RA 6727- Wage Rationalization Act

7/30/2019 RA 6727- Wage Rationalization Act

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REPUBLIC ACT NO. 6727

AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY

ESTABLISHING THE MECHANISM AND PROPER STANDARDS

THEREFOR, AMENDING FOR THE PURPOSE ARTICLE 99 OF, AND

INCORPORATING ARTICLES 120, 121, 122, 123, 124, 126 AND 127

INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISEKNOWN AS THE LABOR CODE OF THE PHILIPPINES , FIXING NEW

WAGE RATES, PROVIDING WAGE INCENTIVES FOR INDUSTRIAL

DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER PURPOSES.

Section 1. This Act shall be known as the "Wage Rationalization Act."

Sec. 2. It is hereby declared the policy of the State to rationalize the

fixing of minimum wages and to promote productivity-improvement

and gain-sharing measures to ensure a decent standard of living for

the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment

generation in the countryside through industry dispersal; and to

allow business and industry reasonable returns on investment,

expansion and growth.chanroblesvirtuallawlibrary

The State shall promote collective bargaining as the primary mode of

setting wages and other terms and conditions of employment; and,

whenever necessary, the minimum wage rates shall be adjusted in a

fair and equitable manner, considering existing regional disparities

in the cost of living and other socio-economic factors and the

national economic and social development plans.cralaw

Sec. 3. In line with the declared policy under this Act, Article 99 of

Presidential Decree No. 442, as amended, is hereby amended and

Articles 120, 121, 122, 123, 124, 126 and 127, are hereby

incorporated into Presidential Decree No. 442, as amended, to read

as follows:

"Art. 99. Regional Minimum Wages. - The minimum wage rates

for agricultural and non- agricultural employees and workers in

each and every region of the country shall be those prescribed

by the Regional Tripartite Wages and Productivity Boards."

"Art. 120. Creation of the National Wages and Productivity

Commission. - There is hereby created a National Wages and

Productivity Commission, hereinafter referred to as the

Commission, which shall be attached to the Department of

Labor and Employment (DOLE) for policy and program

coordination."

chanroblesvirtuallawlibrary



"Art. 121. Powers and Functions of the Commission. - The

Commission shall have the following powers and functions:

(a) To act as the national consultative and advisory body

to the President of the Philippines and Congress on

matters relating to wages, incomes and productivity;

(b) To formulate policies and guidelines on wages,

incomes and productivity improvement at the enterprise,

industry and national levels;

(c) To prescribe rules and guidelines for the

determination of appropriate minimum wage and

productivity measures at the regional, provincial or

industry levels;

(d) To review regional wage levels set by the RegionalTripartite Wages and Productivity Boards to determine if

these are in accordance with prescribed guidelines and

national development plans;

(e) To undertake studies, researches and surveys

necessary for the attainment of its functions and

objectives, and to collect and compile data and

periodically disseminate information on wages and

productivity and other related information, including, but

not limited to, employment, cost-of-living, labor costs,investments and returns;

(f) To review plans and programs of the Regional

Tripartite Wages and Productivity Boards to determine

whether these are consistent with national development

plans;

(g) To exercise technical and administrative supervision

over the Regional Tripartite Wages and Productivity

Boards;

(h) To call, from time to time, a national tripartite

conference of representatives of government, workers

and employers for the consideration of measures to

promote wage rationalization and productivity; and



(i) To exercise such powers and functions as may be

necessary to implement this Act.

"The Commission shall be composed of the Secretary of Labor

and Employment as ex officio chairman, the Director-General of

the National Economic and Development Authority [NEDA]

as ex officiovice-chairman, and two [2] members each fromworkers and employers sectors who shall be appointed by the

President of the Philippines upon recommendation of the

Secretary of Labor and Employment to be made on the basis of

the list of nominees submitted by the workers and employers

sectors, respectively, and who shall serve for a term of five [5]

years. The Executive Director of the Commission Secretariat

shall also be a member of the Commission.

"The Commission shall be assisted by a Secretariat to be

headed by an Executive Director and two [2] Deputy Directors,who shall be appointed by the President of the Philippines,

upon recommendation of the Secretary of Labor and

Employment.

"The Executive Director shall have the same rank, salary,

benefits and other emoluments as that of a Department

Assistant Secretary, while the Deputy Directors shall have the

same rank, salary, benefits and other emoluments as that of a

Bureau Director. The members of the Commission representing

labor and management shall have the same rank, emoluments,allowances and other benefits as those prescribed by law for

labor and management representatives in the Employees'

Compensation Commission."

"Art. 122. Creation of Regional Tripartite Wages and

Productivity Boards. - There is hereby created Regional

Tripartite Wages and Productivity Boards, hereinafter referred

to as Regional Boards, in all regions, including autonomous

regions as may be established by law. The Commission shall

determine the offices/headquarters of the respective RegionalBoards.

"The Regional Boards shall have the following powers and

functions in their respective territorial jurisdiction:

"(a) To develop plans, programs and projects relative to

wages, incomes and productivity improvement for their

respective regions;



"(b) To determine and fix minimum wage rates applicable

in their region, provinces or industries therein and to

issue the corresponding wage orders, subject to

guidelines issued by the Commission;

"(c) To undertake studies, researches, and surveys

necessary for the attainment of their functions, objectives

and programs, and to collect and compile data on wages,

incomes, productivity and other related information and

periodically disseminate the same;

"(d) To coordinate with the other Regional Boards as may

be necessary to attain the policy and intention of this

Code;

"(e) To receive, process and act on applications for

exemption from prescribed wage rates as may be

provided by law or any Wage Order; and

"(f) To exercise such other powers and functions as may

be necessary to carry out their mandate under this Code.

"Implementation of the plans, programs and projects of the

Regional Boards referred to in the second paragraph, letter (a)

of this Article, shall be through the respective regional officesof the Department of Labor and Employment within their

territorial jurisdiction: Provided, however, That the Regional

Boards shall have technical supervision over the regional office

of the Department of Labor and Employment with respect to

the implementation of said plans, programs and projects.

"Each Regional Board shall be composed of the Regional

Director of the Department of Labor and Employment as

chairman, the Regional Directors of the National Economic and

Development Authority and the Department of Trade and

Industry as vice-chairmen of two [2] members each fromworkers and employers sectors who shall be appointed by the

President of the Philippines, upon the recommendation of the

Secretary of Labor and Employment, to be made on the basis of

the list of nominees submitted by the workers and employers

sectors, respectively, and who shall serve for a term of five [5]

years.



"Each Regional Board to be headed by its chairman shall be

assisted by a Secretariat.

