MINIMUM WAGE

ADJUSTMENT IN WESTERN
VISAYAS
Wage Order No. RBVI-26 Series of 2022
Application for Exemption for Private Establishments
Blended Public Hearing- Negros Occidental Leg (08 April 2022)
Natures Village Resort, Talisay City, Negros Occidental
Blended Public Hearing- Iloilo, Guimaras, Capiz, Antique Leg (11 April 2022)
Hotel del Rio, Molo, Iloilo City
Blended Public Hearing- Aklan, Capiz Leg (12 April 2022)
Marzon Hotel, Kalibo, Aklan
Deliberation on Minimum Wage Adjustment
Publication of Wage Orders (20 May 2022)
Daily Guardian and Sunstar Bacolod
WAGE ORDER NO. RBVI-26 SERIES OF 2022

Providing for a Minimum Wage Rate Increase for Workers

in Private Establishments in Region VI (Western Visayas)
 New Daily Minimum Wage Rates (Sec.1, WO No. RBVI-
26)

SECTOR/INDUSTRY DAILY MIN. WAGE AMOUNT OF NEW DAILY

RATE UNDER INCREASE MINIMUM WAGE
WAGE ORDER NO. RATE
RBVI-25 (2019) (EFFECTIVE 05
JUNE 2022)
1. Non- Agriculture/Industrial/Commercial

a. Employing more than ten (10) workers Php395.00 Php 55.00 Php 450.00

b. Employing ten (10) workers or less Php 310.00 Php 110.00 Php 420.00

2. Agriculture Php 315.00 Php 95.00 Php 410.00

Coverage

• Provinces of Aklan, Antique, Capiz, Guimaras, Iloilo, Negros

Occidental and the highly urbanized cities of Iloilo and Bacolod (Sec.
1, WO No. RBVI-26)

• All minimum wage earners regardless of position, designation,

status and irrespective of method by which their wages are paid
(Rule II Sec.2, WO No. RBVI-25)
Payment

• Normal working hours (Chapter I, Sec.7, IRR of RA 6727)

• Legal tender (Book III, Chapter III, Art.102, Labor Code of the Phils.)
• Twice a month (Book III, Chapter III, Art.103, Labor Code of the Phils.)
Application to Contractors

• Borne by the principal or client

• Deemed amended
• Failure to pay: contractor is jointly and severally liable (Chapter I, Sec.11,
IRR of RA 6727)
Application to Private Educational
Institutions

• Increase of tuition fees for SY 2022-2023 =compliance with the

increase prescribed
• No increase in tuition fees for SY 2022-2023 may defer compliance
with the wage rates prescribed herein until the beginning of SY
2023-2024 (Chapter I, Sec.12, IRR of RA 6727)
Application to Workers Paid by Result

• Receive not less than the prescribed wage rates per day or a
proportion thereof (Chapter I, Sec.9, IRR of RA 6727)
Application to Special Groups of Workers

• Apprentices and learners: no less than 75%

• Qualified handicapped workers: full amount (Rule II, Section 7, IRR of WO No.RBVI-
25)
NON-DIMUNITION OF BENEFITS

• Nothing in this Order shall be construed to reduce any existing

wage rates, allowances, and benefits in any form under existing
laws, decrees, issuances, executive orders, and/or under any
contract or agreement between labor and management
Wage Distortion

• Application of any prescribed wage increase by virtue of law or

Wage Order results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates
between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage
structure based on skills, length of service or other logical basis of
differentiation (Rule VI, Section 1, NWPC Guidelines No. 03 Series of 2022)
Elements of Wage Distortion

• Existing hierarchy of positions with corresponding salary rates

• Significant change in the salary rate of a lower pay class without a
concomitant increase in the salary rate of a higher one
• Elimination of the distinction between the 2 levels
• Existence of distortion in the same region of the country (Rule VI, Section
2, NWPC Guidelines No. 03 Series of 2022)
Correcting Wage Distortion

• ORGANIZED ESTABLISHMENTS
• Employer and workers’ union shall negotiate
through the grievance procedures incorporated in
their Collective Bargaining Agreement (CBA). If still
unresolved, parties may push through with
voluntary arbitration (Rule VI, Section 3, NWPC Guidelines No. 03 Series of 2022)
Correcting Wage Distortion

• UNORGANIZED ESTABLISHMENTS
• The management and labor sector shall discuss and
agree on the method to correct wage distortion.
Any dispute arising thereof shall be settled thru the
NCMB. If negotiations fail, the NLRC may intervene
thru compulsory arbitration (Rule VI, Section 3, NWPC Guidelines No. 03
Series of 2022)
EXEMPTION FOR WORKERS IN PRIVATE
ESTABLISHMENTS
Rule VII, NWPC Guidelines No. 03 Series of 2020
NWPC Guidelines No. 01 Series of 2022
EXEMPTIBLE CATEGORIES

• Retail/service establishments regularly employing not more than

10 workers
• Engaged in the retail sale of goods and/or services to end users for personal
or household use
• Establishments adversely affected by natural calamities and/or
human-induced disasters
• Located in an area covered by a Declaration of State of Calamity
• Within 6 months prior to effectivity of Wage Order
• Pandemic: suffered an accumulated net loss amounting to 20% or more
FILING OF APPLICATION FOR EXEMPTION

• Exemption shall only be until June 5, 2023

• Verified letter; not later than 75 days from date of publication of
WO
• Opposition may be filed within 15 days from notice of filing of application
for exemption
• Documentary requirements for retail/service establishments
regularly employing not more than 10 workers
• Affidavit of Undertaking
• CTC of current Business Permit (2022)
AFFIDAVIT OF UNDERTAKING

