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2.8.1 2.

0 SCOPE OF PROFESSIONAL SERVICES 8

application of engineering data. Thus, electrical equipment


manufacturers or their company outlets are required by law to employ
professional or registered electrical engineers to take charge of the
sales of their equipment.

2,8.2 Scope of Work.

2.8.2.1 Clarify Technical Requirements. Obtain detailed


specifications and other necessary data.

2.8.2.2 Select Suppliers. Identify, contact, and requalify foreign


and local manufacturers/suppliers.

2.8.2.3 Prepare the Quotation. Study consumers requirement with


the use of engineering calculations and application of engineering
principles so that a suitable equipment can be offered at a fair price
f

and with the shortest possible delivery time.

2.8.2.4 Credit Standing of Customer. Assist in obtaining


information on the credit standing of customer.

2.8.2.5 Close the Sale. Obtain from the customer the sales order and
contract documents.

2.5.2.6 After Sales Service. Maintain contact with the customer


through engineering advice when requested.

2.9 Research and Development

2.9.1 Definition. Research primarily consists of specialized


investigation and gathering of data from existing resources or through
laboratory work and processes related to the purpose and object of the
research.
After the research phase and based on the findings or knowledge
obtained therefrom, development of the system, process or product
contemplated are then undertaken.

2.9.2 Scope of Work. Areas of Research and Development may cover


the following:
2.9.2 3.0 COMPENSATION

2.9.2.1 Formulation and development of new electrical products or


systems from conceptualization to production.
2.9.2.2 Improvement of electrical products through exhaustive
studies to reduce production cost but at the same time improve
reliability. Product examples are: lighting fixtures, switchboards,
panelboards, sound equipment, transformers, etc.

2.9.2.3 System analyses, coordination and evaluation of quality


control programs in commercial and industrial establishments.

2.9.2.4 Development of energy saving programs in large


establishments, including schools and theaters,

2.9.2.5 Research and development of new sources of electric energy.

2.9.2.6 In electrical construction, research and development are used


in the scheduling of work by means of the Program Evaluation Review
Technics/Critical Path Method (PERT/CPM) of programming. With
the coming of computers, computer programming has also been
initiated. One such model is called Scheduling Program for Allocation
of Resources (SPAR).

3.0 COMPENSATION

3.1 Introduction

The different types of professional services that are within the scope
of electrical engineering practice, necessitate different methods of
compensation. Some methods are as follows:

3.1.1 Percentage of Construction Cost

3.1.2 Unit Cost Basis

3.1.3 Cost Plus Reasonable Profit

3.1.4 Fixed Salary Basis

3.1.5 Professional Fee Plus Expenses


3.1.6 3.0 COMPENSATION ________ 10

3.1.6 Cost Per Hour Basis

3.1.7 Task Rate Basis

For some types of service, fixed salary basis is the best Method of
compensation. For others, the other methods are more suitable.
The following standards on minimum compensation are based on
current practice and on Current Consumer Price Index and Minimum
Basic Daily Wage. When these bases change, adjustments in the rates
shall be made in accordance with the Escalation Formula elsewhere
defined.

3.2 Electrical Engineering Consultation

3.2.1 General. A consulting electrical engineers compensation shall


be commensurate with his experience and expertise as well as with the
importance and value of the project covered. In addition to the rates
indicated below, the client shall pay for the cost of first class
transportation and accommodation if the meetings/hearings are
conducted in a place more than twenty-five (25) kilometres away from
the established office of the Consultant

3.2.2 Conference and Court Appearance. Where the professional


electrical engineer is engaged to render opinion or give advice,
clarification or explanation on technical matters pertaining to
electrical engineering and associated matters; or where he is engaged
to appear as an expert witness in Court or arbitration hearings, the
minimum fee chargeable to the client shall not be less than Six
Hundred Fifty Pesos (P650.00) per hour but not less than One
Thousand Five Hundred Pesos (P1500.00) per attendance or
appearance irrespective of whether the scheduled meeting or hearing
took place or not.

