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Republic of the Philippines Congress of the Philippines Metro Manila Eighth Congress Republic Act No.

6727 June 9, 1989

AN AC ! RA "!NA#"$E %A&E P!#"C' (E ER)"NA "!N *' E+ A*#"+,"N& ,E )EC,AN"+) AN( PR!PER + AN(AR(+ ,ERE-!R, A)EN("N& -!R ,E P.RP!+E AR "C#E 99 !-, AN( "NC!RP!RA "N& AR "C#E+ 12/, 121, 122, 120, 121, 126 AN( 127 "N !, PRE+"(EN "A# (ECREE N!. 112, A+ A)EN(E(, ! ,ER%"+E 2N!%N A+ ,E #A*!R C!(E !- ,E P,"#"PP"NE+, -"3"N& NE% %A&E RA E+, PR!4"("N& %A&E "NCEN "4E+ -!R "N(.+ R"A# ("+PER+A# ! ,E C!.N R'+"(E, AN( -!R ! ,ER P.RP!+E+ Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: +ection 1. This Act shall be known as the "%5ge R5tion5li65tion Act." +ection 2. It is hereby declared the policy of the State to rationalize the fixing of minim m wages and to promote prod cti!ity"impro!ement and gain"sharing meas res to ens re a decent standard of li!ing for the workers and their families# to g arantee the rights of labor to its $ st share in the fr its of prod ction# to enhance employment generation in the co ntryside thro gh ind stry dispersal# and to allow b siness and ind stry reasonable ret rns on in!estment% expansion and growth. The State shall promote collecti!e bargaining as the primary mode of settling wages and other terms and conditions of employment# and whene!er necessary% the minim m wage rates shall be ad$ sted in a fair and e& itable manner% considering existing regional disparities in the cost of li!ing and other socio"economic factors and the national economic and social de!elopment plans. +ection 0. In line with the declared policy nder this Act% Article '' of (residential )ecree *o. ++,% as amended% is hereby amended and Articles -,.% -,-% -,,% -,/% -,+% -,0 and -,1 are hereby incorporated into (residential )ecree *o. ++,% as amended% to read as follows: "Art. ''. Regional Minimum Wages. 2 The minim m wage rates for agric lt ral and non"agric lt ral employees and workers in each and e!ery region of the co ntry shall be those prescribed by the 3egional Tripartite 4ages and (rod cti!ity 5oards." "Art. -,.. Creation of the National Wages and Productivity Commission . 2 There is hereby created a *ational 4ages and (rod cti!ity 6ommission% hereinafter referred to as the 6ommission% which shall be attached to the )epartment of 7abor and 8mployment 9):78; for policy and program coordination." "Art. -,-. Po ers and !unctions of the Commission. 2 The 6ommission shall ha!e the following powers and f nctions: "9a; To act as the national cons ltati!e and ad!isory body to the (resident of the (hilippines and 6ongress on matters relating to wages% incomes and prod cti!ity# "9b; To form late policies and g idelines on wages% incomes and prod cti!ity impro!ement at the enterprise% ind stry and national le!els# "9c; To prescribe r les and g idelines for the determination of appropriate minim m wage and prod cti!ity meas res at the regional% pro!incial or ind stry le!els# "9d; To re!iew regional wage le!els set by the 3egional Tripartite 4ages and (rod cti!ity 5oards to determine if these are in accordance with prescribed g idelines and national de!elopment plans# "9e; To ndertake st dies% researches and s r!eys necessary for the attainment of its f nctions and

ob$ecti!es% and to collect and compile data and periodically disseminate information on wages and prod cti!ity and other related information% incl ding% b t not limited to% employment% cost"of"li!ing% labor costs% in!estments and ret rns# "9f; To re!iew plans and programs of the 3egional Tripartite 4ages and (rod cti!ity 5oards to determine whether these are consistent with national de!elopment plans# "9g; To exercise technical and administrati!e s per!ision o!er the 3egional Tripartite 4ages and (rod cti!ity 5oards# "9h; To call% from time to time% a national tripartite conference of representati!es of go!ernment% workers and employers for the consideration of meas res to promote wage rationalization and prod cti!ity# and "9i; To exercise s ch powers and f nctions as may be necessary to implement this Act. "The 6ommission shall be composed of the Secretary of 7abor and 8mployment as ex"officio chairman% the )irector"<eneral of the *ational 8conomic and )e!elopment A thority 9*8)A; as ex"officio !ice" chairman% and two 9,; members each from workers and employers sectors who shall be appointed by the (resident of the (hilippines pon recommendation of the Secretary of 7abor and 8mployment to be made on the basis of the list of nominees s bmitted by the workers and employers sectors% respecti!ely% and who shall ser!e for a term of fi!e 9=; years. The 8xec ti!e )irector of the 6ommission shall also be a member of the 6ommission. "The 6ommission shall be assisted by a Secretariat to be headed by an 8xec ti!e )irector and two 9,; )ep ty )irectors% who shall be appointed by the (resident of the (hilippines% pon the recommendation of the Secretary of 7abor and 8mployment. "The 8xec ti!e )irector shall ha!e the same rank% salary% benefits and other emol ments as that of a )epartment Assistant Secretary% while the )ep ty )irectors shall ha!e the same rank% salary% benefits and other emol ments as that of a 5 rea )irector. The members of the 6ommission representing labor and management shall ha!e the same rank% emol ments% allowances and other benefits as those prescribed by law for labor and management representati!es in the 8mployees> 6ompensation 6ommission. "Art. -,,. Creation of Regional "ripartite Wages and Productivity Boards. 2 There is hereby created 3egional Tripartite 4ages and (rod cti!ity 5oards% hereinafter referred to as 3egional 5oards% in all regions% incl ding a tonomo s regions as may be established by law. The 6ommission shall determine the offices?head& arters of the respecti!e 3egional 5oards. "The 3egional 5oards shall ha!e the following powers and f nctions in their respecti!e territorial $ risdiction: "9a; To de!elop plans% programs and pro$ects relati!e to wages% incomes and prod cti!ity impro!ement for their respecti!e regions# "9b; To determine and fix minim m wage rates applicable in their region% pro!inces or ind stries therein and to iss e the corresponding wage orders% s b$ect to g idelines iss ed by the 6ommission# "9c; To ndertake st dies% researches and s r!eys necessary for the attainment of their f nctions% ob$ecti!es and programs% and to collect and compile data on wages% incomes% prod cti!ity and other related information and periodically disseminate the same# "9d; To coordinate with the other 3egional 5oards as may be necessary to attain the policy and intention of this 6ode# "9e; To recei!e% process and act on applications for exemption from prescribed wage rates as may be pro!ided by law or any 4age :rder# and "9f; To exercise s ch other powers and f nctions as may be necessary to carry o t their mandate nder this 6ode. Implementation of the plans% programs and pro$ects of the 3egional 5oards referred to in the second

