Pursuant toexisting rules, any dispute arising there from shall be settled through the National

Conciliation and Mediation Board; and, if it remains unresolved after ten (10) calendays of conciliation, the same shall be referred to the appropriate branch of the NatioLabor Relations Commission (NLRC). The NLRC shall conduct continuous hearings an

decide the dispute within twenty (20) calendar days from the time said dispute issubmitted for compulsory arbitration.

he pendency of any dispute arising from a wage distortion shall not in any way delayapplicability of the increase prescribed in the Order.

ec. 2. COMPLAINTS FOR NON COMPLIANCE. Complaints for non compliance the Order shall be filed with the Regional Office of the Department and shall be the

subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, aamended.Sec. 3. PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS.

order to sustain rising levels of wages and enhance competitiveness, labor andmanagement as partners are encouraged to adopt productivity improvement schem

that will improve the quality of life of workers and in turn enable them to produce moand earn more, such as time and motion studies, good housekeeping, quality circlelabor and management cooperation as well as implement gain sharing and other

performance incentive programs.Sec. 4. CONDUCT OF INSPECTION BY THE DEPARTMENT. In accordance with

existing rules, the Department shall conduct inspections of establishments, as often necessary, to determine whether the workers are paid the prescribed wage rates an

other benefits granted by law or any Wage Order. In the conduct of inspection innionized/organized establishments, Department inspectors shall always be accompany the president or other responsible officer of the recognized collective bargaining unany interested union. In the case of non unionized/non organized establishmenworker representing his fellow employees in the establishment will accompany the

inspector.The workers representative shall have the right to submit his own findings to the

epartment and to testify on the same if he does not concur with the findings of the lainspector.

ec. 5. NON DIMINUTION OF BENEFITS. Nothing in this Order shall be construeeliminate or in any way diminish, or as authorizing the reduction of any existing wagrates, allowances, benefits and supplements of any form under existing laws, decree

issuances, executive orders, and/or under any contract or agreement between theworkers and employers, or employer practices or policies, being enjoyed at the time

the promulgation of this Order.


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Sec. 6. PROHIBITION AGAINST INJUNCTION. No preliminary or permanentnjunction or temporary restraining order may be issued by any court, tribunal or othentity against any proceeding before the Board as provided for under Article 126 of t

Labor Code, as amended.ec. 7. FREEDOM TO BARGAIN. The Order shall not be construed to prevent workearticular firms or enterprises of industries from bargaining for higher wages and flex

working arrangements with their respective employers.ec. 8. PENAL PROVISION. Pursuant to the provisions of Section 12 ofRepublic Act

6727, as amended by Republic Act No. 8188, any person, corporation, trust, firm,partnership, association or entity which refuses or fails to pay the prescribed increase

the Order shall be punished by a fine not less than Twenty Five Thousand Pesos(P25,000.00) nor more than One Hundred Thousand Pesos (P100,000.00) or

mprisonment of not less than two (2) years nor more than four (4) years, or both sune and imprisonment at the discretion of the court; Provided, that any person convic

under the Order shall not be entitled to the benefits provided under the Probation La

The employer concerned shall be ordered to pay an amount equivalent to double thunpaid benefits owing to the employees; Provided, that payment of indemnity shall nbsolve the employer from the criminal liability imposable under the aforementioned If the violation is committed by a corporation, trust or firm, partnership, association

any other entity, the penalty of imprisonment shall be imposed upon the entity'sresponsible officers, including but not limited to the president, vice president, chie

executive officer, general manager, managing director or partner.ec. 9. REPORTING REQUIREMENT. Any person, company, corporation, partnershi

any entity engaged in business shall submit a verified itemized listing of their labocomponent to the Board not later than January 31, 2008 and every year thereafter

accordance with the form prescribed by the Commission.Sec. 10. REPEALING CLAUSE. All orders, issuances, rules and regulations or part

thereof inconsistent with the provisions of this Rules are hereby repealed, amended modified accordingly.

ec. 11. SEPARABILITY CLAUSE. If any provision or part of these Implementing Rdeclared unconstitutional, or in contrast with existing laws, the other provisions or p

thereof shall remain valid.Sec. 12. EFFECTIVITY. These Rules shall take effect on 28 August 2007.cralaw

Done in the City of Manila, Philippines, 15 August 2

(Sgd.) DANIEL R. ANGLabor Representative

(Sgd.) VICENTE LEOGARDO, JREmployer Representative
http://www.chanrobles.com/republicacts/republicactno6727.htmlhttp://www.chanrobles.com/republicacts/republicactno6727.htmlhttp://www.chanrobles.com/republicacts/republicactno6727.htmlhttp://www.chanrobles.com/republicacts/republicactno6727.html


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(Sgd.) GERMAN N. PASCUA, JR.