3.2.3 Project Consultation. Where a professional electrical engineer


is engaged to serve as consultant in any category for a project which
has a definite duration, the minimum hourly rate shall not be less than
one-percent (1%) of the Minimum Basic Monthly Rates for
Professional Electrical Engineers (Table 3.11). In no case, however,
3.2.3 3. COMPENSATION ___________ JM

shall the monthly compensation be less than twenty (20) times the rate
per hour.

3.2.4 Routine Consultation (Retainer). Clients who wish to retain the


services of a consulting electrical engineer for routine or ordinary
consultation, shall be charged a minimum of Five Thousand Pesos
(P5,000.00) a month. If the consultant's presence is required in a place
outside of his established office, he shall be additionally compensated
at a rate of Eight Hundred Fifty Pesos (P850.00) for every day and
fraction thereof. If the place is more than twenty-five (25) kilometres
away from his established office, he shall be provided with first class
accommodations and travelling expenses.

3.2.5 Special Consultation, There are clients who require the services
of a professional electrical engineer for a special task or a special study
including the checking, signing and sealing of plans not drawn by him
but have been check in accordance with good engineering practice.
The professional fee shall be determined by the engineer depending
upon his experience and expertise as well as upon the time and effort
that will be required. In some cases, the fee is fixed by agreement plus
expenses.
In other cases the fee is based on a certain percentage of the value of
the project.
However, in no case shall the fee be less than fifty percent (50%) of
the original plan submitted, computed based on 3.3.4.1.

3 3 'Design Services

3.3.1 General. The project owner or his representative often inquires


at the start of the project, how much would be the electrical designer's
fee. The electrical design includes: (1) Location Plan; (2) Legend; (3)
Specifications; (4) Floor Plan; (5) Schedule of Loads; (6) Design
Computations; (7) One Line Diagram. Basically, the compensation
should permit the designer to cover all his costs and net him a
reasonable profit. Among the methods of determining the fee which
can be considered fair and reasonable are:
a. Percent of Total Project Cost Method
3.3.1 3.0 COMPENSATION 12

b. Percent of Electrical Cost Method


c. Unit Cost Method
d. Cost Plus Reasonable Profit

3.3.2 Percent of Total Project Cost Method. The number of


electrical systems and equipment that are required for a project
determine the complexity of the electrical design. These electrical
systems and equipment are:
a. Lighting and Convenience Outlets
b. Motors and other Electrical Equipment (elevators, dumbwaiters,
escalators, movingwalks, etc.)
c. Load Center (Transformers and Switchboard)
d. Power Plant and Emergency Systems (including equipment
foundation)
e. Telephone and Intercom Systems
f. Fire Alarm and Fire Protection Systems
g. Signalling/Annunciator Systems
h. Sound Systems
i. Master Antenna Systems
j. Audio-Visual Systems
k. Master Clock and Programming Systems
1. Burglar and Security Systems
m. Remote Control Systems
n. Lightning Protection
o. Special Wiring Systems
p. Computer Based Programming Systems for Building
q. Dimmer Control Systems for Lighting
r. Automatic Energy Management Systems
s. Solar Energy Electrical Systems
3.3.2 t
3.0 COMPENSATION 13

t. Power Factor Correction Systems

The more complex the design is, the higher will be the percentage.
The complexity is thus categorized into three groups, as follows:

3.3.2.1 Group I. For projects with more than five (5) of the
above-listed systems included in the electrical plans of one building or
group of buildings in a compound, the minimum basic design fee is
five-tenth percent (0.5%) of the total project cost.
However, in no case shall the basic design fee be less than Six
Thousand Five Hundred Pesos (P6500.00).