paragraph% letter 9a; of this Article% shall be thro gh the respecti!e regional offices of the )epartment of 7abor and 8mployment within their territorial $ risdiction# (ro!ided% howe!er% That the 3egional 5oards shall ha!e technical s per!ision o!er the regional office of the )epartment of 7abor and 8mployment with respect to the implementation of said plans% programs and pro$ects. "8ach 3egional 5oard shall be composed of the 3egional )irector of the )epartment of 7abor and 8mployment as chairman% the 3egional )irectors of the *ational 8conomic and )e!elopment A thority and the )epartment of Trade and Ind stry as !ice"chairmen and two 9,; members each from workers and employers sectors who shall be appointed by the (resident of the (hilippines% pon the recommendation of the Secretary of 7abor and 8mployment% to be made on the basis of the list of nominees s bmitted by the workers and employers sectors% respecti!ely% and who shall ser!e for a term of fi!e 9=; years. "8ach 3egional 5oard to be headed by its chairman shall be assisted by a Secretariat. "Art. -,/. Wage #rder. 2 4hene!er conditions in the region so warrant% the 3egional 5oard shall in!estigate and st dy all pertinent facts# and based on the standards and criteria herein prescribed% shall proceed to determine whether a 4age :rder sho ld be iss ed. Any s ch 4age :rder shall take effect after fifteen 9-=; days from its complete p blication in at least one 9-; newspaper of general circ lation in the region. "In the performance of its wage determining f nctions% the 3egional 5oard shall cond ct p blic hearings?cons ltations% gi!ing notices to employees> and employers> gro ps% pro!incial% city and m nicipal officials and other interested parties. "Any party aggrie!ed by the 4age :rder iss ed by the 3egional 5oard may appeal s ch order to the 6ommission within ten 9-.; calendar days from the p blication of s ch order. It shall be mandatory for the 6ommission to decide s ch appeal within sixty 90.; calendar days from the filing thereof. "The filing of the appeal does not stay the order nless the person appealing s ch order shall file with the 6ommission an ndertaking with a s rety or s reties satisfactory to the 6ommission for the payment to the employees affected by the order of the corresponding increase% in the e!ent s ch order is affirmed." "Art. -,+. Standards$Criteria for Minimum Wage !i%ing . 2 The regional minim m wages to be established by the 3egional 5oard shall be as nearly ade& ate as is economically feasible to maintain the minim m standards of li!ing necessary for the health% efficiency and general well"being of the employees within the framework of the national economic and social de!elopment program. In the determination of s ch regional minim m wages% the 3egional 5oard shall% among other rele!ant factors% consider the following: "9a; The demand for li!ing wages# "9b; 4age ad$ stment !is"a"!is the cons mer price index# "9c; The cost of li!ing and changes or increases therein# "9d; The needs of workers and their families# "9e; The need to ind ce ind stries to in!est in the co ntryside# "9f; Impro!ements in standards of li!ing# "9g; The pre!ailing wage le!els# "9h; @air ret rn of the capital in!ested and capacity to pay of employers# "9i; 8ffects on employment generation and family income# and "9$; The e& itable distrib tion of income and wealth along the imperati!es of economic and social de!elopment. "The wages prescribed in accordance with the pro!isions of this Title shall be the standard pre!ailing minim m wages in e!ery region. These wages shall incl de wages !arying within ind stries% pro!inces or localities if in the $ dgment of the 3egional 5oard conditions make s ch local differentiation proper and necessary to effect ate the p rpose of this Title.

"Any person% company% corporation% partnership or any other entity engaged in b siness shall file and register ann ally with the appropriate 3egional 5oard% 6ommission and the *ational Statistics :ffice an itemized listing of their labor component% specifying the names of their workers and employees below the managerial le!el% incl ding learners% apprentices and disabled?handicapped workers who were hired nder the terms prescribed in the employment contracts% and their corresponding salaries and wages. "4here the application of any prescribed wage increase by !irt e of law or 4age order iss ed by any 3egional 5oard res lts in distortions of the wage str ct re within an establishment% the employer and the nion shall negotiate to correct the distortions. Any disp te arising from wage distortions shall be resol!ed thro gh the grie!ance proced re nder their collecti!e bargaining agreement and% if it remains nresol!ed% thro gh !ol ntary arbitration. Anless otherwise agreed by the parties in writing% s ch disp te shall be decided by the !ol ntary arbitrator or panel of !ol ntary arbitrators within ten 9-.; calendar days from the time said disp te was referred to !ol ntary arbitration. "In cases where there are no collecti!e agreements or recognized labor nions% the employers and workers shall endea!or to correct s ch distortions. Any disp te arising therefrom shall be settled thro gh the *ational 6onciliation and Mediation 5oard and% if it remains nresol!ed after ten 9-.; calendar days of conciliation% shall be referred to the appropriate branch of the *ational 7abor 3elations 6ommission 9*736;. It shall be mandatory for the *736 to cond ct contin o s hearings and decide the disp te within twenty 9,.; calendar days from the time said disp te is s bmitted for comp lsory arbitration. "The pendency of a disp te arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed wage rates p rs ant to the pro!isions of law or 4age :rder. "As sed herein% a wage distortion shall mean a sit ation where an increase in prescribed wage rates res lts in the elimination or se!ere contraction of intentional & antitati!e differences in wage or salary rates between and among employee gro ps in an establishment as to effecti!ely obliterate the distinctions embodied in s ch wage str ct re based on skills% length of ser!ice% or other logical bases of differentiation. "All workers paid by res lt% incl ding those who are paid on piecework% takay% pakyaw or task basis% shall recei!e not less than the prescribed wage rates per eight 9B; ho rs work a day% or a proportion thereof for working less than eight 9B; ho rs. "All recognized learnership and apprenticeship agreements shall be considered a tomatically modified insofar as their wage cla ses are concerned to reflect the prescribed wage rates." "Art. -,0. Prohibition &gainst 'n(unction. 2 *o preliminary or permanent in$ nction or temporary restraining order may be iss ed by any co rt% trib nal or other entity against any proceedings before the 6ommission or the 3egional 5oards." "Art. -,1. Non)diminution of Benefits. 2 *o 4age :rder iss ed by any 3egional 5oard shall pro!ide for wage rates lower than the stat tory minim m wage rates prescribed by 6ongress." +ection 1. 9a; Apon the effecti!ity of this Act% the stat tory minim m wage rates of all workers and employees in the pri!ate sector% whether agric lt ral or non"agric lt ral% shall be increased by twenty"fi!e pesos 9(,=...; per day% except that workers and employees in plantation agric lt ral enterprises o tside of the *ational 6apital 3egion 9*63; with an ann al gross sales of less than fi!e million pesos 9(=%...%......; in the preceding year shall be paid an increase of twenty pesos 9(,....;% and except f rther that workers and employees of cottage?handicraft ind stries% non"plantation agric lt ral enterprises% retail?ser!ice establishments reg larly employing not more than ten 9-.; workers% and b siness enterprises with a capitalization of not more than fi!e h ndred tho sand pesos 9(=..%......; and employing not more than twenty 9,.; employees% which are located or operating o tside the *63% shall be paid only an increase of fifteen pesos 9(-=...;: (ro!ided% That those already recei!ing abo!e the minim m wage rates p to one h ndred pesos 9(-.....; shall also recei!e an increase of twenty"fi!e pesos 9(,=...; per day% except that the workers and employees mentioned in the first exception cla se of this Section shall also be paid only an increase of twenty pesos 9(,....;% and except f rther that those employees en merated in the second exception cla se of this Section shall also be paid an increase of fifteen pesos 9(-=...;: (ro!ided% f rther% That the appropriate 3egional 5oard is hereby a thorized to grant additional increases to the workers and employees mentioned in the exception cla ses of this Section if% on the basis of its