Labor Representative(Sgd.) ALBERTO R. QUIMPO

Employer Representative

(Sgd.) MA. THERESA L. PELAYOVice Chairperson

(Sgd.) DENNIS M. ARROYOVice Chairperson

(Sgd.) RAYMUNDO G. AGRAVANTEChairperson

Approved this 24 August 2

(Sgd.) ROMEO C. LAGMANActing Secretary

Department of Labor and Employment

NOTE: The components in the above suggested formulae had been revisby the Bureau of Working Conditions due to the enactment ofR. A. 9492,

follows:cralaw

For those who are required to work everyday including Sundays or restays, special days and regular holidays

MR = ADR x 392.5

12

Where 392.5 days/year = 299.022.067.63.9

ordinary working days regular holidays 52 rest days x 130% 3 special days x 130%

392.5 Total no. of days/year

For those who do not work and are not considered paid on Sundays or rays
http://www.chanrobles.com/republicacts/republicactno9492.htmlhttp://www.chanrobles.com/republicacts/republicactno9492.htmlhttp://www.chanrobles.com/republicacts/republicactno9492.htmlhttp://www.chanrobles.com/republicacts/republicactno9492.html


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MR = ADR x 313

12

Where 313 days/year = 299113

ordinary working days regular holidays special days

313 Total no. of days/year

For those who do not work and are not considered paid on Saturdays anundays or rest days

MR = ADR x 261

12


ordinary working days regular holidays special days


For those who do not work but are considered paid on rest days and holidays

MR = ADR x 365

12


ordinary working days Sundays/rest days regular holidays special days



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WAGE ORDER No. NCR 13

RULES IMPLEMENTING WAGE ORDER NO. NCR-14

RULE IGENERAL PROVISIONS

ursuant to Section 6, Rule IV of the National Wages and Productivity Commisuidelines No. 01-2007, otherwise known as the Amended Rules of Procedureinimum Wage Fixing and Section 23 of Wage Order No. NCR 14, the followules are hereby issued for the guidance and compliance by all concern

ection 1. TITLE. This shall be known as The Rules Implementing Wage OrderCR 1
http://www.chanrobles.com/ncrwagerates.ncrwageorderno13.htmlhttp://www.chanrobles.com/ncrwagerates.ncrwageorderno13.htmlhttp://www.chanrobles.com/ncrwagerates.ncrwageorderno13.htmlhttp://www.chanrobles.com/ncrwagerates.ncrwageorderno14.htmlhttp://www.chanrobles.com/ncrwagerates.ncrwageorderno14.htmlhttp://www.chanrobles.com/ncrwagerates.ncrwageorderno13.html


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ection 2.DEFINITION OF TERMS. As used in these Rules:

Order means Wage Order No. NCR

Department-means the Department of Labor and Employme

ommission means the National Wages and Productivity Commiss

Board means the Regional Tripartite Wages and Productivity Board Natiapital Reg

Regional Office refers to the regional office of the Department of Labor mployment in the National Capital Reg

National Capital Region covers the Cities of Caloocan, Las Pias, Makandaluyong, Manila, Marikina, Malabon, Muntinlupa, Navotas, Paraaque, Paasig, Quezon, San Juan, Taguig and Valenzuela, and the Municipality of Pater

Agriculture refers to farming in all its branches and among others, inclue cultivation and tillage of the soil, production, cultivation, growing

arvesting of any agricultural or horticultural commodities, dairying, raisingvestock or poultry, the culture of fish and other aquatic products in farmsonds, and any activity performed by a farmer or on a farm as an incident to o

onjunction with such farming operations, but does not include the manufactund/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or orm produ

Establishment refers to an economic unit, which engages in oneredominantly one kind of economic activity at a single fixed locati

or purposes of determining eligibility for exemption, establishments under ame owner/s but separately registered with the Securities and Excha

ommission (SEC), Department of Trade and Industry (DTI) or Cooperaevelopment Authority (CDA) as the case may be, irrespective of their locathall be treated as individual and distinct establishmen

Retail Establishment refers to an entity principally engaged in the saleoods to end users for personal or household use. A retail establishment gularly engages in wholesale activities loses its retail character. For purpose


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is Guidelines, retail establishments must be regularly employing not more t0 worke

Service Establishment refers to an entity principally engaged in the sal

ervices to individuals for his own or household use and is generally recognizeduch. For purposes of this Guidelines, service establishments must be regumploying not more than 10 worke

Distressed Establishments refer to establishments which meet the critnumerated in Section 3A of the National Wages and Productivity CommisNWPC) Guidelines No. 02 Series of 2007, otherwise known as the Amended Rn Exemption from Compliance with the Prescribed Wage Increases/Cost of Lilowances Granted By the Regional Tripartite Wages and Productivity Board

Micro and Small Indigenous Exportersrefer to persons or entities licensed tusiness in the Philippines, engaged directly or indirectly in the productanufacture or trade of export products using indigenous or native raw matehich earn at least fifty percent (50%) of their normal operating revenues fromxport sales. Provided, furthermore, that the employment size or capitalization ccordance with the DOLE policy or SMED Resolution No. 01, Series of 20spectively.