"Art. 123. Wage Order. - Whenever conditions in the region so

warrant, the Regional Board shall investigate and study all

pertinent facts; and, based on the standards and criteria hereinprescribed, shall proceed to determine whether a Wage Order

should be issued. Any such Wage Order shall take effect after

fifteen [15] days from its complete publication in at least one

[1] newspaper of general circulation in the region.

"In the performance of its wage-determining functions, the

Regional Board shall conduct public hearings/consultations,

giving notices to employees' and employers' groups, provincial,

city and municipal officials, and other interested parties.

"Any party aggrieved by the Wage Order issued by the Regional

Board, may appeal such order to the Commission, within ten

[10] calendar days from the publication of such order. It shall

be mandatory for the Commission to decide such appeal within

sixty [60] calendar days from the filing thereof.

"The filing of the appeal does not operate to stay the order unless the

person appealing such order shall file with the Commission an

undertaking with a surety or sureties satisfactory to the Commission

for the payment to the employees affected by the order of the

corresponding increase, in the event such order isaffirmed." chanroblesvirtuallawlibrary

"Art. 124. Standards/Criteria for Minimum Wage Fixing. - The regional

minimum wages to be established by the Regional Board shall be as

nearly adequate as is economically feasible to maintain the minimum

standards of living necessary for the health, efficiency and general

well-being of the employees within the framework of the national

economic and social development program. In the determination of

such regional minimum wages, the Regional Board shall, among other

relevant factors, consider the following:"(a) The demand for living wages;

"(b) Wage adjustment vis-a-vis the consumer price

index;

"(c) The cost of living and changes or increases therein;



"(d) The needs of workers and their families;

"(e) The need to induce industries to invest in the

countryside;

"(f) Improvements in standards of living;

"(g) The prevailing wage levels;

"(h) Fair return of the capital invested and capacity to pay

of employers;

"(i) Effects on employment generation and family income;

and

"(j) The equitable distribution of income and wealth along the

imperatives of economic and socialdevelopment. chanroblesvirtuallawlibrary

"The wages prescribed in accordance with the provisions of

this Title shall be the standard prevailing minimum wages in

every region. These wages shall include wages varying with

industries, provinces or localities if in the judgment of the

Regional Board conditions make such local differentiation

proper and necessary to effectuate the purpose of this Title.

"Any person, company, corporation, partnership or any other

entity engaged in business shall file and register annually withthe appropriate Regional Board, Commission and the National

Statistics Office an itemized listing of their labor component,

specifying the names of their workers and employees below the

managerial level, including learners, apprentices and

disabled/handicapped workers who were hired under the

terms prescribed in the employment contracts, and their

corresponding salaries and wages.

"Where the application of any prescribed wage increase by virtue of a

law or Wage Order issued by any Regional Board results in distortions

of the wage structure within an establishment, the employer and theunion shall negotiate to correct the distortions. Any dispute arising

from wage distortions shall be resolved through the grievance

procedure under their collective bargaining agreement and, if it

remains unresolved, through voluntary arbitration. Unless otherwise

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 to voluntary



arbitration. chanroblesvirtuallawlibrary

"In cases where there are no collective agreements or recognized labor

unions, the employers and workers shall endeavor to correct such

distortions. Any dispute arising therefrom shall be settled through the

National Conciliation and Mediation Board and, if it remains unresolvedafter ten [10] calendar days of conciliation, shall be referred to the

appropriate branch of the National Labor Relations Commission

[NLRC]. It shall be mandatory for the NLRC to 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 a wage distortion shall not in

any way delay the applicability of any increase in prescribed wage

rates pursuant to the provisions of law or Wage Order.

"As used herein, a wage distortion shall mean 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 distinctions embodied in such wage structure

based on skills, length of service, or other logical bases of

differentiation. chanroblesvirtuallawlibrary

"All workers paid by result, including those who are paid on

piecework,takay, pakyaw or task basis, shall receive not less than theprescribed wage rates per eight [8] hours work a day, or a proportion

thereof for working less than eight [8] hours.

"All recognized learnership and apprenticeship agreements shall be

considered automatically modified insofar as their wage clauses are

concerned to reflect the prescribed wage rates."

"Art. 126. Prohibition Against Injunction. - No preliminary or

permanent injunction or temporary restraining order may be issued by

any court, tribunal or other entity against any proceedings before theCommission or the Regional Boards."

"Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any

Regional Board shall provide for wage rates lower than the statutory

minimum wage rates prescribed by Congress."

Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum

wage rates of all workers and employees in the private sector,



whether agricultural or non-agricultural, shall be increased by

Twenty-five pesos [P25.00] per day, except that workers and

employees in plantation agricultural enterprises outside of the

National Capital Region [NCR] with an annual gross sales of less

than Five million pesos [P5,000,000.00] in the preceding year shall

be paid an increase of Twenty pesos [P20.00], and except furtherthat workers and employees of cottage/handicraft industries, non-

plantation agricultural enterprises, retail/service establishments

regularly employing not more than ten [10] workers, and business

enterprises with a capitalization of not more than Five hundred

thousand pesos [P500,000.00] and employing not more than twenty

[20] employees, which are located or operating outside the NCR,

shall be paid only an increase of Fifteen pesos [P15.00]: Provided ,

That those already receiving above the minimum wage rates up to

One hundred pesos [P100.00] shall also receive an increase of

Twenty-five pesos [P25.00] per day, except that the workers andemployees mentioned in the first exception clause of this Section

shall also be paid only an increase of Twenty pesos [P20.00], and

except further that those employees enumerated in the second

exception clause of this section shall also be paid an increase of

Fifteen pesos [P15.00]: Provided, further, That the appropriate

Regional Board is hereby authorized to grant additional increases to

the workers and employees mentioned in the exception clauses of

this section if, on the basis of its determination pursuant to Article

124 of the Labor Code such increases are necessary.

(b) The increase of Twenty-five pesos [P25.00] prescribed underthis section shall apply to all workers and employees entitled to the

same in private educational institutions as soon as they have

increased or are granted authority to increase their tuition fees

during school year 1989-1990. Otherwise, such increase shall be so

applicable not later than the opening of the next school year

beginning 1990.

(c) Exempted from the provisions of this Act are household or

domestic helpers and persons employed in the personal service of

another, including family drivers. chanroblesvirtuallawlibrary Retail/service establishments regularly employing not more than ten

[10] workers may be exempted from the applicability of this Act,

upon application with, and as determined by, the appropriate

Regional Board in accordance with the applicable rules and

regulations issued by the Commission. Whenever an application for

exemption has been duly filed with the appropriate Regional Board,

action on any complaint for alleged non-compliance with this Act



shall be deferred pending resolution of the application for exemption

by the appropriate Regional Board.cralaw

In the event that applications for exemptions are not granted,

employees shall receive the appropriate compensation due them as

provided for by this Act plus interest of one percent [1%] per month

retroactive to the effectivity of this Act.