determination p rs ant to Article -,+ of the 7abor 6ode s ch increases are necessary. 9b; The increase of twenty"fi!e pesos 9(,=...; prescribed nder this Section shall apply to all workers and employees entitled to the same in pri!ate ed cational instit tions as soon as they ha!e increased or are granted a thority to increase their t ition fees d ring school year -'B'"-''.. :therwise% s ch increase shall be so applicable not later than the opening of the next school year beginning -''.. 9c; 8xempted from the pro!isions of this Act are ho sehold or domestic helpers and persons employed in the personal ser!ice of another% incl ding family dri!ers. 3etail?ser!ice establishments reg larly employing not more than ten 9-.; workers may be exempted from the applicability of this Act pon application with and as determined by the appropriate 3egional 5oard in accordance with the applicable r les and reg lations iss ed by the 6ommission. 4hene!er an application for exemption has been d ly filed with the appropriate 3egional 5oard% action on any complaint for alleged non"compliance with this Act shall be deferred pending resol tion of the application for exemption by the appropriate 3egional 5oard. In the e!ent that applications for exemptions are not granted% employees shall recei!e the appropriate compensation d e them as pro!ided for by this Act pl s interest of one per cent 9-C; per month retroacti!e to the effecti!ity of this Act. 9d; If expressly pro!ided for and agreed pon in the collecti!e bargaining agreements% all increases in the daily basic wage rates granted by the employers three 9/; months before the effecti!ity of this Act shall be credited as compliance with the increases in the wage rates prescribed herein% pro!ided that% where s ch increases are less than the prescribed increases in the wage rates nder this Act% the employer shall pay the difference. S ch increases shall not incl de anni!ersary wage increases% merit wage increases and those res lting from the reg larization or promotion of employees. 4here the application of the increases in the wage rates nder this Section res lts in distortions as defined nder existing laws in the wage str ct re within an establishment and gi!es rise to a disp te therein% s ch disp te shall first be settled !ol ntarily between the parties and in the e!ent of a deadlock% the same shall be finally resol!ed thro gh comp lsory arbitration by the regional branches of the *ational 7abor 3elations 6ommission 9*736; ha!ing $ risdiction o!er the workplace. It shall be mandatory for the *736 to cond ct contin o s hearings and decide any disp te arising nder this Section within twenty 9,.; calendar days from the time said disp te is formally s bmitted to it for arbitration. The pendency of a disp te arising from a wage distortion shall not in any way delay the applicability of the increase in the wage rates prescribed nder this Section. +ection 7. 4ithin a period of fo r 9+; years from the effecti!ity of this Act and witho t pre$ dice to collecti!e bargaining negotiations or agreements or other employment contracts between employers and workers% new b siness enterprises that may be established o tside the *63 and export processing zones whose operation or in!estments need initial assistance as may be determined by the )epartment of 7abor and 8mployment in cons ltation with the )epartment of Trade and Ind stry or the )epartment of Agric lt re% as the case may be% shall be exempt from the applicability of this Act for not more than three 9/; years from the start of their operations: (ro!ided% That s ch new b siness enterprises established in 3egion III 96entral 7 zon; and 3egion ID 9So thern Tagalog; shall be exempt from s ch increases only for two 9,; years from the start of their operations% except those established in the (ro!inces of (alawan% :riental Mindoro% :ccidental Mindoro% Marind & e% 3omblon% E ezon and A rora% which shall en$oy s ch exemption for not more than three 9/; years from the start of their operations. +ection 6. In the case of contracts for constr ction pro$ects and for sec rity% $anitorial and similar ser!ices% the prescribed increases in the wage rates of the workers shall be borne by the principals or clients of the constr ction?ser!ice contractors and the contract shall be deemed amended accordingly. In the e!ent% howe!er% that the principal or client fails to pay the prescribed wage rates% the constr ction?ser!ice contractor shall be $ointly and se!erally liable with his principal or client. +ection 7. Apon written permission of the ma$ority of the employees or workers concerned% all pri!ate establishments% companies% b sinesses% and other entities with twenty fi!e 9,=; or more employees and located within one 9-; kilometer radi s to a commercial% sa!ings or r ral bank shall pay the wages and other benefits of

their employees thro gh any of said banks and within the period of payment of wages fixed by (residential )ecree *o. ++,% as amended% otherwise known as the 7abor 6ode of the (hilippines. +ection 8. 4hene!er applicable and pon re& est of a concerned worker or nion% the bank shall iss e a certification of the record of payment of wages of a partic lar worker or workers for a partic lar payroll period. +ection 9. The )epartment of 7abor and 8mployment shall cond ct inspections as often as possible within its manpower constraint of the payroll and other financial records kept by the company or b siness to determine whether the workers are paid the prescribed minim m wage rates and other benefits granted by law or any 4age :rder. In nionized companies% the )epartment of 7abor and 8mployment inspectors shall always be accompanied by the president or any responsible officer of the recognized bargaining nit or of any interested nion in the cond ct of the inspection. In non" nionized companies% establishments or b sinesses% the inspection sho ld be carried o t in the presence of a worker representing the workers in the said company. The workers> representati!e shall ha!e the right to s bmit his own findings to the )epartment of 7abor and 8mployment and to testify on the same if he cannot conc r with the findings of the labor inspector. +ection 1/. The f nds necessary to carry o t the pro!isions of this Act shall be taken from the 6ompensation and :rganizational Ad$ stment @ nd% the 6ontingent @ nd% and other sa!ings nder the 3ep blic Act *o. 00BB% otherwise known as the <eneral Appropriations Act of -'B'% or from any nappropriated f nds of the *ational Treas ry: (ro!ided% That the f nding re& irements necessary to implement this Act shall be incl ded in the ann al <eneral Appropriations Act for the s cceeding years. +ection 11. The *ational 4ages 6o ncil created nder 8xec ti!e :rder *o. 0-+ and the *ational (rod cti!ity 6ommission created nder 8xec ti!e :rder *o. 0-= are hereby abolished. All properties% records% e& ipment% b ildings% facilities% and other assets% liabilities and appropriations of and belonging to the abo!ementioned offices% as well as other matters pending therein% shall be transferred to the 6ommission. All personnel of the abo!e abolished offices shall contin e to f nction in a holdo!er capacity and shall be preferentially considered for appointments to or placement in the 6ommission. Any official or employee separated from the ser!ice as a res lt of the abolition of office p rs ant to this Act shall be entitled to appropriate separation pay and retirement and other benefits accr ing to them nder existing laws. In lie % thereof% at the option of the employee% he shall be preferentially considered for employment in the go!ernment or in any of its s bdi!isions% instr mentalities% or agencies% incl ding go!ernment"owned or controlled corporations and their s bsidiaries. +ection 12. Any person% corporation% tr st% firm% partnership% association or entity which ref ses or fails to pay any of the prescribed increases or ad$ stments in the wage rates made in accordance with this Act shall be p nished by a fine not exceeding twenty fi!e tho sand pesos 9(,=%......; and?or imprisonment of not less than one 9-; year nor more than two 9,; years: (ro!ided% That any person con!icted nder this Act shall not be entitled to the benefits pro!ided for nder the (robations 7aw. If the !iolation is committed by a corporation% tr st or firm% partnership% association or any other entity% the penalty of imprisonment shall be imposed on the entity>s responsible officers% incl ding% b t not limited to% the president% !ice"president% chief exec ti!e officer% general manager% managing director or partner. +ection 10. The Secretary of 7abor and 8mployment shall prom lgate the necessary r les and reg lations to implement the pro!isions of this Act. +ection 11. Al laws% orders% iss ances% r les and reg lations or parts thereof inconsistent with the pro!isions of this Act are hereby repealed% amended or modified accordingly. If any pro!ision or part of this Act% or the application thereof to any person or circ mstance% is held in!alid or nconstit tional% the remainder of this Act or the application of s ch pro!ision or part thereof to other persons or circ mstances shall not be affected thereby. *othing in this Act shall be constr ed to red ce any existing wage rates% allowances and benefits of any form nder existing laws% decrees% iss ances% exec ti!e orders% and?or nder any contract or agreement between the workers and the employers. +ection 17. This Act take effect fifteen 9-=; days after its complete p blication in the :fficial <azette or in at least two 9,; national newspapers of general circ lation% whiche!er comes earlier.