.Barangay Micro Business Enterprise (BMBE)refers to any business entitnterprise granted a Certificate of Authority under Republic Act No. 91herwise known as the Barangay Micro Business Enterprises Act of 20

Establishments with Total Assets of Not More Than Three Miesos (P3,000,000.00 )refers to establishments whose total assets, incluose arising from loans but exclusive of the land on which the business entfice, plant and equipment are situated, are not more than Three Mi

P3,000,000.00) and said establishments are not registered as BMB

Paid-up capital refers to the total amount of shareholder capital that een paid by shareholde

Capital refers to the paid-up capital at the end of the last full accouneriod in the case of corporations or total invested capital at the beginning of eriod under review, in the case of partnerships and single proprietorsh


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Capital Impairment refers to the diminution of capital due to accumulasses.

Stockholders Equity refers to the residual interest in the assets of an en

at remains after deducting its liabilities. It is total assets minus tabilities. It is the same as equity and net woFull Accounting Period refers to a period of twelve (12) months of busin

perations.

Interim Period refers to a financial reporting period shorter than a nancial year (most typically a quarter or half-ye

Deficit refers to the negative balance of the retained earnings account orporation. Retained earnings represent the cumulative balance of periarnings, dividend distributions, prior period adjustments and other cadjustments.

Total Assets refers to things of value owned by the business such as caachines, building and land which can be measured or expressed in money term

. Net Loss refers to actual loss suffered by a company after deducxpenditures including overhead and interest charges from revenu

Financial Statementrefers to a written report which quantitatively descre financial health of a company. This includes the following: balance shcome statement, statement of changes in equity, cash flow statement and no financial stateme

Stock Corporation refers to one organized for profit and issues shares of s its membe

Non-stock, Non-profit Organization refers to one organized principally

ublic purposes such as charitable, educational, cultural or similar purposes oes not issue shares of stock to its membe

a. Partnership refers to an association of two or more persons who bemselves to contribute money, property or industry to a common fund withtention of dividing the profits among themselves or for the exercise orofession.


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b. Single Proprietorshiprefers to a business unit owned and controllednly one pers

c. Cooperative refers to a duly registered association pursuant to R.A. 6Cooperative Code of the Philippines) and other la

d. Cost of Living Allowance (COLA) refers to the cost of living allowarescribed by the Board for covered private sector workers and employees inational Capital Reg

e. Wage Distortion refers to a situation where an increase in the prescrage rates results in the elimination or severe contraction of intentiouantitative differences in wage or salary rates between and among emploroups in an establishment as to effectively obliterate the distinctions embodieuch wage structure based on skills, length of service, or other logical basefferentiation.

Quasi-banks refers to institutions such as investment houses and finanompanies performing quasi-banking functions as defined by the Bangko Sentralipinas.

g. Conservatorship refers to a remedy resorted to by the Monetary Boar

ase a bank or quasi-bank is in a state of continuing inability or unwillingnesaintain condition of liquidity deemed adequate to protect the interests of epositors and creditors. A conservator is appointed to manage the establishm

order to restore its viabil

h. Receivership/liquidation refers to a remedy resorted by the Moneoard in case a bank or quasi-bank is (a) unable to pay its liabilities as tecome due in the ordinary course of business; (b) has insufficient realizssets as determined by the Bangko Sentral ng Pilipinas to meet its liabilities;

annot continue in business without involving probable losses to its depositoreditors; or (d) has willfully violated a cease and desist order under Sec. 37 as become final involving acts or transactions which amount to fraudssipation of the assets of the instituti

Under Corporate Rehabilitation refers to establishments that are pla


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nder a rehabilitation receiver by a court of competent jurisdiction.

RULE IINEW MINIMUM WAGE RATES

ection 1. AMOUNT OF INCREASE.Effective 14 June 2008, all minimum workers in the private sector in the National Capital Region shall receivecrease ofTwenty Pesos (20.00)per day consisting of Fifteen Pe

P15.00) Basic Wage and Five Pesos (P5.00) Cost of Living Allowan

ection 2. MINIMUM WAGE RATES EFFECTIVE 14 June 2008. The new dinimum wage rates in the National Capital Region shall be as follows: cralaw

INDUSTRY/SECTOR MinimumWageUnderW. O.NCR-13

BasicWageUnderW. O.NCR-14

Cost ofLivingAllowanceUnderW. O.NCR-14

Total

Non-Agriculture 362 15.00 5.00 382.00Agriculture (Plantation and

Non-Plantation)325 15.00 5.00 345.00

Private Hospitals with bedcapacity of 100 or less

325 15.00 5.00 345.00

Retail/ServiceEstablishments employing 15workers or less

325 15.00 5.00 345.00

ManufacturingEstablishments regularlyemploying less than 10

workers

325 15.00 5.00 345.00

ection 3. MINIMUM WAGE RATES EFFECTIVE 28 AUGUST 2008. The Five PeP5.00) COLA shall be automatically integrated into the Basic Wage on 28 Aug008. The minimum wage rates in the National Capital region shall therefore bllows:


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INDUSTRY/SECTOR MinimumWageUnderW. O.

