The Wage Rationalization Act No.6727, mandates the minimum wages in the Philippines. It also authorized the Regional Tripartite Wages and Productivity Boards (RTWPBs) to determine the daily minimum wage rates. The daily minimum wage rate is computed based on industry (non-agriculture, agriculture plantation, non-plantation) per locality (differs per region) and in some cases depending on the number of workers and the capitalization of enterprises (retail and service).
This 2016, a new wage increase was issued under the Wage Orders which apply to all sector workers and employees receiving the daily minimum wage. Under Wage Order No. NCR-20, minimum wage earners in NCR started receiving additional P10 COLA – cost of living allowance. Their old P15 COLA also is now integrated to the basic wage aside from the new additional P10 COLA. This increase was implemented with an aim that all minimum wages shall always be above the poverty threshold to help workers and their families meet basic needs.
The table below shows the new minimum wages in all sectors in NCR – Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Parañaque, Pasay, Pasig, Quezon City, San Juan, Taguig, Valenzuela, and Municipalities of Navotas and Pateros.
2016 Minimum Wages in NCR
|Sector/ Industry||Minimum Wage (MW) under W.O. No. NCR-19||COLA Integrat ion||New Basic Wage WO NCR-20b||New COLA||New Minimum Wage Rates|
|Non-agricul ture including Private Hospi tals wi th bed capacity of 100 or less||P466.00||P15.00||P481.00||P10.00||P491.00|
|Retail / Service Establishments|
|Employing 15 workers or less||429.00||15.00||444.00||10.00||454.00|
|Regularly employing less than 10 workers||429.00||15.00||444.00||10.00||454.00|
Summary of 2016 Regional Daily Minimum Wage Rates
|REGION||Wage Order (WO) No. and DATE OF EFFECTIVITY||NON-AGRICULTURE||AGRICULTURE - Plantation||AGRICULTURE - Non-Plantation|
|NCR||WO 20 / June 2, 2016||P 454 - 491||P 454||P 454|
|CAR||WO 17 / June 29, 2015||265 - 285||255 - 270||255 - 270|
|I||WO 17 / July 19, 2015||220 - 253||233||227|
|II||WO 16 / January 5, 2014||247 - 255||235 - 243||235 - 243|
|III||WO 19 / January 1, 2016||306 - 357||291 - 327||279 - 311|
|IV - A||WO 16 / May 1, 2014||267 - 362.50||267 - 337.50||267 - 317.50|
|IV - B||WO 07 / July 3, 2015||217 - 285||225 - 235||225 - 235|
|V||WO 17 / December 25, 2015||248 - 265||248||248|
|VI||WO 22 / May 2, 2015||256.50 - 298.50||266.50||256.50|
|VIl||WO19 / October 10, 2015||295 - 353||275 - 335||275 - 335|
|VIII||WO 18 / March 30, 2015||260||241||235|
|IX||WO 18 / June 10, 2013||280||255||235|
|X||WO 18 / July 3, 2015||303 - 318||291 - 306||291 - 306|
|XI||WO 18 / June 1, 2014||317||307||307|
|XII||WO 18 / Aug. 1, 2014||275||257||257|
|XIII||WO 13 / February 14, 2015||268||268||268|
|ARMM||WO 16 / May 1, 2016||265||255||255|
Other Facts on the 2016 Minimum Wage.
- The following categories of establishments are exempted from the minimum wage order :
- Distressed establishments;
- Retail/service establishments regularly employing not more than ten (10) workers; and
- Establishments adversely affected by natural calamities.
- Minimum wage earners are exempted from paying income tax according to the National Internal Revenue Code – RA 9504 but their additional income earned from employment, business or practice of profession is subject to income tax as well as commissions and fixed monthly allowances received on top of the minimum wage. The following are exempted from income tax:
- Holiday pay
- Overtime pay
- Night shift differential pay
- Hazard pay
- Minimum wage of Kasambahay shall not be less than the
- P2,500.00/month in NCR
- P2,000.00/month in chartered cities and first class municipalities
- P1,500.00/month in other municipalities.
- Rights and Benefits of Kasambahay:
- Minimum wage
- Mandatory benefits, such as the daily and weekly rest periods
- Service Incentive Leave
- 13th month pay
- Freedom from employers’ interference in the disposal of wages
- Coverage under the SSS, PhilHealth and Pag-IBIG laws
- Standard of treatment
- Board, lodging and medical attendance
- Right to privacy
- Access to outside communication
- Access to education and training
- Right to form, join, or assist labor organization
- Right to be provided a copy of the employment contract
- Right to certificate of employment
- Right to terminate the employment
- Right to exercise their own religious beliefs and cultural practices
- A “Kasambahay” who works as salesclerk should receive salary in accordance with the prescribed minimum wage in the retail and service establishments.
- Homeworkers and those who are paid on piece rate, sakada, takay, pakyaw or task basis, shall receive not less than the prescribed minimum wage rates under the Regional Wage Orders for normal working hours which shall not exceed eight (8) hours a day.
- Wage of apprentices and learners shall in no case be less than seventy-five (75%) percent of the applicable minimum wage rates.
- A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits or allowances as a qualified able bodied person based on Sec. 1 of
RA 10524 or the Magna Carta for Persons with disability).
Sources: Available Online at:
Retrieved August 10, 2016
Retrieved August 10, 2016