Appro!ed: F ne '% -'B' R.#E+ ")P#E)EN "N& REP.*#"C AC N!. 6727 ( rs ant to the a thority granted to the Secretary of 7abor and 8mployment nder Section -/ of 3ep blic Act *o. 01,1% otherwise known as the 4age 3ationalization Act% the following r les are hereby iss ed for g idance and compliance by all concerned: )efinition of Terms. As sed in this 3 les 2 a; "Act" means 3ep blic Act *o. 01,1# b; "6ommission" means the *ational 4ages and (rod cti!ity 6ommission# c; "5oard" means the 3egional Tripartite 4ages and (rod cti!ity 5oard# d; "Agric lt re" refers to farming in all its branches and among others% incl des the c lti!ation and tillage of the soil% prod ction% c lti!ation% growing and har!esting of any agric lt ral or hortic lt ral commodities% dairying% raising of li!estock or po ltry% the c lt re of fish and other a& atic prod cts in farms or ponds% and any acti!ities performed by a farmer or on a farm as an incident to or in con$ nction with s ch farming operations% b t does not incl de the man fact ring and?or processing of s gar% cocon t% abaca% tobacco% pineapple% a& atic or other farm prod cts# e; "(lantation Agric lt ral 8nterprise" is one engaged in agric lt re with an area of more than ,+ hectares in a locality or which employs at least ,. workers. Any other agric lt ral enterprise shall be considered as "*on"(lantation Agric lt ral 8nterprise"# f; "3etail 8stablishment" is one principally engaged in the sale of goods to end" sers for personal or ho sehold se# g; "Ser!ice 8stablishment" is one principally engaged in the sale of ser!ice to indi!id als for their own or ho sehold se and is generally recognized as s ch# h; "6ottage?Gandicraft 8stablishment" is one engaged in an economic endea!or in which the prod cts are primarily done in the home or s ch other places for profit which re& ires man al dexterity and craftmanship and whose capitalization does not exceed (=..%...% regardless of pre!io s registration with the def nct *A6I)A# i; "*ational 6apital 3egion" co!ers the cities of Halookan% Manila% (asay and E ezon and the m nicipalities of 7as (iIas% Makati% Malabon% Mandal yong% Marikina% M ntinl pa% *a!otas% (araIa& e% (asig% (ateros% San F an% Tag ig and Dalenz ela# $; "3egion III" co!ers the pro!inces of 5ataan% 5 lacan% * e!a 8ci$a% (ampanga% Tarlac% and Jambales and the cities of Angeles% 6abanat an% :longapo% (alayan and San Fose# k; "3egion ID" co!ers the pro!inces of A rora% 5atangas% 6a!ite% 7ag na% Marind & e% :ccidental Mindoro% :riental Mindoro% (alawan% E ezon% 3izal and 3omblon and the cities of 5atangas% 6a!ite% 7ipa% 7 cena% ( erto (rincesa% San (ablo% Tagaytay and Trece Martires# l; ")epartment" refers to the )epartment of 7abor and 8mployment# m; "Secretary" means the Secretary of 7abor and 8mployment# n; "5asic 4age" means all rem neration or earnings paid by an employer to a worker for ser!ices rendered on normal working days and ho rs b t does not incl de cost"of"li!ing allowances% profit sharing payments% premi m payments% -/th month pay or other monetary benefits which are not considered as part of or integrated into the reg lar salary of the workers on the date the Act became effecti!e# o; "Stat tory Minim m 4age" is the lowest wage rate fixed by law that an employer can pay his workers# p; "4age )istortion" means a sit ation where an increase in prescribed wage rates res lts in the elimination or se!ere contraction of intentional & antitati!e differences in wage or salary rates between and among

employee gro ps in an establishment as to effecti!ely obliterate the distinctions embodied in s ch wage str ct re based on skills% length of ser!ice% or other logical bases of differentiation# &; "6apitalization" means paid" p capital% in the case of a corporation% and total in!ested capital% in the case of a partnership or single proprietorship. C,AP ER " %5ge "ncre5se +EC "!N 1. Coverage. 2 The wage increase prescribed nder the Act shall apply to all workers and employees in the pri!ate sector regardless of their position% designation or stat s% and irrespecti!e of the method by which their wages are paid% except# a; Go sehold or domestic helpers% incl ding family dri!ers and workers in the personal ser!ice of another# b; 4orkers and employees in retail?ser!ice establishments reg larly employing not more than -. workers% when exempted from compliance with the Act% for a period fixed by the 6ommission?5oards in accordance with Section + 9c; of the Act and Section -=% 6hapter - of this 3 les# c; 4orkers and employees in new b siness enterprises o tside the *ational 6apital 3egion and export processing zones for a period of not more than two or three years% as the case may be% from the start of operations when exempted in accordance with Section = of the Act and Section -=% 6hapter - of this 3 les# d; 4orkers and employees recei!ing a basic wage of more than (-..... per day. +ection 2. Effectivity. 2 The Act takes effect on F ly -% -'B'% -= days following its complete p blication in two newspapers of general circ lation on F ne -=% -'B' p rs ant to Section -= thereof. +ection 0. Amount of Minimum Wage Increase. 2 8ffecti!e F ly -% -'B'% the daily stat tory minim m wage rates of co!ered workers and employees shall be increased as follows: a; (,=... for those in the *ational 6apital 3egion# b; (,=... for those o tside the *ational 6apital 3egion% except for the following: 2 (,.... for those in plantation agric lt ral enterprises with an ann al gross sales of less than (= million in the fiscal year immediately preceding the effecti!ity of the Act# 2 (-=... for those in the following enterprises: -. *on"plantation agric lt re ,. 6ottage?handicraft /. 3etail?Ser!ice reg larly employing not more than -. workers. +. 5 siness enterprises with a capitalization of not more than (=..%... and employing not more than ,. workers. +ection 1. When Wage Increase Due Other Workers. 2 a; All workers and employees who% prior to F ly -% -'B'% were already recei!ing a basic wage abo!e the stat tory minim m wage rates pro!ided nder 3ep blic Act 00+. b t not o!er (-..... per day shall recei!e a wage increase e& i!alent to that pro!ided in the preceding Section. b; Those recei!ing not more than the following monthly wage rates prior to F ly -% -'B' shall be deemed co!ered by the preceding s bsection: 9i; (/%,=1.=. 2 where the workers and employees work e!eryday% incl ding premi m payments for S ndays or rest days% special days and reg lar holidays. 9ii; (/%.+-.01 2 where the workers and employees do not work b t considered paid on rest days% special days and reg lar holidays. 9iii; (,%0-0.01 2 where the workers and employees do not work and are not considered paid on

S ndays or rest days. 9i!; (,%-B/.// 2 where the workers and employees do not work and are not considered paid on Sat rdays and S ndays or rest days. c; 4orkers and employees who% prior to F ly -% -'B'% were recei!ing a basic wage of more than (-..... per day or its monthly e& i!alent% are not by law entitled to the wage increase pro!ided nder the Act. They may% howe!er% recei!e wage increases thro gh the correction of wage distortions in accordance with Section -0% 6hapter - of this 3 les. +ection 7. Daily Statutory Minimum Wage Rates . 2 The daily stat tory minim m wage rates of workers and employees shall be as follows: Ander 3A 00+. Ander 3A 01,1 Sector?Ind stry 98ffecti!e 98ffecti!e )ec. -+% -'B1; F ly -% -'B' ; A. *ATI:*A7 6A(ITA7 38<I:* *on"Agric lt re (0+... (B'... Agric lt re (lantation =+... 1'... *on"(lantation +/.=. 0B.=. 6ottage?Gandicraft 8mploying more than /. workers =,... 11... 8mploying not more than /. workers =.... 1=... (ri!ate hospitals 4ith bed capacity of more than -.. 0+... B'... 4ith bed capacity or -.. or less 0.... B=... 3etail?Ser!ice 8mploying more than -= workers 0+... B'... 8mploying -- to -= workers 0.... B=... 8mploying not more than -. workers +/... 0B... 5. :ATSI)8 *ATI:*A7 6A(ITA7 38<I:* *on"agric lt re 0+... B'... Agric lt re (lantation with ann al gross sales of (=M or more =+... 1'... (lantation with ann al gross sales less than (=M =+... 1+... *on"(lantation +/.=. =B.=. 6ottage?Gandicraft 8mploying more than /. workers =,... 01... 8mploying not more than /. workers =.... 0=...