3.3.2.2 Group IL For projects with three to five (3 to 5) of the


above-listed systems included in the electrical plans of one building or
group of buildings in a compound, the minimum basic design fee is
four-tenth percent (0.4%) of the total project cost.
However, in no case shall the basic design fee be less than Five
Thousand Pesos (P5000.00).

3.3.2.3 Group III. For projects with one or two (1 or 2) of the


above-listed systems included in the electrical plans of the building or
group of buildings in a compound, the minimum basic design fee is
three-tenth percent (0.3%) of the total project cost.
However, in no case shall the basic design fee be less than Three
Thousand Five Hundred Pesos (P3500.00).

3.3.3 Percent of Electrical Cost Method. Essentially, this method is


similar to the Percent of Total Project Cost Method except that the
percentage is not based on the total project cost but rather on the cost
of the complete electrical installation.
As in the previous method, the basic design fee is based on the
complexity of the requirements which is categorized into three (3)
groups as follows:

3.3.3.1 Group I. For projects with more than five (5 ) of the


above-listed systems included in the electrical plans of one building or
group of buildings in a compound, the minimum basic design fee is
eight percent (8%) of the cost of the complete electrical installation
3.3.3 _______________ 3.0 COMPENSATION ___ 14

including cost of lighting fixtures, motors, generators, transformers,


switchboards, and other electrical equipments or appliances that are
included in the electrical design.
However, in no case shall the basic design fee be less'than Six
Thousand Five Hundred Pesos (P6500.00).

3 3 3 .2 Group II. For projects with three to five (3 to 5) of the


above-listed systems included in the electrical plans of one building or
group of buildings in a compound, the minimum basic design fee is
seven percent (7%) of the cost of the complete electrical installation
including cost of lighting fixtures, motors, generators, transformers,
switchboards, and other electrical equipments or appliances that are
included in the electrical design.
However, in no case shall the basic design fee be less than Five
Thousand Pesos (P5QGQ.00).

3.3.3.3 Group III* For projects with one or two (1 or 2) of the


above-listed systems included in the electrical plans of one building or
group of buildings in a compound, the minimum basic design fee is six
percent (6%) of the cost of the complete electrical installation
including cost of lighting fixtures, motors, generators, transformers,
switchboards and other electrical equipments and appliances that are
included in the electrical design.
However, in no case shall the basic design fee be less than Three
Thousand Five Hundred Pesos (P3500.00).

3 3 A Unit Cost Method. In the past, professional electrical engineers


found that design fees based on percentage of the construction costs
were very difficult, if not impossible to determine except when award
of the entire project was made in an open bidding. Likewise, when
there are alterations of plans of an on-going project or alterations ot an
existing installation, the electrical designer finds it very (liliu nh to
determine how much he should charge for his efforts.
This difficulty is solved by the unit cost method wlu n m ilie <Kmj*ii
fee is based on the number of electrical faeiliiirs ilui .u< iu;illy
included in the design such as: number ol rl<vhu M ><.(!< i<. the
wattage or horsepower rating of the loads li nrjh o! iIk Imr. ,-u
3 . 3.4 3.0 COMPENSATION ______ L5

In this method, the electrical facilities/loads are divided into


classifications which have corresponding unit design rates. The
classifications are the same as those in the Professional Practicc
Manual as prepared by the Philippine Institute of Electrical Engineers
(PIEE) although the design rates have been updated. The following are
the minimum unit design rates:

5**3.3.4.1 One Hundred Pesos (P100.00) for each of the following with
a minimum rate of Eight Hundred Pesos (P800.Q0) for up to nine (9)
outlets.
(a) Lighting fixture or bulb socket outlet
(b) Ordinary convenience outlet
(c) Telephone outlet
(d) Intercommunication outlet
(e) Fire alarm station outlet
(f) Fire alarm bell or horn
(g) Switch
(h) Push button
(i) Sound or audio system outlet
(j) Television or radio antenna outlet
(k) Sounding device outlet for burglar alarm, bell or buzzer
(1) Ceiling fan/exhaust fan outlet of fractional horsepower rating v
(m) Other common outlets of similar nature having a rating of not
more than 600 watts