(d) If expressly provided for and agreed upon in the collective

bargaining agreements, all increases in the daily basic wage rates

granted by the employers three [3] months before the effectivity of

this Act shall be credited as compliance with the increases in the

wage rates prescribed herein, provided that, where such increases

are less than the prescribed increases in the wage rates under this

Act, the employer shall pay the difference. Such increases shall not

include anniversary wage increases, merit wage increases and those

resulting from the regularization or promotion of employees. cralaw Where the application of the increases in the wage rates under this

section results in distortions as defined under existing laws in the

wage structure within an establishment and gives rise to a dispute

therein, such dispute shall first be settled voluntarily between the

parties and in the event of a deadlock, the same shall be finally

resolved through compulsory arbitration by the regional arbitration

branch of the National Labor Relations Commission [NLRC] having

jurisdiction over the workplace. chanroblesvirtuallawlibrary

It shall be mandatory for the NLRC to conduct continuous hearings

and decide any dispute arising under this section within twenty [20]calendar 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

increases in the wage rates prescribed under this section.

Sec. 5. Within a period of four [4] years from the effectivity of this

Act and without prejudice to collective bargaining negotiations or

agreements or other employment contracts between employers and

workers, new business enterprises that may be established outside

the NCR and export processing zones whose operation orinvestments need initial assistance as may be determined by the

Department of Labor and Employment in consultation with the

Department of Trade and Industry or the Department of Agriculture,

as the case may be, shall be exempt from the application of this Act

for not more than three [3] years from the start of their

operations: Provided, That such new business enterprises

established in Region III [Central Luzon] and Region IV [Southern



Tagalog] shall be exempt from such increases only for two [2] years

from the start of their operations, except those established in the

Provinces of Palawan, Oriental Mindoro, Occidental Mindoro,

Marinduque, Romblon, Quezon and Aurora, which shall enjoy such

exemption for not more than three [3] years from the start of their

operations.cralaw Sec. 6. In the case of contracts for construction projects and for

security, janitorial and similar services, the prescribed increases in

the wage rates of the workers shall be borne by the principals or

clients of the construction/service contractors and the contract shall

be deemed amended accordingly. In 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.chanroblesvirtuallawlibrary

Sec. 7. Upon written petition of the majority of the employees or

workers concerned, all private establishments, companies,businesses, and other entities with twenty-five (25) or more

employees and located within one (1) kilometer radius to a

commercial, savings or rural bank shall pay the wages and other

benefits of their employees through any of said banks and within the

period for payment of wages fixed by Presidential Decree No. 442, as

amended, otherwise known as the Labor Code of the Philippines. cralaw

Sec. 8. Whenever applicable and upon request of a concerned worker

or union, the bank shall issue a certification of the record of payment

of wages of a particular worker or workers for a particular payroll

period.

Sec. 9. The Department of Labor and Employment shall conduct

inspections as often as possible within its manpower constraint of

the payroll and other financial records kept by the company or

business to determine whether the workers are paid the prescribed

wage rates and other benefits granted by law or any Wage Order. In

unionized companies, the Department of Labor and Employment

inspectors shall always be accompanied by the president or any

responsible officer of the recognized bargaining unit or of any

interested union in the conduct of the inspection. In non-unionizedcompanies, establishments or businesses, the inspection should be

carried out in the presence of a worker representing the workers in

the said company. The workers' representative shall have the right

to submit his own findings to the Department of Labor and

Employment and to testify on the same if he cannot concur with the

findings of the labor

inspector.chanroblesvirtuallawlibrarychanroblesvirtuallawlibrary



Sec. 10. The funds necessary to carry out the provisions of this Act

shall be taken from the Compensation and Organizational

Adjustment Fund, the Contingent Fund, and other savings under

Republic Act No. 6688, otherwise known as the General

Appropriations Act of 1989, or from any unappropriated funds of the

National Treasury: Provided, That the funding requirementsnecessary to implement this Act shall be included in the annual

General Appropriations Act for the succeeding years.cralaw

Sec. 11. The National Wages Council created under Executive Order

No. 614 and the National Productivity Commission created under

Executive Order No. 615 are hereby abolished. All properties,

records, equipment, buildings, facilities, and other assets, liabilities

and appropriations of and belonging to the abovementioned offices,

as well as other matters pending therein, shall be transferred to the

Commission. All personnel of the above-abolished offices shall

continue to function in a holdover capacity and shall bepreferentially considered for appointments to or placement in the

Commission.cralaw

Any official or employee separated from the service as a result of the

abolition of offices pursuant to this Act shall be entitled to

appropriate separation pay and retirement and other benefits

accruing to them under existing laws. In lieu, thereof, at the option

of the employee, he shall be preferentially considered for

employment in the government or in any of its subdivisions,

instrumentalities, or agencies, including government-owned or

controlled corporations and theirsubsidiaries.chanroblesvirtuallawlibrary

Sec. 12. Any person, corporation, trust, firm, partnership,

association or entity which refuses or fails to pay any of the

prescribed increases or adjustments in the wage rates made in

accordance with this Act shall be punished by a fine not exceeding

Twenty-five thousand pesos [P25,000.00] and/or imprisonment of

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

If the violation is committed by a corporation, trust or firm,partnership, association or any other entity, the penalty of

imprisonment shall be imposed on the entity's responsible officers,

including, but not limited to, the president, vice-president, chief

executive officer, general manager, managing director or partner.

Sec. 13. The Secretary of Labor and Employment shall promulgate

the necessary rules and regulations to implement the provisions of



this Act.

Sec. 14. All laws, orders, issuances, rules and regulations or parts

thereof inconsistent with the provisions of this Act are hereby

repealed, amended or modified accordingly. If any provision or part

of this Act, or the application thereof to any person or circumstance,is held invalid or unconstitutional, the remainder of this Act or the

application of such provision or part hereof to other persons or

circumstances shall not be affected thereby.

Nothing in this Act shall be construed to reduce any existing wage

rates, allowances and benefits of any form under existing laws,

decrees, issuances, executive orders, and/or under any contract or

agreement between the workers and

employers. chanroblesvirtuallawlibrary

Sec. 15. This Act takes effect fifteen [15] days after its completepublication in the Official Gazette or in at least two [2] national

newspapers of general circulation, whichever comes

earlier.chanroblesvirtuallawlibrary

Approved: June 9, 1989.