(ri!ate Gospitals 0.... B=... 3etail?Ser!ice 6ities w? pop lation of more than -=.%... 8mploying more than -= workers 0+... B'... 8mploying -- to -= workers 0.... B=... 8mploying not more than -. workers +/... =B... M nicipalities and 6ities with pop lation not more than -=.%... 8mploying more than -. workers 0.... B=... 8mploying not more than -. workers +/... =B... S gar Mills 00... '-... Agric lt re (lantation with ann al gross sales of (=M or more +B.=. 1/.=. (lantation with ann al gross sales of less than (=M +B.=. 0B.=. *on"plantation +/.=. =B.=. 5 siness 8nterprises with 6apitalization of not more than (=..%... and employing not more than ,. workers *on"Agric lt re 0+... 1'... Agric lt re (lantation (rod cts :ther than S gar =+... 0'... S gar +B.=. 0/.=. (ri!ate Gospitals 0.... 1=... 3etail?Ser!ice 6ities w? pop lation of more than (-=.%... 8mploying more than -= workers 0+... 1'... 8mploying -- to -= workers 0.... 1=... M nicipalities and 6ities w? pop lation of not more than -=.%... 8mploying more than -. workers 0.... 1=... +ection 6. Suggested Formula in Determining the E uivalent Monthly Statutory Minimum Wage Rates . 2 4itho t pre$ dice to existing company practices% agreements or policies% the following form la may be sed as g ides in determining the e& i!alent monthly stat tory minim m wage rates: a; @or those who are re& ired to work e!eryday incl ding S ndays or rest days% special days and reg lar holidays: 8& i!alent Applicable daily wage rate

Monthly K 9A)3; x /'..'. days 222222222 3ate 98M3; -, 4here /'..'. days K /., days 2 :rdinary working days ,. days 2 -. reg lar holidays x ,..C 00./. days 2 =- rest days x -/.C ,.0. days 2 , special days x -/.C /'..'. days 2 Total e& i!alent n mber of days. *ote: @or workers whose rest days fall on S ndays% the n mber of rest days in a year is red ced from =, to =days% the last S nday of A g st being a reg lar holiday nder 8xec ti!e :rder *o. ,./. @or p rposes of comp tation% said holiday% altho gh still a rest day for them% is incl ded in the ten reg lar holidays. @or workers whose rest days do not fall on S ndays% the n mber of rest days is =, days% as there are =, weeks in a year. *othing herein shall be constr ed as a thorizing the red ction of benefits granted nder existing agreements or employer practices?policies. +ection 7. !asis of Minimum Wage Rates. 2 The stat tory minim m wage rates prescribed nder the Act shall be for the normal working ho rs% which shall not exceed eight ho rs of work a day. +ection 8. Credi"le Wage Increase. 2 a; *o wage increase shall be credited as compliance with the increases prescribed nder the Act nless expressly pro!ided nder collecti!e bargaining agreements% and% s ch wage increase was granted not earlier than April -% -'B' b t not later than F ly -% -'B'. 4here the wage increase granted is less than the prescribed increase nder the Act% the employer shall pay the difference. b; Anni!ersary wage increase pro!ided in collecti!e agreements% merit wage increase% and those res lting from the reg larization or promotion of employees shall not be credited as compliance thereto. +ection 9. Workers #aid "y Results. 2 a; All workers paid by res lts% incl ding those who are paid on piecework% takay% pakyaw% or task basis% shall recei!e not less than the applicable stat tory minim m wage rates prescribed nder the Act for the normal working ho rs which shall not exceed eight ho rs work a day% or a proportion thereof for work of less than the normal working ho rs. The ad$ sted minim m wage rates for workers paid by res lts shall be comp ted in accordance with the following steps: -; Amo nt of increase in AM4L 2 (re!io s AM4 x -.. K C increase# ,; 8xisting rate?piece x C increase K increase in rate?piece# /; 8xisting rate?piece M increase in rate?piece K Ad$ sted rate?piece. L4here AM4 is the applicable minim m wage rate. b; The wage rates of workers who are paid by res lts shall contin e to be established in accordance with Article -.- of the 7abor 6ode% as amended and its implementing reg lations. +ection 1/. Wages of S$ecial %rou$s of Workers. 2 4ages of apprentices% learners and handicapped workers shall in no case be less than 1= percent of the applicable stat tory minim m wage rates. All recognized learnership and apprenticeship agreements entered into before F ly -% -'B' shall be considered as a tomatically modified insofar as their wage cla ses are concerned to reflect the increases prescribed nder the Act.

+ection 11. A$$lication to Contractors. 2 In the case of contracts for constr ction pro$ects and for sec rity% $anitorial and similar ser!ices% the prescribed wage increases shall be borne by the principals or clients of the constr ction?ser!ice contractors and the contract shall be deemed amended accordingly. In the e!ent% howe!er% that the principal or client fails to pay the prescribed wage rates% the constr ction?ser!ice contractor shall be $ointly and se!erally liable with his principal or client. +ection 12. A$$lication to #rivate Educational Institutions . 2 (ri!ate ed cational instit tions which increased t ition fees beginning school year -'B'"-''. shall comply with the (,=.... per day wage increase prescribed nder the Act effecti!e as follows: a; In cases where the t ition fee increase was effected before the effecti!ity of the Act% the wage increase shall take effect on F ly -% -'B'. b; In cases where the t ition fee increase was effected on or after the effecti!ity of the Act% the wage increase shall take effect not later than the date the school act ally increased t ition fees b t in the latter case% s ch wage increase may not be made retroacti!e to F ly -% -'B'. 5eginning school year -''."-''-% all schools shall implement the wage increase regardless of whether or not they ha!e act ally increased t ition fees. +ection 10. Mo"ile and !ranch Workers. 2 The stat tory minim m wage rates of workers% who by the nat re of their work ha!e to tra!el% shall be those applicable in the domicile or head office of the employer. The minim m wage rates of workers working in branches or agencies of establishments in or o tside the *ational 6apital 3egion shall be those applicable in the place where they are stationed. +ection 11. &ransfer of #ersonnel. 2 The transfer of personnel to areas o tside the *ational 6apital 3egion shall not be a !alid gro nd for the red ction workers transferred to the *ational 6apital 3egion shall be entitled to the minim m wage rate applicable therein. +ection 17. E'em$tions. 2 a; The following establishments may be exempted from compliance with the wage increase prescribed nder the Act: -; 3etail?Ser!ice establishments reg larly employing not more than -. workers pon application with and as determined by the appropriate 5oard in accordance with applicable g idelines to be iss ed by the 6ommission. ,; *ew b siness enterprises that may be established o tside the *ational 6apital 3egion and export processing zones from F ly -% -'B' to F ne /.% -''/% whose operation or in!estments need initial assistance may be exempted for not more than three years from the start of operations% s b$ect to g idelines to be iss ed by the Secretary in cons ltation with the )epartment of Trade and Ind stry and the )epartment of Agric lt re. *ew b siness enterprises in 3egion III 96entral 7 zon; and 3egion ID 9So thern Tagalog; may be exempted for two years only from start of operations% except those that may be established in the pro!inces of (alawan% :riental Mindoro% :ccidental Mindoro% Marind & e% 3omblon% E ezon and A rora% which may also be exempted for not more than three years from the start of operations. b; 4hene!er an application for exemption has been d ly filed with the appropriate office in the )epartment?5oard% action by the 3egional :ffice of the )epartment on any complaint for alleged non" compliance with the Act shall be deferred pending resol tion of the application for exemption. c; In the e!ent that the application for exemption is not granted% the workers and employees shall recei!e the appropriate compensation d e them as pro!ided for nder the Act pl s interest of one percent per month retroacti!e to F ly -% -'B' or the start of operations whiche!er is applicable. +ection 16. Effects on E'isting Wage Structure. 2 4here the application of the wage increase prescribed herein res lts in distortions in the wage str ct re within an establishment which gi!es rise to a disp te therein% s ch disp te shall first be settled !ol ntarily between the parties. In the e!ent of a deadlock% s ch disp te shall be finally

