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MINIMUM WAGE Republic Act 6727 (otherwise known as the Wage Rationalization Act ) Regional Tripartite Wage and Productivity Boards determine the wage.

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Presentation on theme: "MINIMUM WAGE Republic Act 6727 (otherwise known as the Wage Rationalization Act ) Regional Tripartite Wage and Productivity Boards determine the wage."— Presentation transcript:

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4 MINIMUM WAGE Republic Act 6727 (otherwise known as the Wage Rationalization Act ) Regional Tripartite Wage and Productivity Boards determine the wage rates in different regions.

5 Coverage Applies to all private sector workers regardless of their position or status, irrespective of the method by which their wages are paid, except the ff.: 1. Household helpers, including family drivers and workers in the personal service of another. 2. Employees of establishments regularly employing not more than 10 workers

6 3. Workers of distressed establishments; 4. Workers of establishments which are exempted from compliance for a fixed point.

7 Formulae in determining the Estimated Equivalent Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Employees For those working even on Saturdays and Sundays: Applicable Daily Rate x 365 12

8 Where 365 days/year= 300 ordinary working days 51 rest days 11 regular holidays 3 special days 365 TOTAL EQUIVALENT NUMBER OF DAYS IN A YEAR

9 For those required to work everyday including Sundays, rest days, special days and regular holidays Applicable Daily Rate x 392.80 12 where 392.80 days/year=300 ordinary working days 20 ten regular holidays x 200%

10 2.60 one regular holiday/rest day x 260% 66.30 51 rest days x 130% 3.90 3 special days x 130% For those who do not work and are not considered paid on Sundays or rest days Applicable Daily Rate x 314 12

11 300 ordinary working days 11 regular holidays 3 special days (if considered paid; if actually worked, this is 3.9) ------ 314

12 For those who do not work and are not considered paid on Saturdays and Sundays or rest days Applicable Daily Rate x 262 12

13 Where 262 days/year: 248ordinary working days 11 regular holidays 3 special days (if considered paid; if actually worked, this is 3.9 ----- 262

14 Minimum Wage of Workers Paid By Results ART. 101. Payment by results. - (a) The Secretary of Labor and Employment shall regulate the payment of wages by results, including pakyao, piecework, and other non-time work, in order to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in consultation with representatives of workers’ and employers’ organizations.

15 Wage Order No. IVA-13 (June 1, 2008) GROWTH CORRIDOR AREA: Carmona, Cavite City, Dasmarinas, Gen. Trias, Rosario, Cabuyao, Calamba City, Los Banos, San Pablo City, Sta. Cruz, Sta Rosa: Daily Rate:P298.00 Monthly Rate:P7748.00

16 GROWTH CORRIDOR AREA Kawit, Silang, Tagaytay City, Tanza, Trece Martirez, Batangas City, Bauan, Lipa City, San Pascual, Santo Tomas, Tanauan City, Lucena City Daily RateP293.00 Monthly RateP7,618.00

17 Holiday Pay (Article 94) 11 regular holidays (E.O. 203) New YearJanuary 1 Maundy ThursdayMovable Date Good FridayMovable Date Araw ng KagitinganApril 9 Labor DayMay 1 Independence DayJune 12 National Heroes DayLast Sunday of August Eidl FitrMovable Date Bonifacio DayNovember 30 Christmas DayDecember 25 Rizal DayDecember 30

18 Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday Applies to all employees except: -govt. employees -establishments not employing more than ten workers -househelp

19 -managerial employees -officers or members of a managerial staff -field personnel unsupervised Covered employees shall be entitled to holiday pay when they are on leave of absence with pay on the work day immediately preceding the regular holiday.

20 Premium Pay (Articles 91-93) Exemptions: government employees, managerial employees, officers/members of managerial staff, househelp, workers paid by results, field personnel. For work performed on rest days or on special days: plus 30% of the daily rate of 100% or a total of 130% Special Days (EO 2030) Ninoy Aquino Day August 21 All Saints DayNovember 1 Last Day of the YearDecember 31

21 For work performed on a rest day which is also a special day: Plus 50% of the daily rate of 100% or a total of 150% For work performed on a regular holiday which is also the employee’s rest day: Plus 30 percent of the regular holiday rate of 200% based on his/her basic wage rate or a total of 260%

22 Overtime Pay (Article 87) Exemptions: Same as in Premium Pay For work in excess of eight (8) hours performed on ordinary working days: Plus 25% of the hourly rate For work in excess of eight hours performed on a scheduled rest day, a special day, and a regular holiday: Plus 30% of the hourly rate on said days.

23 Night Shift Differential (Article 86) Exemptions: government employees, househelp, managerial employees, officers/members of managerial staff, field personnel Night shift differential refers to the additional compensation of 10% of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m.

24 Service Incentive Leave (Article 95) Every employee who has rendered at least one year of service is entitled to SIL of 5 days with pay Exemptions: government employees, househelp, managerial employees, officers/members of managerial staff, field personnel, those already enjoying this benefit, those enjoying vacation leave with pay at least 5 days, less than 10 employees.

25 Service Charge (Article 96) All rank-and-file employees of employers collecting service charges are entitled to an equal share in the 85% of the total of such charges. The remaining 15% shall answer for losses and damages. Distributed 2x a month.

26 Maternity Leave (RA 1161, as amended by RA 8282) Every pregnant employee in the private sector, whether married or unmarried is entitled to maternity leave benefit of 60 days in case of normal delivery or miscarriage, or 78 days in case of Caesarian section delivery, with benefits equivalent to 100% of the average salary credit of the employee as defined under the law.

27 Paternity Leave (RA 8187) Granted to all male employees in the private sector regardless of status Applies to 4 deliveries of the employee’s lawful wife with whom he is cohabiting Shall be for 7 calendar days with full pay Not convertible to cash if not availed of

28 PARENTAL LEAVE FOR SOLO PARENTS (RA 8972) Means leave benefits granted to a solo parent to enable him/her to perform parental duties where physical presence is required Must have rendered at least one year of service Seven working days every year with full pay.

29 Leave for Victims of Violence Against Women and their Children(RA 9262) The leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns A certification from the Punong Barangay that a case is pending

30 13 th month pay (PD 851) Paid to all employees who worked for at least one month during a calendar year. Should be given to employees not later than December 24 every year. Should not be less than one-twelfth of the total basic salary earned by an employee in calendar year Exemptions: government, those already paying at the time of PD 851, househelp, commission, boundary or task employees.

31 Separation Pay (Article 283-84) One-Half month pay for every year of service: -retrenchment to prevent losses -closure or cessation of operation of an establishment -disease One-Month Pay for every year of service: -installation of labor-saving device -redundancy -impossible reinstatement

32 Allowance should be integrated with the basic salary Fraction of six months considered one year Separation pay also paid to illegally dismissed employees

33 Retirement Pay (RA 7641) Employees should be retired upon reaching the age of 60 or more but not beyond 65 and have served for at least 5 years. Exemptions: government, not more than ten employees. ½ month pay for every year of service which includes: 15 days salary based on the latest salary rate; cash equivalent of five days; one twelfth of the thirteenth month pay or a total of 22. 5 days.

34 melchisedekg@yahoo.com 09287292776


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