NCR-13

AdjustedBasic Wageunder W.O.

NCR-14

Total

Non-Agriculture 362 20.00 382.00Agriculture (Plantation and Non-

Plantation)325 20.00 345.00

Private Hospitals with bed capacityof 100 or less

325 20.00 345.00

Retail/Service Establishmentsemploying 15 workers or less

325 20.00 345.00

Manufacturing Establishments

regularly employing less than 10workers

325 20.00 345.00

ection 4. COVERAGE. The wage increase prescribed herein shall apply toinimum wage earners in the private sector within the Region, regardless of tosition, designation or status and irrespective of the method by which their ware p

his Wage Order shall not cover household or domestic helpers; persons in ersonal service of another, including family drivers; and workers of registearangay Micro Business Enterprises (BMBEs) with Certificates of Author

ection 5. BASIS OF MINIMUM WAGE RATES.The minimum wage rates prescrnder this Order shall be for the normal working hours which shall not exceed e8) hours of work a d

ection 6.APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. Inase of private educational institutions, the share of covered workers

mployees in the increase in tuition fees for School Year 2008-2009 shalonsidered as compliance with the increase prescribed herein. However, paym

any shortfall in the wage increase set forth herein shall be covered starchool Year 2009-20

rivate educational institutions, which have not increased their tuition fees


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chool Year 2008-2009, may defer compliance with the provisions of this Wrder until the beginning of School Year 2009-20 any case, all private educational institutions shall implement the incre

rescribed herein starting School Year 2009-20

ection 7. APPLICATION TO CONTRACTORS.In case of contracts for construcrojects, security, janitorial and other similar services, the increase in the minimage prescribed herein shall be borne by the principal or client of the contrand the contract shall be deemed amended accordingly as mandander Section 6, R.A. 67

the event, however, that the principal or client fails to pay the prescribed wtes, the construction/service contractor shall be jointly and severally liable

s principal or clie

ection 8. APPLICATION TOWORKERS PAID BY RESULTS. All workers paidsults, including those who are paid on piecework, takay, pakyaw or

asis, shall receive not less than the applicable minimum wage rates prescrnder the Order for the normal working hours which shall not exceed eightours work a day, or a proportion thereof for work of less than the normal workours.

he adjusted minimum wage rates for workers paid by results shall be computeccordance with the following steps:

Amount of Increase in AMW*--------------------------------------- = X 100 = % incre

Previous AMW

0.00 x 100 = 5.562.00

Existing rate/piece x % increase = Increase in rate/piece;

xisting rate/piece x 0.0552 = Increase in rate/piece

Existing rate/piece + Increase in rate/piece = Adjusted rate/pi

WhereAMWis theApplicable Minimum Wage rate.


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he wage rate of workers who are paid by results shall be continue tostablished in accordance with Article 101 of the Labor Code, as amended andmplementing rules and regulatio

ection 9. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices arners shall in no case be less than seventy-five percent (75%) of the applicainimum wage rates prescribed in this Order. All recognized learnership

pprenticeship agreements entered into before the effectivity of the Order shalonsidered automatically modified in so far as their wage clauses are concerneflect the adjustments prescribed under the same Ord

l qualified handicapped workers shall receive the full amount of the minimage rate prescribed herein pursuant to Republic Act No. 7277, otherwise kns the Magna Carta for Disabled Perso

ection 10. SUGGESTED FORMULA IN DETERMINING THE EQUIVALENTMONTEGIONAL MINIMUM WAGE RATES. Without prejudice to existing compractices, agreements or policies, the following formula may be used as guideetermining the equivalent monthly minimum wage rat

For those who are required to work everyday including Sundays or ays, special days and regular holidays:

quivalent Monthly Applicable Daily Wage Rate (ADR) x 392.50 d

ate (EMR) = --------------------------------------------------------

12 mon

here 392.50 days

99 days Ordinary working d2 days Regular holid7.6 days 52 rest days x 1390 days 3 special days x 13--------92.50 days Total equivalent number of days/y

For those who do not work but are considered paid on rest days, speays and regular holida


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ADR x 365 daysEMR = ------------------------

12 months

here 365 days

99 days Ordinary working d2 days Rest d1 days Regular holid

days Special d--------65 days Total equivalent number of days/year

For those who do not work and are not considered paid on Sundays or ays:

ADR x 313 daysEMR = ------------------------

12 months

here 313 days

99 days Ordinary working d1 days Regular holid

days Special d--------13 days Total equivalent number of days/year

For those who do not work and are not considered paid on Sundays or ays:

ADR x 261 daysEMR = ------------------------12 months

here 313 days

47 days Ordinary working d


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1 days Regular holiddays Special holid

------61 days Total equivalent number of days/year

ection 11.MOBILE AND BRANCH WORKERS. The minimum wage ratesorkers, who, by the nature of their work have to travel, shall be those applic

the domicile or head office of the employ

he minimum wage rates of workers working in branches or agenciesstablishments in or outside the National Capital Region shall be those applicabe place where they are station

ection 12.TRANSFER OF PERSONNEL. The transfer of personnel to autside the Region shall not be a valid ground for the reduction of the wage raeing enjoyed by the workers prior to such transfer. The workers transferredher Regions with higher wage rates shall be entitled to the minimum wage r

pplicable ther

ection 13. APPEAL TO THE COMMISSION.Any party aggrieved by this Wage Oay file a Notice of Appeal to the Commission through the Board within ten

alendar days from the publication of the Order. Pursuant to Section 5, Chaptethe Rules Implementing R.A. 6727, the Commission shall decide the ap

ithin sixty (60) calendar days from the date of filing. The Notice of Appeal se accompanied by a Memorandum of Appeal, which shall state the grounds repon, and the arguments in support of the appe

ection 14. EFFECT OF APPEAL.The filing of the appeal does not operate to e effectivity of the Wage Order unless the party appealing such Order shallith the Commission an undertaking with a surety or sureties satisfactory to

ommission for payment to employees affected by the Order of the corresponcrease, in the event that such Order is affirmed.

RULE IIIEXEMPTIONS

ection 1.WHO MAY BE EXEMPTED. Upon application with and as determined


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e Board, based on compliance with the criteria and requirements in the applicles and regulations, the following may be exempted from the applicability of rder:

Distressed establishmen

Establishments whose Total Assets including those arising from loans xclusive of the land on which the particular business entitys office, plant quipment are situated, are not more than P3Milli

Retail/Service establishments employing not more than ten (10) worke

Establishments adversely affected by natural calamit

Micro and small indigenous exporters as certified by the Export Developmouncil.

ection 2.CRITERIA FOR EXEMPTION. In order to determine whetherpplicant establishment is qualified for exemption, the following are the criteria:

Distressed Establishments

For Corporations/ Cooperatives

Full Exempt

1. When the deficit, as defined in Section I (N) of NWPC Guidelines No. eries of 2007, as of the last full accounting period immediately preceding fectivity of the Order amounts to 20% or more of the paid-up capital for

ame period;

2. When an establishment registers capital deficiency i.e., negative stockhold

quity, as of the last full accounting period immediately preceding the effectivite Order.

Partial Exemption

1. When the deficit, as defined in Section I (N) of the abovementiouidelines, as of the last full accounting period immediately preceding


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fectivity of the Order amounts to at least 10% but less than 20% of the paidapital for the same period.

Conditional Exemption

1. When the actual net loss as of the interim period immediately preceding fectivity of the Order amounts to at least 25% of total assets

For Single Proprietorships/Partnerships

Full Exemption:

1. When the accumulated net losses for the last two (2) full accounting per

mmediately preceding the effectivity of the Order amounts to 20% or more of tal invested capital at the beginning of the period under review;

2. When an establishment registers capital deficiency i.e., negative net worththe last full accounting period immediately preceding the effectivity of

rder.

Partial Exemption:

1. When the accumulated net losses for the last two (2) full accounting per

mmediately preceding the effectivity of the Order amounts to at least 10% but an 20% of the total invested capital at the beginning of the period under revie


1. When the actual net loss as of the interim period immediately preceding fectivity of the Order amounts to at least 25% of total assets.

For Non-stock, Non-profit Organizations

Full Exemption:

1. When the accumulated net losses for the last two (2) full accounting permmediately preceding the effectivity of the Order amounts to 20% or more of

nd balance/members' contribution at the beginning of the period;

2. When an establishment registers capital deficiency i.e., negative f


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alance/members' contribution as of the last full accounting period or inteeriod, if any, immediately preceding the effectivity of the Order.

Partial Exemption:

1. When the accumulated net losses for the last two (2) full accounting permmediately preceding the effectivity of the Order amounts to at least 10% butore than 20% of the fund balance/members' contribution at the beginning of eriod.

Conditional Exemption:

1. When the actual net loss as of the interim period immediately preceding fectivity of the Order amounts to at least 25% of total assets.

For Banks and Quasi-banks

Under receivership/liquidat

xemption may be granted to a bank or quasi-bank under receivershipquidation when there is a certification from the Bangko Sentral ng Pilipinas thunder receivership or liquidation as provided in Section 30 of RA 7653, otherw

nown as the New Central Bank A

Under controllership/conservators

bank or quasi-bank under controllership/ conservatorship may apply xemption as a distressed establishment under Section 3 A of this Guidelines.

