Bases of wage in the Philippines


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Bases of wage in the Philippines

  2. 2. Labor Code of the PhilippinesPRESIDENTIAL DECREE NO. 442, AS AMENDED
  3. 3. Chapter IIMINIMUM WAGE RATES 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. (As amended by Section 3, Republic Act No. 6727, June 9, 1989).
  4. 4. Chapter IIMINIMUM WAGE RATES Art. 100. Prohibition against elimination or diminution of benefits. Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
  5. 5. Chapter IIMINIMUM WAGE RATES Art. 101. Payment by results. a.) The Secretary of Labor and Employment shall regulate the payment of wages by results, including pakyaw, 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.
  6. 6. Chapter IIIPAYMENT OF WAGESArt. 102. Forms ofpayment. No employer shallpay the wages of anemployee by means ofpromissorynotes, vouchers, coupons,tokens, tickets, chits, or anyobject other than legal tender,even when expresslyrequested by the employee
  7. 7. Chapter IIIPAYMENT OF WAGESArt. 103. Time of payment. Wages shallbe paid at least once every two (2) weeksor twice a month at intervals not exceedingsixteen (16) days. If on account of forcemajeure or circumstances beyond theemployer’s control, payment of wages onor within the time herein provided cannotbe made, the employershall pay the wages immediately after suchforce majeure or circumstances haveceased. No employer shallmake payment with less frequency thanonce a month.
  8. 8. Chapter IIIPAYMENT OF WAGESPayment of wages by check ormoney order shall be allowed whensuch manner of payment iscustomary on the date of effectivityof this Code, or is necessarybecause of special circumstancesas specified in appropriateregulations to be issued by theSecretary of Labor and Employmentor as stipulated in a collectivebargaining agreement.
  9. 9. Chapter IIIPAYMENT OF WAGESThe payment of wages of employeesengaged to perform a task which cannotbe completed in two (2) weeksshall be subject to the followingconditions, in the absence of a collectivebargaining agreement or arbitrationaward:1. That payments are made at intervalsnot exceeding sixteen (16) days, inproportion to the amount of workcompleted;2. That final settlement is made uponcompletion of the work.
  10. 10. Chapter IIIPAYMENT OF WAGESArt. 104. Place of payment.Payment of wages shall be made ator near the place of undertaking,except asotherwise provided by suchregulations as the Secretary of Laborand Employment may prescribe underconditions to ensure greater protectionof wages.
  11. 11. Chapter III PAYMENT OF WAGESArt. 105. Direct payment of wages. Wages shallbe paid directly to the workers to whom they aredue,except:b. Where the worker has died, in which case, the employer may pay thewages of the deceased worker to the heirs of the latter without thenecessity of intestate proceedings. The claimants, if they are all of age,shall execute an affidavit attesting to their relationship to the deceasedand the fact that they are his heirs, to the exclusion of all other persons.If any of the heirs is a minor, the affidavitshall be executed on his behalf by his natural guardian or next-of-kin.The affidavit shall be presented to the employer who shall makepayment through the Secretary of Labor and Employment or hisrepresentative. The representative of the Secretary of Labor andEmployment shall act as referee in dividing the amount paid among theheirs. The payment of wages under this Article shall absolve theemployer of any further liability with respect to the amount paid.
  12. 12. Chapter IVPROHIBITIONS REGARDING WAGES Art. 112. Non-interference in disposal of wages. No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities or other property from any other person, or otherwise make use of any store or services of such employer or any other person.
  13. 13. Chapter IV PROHIBITIONS REGARDING WAGESArt. 113. Wage deduction. No employer, in his ownbehalf or in behalf of any person, shall make anydeduction from the wages of his employees, except:a. In cases where the worker is insured with hisconsent by the employer, and the deduction is torecompense the employer for the amount paid by himas premium on the insurance;b. For union dues, in cases where the right of theworker or his union to check-off has been recognizedby the employer or authorized in writing by theindividual worker concerned; and
  14. 14. Chapter IV PROHIBITIONS REGARDING WAGESc. In cases where the employer is authorized by law orregulations issued by the Secretary of Laborand Employment.
  15. 15. Chapter IV PROHIBITIONS REGARDING WAGESArt. 114. Deposits for loss or damage. Noemployer shall require his worker to makedeposits from whichdeductions shall be made for the reimbursement ofloss of or damage to tools, materials, or equipmentsupplied by the employer, except when the employeris engaged in such trades, occupations or businesswhere the practice of making deductions or requiringdeposits is a recognized one, or is necessary ordesirable as determined by the Secretary of Laborand Employment in appropriate rules and regulations.
  16. 16. Chapter IV PROHIBITIONS REGARDING WAGESArt. 115. Limitations. No deduction from the depositsof an employee for the actual amount of the loss ordamage shall be made unless the employee has beenheard thereon, and his responsibility has been clearlyshown.Art. 116. Withholding of wages and kickbacksprohibited. It shall be unlawful for any person, directlyor indirectly, to withhold any amount from the wagesof a worker or induce him to give up any part of hiswages by force, stealth, intimidation, threat or by anyother means whatsoever without the worker’sconsent.
  17. 17. Chapter IV PROHIBITIONS REGARDING WAGESArt. 119. False reporting. It shall be unlawful for anyperson to make any statement, report, or record filedor kept pursuant to the provisions of this Codeknowing such statement, report or record to be falsein any material respect.
  18. 18. Chapter VWAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATIONArt. 124. Standards/Criteria for minimumwage fixing. The regional minimum wages tobe established bythe Regional Board shall be as nearly adequate as iseconomically feasible to maintain the minimumstandards of living necessary for the health, efficiencyand general well-being of the employees within theframework of the national economic and socialdevelopment program. In the determination of suchregional minimum wages, the Regional Board shall,among other relevant factors, consider the following:
  19. 19. Chapter VWAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATIONa. The demand for living wages;b. Wage adjustment vis-à-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; andj. The equitable distribution of income and wealth along the imperatives of economic and social development
  20. 20. Chapter VWAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATIONThe wages prescribed in accordance with theprovisions of this Title shall be the standard prevailingminimum wages in every region. These wages shallinclude wages varying with industries, provinces orlocalities if in the judgment of the Regional Board,conditions make such local differentiation proper andnecessary to effectuate the purpose of this Title.
  21. 21. Chapter VWAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATIONAny person, company, corporation, partnership or anyother entity engaged in business shall file and registerannually with the appropriate Regional Board,Commission and the National Statistics Office, anitemized listing of their labor component, specifyingthe names of their workers and employees below themanagerial level, including learners, apprentices anddisabled/handicapped workers who were hired underthe terms prescribed in the employment contracts,and their corresponding salaries and wages.
  22. 22. THANK YOU!!!