The document provides information on minimum wage laws in the Philippines, detailing regional wage orders, the coverage and exemptions for various employee categories, and the calculation of equivalent salaries for monthly and daily-paid employees. It highlights that minimum wage earners are exempt from certain income taxes and outlines the roles of employers and the government in distributing statutory monetary benefits. Additional resources and services related to human resource topics, including legal compliance and professional development training, are also mentioned.

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Minimum Wage
Lowest Prescribed Pay

2. Concept of Minimum Wage
Statutory Monetary Benefits are employee benefits required by
law to be given to the employees.
The ones giving the benefits are:
The Employer; or
The Government.
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

3. RTWPB
Minimum wage is prescribed by the respective Regional Tripartite Wages
and Productivity Boards (RTWPBs) in various regions:
National Capital Region (NCR; Metro Manila)
Cordillera Autonomous Region (CAR)
Region I, II, III, IV-A, IV-B, V, VI, VII, VIII, IX, X, XI, XII, XIII
Autonomous Region in Muslim Mindanao (ARMM)
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

4. Regional Wage Orders
The Regional Wage Orders “prescribe the daily minimum wage rates per in-
dustry per locality within the region and in some instances depending on the
number of workers and the capitalization of enterprises. The Wage Orders
likewise provide the basis and procedure for application for exemption from
compliance therefrom. Some Wage Orders grant allowances instead of wage
increases.”
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

5. “The wage increases prescribed under Wage Orders apply to all private
sector workers and employees receiving the daily minimum wage rates or
those receiving up to a certain daily wage ceiling, where applicable, re-
gardless of their position, designation, or status of employment, and irre-
spective of the method by which their wages are paid, except workers of
duly registered Barangay Micro Business Enterprises (BMBEs) with Certifi-
cate of Authority issued by the Office of the Municipal or City Treasurer.”
Coverage
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

6. “Upon application with and as determined by an RTWPB, based on docu-
mentation and other requirements in accordance with applicable rules and
regulations issued by the National Wages and Productivity Commission
(NWPC), a company/establishment may be exempted from compliance
with a Wage Order for a period not to exceed one (1) year.”
Coverage
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

7. Service Establishment is “one principally engaged in the sale of service to in-
dividuals for their own or household use and is generally recognized as
such.”
Service Establishments
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

8. The basis of the minimum wage rates prescribed by law shall be “the normal
working hours of eight (8) hours a day.”
Basis
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

9. Monthly-paid employees are “those who are paid every day of the month,
including unworked rest days, special days, and regular holidays. Factor
365 days in a year is used in determining the equivalent monthly salary of
monthly-paid employees.”
Daily-paid employees are “those who are paid on the days they actually
worked and on unworked regular holidays.”
Monthly Paid vs Daily Paid
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

10. For monthly-paid employees: “Factor 365 days in a year is used in determin-
ing the equivalent annual and monthly salary of monthly-paid employees.”
Estimated Equivalent Monthly Rate
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

11. For daily-paid employees:
1. For those who are required to work everyday, including Sundays or rest
days, special days and regular holidays
Estimated Equivalent Monthly Rate
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

12. For daily-paid employees:
2. For those who do not work and are not considered paid on Sundays or
rest days
Estimated Equivalent Monthly Rate
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

13. For daily-paid employees:
3. For those who do not work and are not considered paid on Saturdays
and Sundays or rest days
Estimated Equivalent Monthly Rate
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

14. Minimum Wage Earners are exempt from income tax:
1. Statutory Minimum Wage (SMW) inclusive of COLA;
2. Holiday Pay;
3. Overtime Pay;
4. Night Shift Differential Pay; and
5. Hazard Pay.
Exempt from Income Tax
Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

15. For more information, please visit
www.laborlaw.ph
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