RULES OF PROCEDURE ON MINIMUM WAGE FIXING.

Pursuant to Article 121(c) of the Labor Code as amended by Section 3 of

R.A. 6727, the National Wages and Productivity Commission hereby adoptsand promulgates the following rules of procedure governing the

proceedings in the Commission and the Regional Tripartite Wages and

Productivity Boards in the fixing of minimum wage rates by region,

province, or industry.



RULE I

General Provisions Section 1. Title. This Rules shall be known as the Rules of Procedure on

Minimum Wage Fixing. Sec. 2. Construction. This Rules shall be liberally construed to carry out the

objectives of R.A. 6727.Sec. 3. Scope. This Rules shall govern proceedings in the National Wages

and Productivity Commission and the Regional Tripartite Wages and

Productivity Boards in the fixing of minimum wage rates. Sec. 4. Definition of Terms. As used in this Rules:chanroblesvirtuallawlibrary (a) "Act" means Republic Act No. 6727; (b) "Board" means the Regional Tripartite Wages and Productivity Board; (c) "Chairman" means Chairman of the Commission; (d) "Commission" means the National Wages and Productivity

Commission;

(e) "Industry" refers to a trade, business or a sector thereof, or group of businesses in similar or allied activities in which individuals are gainfully

employed; (f) "Locality" refers to a geographical area smaller than a province and

includes industrial estates/export processing zones; (g) "Member" refers to the members of the Commission or Board, including

its Chairman; (h) "Minimum Wage Rates" refer to the lowest basic wage rates that an

employer can pay his workers, as fixed by the Board, and which shall not

be lower than the applicable statutory minimum wage rates;

(i) "Party" means any legitimate organization of workers or employerswith substantial interest in the region, province or industry therein as

determined by the Board, and who stands to be directly affected by the

Commission/Board proceedings, orders, decision or resolutions. (j) "Region" refers to a geographical area composed of a group of

provinces and/or cities as defined under PD 1, as amended, including

those that may be subsequently established by law; (k) "Regional Chairman" means the Chairman of the Board; (l) "Statutory Minimum Wages" refer to the lowest basic wages as

provided by law;

(m) "Wage Distortion" shall mean a situation where an increase inprescribed 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

distinctions embodied in such wage structure based on skills, length of

service, or other logical bases of differentiation; (n) "Wage Order" refers to the Order promulgated by the Board pursuant

to its wage fixing authority.



RULE II

Minimum Wage Fixing Sec. 1. Conduct of Wage and Productivity Studies. The Board shall, subject

to guidelines issued by the Commission, conduct continuing studies of

wage rates, productivity and other conditions in the region, provinces or

industries therein. The Board shall investigate and study all pertinent facts,and based on standards and criteria prescribed herein, shall determine

whether a wage order should be issued. Sec. 2. Standards/Criteria for Minimum Wage Fixing. The minimum wage

rates to be established by the Board shall be as nearly adequate as is

economically feasible to maintain the minimum standards of living

necessary for the health, efficiency and general well-being of the workers

within the framework of national economic and social development goals.

In the determination of regional minimum wages, the Board shall, among

other relevant factors, consider the following:chanroblesvirtuallawlibrary

(a) Demand for living wages; (b) Wage adjustment vis-a-vis the consumer price index; (c) Cost of living and changes therein; (d) Needs of workers and their families; (e) Need to induce industries to invest in the countryside; (f) Improvements in standards of living; (g) Prevailing wage levels; (h) Fair return on capital invested and capacity to pay of employers; (i) Effects on employment generation and family income; (j) Productivity; and

(k) Equitable distribution of income and wealth along the imperatives of economic and social development. Sec. 3. Procedures in Minimum Wage Fixing. (a) Motu Proprio by the Board. Whenever conditions in the region, province or industry so warrant, the

Board may, motu proprio or as directed by the Commission mandate action

or inquiry to determine whether a wage order should be issued. The Board

shall conduct public hearings/consultations in the manner prescribed

herein. (b) Wage Fixing by Virtue of a Petition Filed.

1. Form and Content of Petition. Any party may file a verified petition forwage increase with the appropriate Board in ten (10) typewritten legible

copies which shall contain the following: chanroblesvirtuallawlibrary (a) name/s, and address/es of petitioner/s and signature/s of authorized

official/s; (b) grounds relied upon to justify the increase being sought; (c) amount of wage increase being sought; (d) area and/or industry covered.



2. Board Action. If the petition conforms with the requirements prescribed in the preceding

sub-section b.1, the Board shall conduct public hearings/consultations in

the manner prescribed herein, to determine whether a wage order should

be issued.

3. Publication of Notice of Petition/Public Hearing. A notice of the petition and/or public hearing shall be published in a

newspaper of general circulation in the region, and/or posted in public

places as determined by the Board. The notice shall include the name/s

and address/es of the petitioner/s, the subject of the petition and the

date/s, place/s and time of the hearings. The publication or posting shall

be made at least fifteen (15) days before the date of initial hearing and

shall be in accordance with the suggested form herein attached as Annex

"A". 4. Opposition.

Any party may file his opposition to the petition on or before the initialhearing, copy furnished the petitioner/s. The opposition shall be filed with

the appropriate Board in ten (10) typewritten legible copies which shall

contain the following:chanroblesvirtuallawlibrary (a) name/s and address/es of the oppositor/s and signature/s of

authorized official/s; (b) reasons or grounds for the opposition; and (c) relief sought. 5. Consolidation of Petitions. If there is more than one petition filed, the Board may, motu proprio or on

motion of any party, consolidate these for purposes of conducting jointhearings or proceedings to expedite resolutions of petitions. Petitions

received after publication of an earlier petition need not go through the

publication/posting requirement. 6. Assistance of Other Government and Private Organizations. The Board may enlist the assistance and cooperation of any government

agency or private person or organization to furnish information in aid of its

wage fixing function. RULE III

Conduct of Hearings

Sec. 1. Public Hearings/Consultations. In the performance of its wagefixing functions, the Board shall conduct public hearing/consultations,

giving notices to employees' and employers' groups, provincial, city and

municipal officials and other interested parties. Sec. 2. Who May Conduct. Hearings may be conducted by the Board en

banc or by a duly authorized committee thereof. The Board shall determine

the date/s, place/s and time of the hearings which shall be open to the



public except as otherwise requested by a party and so determined by the

Board. Sec. 3. Order of Hearing. As much as practicable, the petitioner/s shall

present his/their evidence first, followed by the oppositor/s. The Board

may then call on other persons to present their views and submit position

papers and other supporting documents. Sec. 4. Duration of Hearings. Hearings shall be concluded as soon as

