Legal Bases

Book 3, Title II (PD.#442)

• Art.97 (f) "Wage" paid to any employee shall mean the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered and includes the fair and reasonable value,

Book 3, Title II (PD.#442)• (Cont’n) as determined by the Secretary

of Labor and Employment, of board, lodging, or other facilities customarily furnished by the employer to the employee. "Fair and reasonable value" shall not include any profit to the employer, or to any person affiliated with the employer.

• 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.

Comparative WagesCebu City NCR Baguio City Laguna

(Techno Park)Non-Agriculture Php327.00 446.00 280.00 349.50

Australia Belgium Canada Malaysia TaiwanUS$127.68 93.52 76.96 12.00 29.28

Book 3, Title II (PD.#442)• Art.124 Standards/Criteria for minimum wage

fixing. - The regional minimum wages to be established by the Regional Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national economic and social development program.

Book 3, Title II (PD.#442)

• Art.124 (Cont’n) In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors, consider the following:

– (a) The demand for living wages;– (b) Wage adjustment vis-à-vis the consumer

price index;

Book 3, Title II (PD.#442)

• Art.124 (Cont’n)– (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;

Book 3, Title II (PD.#442)

• Art.124 (Cont’n)– (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; and– (j) The equitable distribution of income and

wealth along the imperatives of economic and social development.

Wage Rationalization ActRA#6727

• Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on investment, expansion and growth.

Wage Rationalization ActRA#6727

• Sec. 2. (cont’n) The State shall promote collective bargaining as the primary mode of setting wages and other terms and conditions of employment; and, whenever necessary, the minimum wage rates shall be adjusted in a fair and equitable manner, considering existing regional disparities in the cost of living and other socio-economic factors and the national economic and social development plans.

Domestic Workers Act (RA#10361)

• SEC 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than the following:– (a) Two thousand five hundred pesos (P2,500.00) a

month for those employed in the National Capital Region (NCR);

– (b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first class municipalities; and

– (c) One thousand five hundred pesos (P1,500.00) a month for those employed in other municipalities.

Domestic Workers Act (RA#10361)

• SEC. 30. Social and Other Benefits. – A domestic worker who has rendered at least one (1) month of service shall be covered by the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and shall be entitled to all the benefits in accordance with the pertinent provisions provided by law.

Compensation and Position Classification Act of 1989RA#6758

• Sec.3 (a) All government personnel shall be paid just and equitable wages; and while pay distinctions must necessarily exist in keeping with work distinctions, the ratio of compensation for those occupying higher ranks to those at lower ranks should be maintained at equitable levels, giving due consideration to higher percentage of increases to lower level positions and lower percentage increases to higher level positions;

Compensation and Position Classification Act of 1989RA#6758

• Sec.3 (b) Basic compensation for all personnel in the government and government-owned or controlled corporations and financial institutions shall generally be comparable with those in the private sector doing comparable work, and must be in accordance with prevailing laws on minimum wages;

Compensation and Position Classification Act of 1989RA#6758

• Sec.3 (c) The total compensation provided for government personnel must be maintained at a reasonable level in proportion to the national budget;

Compensation and Position Classification Act of 1989RA#6758

• Sec.3 (d) A review of government compensation rates, taking into account possible erosion in purchasing power due to inflation and other factors, shall be conducted periodically.