Establishments Under Corporate Rehabilitation

hen there is an order from a court of competent jurisdiction that it is unhabilitation as provided in Section 6 Rule IV of the Interim Rules of Procedure

orporate Rehabilitation (2000).

Establishment whose Total Assets including those arising from loans xclusive of the land on which the particular business entitys office, plant quipment are situated, are not more than P3Mil

xemption may be granted to an establishment whose total assets are not m


38/58

an P3Million when:

Its total assets during the current year of effectivity of the Order amount toore than Three Million Pesos (P3,000,000.0

Total Assets refer to all kinds of properties, real or personal used for onduct of business, including proceeds of loans, but excluding the land on we particular business entitys office, plant and equipment are situat

Establishment is not registered as a Barangay Micro Business EnterpBMBE)

. Retail/Service Establishments Regularly Employing Not More Than 10) Work

xemption may be granted to a retail/service establishment when:

It is engaged in the retail sale of goods and/or services to end users ersonal or household u

It is regularly employing not more than ten (10) workers regardless of staxcept the owner/s, for at least six (6) months in any calendar year.

.Establishments Adversely Affected by Natural Calamities

The establishment must be located in an area declared by a competent authos under a state of calam

The natural calamities, such as earthquakes, lahar flow, typhoons, volcruptions, fire, floods and similar occurrences, must have occurred within 6 monrior to the effectivity of the Ord

Losses suffered by the establishment as a result of the calamity that exceed

surance coverage should amount to 20% or more of the stockholders' equitythe last full accounting period in the case of corporations and cooperatives, t

vested capital in the case of partnerships and single proprietorships and falance/members' contribution in the case of non-stock non-profit organizations

nly losses or damage to properties directly resulting from the calamity and curred as a result of normal business operations shall be consider


39/58

Where necessary, the Board or its duly authorized representative shall conn ocular inspection of the establishment or engage the services of expertsalidate the extent of damages suffered

Micro and small indigenous exporters as certified by the Export Developmouncil (E

xemption may be granted to micro and small indigenous exporter when:

It is licensed to do business in the Philippin

It engages directly or indirectly in the production, manufacture or tradexport produc

It is certified by the EDC as an exporter using indigenous materi

At least fifty percent (50%) of its revenues is earned from export sal

The main component of its product is made of native raw materia

The employment size or capitalization should be in accordance with the critmicro or small under the DOLE policy (Micro 1 to 9 workers; Small 10 to

orkers) and SMED Resolution No. 1, Series of 2003, (Micro P3M and bemall over P3M but not more than P15 M) respectively

ection 3. DOCUMENTS REQUIR

he following supporting documents shall be submitted together with pplication:

or All Categories of Exempt

roof of notice of filing of the application to the President of the union/contracarty if one is organized in the establishment, or if there is no union, a copy rcular giving general notice of the filing of the application to all the workers instablishment. The proof of notice, which may be translated in the vernacular, sate that the workers' representative was furnished a copy of the application wl the supporting documents. The notice shall be posted in a conspicuous plac


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e establishme

For Distressed Establishments

For corporations, cooperatives, single proprietorships, partnerships, non-ston-profit organizations.

Full or Partial Exemption

1. Audited financial statements (together with the Auditor's opinion and the nereto) for the last two (2) full accounting periods "received" by the appropr

overnment agency.


1. Audited financial statement (together with the Auditor's opinion and the nereto) for the last full accounting period and interim quarterly finanatement/s for the period immediately preceding the effectivity of the Ord

2. To confirm the grant of conditional exemption, audited financial statementse last full accounting period, stamped received by the appropriate governm

gency, to be submitted within 30 days from the lapse of the one-year exemperiod.

For Banks and Quasi-banks

ertification from Bangko Sentral ng Pilipinas that it is under Conservatorshiceivership/ liquidation.

For Establishments Under Corporate Rehabilitation

rder from a court of competent jurisdiction that the establishment is unhabilitation.

For Retail/Service Establishments Employing Not More Than Ten (10) Worke

Affidavit from employer stating the following:

It is a retail/service establishme

It is regularly employing not more than ten (10) workers for at least six mon


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any calendar year.

Business Permit for the current year from the appropriate government agenc

For Establishments Adversely Affected by Natural Calamities Affidavit from the General Manager or Chief Executive Officer of

stablishment regarding the following:

Date and type of calam

Amount of losses/damages suffered as a direct result of the calam

List of properties damaged/lost together with estimated valuat

For properties that are not insured, a statement that the same are not covey insurance

Copies of insurance policy contracts covering the properties damaged, if a

Adjusters report for insured propert

Audited financial statements for the last full accounting period preceding fectivity of the Order stamped received by the appropriate government agency

. For Establishments which Total Assets including those arising from loans xclusive of the land on which the particular business entitys office, plant quipment are situated, are not more than P3Million

Business permit from the appropriate government agency/

Sworn Statement stating that its total assets are not more than P3Million numerating the properties being used in the conduct of the business, whether

r personal, with its corresponding values and reflecting the following informatio

Date of acquisit. Acquisition c). Depreciated value

Copy of Loan Contract and duly notarized Certification of Amortization Payme


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n the loan (if a

Duly notarized copy of Contract of Lease for assets used in the conducusiness covered by lease agreement (if any).

