LABOR STANDARDS

BOOK THREE
CONDITIONS OF EMPLOYMENT
Title II WAGES
Chapter IPRELIMINARY MATTERS
1. What is wage? What does it include?
Wages apply to the compensation for manual labor, skilled or
unskilled, paid at stated times, and measured by the day, week,
month, or season.
Wage includes sale commission and facilities or commodities.
(Wage includes the fair and reasonable value of board, lodging or
other facilities customarily furnished by the employer to the
employees.)
To determine whether ones wage meets the legal
minimum, should non-cash benefits be included in the
computation?
Yes. But the employees acceptance of such facilities must be
voluntary. Such is subject to fair and reasonable value.
2. Facilities are wage-deductible, supplements are
not. How are they differentiated?
The distinction between facilities & supplements is based not on
the kind of item but the purpose they hold.
3. What establishments may be exempted
observance of the minimum wage law?

from

Establishments exempted from the observance of the minimum

wage law are:
(1)

Distressed establishments;

(2)
(3)
less
(4)
(5)
(6)

New Business Enterprises (NBEs);

Retail and Service establishments regularly employing
than ten (10) workers.
Establishments adversely affected by natural calamities
Cooperatives
Barangay Micro Business (BMB)