resol!ed thro gh comp lsory arbitration by the regional arbitration branch of the *ational 7abor 3elations 6ommission 9*736; ha!ing $ risdiction o!er the workplace. The *736 shall cond ct contin o s hearings and decide any disp te arising from wage distortions within twenty calendar days from the time said disp te is formally s bmitted to it for arbitration. The pendency of a disp te arising from a wage distortion shall not in any way delay the applicability of the increases in the wage rates prescribed nder the Act. Any iss e in!ol!ing wage distortion shall not be a gro nd for a strike?locko t. +ection 17. Com$laints for (on)Com$liance. 2 6omplaints for non"compliance with the wage increases prescribed nder the Act shall be filed with the 3egional :ffices of the )epartment ha!ing $ risdiction o!er the workplace and shall be the s b$ect of enforcement proceedings nder Articles -,B and -,' of the 7abor 6ode% as amended. +ection 18. Conduct of Ins$ection "y the De$artment* 2 The )epartment shall cond ct inspections of establishments% as often as necessary% to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or any 4age :rder. In the cond ct of inspection in nionized companies% )epartment inspectors shall always be accompanied by the president or other responsible officer of the recognized bargaining nit or of any interested nion. In the case of non" nionized establishments% a worker representing the workers in the said company shall accompany the inspector. The workers> representati!e shall ha!e the right to s bmit his own findings to the )epartment and to testify on the same if he does not conc r with the findings of the labor inspector. +ection 19. #ayment of Wages. 2 Apon written petition of the ma$ority of the workers and employees concerned% all pri!ate establishments% companies% b sinesses and other entities with at least twenty"fi!e workers and located within one kilometer radi s to a commercial% sa!ings or r ral bank% shall pay the wages and other benefits of their workers thro gh any of said banks within the period and in the manner and form prescribed nder the 7abor 6ode as amended. +ection 2/. Duty of !ank. 2 4hene!er applicable and pon re& est of a concerned worker or nion% the bank thro gh which wages and other benefits are paid shall iss e a certification of the record of payment of said wages and benefits of a partic lar worker or workers for a partic lar payroll period. C,AP ER "" he N5tion5l %5ges 5n8 Pro8ucti9it: Co;;ission 5n8 Region5l rip5rtite %5ges 5n8 Pro8ucti9it: *o5r8s +EC "!N 1. Commission. 2 The *ational 4ages and (rod cti!ity 6ommission created nder the Act shall hold office in the *ational 6apital 3egion. The 6ommission shall be attached to the )epartment for policy and program coordination. +ection 2. #o+ers and Functions of the Commission . 2 The 6ommission shall ha!e the following powers and f nctions: a; To act as the national cons ltati!e and ad!isory body to the (resident of the (hilippines and 6ongress on matters relating to wages% incomes and prod cti!ity# b; To form late policies and g idelines on wages% incomes and prod cti!ity impro!ement at the enterprise% ind stry and national le!els# c; To prescribe r les and g idelines for the determination of appropriate minim m wage and prod cti!ity meas res at the regional% pro!incial or ind stry le!els# d; To re!iew regional wage le!els set by the 3egional Tripartite 4ages and (rod cti!ity 5oards to determine if these are in accordance with prescribed g idelines and national de!elopment plans# e; To ndertake st dies% researches and s r!eys necessary for the attainment of its f nctions and ob$ecti!es% and to collect and complete data and periodically disseminate information on wages and prod cti!ity and other related information% incl ding% b t not limited to% employment% cost"of"li!ing% labor costs% in!estments

and ret rns# f; To re!iew plans and programs of the 3egional Tripartite 4ages and (rod cti!ity 5oards to determine whether these are consistent with national de!elopment plans# g; To exercise technical and administrati!e s per!ision o!er the 3egional Tripartite 4ages and (rod cti!ity 5oards# h; To call% from time to time% a national tripartite conference of representati!es of go!ernment% workers and employers for the consideration of meas res to promote wage rationalization and prod cti!ity# and i; To exercise s ch powers and f nctions as may be necessary to implement this Act. +ection 0. Com$osition of the Commission. 2 The 6ommission shall be composed of the Secretary as ex"officio 6hairman% the )irector <eneral of the *ational 8conomic and )e!elopment A thority 9*8)A; as ex"officio Dice" 6hairman and two members each from workers and employers sectors who shall be appointed by the (resident for a term of fi!e years pon recommendation of the Secretary. The recommendees shall be selected from the list of nominees s bmitted by the workers and employers sectors. The 8xec ti!e )irector of the 6ommission Secretariat shall also be a member of the 6ommission. The members of the 6ommission representing labor and management shall ha!e the same rank% emol ments% allowances and other benefits as those prescribed by law for labor and management representati!es in the 8mployees 6ompensation 6ommission. +ection 1. Commission Secretariat. 2 The 6ommission shall be assisted by a Secretariat to be headed by an 8xec ti!e )irector and two )ep ty )irectors% who shall be appointed by the (resident pon recommendation of the Secretary. The 8xec ti!e )irector shall ha!e the rank of a )epartment Assistant Secretary% while the )ep ty )irectors that of a 5 rea )irector shall recei!e the corresponding salary% benefits and other emol ments of the positions. +ection 7. Regional &ri$artite Wages and #roductivity !oards . 2 The 3egional 4ages and (rod cti!ity 5oards created nder the Act in all regions% incl ding a tonomo s regions as may be established by law% shall hold offices in areas where the 3egional :ffices of the )epartment are located. +ection 6. #o+ers and Functions of the !oards. 2 The 5oards shall ha!e the following powers and f nctions: a; To de!elop plans% programs and pro$ects relati!e to wages% incomes and prod cti!ity impro!ements for their respecti!e regions# b; To determine and fix minim m wage rates applicable in their region% pro!inces or ind stries therein and to iss e the corresponding wage orders% s b$ect to g idelines iss ed by the 6ommission# c; To ndertake st dies% researches% and s r!eys necessary for the attainment of their f nctions% ob$ecti!es and programs% and to collect and compile data on wages% incomes% prod cti!ity and other related information and periodically disseminate the same# d; To coordinate with the other 5oards as may be necessary to attain the policy and intention of the 7abor 6ode# e; To recei!e% process and act on applications for exemption from prescribed wage rates as may be pro!ided by law or any 4age :rder# and f; To exercise s ch other powers and f nctions as may be necessary to carry o t their mandate nder the 7abor 6ode. Implementation of the plans% programs and pro$ects of the 5oards shall be thro gh the respecti!e 3egional :ffices of the )epartment% pro!ided% howe!er% that the 5oards shall ha!e technical s per!ision o!er the 3egional :ffice of the )epartment with respect to the implementation of these plans% programs and pro$ects. +ection 7. Com$osition of the !oards. 2 8ach 5oard shall be composed of the 3egional )irector of the )epartment as 6hairman% the 3egional )irectors of the *ational 8conomic and )e!elopment A thority 9*8)A; and )epartment of Trade and Ind stry 9)TI; as Dice"6hairmen and two members each of workers and employers

sectors who shall be appointed by the (resident for a term of fi!e years pon the recommendation of the Secretary. The recommendees shall be selected from the lists of nominees s bmitted by the workers and employers sectors. 8ach 5oard shall be assisted by a Secretariat. +ection 8. Authority to Organi,e and A$$oint #ersonnel . 2 The 6hairman of the 6ommission shall organize s ch nits and appoint the necessary personnel of the 6ommission and 5oard Secretariats% s b$ect to pertinent laws% r les and reg lations. C,AP ER """ )ini;u; %5ge (eter;in5tion +EC "!N 1. Regional Minimum Wages. 2 The minim m wage rates for agric lt ral and non"agric lt ral workers and employees in e!ery region shall be those prescribed by the 5oards which shall in no case be lower than the stat tory minim m wage rates. These wage rates may incl de wages by ind stry% pro!ince or locality as may be deemed necessary by the 5oards. +ection 2. Standards-Criteria for Minimum Wage Fi'ing. 2 The regional minim m wages to be established by the 5oards shall be as nearly ade& ate as is economically feasible to maintain the minim m standards of li!ing necessary for the health% efficiency and general well"being of the workers within the framework of the national% economic% and social de!elopment programs. In the determination of regional minim m wages% the 5oards% shall% among other rele!ant factors% consider the following: a; The demand for li!ing wages# b; 4age ad$ stment !is"a"!is the cons mer price index# c; The cost of li!ing and changes or increases therein# d; The needs of workers and their families# e; The need to ind ce ind stries to in!est in the co ntryside# f; Impro!ements in standards of li!ing# g; The pre!ailing wage le!els# h; @air ret rn of the capital in!ested and capacity to pay of employers# i; 8ffects on employment generation and family income# and $; The e& itable distrib tion of income and wealth along the imperati!es of economic and social de!elopment. +ection 0. Wage Order. 2 4hene!er conditions in the region so warrant% the 5oard shall in!estigate and st dy all pertinent facts# and% based on standards and criteria prescribed herein% shall determine whether a 4age :rder sho ld be iss ed. In the performance of its wage determining f nctions% the 5oard shall cond ct p blic hearings and cons ltations gi!ing notices to employees> and employers> gro ps% pro!incial% city and m nicipal officials and other interested parties. +ection 1. Effectivity of Wage Order. 2 Any 4age :rder iss ed by the 5oards shall take effect -= days after its complete p blication in at least one newspaper of general circ lation in the region. +ection 7. A$$eal to the Commission. 2 Any party aggrie!ed by the 4age :rder iss ed by the 5oard may file an appeal with the 6ommission within ten calendar days from the p blication of the :rder. The 6ommission shall decide the appeal within sixty calendar days from the date of filing. +ection 6. Effect of A$$eal. 2 The filing of the appeal shall not s spend the effecti!ity of the 4age :rder nless the person appealing s ch order files with the 6ommission an ndertaking with a s rety or s reties in s ch amo nt as may be fixed by the 6ommission. +ection 7. Wage Distortions. 2 4here the application of any wage increase res lting from a 4age :rder iss ed