practicable, preferably within forty five (45) days from date of initial

bearing except when conditions in the region warrant otherwise. Sec. 5. Records of Proceedings. The Board Secretariat shall keep

records/minutes of all Board proceedings, duly noted by the members of

the Board. Sec. 6. Non-applicability of Technical Rules. The Board shall not be bound

strictly by technical rules of evidence and procedures. Sec. 7. Prohibition Against Injunction. No preliminary or permanent

injunction or temporary restraining order may be issued by any court,tribunal or any other entity against any proceeding before the Commission

or Board. RULE IV

Wage Order Sec. 1. Issuance of Wage Order. Within thirty (30) days after conclusion of

the last hearing, the Board shall decide on the merits of the petition, and

where appropriate, issue a wage order establishing the minimum wage

rates to be paid by employers in the region, which shall in no case be lower

than the applicable statutory minimum wage rates. These minimum wage

rates include wages by industry, province or locality as may be deemednecessary by the Board: provided, however, that such wage rates shall not

be lower than the regional wage rates unless expressly specified in the

wage order. The Board shall furnish the Commission a copy of the decision on the

petition or the Wage Order. Sec. 2. Contents of Wage Order. A Wage Order shall specify the region,

province, or industry to which the minimum wage rates prescribed therein

shall apply and exemptions, if any. Sec. 3. Frequency of Wage Order. Any Wage Order issued by the Board

may not be disturbed for a period of twelve (12) months from itseffectivity, and no petition for wage increase shall be entertained within

the said period. In the event, however, that supervening conditions, such

as extraordinary increase in prices of petroleum products and basic

goods/services, demand a review of the minimum wage rates as

determined by the Board and confirmed by the Commission, the Board

shall proceed to exercise its wage fixing function even before the

expiration of the said period.



Sec. 4. Effectivity. A Wage Order shall take effect fifteen (15) days after

its publication in at least one (1) newspaper of general circulation in the

region. Sec. 5. Implementing Rules/Regulations. The Board shall prepare the

necessary rules and regulations to implement the Wage Order, subject to

approval of the Secretary of Labor and Employment. Sec. 6. Correction of Error. The Board may, motu proprio or upon

manifestation of any party, proceed to correct any patent error, errors in

computation or typographical errors in any wage order. RULE V

Appeal Sec. 1. Appeal to the Commission. Any party aggrieved by a Wage Order

issued by the Board may appeal such Order to the Commission by filing a

verified appeal with the Board in three (3) typewritten legible copies, not

later than ten (10) days from the date of publication of the Order. The

appeal shall be accompanied by a memorandum of appeal which shall statethe grounds relied upon and the arguments in support thereof. The Board shall serve notice of the appeal to concerned parties. Sec. 2. Grounds for Appeal. An appeal may be filed on the following

grounds:chanroblesvirtuallawlibrary 1. non-conformity with prescribed guidelines and/or procedures; 2. questions of law; 3. grave abuse of discretion. Sec. 3. Transmittal of Records. Immediately upon receipt of the appeal,

the Board Secretariat shall transmit to the Commission Secretariat the

appeal and a copy of the subject Wage Order together with all relevantdocuments. Sec. 4. Period to Act on Appeal. The Commission shall decide on the appeal

within sixty (60) days from the filing thereof. Sec. 5. Effect 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 to employees affected by the Order of the

corresponding increase, in the event such Order is affirmed. RULE VI

Quorum Sec. 1. Quorum. Four (4) members of the Commission or Board shall

constitute a quorum to transact business, provided each sector is

represented. The Board may dispense with the latter proviso if the two (2)

representatives of any sector fail to attend two (2) consecutive scheduled

meetings with proper notice, without justifiable reason. Sec. 2. Votes Required. Any decision of the Commission or Board shall

require the affirmative vote of not less than four (4) of its members.



RULE VII

Wage Distortion Sec. 1. Correction of Wage Distortion. Where the application of any

prescribed wage increase by virtue of a Wage Order issued by the Board

results in distortions of the wage structure within an establishment, the

employer and the union shall negotiate to correct the distortions. Anydispute arising from wage distortions shall be resolved through the

grievance procedure under their collective bargaining agreement and, if it

remains unresolved, through voluntary arbitration. Unless otherwise

agreed by the parties in writing, such dispute shall be decided by the

voluntary arbitrator or panel of voluntary arbitrators within ten (10) days

from the time said dispute was referred to voluntary arbitration. In cases where there are no collective agreements or recognized labor

unions, the employers and workers shall endeavor to correct such

distortions. Any dispute arising therefrom shall be settled through the

National Conciliation and Mediation Board and, if it remains unresolvedafter ten (10) days of conciliation, shall be referred to the appropriate

branch of the National Labor Relations Commissions (NLRC). It shall be

mandatory for the NLRC to conduct continuous hearings and decide the

dispute within twenty (20) days from the time said dispute is submitted

for compulsory arbitration. The pendency of a dispute arising from a wage distortion shall not in any

way delay the applicability of any increase in prescribed wage rates

pursuant to the provisions of the Wage Order. RULE VIII

Exemptions Sec. 1. Application For Exemption. Whenever a wage order provides for

exemption, applications thereto shall be filed with the appropriate Board

which shall process the same, subject to guidelines issued by the

Commission. RULE IX

Enforcement Sec. 1. Enforcement of Wage Orders. Compliance with the Wage Orders

issued by the Board shall be enforced by the appropriate Regional Office of

the Department of Labor and Employment in accordance with enforcement

procedures under Articles 128 and 129 of the Labor Code as amended. RULE X

Disposition of Pending Matters Sec. 1. Disposition of Pending Matters. The Commission/Board shall exert

all efforts to dispose of all matters pending before it within the shortest

possible time. RULE XI

Official Records



Sec. 1. Commission/Board Records. All official records of the

Commission/Board may be made available to interested parties, upon

request, except those considered confidential and which cannot be

divulged without violating a private right or prejudicing the public interest. Sec. 2. Custody of Records and Other Documents. The Executive Director

of the Commission Secretariat and the Head of the Board Secretariat shallbe responsible for the safekeeping of all official records of the Commission

and Board, respectively. RULE XII

Repeal and Separability Sec. 1. Repeal and Separability.All existing rules, regulations or orders or

any part thereof inconsistent with this Rules are hereby repealed,

amended or modified accordingly. If any part or provision of this Rules is

declared unconstitutional or illegal, the other parts or provisions shall

remain valid.

RULE XIIIEffectivity

Sec. 1. Effectivity.— This Rules shall take effect fifteen (15) days after last

publication in two newspapers of general circulation.

