I.

Background of the Study

  The
concept of equal pay for job of equal value is embedded in many global norms. Both
men
and women frequently conduct distinct employment, under varying circumstances, and 
even in distinct institutions, the idea of "job of equal value" is crucial to allow a wide rang
e of comparisons, encompassing job of a completely distinct nature but of equal value al
l the same.
Good practice needs legislation that properly expresses this norm, and failure to addres
s this requirement has a significant impact on the gender pay gap.
The interrelationship between equal remuneration, the establishment of salaries and the 
implementation of national minimum wages and the decrease of gender unemployment.
A minimum wage establishes a wage floor and can be expanded to specific categories 
of job as well. This has a significant impact on women's salaries, which tend to be at the 
bottom of free income distribution. Good practice indicates that there should be an
independent wage-setting process, which is transparent, applies objective criteria, and
includes the involvement of the social partners. Philippine legislation requires
amendment to meet good practice and international norms. As is the case in many
other countries, there is a disparity between men’s and women’s wages in the
Philippines, despite legislation that requires equal remuneration for both. This raises
issues about the institutional wage-setting process (ADB and ILO 2013b). In the
Philippines, the institutional wage-setting process was established under the Salary
Standardization Law, which established the Minimum Wages and the Wage
Rationalization Act (Republic Act 6727). Minimum wages are prescribed by regional
tripartite wages and productivity boards and are regionally fixed based on all of the
orders issued by the boards. Minimum wage increases require board approval or an act
of Congress, which provides across-the-board wage increases.

II. Theoretical Framework

The system justification theory starts the process of understanding the gender wage
gap as a socially acceptable behavior in America’s public and private sector workforce
cultures. The oaxaca decomposition method was used in discrimination analyses.
According to Bolitzet and Godtland (2012), the objective of oaxaca decomposition was
to have separate pay differences between male and female workers by human capital
characteristics and possible differences based on gender. The advantage of oaxaca
decomposition was that the method allowed deeper insight into the human capital
variables that helped to explain gender pay differences. Bolitzet and Godtland (2012)
used the oaxaca decomposition method to distinguish pay differences as a result of
work characteristics (age, experience, race/ethnicity, and agency), and treatment based
on gender that allowed a more in-depth understanding of the human capital results.
Both the concept of system justification and the technique of oaxaca decomposition wer
e compatible with understanding the reasons in American labor force for gender salary 
disparity.

III. Conceptual Framework

IV. Statement of the Problem

In the Philippines,
gender pay disparity occurs regardless of professional expertise and academic backgro
und. Women still have to overcome wage obstacles ; such as the segregation of agenci
es, the segregation of positions, and unseen obstacles known as glass ceilings and glas
s walls.
While policies and legislation were aimed at ensuring equal paycheck, females tend to l
earn less in salaries than males doing the same work.

VI. Significance of the Study

The primary reason for the researchers to do a study on the gender pay gap in the
Philippines and its effect. Sustainable development relies on ending
discrimination toward women and providing equal opportunities for
education and employment. Gender equality has been conclusively shown
to stimulate economic growth, which is crucial for so-called developing
countries.

VII. Scope and Limitation

Limitations existed in conducting my research in understanding the gender wage gap

that existed in the Philippines. Attributes had to be established given the size and the
various pay categories with the government and the business sector. The selected
business establishment in Davao City will be chosen as the research locale. The criteria
of selecting these establishment were the following: (1) these business establishment
are classified as a workplace that prioritizes men; and (2) are establishments in Davao
City Poblacion Area.

For the business sector respondents, they were limited only to the current
administrators of the selected business establishment. For the employees respondents,
they were employees from the selected business establishment who have experience
gender pay gap.

VIII. Definition of Terms

 Age: An employee's age

 Agency: The employing organization
 Average Length of Service: A measure representing the average number of
years of employment and creditable
 Average Salary: A measure representing the average adjusted basic pay, an
annualized rate of pay. Adjusted basic pay is the sum of an employee’s rate of
basic pay and any locality comparability payment and/or special pay adjustment
for law enforcement officers.
 Education Level: The extent of an employee's educational attainment from an
accredited institution
 Employment: A measure representing the number of employees in pay status at
the end of the quarter or end of the pay period prior to the end of the
 Gender: An employee’s gender; male or female
 General Schedule & Equivalent Grade: The General Schedule grade for pay
plans in the General Schedule and Equivalent pay plan category
 Length of Service: The number of years of employment
 Location: The official duty station of an employee
 Occupation: An employee's occupation as defined by the Office of Personnel
Management
 Occupation Category/Classification/Job Series: Occupational
categories/classifications/job series are defined by the educational requirements
of the occupation and the subject matter and level of difficulty or responsibility of
the
 Pay Plan & Grade: The pay system and, where applicable, the grade used to
determine an employee's basic pay rate. Grade denotes a hierarchical position
in a pay plan and is sometimes referred to as level, class, rank, or pay band
 Salary Level: An employee’s adjusted basic pay, which is an annualized rate of
pay. Adjusted basic pay is the sum of an employee’s rate of basic pay plus any
 locality comparability payment and/or special pay adjustment for law
enforcement officers.
 Supervisory Status: The nature of managerial, supervisory, or non-supervisory
responsibility assigned to an employee's position
 Work Schedule: The time basis on which an employee is scheduled to work

Objectives of the Study:

This research will add to the body of literature on gender pay disparity by investigating
the impact of the human capital indirect authority variable (measurable attribute) to
determine if there is a correlation between an individual’s wages and job. The findings
from thia research will encourage policy and law makers to revisit existing policies and
implement new policies aimed at ensuring women receive pay equal to their male
counterparts.