REPUBLIC ACT NO. 6640 An act providing for an increase in the wageof public or government sector employees on a dailywage basis and in the statutory minimum wage andsalary rates of employees and workers in the privatesector and for other purposes.
Section 1. All workers and employees in thepublic or government sector on adaily wage basis shall receive anincrease in the sum of ten pesos(P10.00) a day. chan robles virtuallaw library.
The Department of Budget andManagement shall promulgate suchrules and regulations to carry outthe salary adjustment under thissection.
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 outsideMetro Manila who shall receive an increase of eleven pesos(P11.00) per day: Provided, That those already receivingabove the minimum wage up to one hundred pesos (P100.00)shall receive an increase of ten pesos (P10.00) per day.Excepted from the provisions of this Act are domestic helpersand persons employed in the personal service of another. chanrobles virtual law library
Sec. 3. Where the application of the minimumwage increase prescribed under Section 2results in distortions in the wage structurewithin an establishment which gives rise to adispute therein, such dispute shall first besettled voluntarily between the parties and inthe event of a deadlock, such dispute shall befinally resolved through compulsory arbitrationby the National Labor Relations Commissions arbitration branch having jurisdiction over the workplace.
Sec. 4. All workers paid by result, includingthose who are paid on piecework, takay,pakyaw or task basis, shall receive not lessthan the applicable statutory minimum wageprescribed herein per eight (8) hours work aday, or a proportion thereof for working less than eight (8) hours.
Sec. 5. Learners, apprentices and handicappedworkers shall be entitled to not less thanseventy-five percent (75%) of the applicableadjusted minimum wage. A handicappedworker is one whose efficiency or quality ofwork is impaired byhis disability inrelation to the work.
Sec. 6. In this case of contracts for constructionprojects and for security, janitorial and similarservices, the increase in the minimum wage of theworkers shall be borne by the employers of theconstruction workers, security guards, janitors, andothers similarly situated: Provided, however, That theprincipal or client of the construction and servicecontractor shall be subsidiarily liable: Provided,further, That the subsidiary liability shall not apply to construction of family homes worth not more than two hundred thousand pesos (P200,000.00).
Sec. 7. Nothing in this Act shall beconstrued to reduce any existingallowances and benefits of any formunder existing laws, decrees, issuances,executive orders, and/or under anycontract or agreement between workers and employers.
Sec. 8. The Department of Labor and Employment may,upon application by an employer in the retail businessregularly employing not more than ten (10) workers, granthim exemption from compliance with the provisions of thisAct. Whenever an application for exemption has been dulyfiled with the National Wages Council, action by the RegionalOffice of the Department on any complaint for alleged non-compliance with this Act shall be deferred pending resolutionof the application for exemption by the Council.
Sec. 9. The Secretary of Labor andEmployment shall promulgatethe necessary rules andregulations to implement thisAct.
Sec. 10. Any person, corporation, trust, firm,partnership, association or entity violating this Actshall be punished by a fine not exceeding twenty-five thousand pesos (P25,000.00) and/orimprisonment for not less than one (1) year normore than two (2) years: Provided, That anyperson convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.
Sec. 11. The wage increase under Section 1hereof shall be funded from the Compensationand Organizational Adjustment Fund, theContingent Fund, and other savings underExecutive Order No. 87, otherwise known asthe General Appropriations Act for FiscalYear 1987, or from any unappropriated funds of the National Treasury.
Sec. 12. All laws, orders, issuances, rules andregulations or part thereof inconsistent with theprovisions of this Act are hereby repealed oramended accordingly. If any provision or part of thisAct, or the application thereof to any person orcircumstance, as held invalid or unconstitutional, theremainder of this Act or the application of suchprovision or part thereof to other persons or circumstances, shall not be affected thereby.
Sec. 13. This Act shall take effect theday following its publication intwo (2) national newspapers ofgeneral circulation.