For Micro and Small Indigenous Exporters

Application letter under oa

Affidavit from the employer stating the principal economic activity, numbeorkers, total assets, list of forward contracts entered into stating the namereign buyers or principals and their addresses, date of contracts, delivery

hipping dates and amount of volume of ord

Certification from any appropriate government agency that the company ea least fifty percent (50%) or more export sa

Irrevocable letters of credit/Proof of payment from princi

Notarized purchase orde

Proof of acceptance of the latest purchase ord

Bills of lading/delivery rece

Certification from Export Development Council that the company is an exposing indigenous materi

Sworn Statement that its product is made of native raw materials and staher specifications of the produ

0. Articles of Incorporation from the Securities and Exchange Commission (Sr Registration document from the DTI.

he Board may require the submission of other pertinent documents to supportpplication for exempti

ection 4. EXTENT AND DURATION OF EXEMPTIO

Full Exemption of one (1) year from effectivity of the Order shall be grante


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l categories of establishments that meet the applicable criteria for exempnder Section 3 A of NWPC Guidelines No. 02 series of 20

Partial exemption of 50% from effectivity of the Order with respect to

mount or period of exemption shall be granted only in the case of distresstablishments under Section 3 A of NWPC Guidelines No. 02 series of 20

Conditional exemption of one (1) year from effectivity of the Order shalranted only in the case of distressed establishments under Section 3 A of NWuidelines 02 series of 2007. The conditional exemption shall be confirmedllows:

1. For Corporati

hen deficit as defined in Section I (N) of the abovementioned Guidelines, ae last full accounting period amounts to 20% or more of the paid-up capitae same peri

2. For Single Proprietorships And Partnersh

hen net loss for the last two (2) full accounting periods immediately precede effectivity of the Order amounts to 20% or more of the total invested capitae beginning of the period under revie

3. For Non-Stock, Non-Profit Organizati

hen net loss for the last two (2) full accounting periods immediately precede effectivity of the Order amounts to 20% or more of the fund balance/memb

ontribution at the beginning of the per

the absence of such actual losses, the company shall pay its workers the wcreases due them under the Order, retroactive to the effectivity of the Order.

ECTION 5. ACTION ON APPLICATION FOR EXEMPTI

pon receipt of an application with complete documents, the Board shall takellowing steps:

Notify the DOLE Regional Office having jurisdiction over the workplace of


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endency of the application requesting that action on any complaint for nompliance with the Order be deferred pending resolution of the application byoard.

Request the DOLE Regional Office to conduct ocular inspection, if necessarystablishments applying for exemption to verify number of workers, natureusiness and other relevant informati

Act and decide on the application for exemption with complete documentsuch as practicable, within 45 days from the date of filing. In case of contes

pplication, the Board may conduct conciliation or call hearings there

Transmit the decision of the Board to the applicant establishment, the worr president of the union, if any, and the Commission, for their information; e DOLE Regional Office concerned, for their implementation/enforcement.

he Board may create a Special Committee with one representative from eector to expedite processing of applications for exempti

ECTION 6. APPLICATION FOR PROJECTS/BRANCHES/DIVISIO

here the exemption being sought is for a particular project/branch/division eparately registered and licensed, the consolidated audited financial statement

e establishment shall be used as basis for determining its distressed conditi

ECTION 7. DISTRESSED PRINCI

xemption granted to a distressed principal shall not extend to its contractoase of contract (s) for construction, security, janitorial and/or similar services spect to the employees of the latter assigned to the form

ECTION 8. EFFECT OF DISAPPROVED APPLICATION FOREXEMPTI

the event that the application for exemption is not approved, covered worhall be paid the mandated wage increase/allowance as provided for under rder retroactive to the date of effectivity of the Order plus simple interest of ercent (1%) per mon

ECTION 9. PROCEDURES ON EXEMPTI


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For Filing of Application

An application, in three (3) legible copies may be filed with the approproard by the owner/manager or duly authorized representative of stablishment, in person or by registered m

he date of mailing shall be deemed as the date of fili

pplications for exemption filed with the DOLE regional, district or provincial offre considered filed with the appropriate Board in the region. The Office wherepplication for exemption was filed shall transmit the application together withe pertinent documents to the appropriate board for action and considerat

Applications for all categories shall be filed not later than 75 days fublication of the approved implementing rules of the Order, provided that all quired documents in support of the application must be filed within the said

ay filing period and that no further extension of filing and submission of requocuments shall be allow

The application shall be under oath and accompanied by complete supporocuments as enumerated under Section 4 of NWPC Guidelines 02 series of 200

For Filing of Opposition

ny worker or, if unionized, the union in the applicant establishment, may file e appropriate Board within fifteen (15) days from receipt of the notice of ing of the application, an opposition to the application for exemption stating asons why the same should not be approved, furnishing the applicant a cereof. The opposition shall be in three (3) legible copies, under oath

ccompanied by pertinent documents, if any.