NOTE 1: In continuous fluorescent lamp fixtures used in cove


lighting or luminous ceilings, Sixty-Five Pesos (P65.00) per
fixture or lamp may be charged; this minimum design rate may also
be applied to incandescent bulbs used in multi-lamp chandeliers,
footlights, curtain lights, multi-lamp fluorescent fixtures, etc., if the
lamp socket are spaced not more than three-tenth (0.3) metre
apart.
NOTE 2: The above-listed minimum design rates of One Hundred
Pesos (P100.00) per outlet and Sixty-Five Pesos (P65.00) for
3.3.4 ___________ 3.0 C O M P E N S A T I O N ______________ 16

multi-lamp fixtures, shall apply to commercial and institutional


buildings such as office buildings, schools, supermarkets, etc. For
industrial buildings, residences and other structures, the rate shall
be increased to One Hundred Twenty Pesos (PI 20.00) and
Eighty-Five Pesos (P85.00), respectively.
NOTE 3: For multiple units w ith similar electrical design, fee shad
not be less than sixty percent (60%) of the first unit.

- ^ 3 3 A o 2 Three Hundred Fifty Pesos (P350.00) for each of the


following:
(a) Water heater with rating up to four (4) kilowatts
^ (b) Motors up to one (1) horsepower (such as room
air-conditioners, domestic water pumps, clothes washers or dryers,
deep freezers, spinning and weaving machines, lathes, drill press,
grinders, etc.)
(c) Electric stove or hotplate with not more than two (2) heating
units or similar apparatus of not more than four (4) kilowatts rated
capacity (such as beauty parlor equipment, small portable or fixed
sterilizers or autoclaves, etc.)
(d) Explosion-proof outlet for the devices listed in 3.3.4.1.

^ ^ 3 3 4 3 S][x Hundred Fifty Pesos (P650.00) for each of the following:


(a) Counter-top stove with more than two (2) heating units
(b) Built-in oven of not more than five (5)-kilowatt rating
^ (c) Motors of more than one (1) horsepower but not exceeding five
(5) horsepower
(d) Heating device for more than four (4) kilowatts (except
built-in oven) but not exceeding seven and nine-tenth (7.9) kilowatts
(e) Handholes in outdoor or underground installations
(f) Sign lighting using high-voltage transformer
(g) Annunciator
(h) Fire alarm control panel
(i) Master selector switch in remote control Nysic m
V

3.3.4__________________3.0 COMPENSATION__________________ T7

(j) Projector for sixteen (16) mm film and larger


(k) Rectifiers
(1) Dimmers

3.3.4.4 One Thousand Pesos (P1000.00) for each of the following:


(a) Motors of more than five (5) horsepower up to fifty (50)
horsepower
(b) Electric range or heater of eight (8) to fifty (50) kilowatts
rating
(c) Street light or other outdoor weatherproof lamp except festoon
lighting
(d) One hundred fifty (150) metres of underground distribution
line or fraction thereof
(e) One hundred eighty (180) metres of overhead distribution line
or fraction thereof
(1) X-ray, cobalt machine and similar apparatus requiring special
studies and computation

3.3.4.5 Two Thousand Pesos (P2000.00) for each of the following:


(a) Manhole in underground distribution system
(b) Motor of over fifty (50) horsepower up to one hundred (100)
horsepower
(c) Heater of over fifty (50) kilowatts up to one hundred (100)
kilowatts
(d) Transformer station up to one hundred (100) kVA in capacity
(e) Generator set up to fifty (50) kVA