by any 5oard res lts in distortions in the wage str ct re within an establishment% the employer and the nion shall negotiate to correct the distortions sing the grie!ance proced re nder the collecti!e bargaining agreement. If it remains nresol!ed% it shall be decided thro gh !ol ntary arbitration within ten calendar days from the time the disp te was referred for !ol ntary arbitration% nless otherwise agreed by the parties in writing. 4here there are no collecti!e agreements or recognized labor nions% the employer and workers shall endea!or to correct the wage distortion. Any disp te arising therefrom shall be settled thro gh the *ational 6onciliation and Mediation 5oard and if it remains nresol!ed after ten calendar days of conciliation% it shall be referred to the appropriate branch of the *ational 7abor 3elations 6ommission 9*736;. The *736 shall cond ct contin o s hearings and decide the disp te within twenty calendar days from the time said disp te is s bmitted for comp lsory arbitration. The pendency of a disp te arising from a wage distortion shall not in any way delay the applicability of any wage increase prescribed p rs ant to the pro!isions of law or 4age :rder. +ection 8. (on)Diminution of !enefits. 2 *othing in the Act and in this 3 les shall be constr ed to red ce any existing wage rates% allowances and benefits of any form nder existing laws% decrees% iss ances% exec ti!e orders and?or nder any contract or agreement between the workers and employers. +ection 9. #rohi"ition Against In.unction. 2 *o preliminary or permanent in$ nction or temporary restraining order may be iss ed by any co rt% trib nal or other entity against any proceedings before the 6ommission or 5oards. +ection 1/. #enal #rovisions. 2 Any person% corporation% tr st% firm% partnership% association or entity which ref ses or fails to pay any of the prescribed increases or ad$ stments in the wage rates% made in accordance with the Act shall be p nished by a fine not exceeding (,=%... and?or imprisonment of not less than one year nor more than two years: (ro!ided% that any person con!icted nder the Act shall not be entitled to the benefits pro!ided for nder the (robation 7aw. If the !iolation is committed by a corporation% tr st or firm% partnership% association or any other entity% the penalty of imprisonment shall be imposed pon the entity>s responsible officers% incl ding% b t not limited to% the president% !ice"president% chief exec ti!e officer% general manager% managing director or partner. +ection 11. Registration-Re$orting Re uirement. 2 Any person% company% corporation% partnership or any other entity engaged in b siness shall s bmit ann ally a !erified itemized listing of their labor component to the appropriate 5oard and the *ational Statistics :ffice not later than Fan ary /- of each year% starting on Fan ary /-% -''. in accordance with the form to be prescribed by the 6ommission. The listing shall specify the names% salaries and wages of their workers and employees below the managerial le!el incl ding learners% apprentices and disabled?handicapped workers. C,AP ER "4 r5nsitor: Pro9isions +EC "!N 1. A"olition of the (ational Wages Council and the (ational #roductivity Commission . 2 The *ational 4ages 6o ncil created nder 8xec ti!e :rder *o. 0-+ and the *ational (rod cti!ity 6ommission created nder 8xec ti!e :rder *o. 0-= are abolished. All properties% records% e& ipment% b ildings% facilities% and other assets% liabilities and appropriations of and belonging to the abo!ementioned offices% as well as other matters pending therein% shall be transferred to the 6ommission. All personnel of the abo!e"abolished offices shall contin e to f nction in a hold"o!er capacity and shall be preferentially considered for appointments to or placements in the 6ommission? 5oards. Any official or employee separated from the ser!ice as a res lt of the abolition of offices p rs ant to the Act shall be entitled to appropriate separation pay of one month salary for e!ery year of ser!ice and?or retirement and other benefits accr ing to them nder existing laws. In lie thereof% at the option of the employee% he shall be preferentially considered for employment in the go!ernment or in any of its s bdi!isions% instr mentalities% or agencies% incl ding go!ernment"owned or controlled corporations and their s bsidiaries. +ection 2. Interim #rocessing of A$$lications for E'em$tion and Su"mission of Re$orts . 2 (ending the operationalization of the 6ommission and 5oards% the *ational 4ages 6o ncil shall% in the interim% recei!e and

process applications for exemption s b$ect to g idelines to be iss ed by the Secretary in accordance with Section -- of the Act. 3eports of establishments on their labor component% incl ding wages and salaries of their workers prescribed nder the Act% shall be s bmitted to the *ational 4ages 6o ncil thro gh the 3egional :ffices of the )epartment. +ection 0. Funding Re uirement. 2 The f nds necessary to carry o t the pro!isions of the Act shall be taken from the 6ompensation and :rganizational Ad$ stment @ nd% the 6ontingent @ nd% and other sa!ings nder 3ep blic Act *o. 00BB% otherwise known as the <eneral Appropriations Act of -'B'% or from any nappropriated f nds of the *ational Treas ry# (ro!ided that the f nding re& irements necessary to implement the Act shall be incl ded in the Ann al <eneral Appropriations Act for the s cceeding years. +ection 1. Re$ealing Clause. 2 All laws% orders% iss ances% r les and reg lations or parts thereof inconsistent with the pro!isions of the Act and this 3 les are hereby repealed% amended or modified accordingly. If any pro!ision or part of the Act and this 3 les% or the application thereof to any person or circ mstance shall not be affected thereby. +ection 7. Effectivity. 2 This 3 les shall take effect on F ly -% -'B'. )one in the 6ity of Manila% 3ep blic of the (hilippines this 1th day of F ly -'B'. Appro!ed: June 9, 1989

Republic of the Philippines Congress of the Philippines )etro )5nil5 -irst +peci5l +ession 5eg n and held in Metro Manila on @riday the se!enth day of F ne nineteen h ndred and ninety"six.