For Filing of Motion for Reconsideration

he aggrieved party may file with the Board a motion for reconsideration of ecision on the application for exemption within ten (10) days from its receipt hall state the particular grounds upon which the motion is based, copy furnise other party and the DOLE Regional Office concerned.


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o second motion for reconsideration shall be entertained in any case.

he decision of the Board shall be final and executory unless appealed to ommission within the reglementary period prescribed in NWPC Guidelines No.

eries of 2007.

. For Filing of Appeal to the Commission

Appeal Any party aggrieved by the decision of the Board may file a Noticppeal to the Commission, through the Board, in two (2) legible copies, not lan ten (10) days from date of receipt of the decisi

he Notice of Appeal, with proof of service to the other party, shall be accompaith a Memorandum of Appeal which shall state the date appellant received

ecision, the grounds relied upon and the arguments in support there

he appeal shall not be deemed perfected if it is filed with any office or entity otan the Boa

o motion for extension of time to file an appeal shall be entertain

Grounds for Appeal An appeal may be filed on any of the following ground

Non-conformity with the prescribed guidelines and/or procedures on exempti

Prima facie evidence of grave abuse of discretion on the part of the Board

Questions of law.

Opposition The appellee may file with the Board his reply or opposition toppeal within ten (10) days from receipt of the appeal. Failure of the appellee his reply or opposition shall be construed as waiver on his part to file the sam

Transmittal of records Within five (5) days upon receipt of the replypposition of the appellee or after the expiration of the period to file the same,ntire records of the case which shall be consecutively numbered, shallansmitted by the Board to the Commission.

RULE IV


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CREDITABLE INCREASE

ection 1. ORGANIZED ESTABLISHMENTS.Wage increases granted by an emploan organized establishment within three (3) months prior to the effectivity of

rder may be credited as compliance with the prescribed increase set forth therrovided that an agreement to this effect has been forged between the parties rovision in the collective bargaining agreement allowing creditability exis

the absence of such an agreement or provision in the CBA, any increase grany the employer shall not be credited as compliance with the increase prescribeis Ord

ection 2. UNORGANIZED ESTABLISHMENTS.In unorganized establishments, wcreases granted by the employer within five (5) months prior to the effectivit

e Order may be credited as complian

ection 3. CREDITABLE INCREASES GIVEN IN THE FORM OF ALLOWANCES. Whe increase given by the employer is in the form of allowances, the employer stegrate the amount of Fifteen Pesos (P15.00) into the basic wage of the worknd on 28 August 2008, the Five Peso (5.00) COLA prescribed in the Wage Ohall be integrated into the basic wa

owever, if the amount of the increase is greater than the increase granted un

e Wage Order, the employer has the option to integrate partially or in full lowances earlier given provided the amount integrated to the basic is

ompliance with the Wage Order. In the event of partial integration, any excaybe retained as allowanc

ection 4. CREDITABLE INCREASES GIVEN LESS THAN THE PRESCRIDJUSTMENTS. In case the increases given are less than the prescrdjustments, the employer shall pay the difference. Such increases shall clude anniversary increases, merit wage increases, and those resulting from

gularization or promotion of employees.

RULE VSPECIAL PROVISIONS

ection 1. EFFECT ON EXISTING WAGE STRUCTURE. In accordance with Ar24 of the Labor Code, should any dispute arise as a result of wage distortion,


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mployer and the union shall negotiate to correct the distortions through rievance procedure under their collective bargaining agreement; and, if it remnresolved, through voluntary arbitration. Unless otherwise agreed by the pa

writing, such dispute shall be decided by the voluntary arbitrator or pane

oluntary arbitrators within ten (10) calendar days from the time said dispute save been referred to voluntary arbitrat

cases where there are no collective bargaining agreements or recognized lanions, the employers and workers shall endeavor to correct such distortiursuant to existing rules, any dispute arising there from shall be settled throe National Conciliation and Mediation Board; and, if it remains unresolved an (10) calendar days of conciliation, the same shall be referred to the appropr

ranch of the National Labor Relations Commission (NLRC). The NLRC shall cond

ontinuous hearings and decide the dispute within twenty (20) calendar days fe time said dispute is submitted for compulsory arbitrat

he pendency of any dispute arising from a wage distortion shall not in any elay the applicability of the increase prescribed in the Ord

ection 2. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliaith the Order shall be filed with the Regional Office of the Department and se the subject of enforcement proceedings under Articles 128 and 129 of the Laode, as amend

ection 3. CONDUCT OF INSPECTION BY THE DEPARTMENT.In accordance xisting rules, the Department shall conduct inspections o