(Sgd.) RUBEN D. TORRES Chairman, NWPC and Secretary of Labor and Employment

(Sgd.) CAYETANO W. PADERANGA, JR.

Vice-Chairman, NWPC NEDA Director-General

(Sgd.) CEDRIC R. BAGTAS Member, NWPC and Labor Sector Representative

(Sgd.) FRANCISCO R. FLORO

Member, NWPC Employer Sector Representative

(Sgd.) VICENTE S. BATE Member, NWPC

Labor Sector Representative



(Sgd.) EDUARDO T. RONDAIN

Member, NWPC Employer Sector Representative

and

(Sgd.) CARMELITA M. PINEDA Member, NWPC

Executive Director, NWPC Secretariat

ANNEX "A" MINIMUM WAGE ADJUSTMENT PETITION

NOTICE IS HEREBY GIVEN THAT A PETITION FOR A MINIMUM WAGE

INCREASE HAS BEEN FILED WITH THE REGIONAL TRIPARTITE WAGES AND

PRODUCTIVITY BOARD — REGION __________, PURSUANT TO REPUBLIC

ACT NO. 6727, DOCKETED AS CASE NO. ________ PETITIONER ___________________________________________ WAGE INCREASE SOUGHT: ______________________________ REASON/S: ______________________________________________ __________________________________________________________ _________________________________________________________ ANY INTERESTED PARTY MAY FILE AN OPPOSITION. INITIAL HEARING OF

PETITION IS SET ON THE _____ DAY OF _________, 199 _____, AT ___________ A.M./P.M., AT ___________ ____________________ Regional Board Chairman



WAGE ORDERS REPUBLIC ACT NO. 6640

AN ACT PROVIDING FOR AN INCREASE IN THE WAGE OF PUBLICOR GOVERNMENT SECTOR EMPLOYEES ON A DAILY WAGE

BASIS AND IN THE STATUTORY MINIMUM WAGE AND SALARY

RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE SECTORAND FOR OTHER PURPOSES.

Section 1. All workers and employees in the public or governmentsector on a daily wage basis shall receive an increase in the sumof ten pesos (P10.00) a day. chan roblesvirtuallaw library

The Department of Budget and Management shall promulgatesuch rules and regulations to carry out the salary adjustment

under this section. Sec. 2. The statutory minimum wage rates of workers andemployees 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 MetroManila who shall receive an increase of eleven pesos (P11.00) perday: Provided, That those already receiving above the minimumwage up to one hundred pesos (P100.00) shall receive an increaseof ten pesos (P10.00) per day. Excepted from the provisions of

this Act are domestic helpers and persons employed in thepersonal service of another. chan roblesvirtuallaw library

Sec. 3. Where the application of the minimum wage increaseprescribed under Section 2 results in distortions in the wagestructure within an establishment which gives rise to a disputetherein, such dispute shall first be settled voluntarily between theparties and in the event of a deadlock, such dispute shall be



finally resolved through compulsory arbitration by the NationalLabor Relations Commission's arbitration branch having jurisdiction over the workplace.cralaw It shall be mandatory for the NLRC to conduct continuoushearings and decide any dispute arising under this section withinthirty (30) days from the time said dispute is formally submittedto it for arbitration. The pendency of a dispute arising from awage distortion shall not in any way delay the applicability of thewage increase covered by this Act. chan roblesvirtuallaw library

For the purpose of this Act, wage distortion shall mean asituation where a legislated increase in minimum wages results inthe elimination or severe contraction on intentional quantitativedifferences in wage or salary rates between and among employeegroups 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. chan roblesvirtuallaw library

Sec. 4. All workers paid by result, including those who are paidon piecework, takay, pakyaw or task basis, shall receive not lessthan the applicable statutory minimum wage prescribed hereinper eight (8) hours work a day, or a proportion thereof for workingless than eight (8) hours.cralaw Sec. 5. Learners, apprentices and handicapped workers shall beentitled to not less than seventy-five percent (75%) of theapplicable adjusted minimum wage. A handicapped worker is one

whose efficiency or quality of work is impaired by his disability inrelation to the work performed. cralaw All recognized learnership and apprenticeship agreements enteredinto before the effective date of this Act shall be considered asautomatically modified insofar as their wage clauses areconcerned to reflect the increase provided in this Act. cralaw Sec. 6. In this case of contracts for construction projects and forsecurity, janitorial and similar services, the increase in theminimum wage of the workers shall be borne by the employers of the construction workers, security guards, janitors, and otherssimilarly situated: Provided, however, That the principal or clientof the construction and service contractor shall be subsidiarilyliable: Provided, further, That the subsidiary liability shall notapply to construction of family homes worth not more than twohundred thousand pesos (P200,000.00). cralaw



Sec. 7. Nothing in this Act shall be construed to reduce anyexisting allowances and benefits of any form under existing laws,decrees, issuances, executive orders, and/or under any contractor agreement between workers and employers. cralaw Sec. 8. The Department of Labor and Employment may, uponapplication by an employer in the retail business regularlyemploying not more than ten (10) workers, grant him exemptionfrom compliance with the provisions of this Act. cralaw Whenever an application for exemption has been duly filed withthe National Wages Council, action by the Regional Office of theDepartment on any complaint for alleged non-compliance withthis Act shall be deferred pending resolution of the application forexemption by the Council. cralaw In the event that applications for exemption are not granted,

employees shall receive the appropriate compensation due themas provided for by this law plus interest of one percent (1%) permonth retroactive to the effectivity of this law. chan roblesvirtuallaw library

Sec. 9. The Secretary of Labor and Employment shall promulgatethe necessary rules and regulations to implement this Act. cralaw Sec. 10.Any person, corporation, trust, firm, partnership,association or entity violating this Act shall be punished by a finenot exceeding twenty-five thousand pesos (P25,000.00) and/orimprisonment 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 ProbationLaw.cralaw 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 responsibleofficers, including, but not limited to, the president, vice-president, chief executive officer, general manager, managingdirector or partner.chan roblesvirtuallaw library

Sec. 11. The wage increase under Section 1 hereof shall befunded from the Compensation and Organizational AdjustmentFund, the Contingent Fund, and other savings under ExecutiveOrder No. 87, otherwise known as the General Appropriations Actfor Fiscal Year 1987, or from any unappropriated funds of theNational Treasury. Any deficiency shall be charged against thepersonal 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 thesucceeding years.cralaw Sec. 12. All laws, orders, issuances, rules and regulations or partthereof inconsistent with the provisions of this Act are herebyrepealed or amended accordingly. If any provision or part of thisAct, or the application thereof to any person or circumstance, asheld invalid or unconstitutional, the remainder of this Act or theapplication of such provision or part thereof to other persons orcircumstances, shall not be affected thereby. chan roblesvir t ual law library

Sec. 13. This Act shall take effect the day following itspublication in two (2) national newspapers of general circulation.