3.3.4.6 Three Thousand Five Hundred Pesos (P3500.00) for each of


the following:
(a) Motor of over one hundred (100) horsepower up to o
thousand (1 000) horsepower
3.3.4
w* ii t* \ t in m u i~ B ~ ~ r r r g ' i m r r -------------1
3.0 COMPENSATION
r r > ~ T i i r T T n ----------------n i m t r T T f m i ni n it t t < i i I fh T i tttt t h i ii i i n i i n i i i ~r ~ r - T i - p m m i m n i n ~ r~ m ~ i i i i !
1.8

(b) Heater of over one hundred (100) kilowatts up lo one


thousand (1 000) kilowatts
(c) Transformer station of more than one hundred (100) kVA up
to one thousand (1 000) kVA in capacity
(d) Generating station or power plant of over fifty (50) kVA up to
one hundred (100) kVA, alternating current (or kW if direct current)

3.3.4.7 Six Thousand Five Hundred Pesos (P6500.00) for each of


the following:
(a) Motor of over one thousand (1 000) horsepower up to five
thousand (5 000) horsepower
(b) Heater of over one thousand (1 000) kilowatts up to five
thousand (5 000) kilowatts
(c) Transformer station of more than one thousand (1 000) kVA
up to five thousand (5 000) kVA in capacity
(d) Generating station or power plant of over one hundred (100)
kVA up to one thousand (1 000) kVA, alternating current (or kW if
direct current

3.3.4.S Ten Thousand Pesos (P 10000.00) for each of the following:


(a) Motor of more than five thousand (5 000) horsepower up to
ten thousand (10 000) horsepower
(b) Transformer station of more than five thousand (5 000) kVA
up to ten thousand (10 000) kVA
(c) Generating station or power plant of mure Ilian one
thousand (1 000) kVA up to ten thous;md (10 OOO) k VA. aliemaling
current (or kW if direct current).
(d) Special equipment of similar capacity and/oi u<nplr\iiy not
covered in other items
NOTE: For each five thousand (5000) oi lr,<< lion 11in m l m kVA
or kW in excess of those listed in thi.s Urm, .m ,n i<hii< m.ii h-r of
Five Thousand Pesos (P5000.00) shall hr < I mm in I
3.3.4 3.0 COMPENSATION ______ 19

3.3.4.9 All others not covered shall be subject to negotiation.

3.3.4.10 Drawing of as-built plans in connection with government


annual inspection or condemned installation notice or for any other
reason shall be charged at:
(a) One hundred fifty percent (150%) of the listed rates if there
are no available old or original installation plans to guide the designer.
(b) Fifty percent (50%) of the listed rates if the owner can furnish
old or the original installation drawings.

3.3.4.11 Revision of completed plans to indicate desired changes


made in the actual and on-going construction or installation shall be
charged in addition to the fee for the original plans. The fees shall be
as follows:
(a) For relocated outlets, fifty percent (50%) of the
foregoing-listed rates
(b) For outlets deleted or not installed, fifty percent (50%) of the
foregoing-listed rates
(c) For additional facilities and loads, one hundred percent
(100%) of the foregoing-listed rates
The total design fee to be charged the owner is determined by
summing up all the individual design fees as computed above.

3.3.5 Cost of Actual Design Plus Reasonable Profit. For electrical


design jobs which are relatively complicated and require a lot of time
and effort, as well as research and consultation, a method of
compensation which is considered fair to both designer and client is
the "Cost of Actual Design Plus Reasonable Profit" method. The
amount or the percentage of profit is to be agreed upon between the
designer and client prior to the signing of the contract. However, the
percentage shall not be less than twenty-five percent (25%) of the total
electrical design cost.
3.3.6 3.0 COMPENSATION 20

3.3.6 Payment Schedule.

% Payment Payable Upon


50% (a) Signing of the contract
(a) Submission of five (5) sets of the final
drawings
(b) Submission of five (5) copies of the
45%
written specifications (if separately
written specifications are necessary in
addition to that already shown on the
plans)
5% (a) Submission of written estimate

3.3.7 Per Diem and Travelling Expenses. A per diem of not less than
Two Thousand Pesos (P2000.00) plus travelling and living expenses
shall be chargeable to the owner on any occasion where the electrical
designer shall be required to perform services in a locality beyond a
radius of twenty-five (25) kilometres from his established office.