REP.*#"C AC No. 8188 A* A6T I*638ASI*< TG8 (8*A7TN A*) IM(:SI*< ):A578 I*)8M*ITN @:3 DI:7ATI:* :@ TG8 (38S63I58) I*638AS8S :3 A)FASTM8*TS I* TG8 4A<8 3AT8S. AM8*)I*< @:3 TG8 (A3(:S8 S86TI:* T487D8 :@ 38(A57I6 A6T *AM5838) SIOTN"S8D8* GA*)38) T48*TN" S8D8*. :TG834IS8 H*:4* AS TG8 4A<8 3ATI:*A7IJATI:* A6T. Be it enacted by the Senate and House of Representatives of the Philippines in the Congress assembled : +EC "!N 1. Section -, of 3ep blic Act * mbered Sixty"se!en h ndred twenty" se!en is hereby amended to read to as follows: S86 -, Any person. corporation. tr st. firm. parmersnip. association or entity which ref ses or fails to pay any of the prescribed increases or ad$ stments in the wage rales made in accordance with this Act shall be p nished by a fine not less than Twenty"fi!e tho sand pesos 9(,=....; nor more than :ne h ndred tho sand pesos 9(-......; or imprisonment of not less than two 9,; years nor more than fo r 9+; years or both s ch fine and imprisonment

at the discretion of the co rt: Provided. That any person con!icted nder this Act shall not be entitled to the benefits pro!ided for nder the (robation 7aw. The employer concerned shall be ordered to pay an arno nt e& i!alent to do ble the npaid benefits owing to the employees: Provided* That payment of indemnity shall not absol!e the employer from the criminal liability imposable nder this Act. "If the !iolation is committed by a corporation. tr st or firm. partnership% association or any other entity% the penalty of imprisonment shall be imposed pon the entity>s responsible officers incl ding b t not limited to the president% !icepresident% chief exec ti!e officer% general manager% managing director or partner. +EC "!N 2. All laws% presidential decrees% exec ti!e orders% r les and reg lations or parts thereof inconsistent with the pro!isions of this Act are hereby repealed or modified accordingly. +EC "!N 0. This Act shall take effect fifteen 9-=; days after its complete p blication in a newspaper of general circ lation. Appro!ed. J!+E (E 4ENENC"A JR. Speaker of the Go se of 3epresentati!e NEP A#" &!N$A#E+ (resident of the Senate

This Act% which is a consolidation of Senate 5ill *o. +.1 and Go se 5ill *o. =B.B was finally passed by the Senate and the Go se of 3epresentati!es on F ne 1% -''0. CA)"#! #. +A*"! Secretary <eneral Go se of 3eprentati!es Appro!ed: F ne --%-''0 -"(E# 4 RA)!+ (resident of the (hilippines op ,E$E# P. &AC. AN Secretary of the Senate

Republic of the Philippines (EPAR )EN !- #A*!R AN( E)P#!')EN )5nil5 (EPAR )EN !R(ER N!. 1/ +eries of 1998 &ui8elines on the i;position of (ouble "n8e;nit: -or Non<Co;pli5nce =ith the Prescribe8 "ncre5ses or A8>ust;ents

"n %5ge R5tes ( rs ant to the r le"making a thority of the Secretary of 7abor and 8mployment nder Article = of the 7abor 6ode% as amended% and Section -/ of the 3ep blic Act *o. 01,1% and to ens re niformity in the implementation of the pro!isions of 3ep blic Act *o. B-BB entitled "An Act Increasing the (enalty and Imposing )o ble Indemnity for Diolation of the (rescribed Increases or Ad$ stments in the 4age 3ates% amending for the ( rpose Section Twel!e of 3ep blic Act * mbered Sixty"Se!en G ndred Twenty Se!en. :therwise known as 4age 3ationalization Act". This < idelines is hereby prom lgated for the g idelines of and compliance by all concerned. +EC "!N 1. 6o!erage " This < idelines shall apply to any person% corporation% tr st% firm% partnership% association% organization% or entity in the capacity of an employer. +EC "!N 2. )efinition of Terms " As sed in this < idelines% the following terms shall mean: a. b. c. d. e. "Act" refers to 3ep blic Act *o. B-BB. ")epartment" refers to the )epartment of 7abor and 8mployment. "3egional )irector" refers to the )irector of the 3egional :ffice of the )epartment. "5oard" refers to the 3egional Tripartite 4ages and (rod cti!ity 5oard. "8mployer" refers to any person% corporation% tr st% firm% partnership association or entity acting directly or indirectly in the interest of the employer in relation to an employee. f. "8mployee" refers to any indi!id al employed by an employer. g. "4age 3ates" refers to the lowest basic pay that the employer can pay his workers incl ding cost of li!ing allowances as fixed by the 5oard% b t excl des other wage"related benefits s ch as o!ertime pay% bon ses% night shift differential pay% holiday pay% premi m pay% -/th month pay% premi m pay% lea!e benefits% among others. h. "4age :rder " refers to the order prom lgated by the board p rs ant to its wage fixing a thority. i. "(rescribed increases or Ad$ stments" refer to the amo nt of increase or ad$ stment in the wage rate of workers fixed by the 5oard which the 8mployer is mandated to pay pon effecti!ity of a wage order $. "Diolation" refers to the ref sal or fail re to pay an employee of the prescribed increases or ad$ stments as may be established by the 3egional )irector. k. "Anpaid 5enefits" refer to the prescribed wage rates which the employer failed to pay pon the effecti!ity of a wage order excl si!e of other wage"related benefits. "Anpaid benefits" as herein nderstood shall be the principal basis for comp ting the do ble indemnity. l. ")o ble Indemnity" refers to the payment to a concerned employee of the prescribed increases or ad$ stments in the wage rates% which was not paid by an employer in amo nt e& i!alent to twice the npaid benefits owing to s ch employee. m. "*otice of Inspection 3es lt" refers to the inspection form d ly accomplished and iss ed by the labor standards enforcement officer to the employer or his representati!e after the completion of the inspection. The notice shall specify the !iolations disco!ered% if any% together with the officers recommendation and comp tation of the npaid benefits d e each worker with an ad!ice that the employer shall be liable for do ble indemnity in case of ref sal or fail re to correct the !iolation within fi!e 9=; calendar days from receipt of notice. n. "6ompliance order" refers to the order iss ed by the regional director% after d e notice and hearing cond cted by himself or a d ly a thorized hearing officer finding that a !iolation has been committed and directing the employer to pay the amo nt d e each worker within ten 9-.; calendar days from receipt thereof. +EC "!N 0. Iss ance of a 6ompliance :rder. In cases where the Secretary of 7abor and 8mployment of the 3egional )irector has ac& ired $ risdiction o!er a !iolation as defined herein p rs ant to the !isitorial and enforcement powers !ested pon him by Article -,B 9b; of the 7abor 6ode as amended% he shall ha!e the power to iss e a compliance order to gi!e effect to the pro!isions of the Act. S ch order shall be s b$ect to the following principles.

a. In case of ro tine inspection where the !iolation has been established after d e notice and hearing where appropriate the 3egional )irector shall% after 91; calendar days from the employer>s receipt of the notice of inspection res lt% iss e a compliance order. b. Ion case of complaint inspection% the 3egional )irector shall call for s mmary in!estigation and after d e notice and hearing shall% where appropriate iss e a compliance order. c. The compliance order shall directly the employer to pay the amo nt d e each worker within ten 9-.; days from receipt thereof and to s bmit proof of compliance. The order shall specify the amo nt d e each worker and shall incl de the comp tation on which the order was based. d. Apon the finality of the compliance order% the 3egional )irector shall ca se the iss ance of a writ of exec tion for its enforcement. e. *o compliance order shall be iss ed d ring the pendency of an application for exemption from a wage order d ly filed with the appropriate board. +EC "!N 1. )o ble Indemnity% when to Start (eriod of 6omp tion. a. The comp tation for do ble indemnity as herein defined shall start from the effecti!ity of the prescribed increases or ad$ stments as indicated in the wage order. b. The basis for the comp tation of do ble indemnity shall be limited to the npaid benefits as defined herein. c. 4here there is partial compliance with the prescribed increase or ad$ stment the basis for comp ting do ble indemnity shall be the balance of npaid benefits reckoned from the effecti!ity of the wage order. +EC "!N 7. S persession 6la se " All r les% reg lations% iss ances% or parts thereof which are consistent with this g idelines are deemed s perseded or modified accordingly. +EC "!N 6. Separability 6la se " If any pro!ision or portion of this g idelines is declared !oid or nconstit tional% the remaining portions or pro!isions hereof shall contin e to be !alid and effecti!e. +EC "!N 7. 8ffecti!ity " This < idelines shall take effect fifteen 9-=; days after after its complete p blication in at least one 9-; newspaper of general circ lation. .+ May -''B CRE+ENC"AN! *. RAJAN! Secretary