Approved: December 10, 1987

REPUBLIC ACT NO. 8188

AN ACT INCREASING THE PENALTY AND INCREASING DOUBLE

INDEMNITY FOR VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN THE WAGE RATES, AMENDING FOR THE PURPOSE

SECTION TWELVE OF REPUBLIC ACT NUMBERED SIXTY-SEVEN

HUNDRED TWENTY-SEVEN, OTHERWISE KNOWN AS THE WAGE

RATIONALIZATION ACT

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:

SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred

twenty-seven is hereby amended to read to as follows:

"Section 12. Any person, corporation, trust, firm, partnership, association

or entity which refuses or fails to pay any of the prescribed increases or

adjustments in the wage rates made in accordance with this Act shall be

punished by a fine not less than Twenty-five thousand pesos (P25,000) nor

more than One hundred thousand pesos (P100,000) or imprisonment of

not less than two (2) years nor more than four (4) years, or both such fine

and imprisonment at the discretion of the court: Provided , That any person

convicted under this Act shall not be entitled to the benefits provided for



under the Probation Law.

"The employer concerned shall be ordered to pay an amount equivalent

to double the unpaid benefits owing to the employees: Provided, That

payment of indemnity shall not absolve the employer from the criminal

liability imposableunder this Act.

"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."

SECTION 2. All laws, presidential decrees, executive orders, rules and

regulations or parts thereof inconsistent with the provisions of this Act are

hereby repealed or modified accordingly.

SECTION 3. This Act shall take effect fifteen (15) days after its complete

publication in a newspaper of general circulation.

Approved:

(SGD.) NEPTALI A. GONZALES

President of the Senate

(SGD.) JOSE DE VENECIA, JR.

Speaker of the House of RepresentativesThis Act, which is a consolidation of Senate Bill No. 407 and House Bill

No. 5808 was finally passed by the Senate and the House of

Representatives on June 7, 1996.

(SGD.) HEZEL P. GACUTAN

Secretary of the Senate

(SGD.) CAMILO L. SABIO

Secretary General

House of Representatives

Approved: June 11, 1996

(SGD.) FIDEL V. RAMOS

President of the Philippines



NCR - NATIONAL CAPITAL REGION

MINIMUM WAGE RATE

Republic of the Philippines

Department of Labor and Employment

National Wages and Productivity Commission

REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD

National Capital Region

WAGE ORDER No. NCR-13

RULES IMPLEMENTING WAGE ORDER NO. NCR-13

INCREASING THE DAILY MINIMUM WAGE RATES AND

INTEGRATING OF EXISTING P50.00 ECOLA IN THE

NATIONAL CAPITAL REGION

HEREAS, the Regional Tripartite Wages and Productivity Board- National Capital Region

TWPB-NCR) is mandated under R.A. 6727 (The Wage Rationalization Act), to periodically

sess the wage rates and conduct continuing studies in the determination of the minimum w

tes applicable in the region or industry;

HEREAS, the Trade Union Congress of the Philippines (TUCP) filed on April 12, 2007 a peti

r a Seventy-Five Pesos (P75.00) per day across-the-board wage increase;

HEREAS, after due notice to all concerned sectors, the RTWPB-NCR conducted consultation

th labor and employers sectors on the 21st and 31st of May 2007, respectively, and a publi

earing on the 14th of June 2007, to determine the propriety of issuing a new wage order;

HEREAS, after a thorough evaluation of the existing socio-economic conditions of the regio

e RTWPB-NCR determined the need to provide workers with immediate relief, without impa

siness viability by integrating the existing cost of living allowances under Wage Order No. N

and Wage Order No. NCR-10 into the basic wage, and providing an additional basic wage

crease to compensate the projected erosion of the minimum wage rates due to inflation;HEREAS, consistent with the government’s policy of achieving higher levels of productivity

omote economic growth and generate employment, and to augment the income of workers

ere is a need to build the capacity of business enterprises to be competitive through

oductivity improvement programs.

OW THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727

e RTWPB-NCR hereby issues this Wage Order.

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ection 1. NEW MINIMUM WAGE RATES. Upon effectivity of this Wage Order: cralaw

) The Cost of Living Allowances of THIRTY PESOS (P 30.00) per day under Wage Order N

NCR-09 and TWENTY PESOS (P 20.00) per day under Wage Order No. NCR-10 shall be

integrated into the basic wage;

) After the integration of the Cost of Living Allowances, all minimum wage workers in theNCR shall receive an increase in the basic wage of P 12.00 per day;

) The new daily minimum wage rates of covered workers in the private sector in the

National Capital Region shall be as follows:

ector/Industry Basic Wage

After COLA

Integration

Basic Wage

Increase

New Minimum

Wage Rates

on-Agriculture P 350.00 P 12.00 P 362.00

griculture (Plantation and Non

lantation)

P 313.00 P 12.00 P 325.00

rivate Hospitals with bed capacity of

00 or less

P 313.00 P 12.00 P 325.00

etail/Service Establishments

mploying 15 workers or less

P 313.00 P 12.00 P 325.00

anufacturing Establishments

egularly employing less than 10

workers

P 313.00 P 12.00 P 325.00

ec. 2. COVERAGE. The P12.00 wage increase prescribed in this Wage Order shall apply to

nimum wage earners in the private sector in the Region, regardless of their position,

signation or status of employment and irrespective of the method by which they are paid.e P50.00 per day COLA integration shall apply to all covered workers under Wage Order No

CR-09 and NCR-10.

is Wage Order shall not cover household or domestic helpers; persons in the personal serv

another, including family drivers, and workers of duly registered Barangay Micro Business

nterprises (BMBEs) with Certificates of Authority pursuant to Republic Act 9178.

ec. 3. BASIS OF MINIMUM WAGE RATES. The minimum wage rates prescribed under th

rder shall be for the normal working hours which shall not exceed eight (8) hours of work a

ec. 4. APPLICATION TO CONTRACTORS. In the case of contracts for construction projec

d for security, janitorial and similar services, the wage increase prescribed in this Order sh

borne by the principals or clients of the construction/service contractors and the contract s

deemed amended accordingly.

the event, however, that the principals or clients fail to pay the prescribed wage rates, the

nstruction/service contractor shall be jointly and severally liable with his principal or client.

ec. 5. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of priva

ucational institutions, the share of covered workers and employees in the increase in tuitio

es for School Year 2007-2008 shall be considered as compliance with the increase prescribe

erein. However, payment of any shortfall in the wage increase set forth herein shall be cove