3.3.8 Extra Sets of Contract Documents. The electrical designer


shall furnish five (5) sets of Drawings, Specifications and other
Contract Documents. The cost of printing or reproduction of extra sets
of Contact Documents when required by the owner or his
representative is to be charged to and paid for by the Owner.
p

' *

3.3.9 Government Taxes on Services. The Electrical Designer's


minimum basic fee as stipulated in 3.3 is net to the engineer. Any tax
that the government may impose on the engineer or as consequence of
the services performed for the project (exclusive of income tax) shall
be paid by the owner.

3.3.10 Salaried Professional. A Professional Electrical Engineer


employed as salaried electrical designer in a firm shall be compensated
in accordance with Table 3.11.
3.4.1 ___________ 3.0 COMPENSATION________

3.4 Electrical Construction or Installation

3.4.1 Contractor. An electrical contractor can determine his own


compensation by way of mark up on net costs.

3.4.2 Salaried Employee. The remuneration for professional electrical


engineers, registered electrical engineers and registered master
electricians employed in electrical construction or installation shall be
as shown in Table 3.11 Minimum Basic Monthly Rates for Salaried
Electrical Practitioners.

3.5 Inspection and Appraisal

3.5.1 General. Inspection/appraisal as a form of necessary service is


carried out largely by government entities, insurance companies,
adjustment firms and commercial banks.

3.5.2 Salaried Professional. Compensation for a professional as an


i

employee of these agencies shall be in accordance with the Minimum


Basic Monthly Rates for Salaried Electrical Practitioners shown in
Table 3.11.

3.5.3 Task Rate Work. For piece work or task rate work, the engineer
shall be paid not less than a minimum of Two Thousand Pesos
(P2,000.00) per day or fraction thereof plus first class travelling and
hotel accommodation if the site of the project is more than twenty-five
(25) kilometres away from the engineer's established office.
If the inspection and appraisal involves comprehensive work and
studies, additional compensation in the amount of 1% of the total
insurance claim shall be charged.

3.6 Operation

3.6.1 Salaried Employee. In view of its nature, operation entails the


employment of professional electrical engineers, registered electrical
engineers, or registered master electricians in accordance with Section
31 of R.A. 7920. Compensation shall be made as shown in Table 3.11
Minimum Basic Monthly Rates for Salaried Electrical Practitioners.
3.7.1 3.0 COMPENSATION 22

3.7 M aintenance Service

3.7.1 Salaried Employee. For persons employed in maintenance


work, the compensation shall be as shown in Table 3.11 Minimum
Basic Monthly Rates for Salaried Electrical Practitioners.

3.7.2 Contract Basis. Maintenance service may also be undertaken on


contract or fixed fee basis. The degree of experience and expertise and
extent of work defined in the contract shall be the basis of the fees.

3.8 Educational Services

3.8.1 Full Time Basis. As the professional whose services fall under
2.7.2.1 are considered salaried electrical practitioners, their minimum
basic monthly rates are covered by Table 3.11.

3.8.2 P art Time Basis. For those on a part-time basis or those who are
paid on the hourly basis {2 1 2 2 ), the minimum basic rate per hour
shall be those of Table 3.11 divided by one hundred (100).

3.8.3 Lecturers. For those who render service under 2.7.2.3, 2.7.2.4,
and 2.7.2.5, their minimum basic hourly rate shall be those of Table
3 .11 divided by fifty (50).

3.8.4 Tutorials. For those who render service for 2.12.6 , and 2.7.2.7,
the compensation shall be determined on a case to case basis
depending upon the time of preparation needed.