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arting School Year 2008-2009.

ivate educational institutions which have not increased their tuition fees for the School Year

007-2008 may defer compliance with the increase prescribed herein until the beginning of

chool Year 2008-2009.

any case, all private educational institutions shall implement the increase prescribed herein

arting School Year 2008-2009.ec. 6. WORKERS PAID BY RESULT. All workers paid by result, including those who are p

piecework, “takay”, “pakyaw” or task basis, shall be entitled to receive the prescribed incr

r eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

ec. 7. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners s

no case be less than seventy-five percent (75%) of the applicable minimum wage rates

escribed in this Order.

recognized learnership and apprenticeship agreements entered into before the effectivity o

is Order shall be considered automatically modified insofar as their wage clauses are conce

reflect the new minimum wage rates.

qualified handicapped workers shall receive the full amount of the minimum wage rateescribed herein pursuant to Republic Act No. 7277, otherwise known as the Magna Carta fo

sabled Persons.

ec. 8. EXEMPTIONS. Upon application with and as determined by the Board, based on

ocumentation and other requirements in accordance with applicable rules and regulations iss

y the Commission, the following may be exempted from the applicability of this Order: cralaw

. Distressed Establishments;

. Establishments Facing Potential Losses;

. Retail/Service Establishments Employing Not More Than Ten (10) Workers;

. Establishments whose total assets, including those arising from loans, but exclusive ofthe land on which the particular business entity’s office, plant and equipment are

situated, are not more than Three Million Pesos (P3,000,000.00); and,

. Establishments adversely affected by natural calamities.

ec. 9. APPLICATIONS FOR EXEMPTION. Pursuant to the rules and regulations of the

ational Wages and Productivity Commission, all applications for exemption from compliance

is Order shall be filed within seventy-five (75) days from the date of publication of the Rule

mplementing this Order, with complete supporting documents as specified in the Rules and a

ay be further required by the Board. Failure to submit the required supporting documents

thin the prescribed period will be sufficient basis for the dismissal of the application for

emption.

e Board may grant a maximum period of exemption of one (1) year in accordance with the

WPC Rules on Exemption, but in no case shall any exemption exceed one (1) year from the

fectivity of this Order.

ec. 10. EFFECT OF APPLICATION FOR EXEMPTION. Whenever an application for

emption has been duly filed with the Board, action on any complaint for alleged non-

mpliance with this Wage Order shall be deferred pending its resolution.

the event that the application for exemption is not granted in accordance with the Rules, t





mployees of the applicant firm shall receive the mandated wage increase under this Order, p

e percent (1%) interest per month retroactive to the effectivity of this Order.

ec. 11. APPEAL TO THE COMMISSION. Any party aggrieved by this order Wage Order m

e an appeal to the Commission, through the Board, in three (3) printed copies, not later tha

n (10) days from the publication of this Wage Order.

ec. 12. CREDITABLE WAGE INCREASE. An increase granted by an employer in an organtablishment within three (3) months prior to the effectivity of this Order shall be credited a

mpliance with the prescribed increase set forth herein, provided that an agreement to this

fect has been forged between the parties or a collective bargaining agreement provision

owing creditability exists. In the absence of such an agreement or provision in the CBA, an

crease granted by the employer shall not be credited as compliance with the increase

escribed in this Order.

unorganized establishments, an increase granted by the employer within five (5) months p

the effectivity of this Order shall be credited as compliance therewith.

case the increases given are less than the prescribed adjustment, the employer shall pay t

fference. Such increases shall not include anniversary increases, merit wage increases andose resulting from the regularization or promotion of employees.

ec. 13. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the increa

escribed in this Order results in distortions in the wage structure within the establishment,

all be corrected in accordance with the procedure provided for under Article 124 ofPresiden

ecree No. 442, as amended, otherwise known as the Labor Code of the Philippines.

ec. 14. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this

rder shall be filed with the National Capital Regional Office of the Department of Labor and

mployment, and shall be the subject of enforcement proceedings under Articles 128 and 129

e Labor Code, as amended.

ec. 15. PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS. In ordestain rising levels of wages and enhance competitiveness, labor and management as partne

e encouraged to adopt productivity improvement schemes that will improve the quality of li

orkers and in turn enable them to produce more and earn more, such as time and motion

udies, good housekeeping, quality circles, labor and management cooperation as well as

plement gain-sharing and other performance incentive programs.

ec. 16. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to red

y existing wage rates, allowances and benefits of any form under existing laws, decrees,

suances, executive orders and/or under any contract or agreement between the workers an

mployers.

ec. 17. PROHIBITION AGAINST INJUCTION. No preliminary or permanent injunction, omporary restraining order may be issued by any court, tribunal or other entity against any

oceedings before the Board.

ec. 18. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in

rticular firms or enterprises or industries from bargaining for higher wages with their

spective employers.

ec. 19. REPORTING REQUIREMENT. Any person, company, corporation, partnership or a

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tity engaged in business shall submit a verified report on their wage structure to the Board

ter than January 31, 2008 and every year thereafter in accordance with the form prescribed

e National Wages and Productivity Commission.

ec. 20. PENAL PROVISION. Any employer who refuses or fails to comply with this Order

subject to the penalties specified under R.A. 6727, as amended under R.A. No. 8188.

ec. 21. REPEALING CLAUSE. All orders, issuances, rules and regulations or parts thereof consistent with the provisions of this Wage Order are hereby repealed, amended or modifie

cordingly.

ec. 22. SEPARABILITY CLAUSE. If any provision or part of this Wage Order is declared

nconstitutional, or in conflict with existing law, the other provisions or parts thereof shall rem

lid.

ec. 23. IMPLEMENTING RULES. The Regional Tripartite Wages and Productivity Board-

ational Capital Region shall submit to the Commission the necessary Rules and Regulations

plement this Order subject to approval of the Secretary of Labor and Employment not later

an ten (10) days from the publication of the Wage Order.

ec. 24. EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in ewspaper of general circulation.

PRROVED.

Manila, Philippines, 06 August 20

Abstained

(Sgd.) DANIEL R. ANG

Labor Representative

(Sgd.) VICENTE LEOGARDO, JR.

Employer Representative

Abstained

(Sgd.) GERMAN N. PASCUA, JR.

Labor Representative

(Sgd.) ALBERTO R. QUIMPO

Employer Representative

(Sgd.) MA. THERESA L. PELAYO

Vice-Chairperson

(Sgd,) DENNIS M. ARROYO

Vice-Chairperson

(Sgd.) RAYMUNDO G. AGRAVANTE

Chairperson