3.9 Sales

3.9.1 Salaried Employee, with or without Commission.


Compensation shall be based on Table 3.11 Minimum Basic Monthly
Rates for Salaried Electrical Practitioners. Commission shall depend
on the agreement between the Sales Engineer and his employer.
3.10.1 3.0 COMPENSATION ________ ______
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
23
>

3.10 Research and Development

3J0.1 General. Research and development activities are usually


undertaken by large firms or conglomerates Which have sufficient
funds for the purpose.

3.10.2 Salaried Employee. The Electrical Engineer in this field


renders service as an employee, R&D manager, researcher or
programmer/ scheduler. In such instances, the minimum remuneration
shall be in accordance with the Minimum Basic Monthly Rates for
Salaried Electrical Practitioners as shown in Table 3.11.

3.10.3 Task Rate Work. R&D work may also be carried out on a
limited scale by individual electrical engineers on piece work or task
rate system under contract or fixed fee basis. The engineer shall be
guided by his experience, expertise and the monetary value of the
project in the determination of the fixed fee.

3.10.4 Electrical W ork Estimate.


a. Direct cost of materials for the electrical installation based on
the plans
b. Direct cost of labor (25% of a)
c. Contingency (10% of a and b)
d. Overhead and profit [25% of (a + b + c)]
e. Value added tax [10% of (b + c + d)]

Table 3.11
Minimum Basic Monthly Rates for Salaried Electrical
Practitioners
YEARS OF ACTIVE SERVICE IN EE GRADE
GRADE
Up to 5 Over 5 to 10 Over 10 to 15 Over 15
PEE P16,000.00 P20,000.00 P26,500.00 P33,000.00
REE 11,000.00 14,000.00 17,500.00 22,000.00
RME 5,500.00 7,000.00 9,000.00 11,000.00
3.11__________________ 3.0 COMPENSATION___________ 24

In the event that the minimum fees and salaries established in this
standards are no longer realistic because of the change in cost of living
at the time the offer is made, the following Escalation Formula shall
be applied:

w . - j - p

wQ' pQ
S-So
2

Where:
S = The updated minimum service fee or salary at the time
the offer is made.
SG = The minimum service fee or salary as established in this
edition of the Standards.
W = Current Minimum Basic Daily Wage at the time of your
computation.
WG= Minimum Basic Daily Wage at the time this Manual of
Standards was published which was P145.00.
P = Current Consumer Price Index (Ail Items - Philippines)
at the time the offer is made.
P0 = Consumer Price Index (All Items - Philippines) at the
time this Standards was published which was 202.8
(April 1995).

Example:

Let us assume you are offered a position in January 1996, when the
Minimum Basic Daily Wage has been raised to P160.00 and the
Current Consumer Price Index has gone up to 895. Therefore, if you
are a Professional Electrical Engineer with five (5) years of active
service as PEE, your salary should not be less than:
3.11 3.0 COMPENSATION

P145.Q0 817.69
S - P16,000.00
2

S = P16,000.00 1.10+1.09
2

S -P 1 6 ,000.00 2.19
"2

S = P16,000.00 x 1.095

S = P17,520,00

Monthly Consumer Price Index for All Income Households


in the Philippines, By Geographic Area: April 1995
(1988 = 100)
Commodity Group
Area
All Items
Philippines 202.8
Metro Manila 222.2
i
Areas Outside Metro Manila 196.5
Regions:
CAR - Cordillera Adminis *
trative Region 196.7
I - Ilocos 198.2
II - Cagayan Valley 188.2
III - Central Luzon 191.9
IV - Southern Tagalog 198.0
V - Bicol 200.3
VI - Western Visayas 203.2
VII - Central Visayas 212.2
VIII - Eastern Visayas 199.5
IX - Western Mindanao 200.5
X - Northern Mindanao 191.8
XI - Southern Mindanao 178.9
XII - Central Mindanao 198.8