• # of employees and duration of employment

• Notice to workers of its action to apply for exemption
• Compliance with previous WO (Wage Order No. RBVI-25)
• In case of denial, employees shall receive the appropriate increase
due + 1% interest/month, retroactive to effectivity of WO
FILING OF APPLICATION FOR EXEMPTION

• Documentary requirements for establishments adversely affected

by natural calamity/human-induced disasters
• Affidavit of Undertaking
• Picture of damages, if any
• Pandemic: AFS for the last 2 years stamped received by the BIR
AFFIDAVIT OF UNDERTAKING

• Amount of losses/damages suffered

• List of properties damaged/lost + estimated valuation
• Notice to workers of its action to apply for exemption
• Compliance with previous WO (Wage Order No. RBVI-25)
• In case of denial, employees shall receive the appropriate increase
due + 1% interest/month, retroactive to effectivity of WO
• Pandemic: nature of business and impact of pandemic on business
operations
PRODUCTIVITY AND OTHER PERFORMANCE
INCENTIVE PROGRAMS (PIPs)

• PIPs may include productivity-based incentive schemes, time and

motion studies, good housekeeping, quality circles, labor and
management cooperation as well as implementation of gainsharing
and other performance incentive programs.
Na t i ona l Wa ge s and Produc t i vi t y Com m i ssi on

PR ODUCTIVITY- BASED
INCENTIVE SC HEME
 Efficient use of resources (inputs)
to produce quality products and
PRODUCTIVITY services (outputs)

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 EFFICIENT USE OF
RESOURCES ELIMINATES:
Downtime-personnel and
PRODUCTIVITY machine

= Reworks/Rejects

Inefficient resource use

SAVINGS Inefficient energy use/
consumption
Processes/ steps that do not
add value

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Bonuses given to workers as a result
of improvements in their productivity
PRODUCTIVITY performance

INCENTIVES Sustained productivity performance

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Mandated Benefits
PRODUCTIVITY INCENTIVES 1 Part of general labor
standards
ARE
DISTINCT FROM: Fringe Benefits
2 Perks provided by
employers

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Republic Act 6971
Productivity Incentives
Act of 1990
Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 BENEFITS AND TAX INCENTIVES
Section 7(a)
A business enterprise which adopts a productivity incentives program,
duly and mutually agreed upon by parties to the labor-management
committee, shall be granted a special deduction from gross income
equivalent to fifty percent (50%) of the total productivity bonuses given
to employees under the program over and above the total allowable
ordinary and necessary business deductions for said bonuses under the
National Internal Revenue Code, as amended.

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 BENEFITS AND TAX INCENTIVES
Section 7(b)
Grants for manpower training and special studies given to rank-and-file
employees pursuant to a program prepared by the labor-management
committee for the development of skills identified as necessary by the
appropriate government agencies shall also entitle the business enterprise
to a special deduction from gross income equivalent to fifty per cent
(50%) of the total grants over and above the allowable ordinary and
necessary business deductions for said grants under the National Internal
Revenue Code, as amended.

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 BENEFITS AND TAX INCENTIVES
Section 7(c)
Any strike or lockout arising from any violation of the productivity
incentives program shall suspend the effectivity thereof pending
settlement of such strike or lockout: Provided, That the business
enterprise shall not be deemed to have forfeited any tax incentives
accrued prior to the date of occurrence of such strike or lockout, and the
workers shall not be required to reimburse the productivity bonuses
already granted to them under the productivity incentives program.
Likewise, bonuses which have already accrued before the strike or
lockout shall be paid the workers within six (6) months
from their accrual.
Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 BENEFITS AND TAX INCENTIVES
Section 7(d & e)
Bonuses provided for under the productivity incentives program shall
be given to the employees not later than every six (6) months from the
start of such program over and above existing bonuses granted by the
business enterprise and by law: Provided, That the said bonuses shall
not be deemed as salary increases due the employees and workers.

The special deductions from gross income provided for herein shall be
allowed starting the next taxable year after the effectivity of this Act.

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 W H AT A R E T H E B E N E F I T S
O F H AV I N G A

PRODUCTIVITY
INCENTIVE SCHEME?

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Increased Sales/Savings

IMPACT OF PRODUCTIVITY Improved efficiency and

service delivery
INCENTIVE SCHEMES Improved product/service
quality
ON ENTERPRISES Fewer customer complaints
Enhanced employee
engagement and retention

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
IMPACT OF PRODUCTIVITY Productive and
motivated workers
INCENTIVE SCHEMES
Harmonious
ON WORKERS employment
relationships
Augment workers’ take-
home pay

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 HOW DOES ONE DEVELOP A

PRODUCTIVITY INCENTIVE SCHEME?

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 AGREE TO ADOPT A
STEP 1 PRODUCTIVITY INCENTIVE
SCHEME

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 IDENTIFY THE PROBLEM
THAT HAMPERS THE
STEP 2 ATTAINMENT OF BUSINESS
OBJECTIVES

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 FIND THE CAUSE OF THE PROBLEM

5 Whys Analysis Root Cause Analysis

Fish Bone Analysis

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Involves asking "why" five times
5 WHYS Looks at cause -and-effect
ANALYSIS underlying a particular problem
Best for simple problems with a
single or few root causes

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 PROBLEM:
IS IT TAKING TOO LONG TO DELIVER A PRODUCT TO THE CUSTOMER?

WHY There are too many orders backlogged in the system

WHY We couldn't ship particular orders for almost 3 weeks

WHY
We were out of a specific piece of equipment on the orders

WHY There was a material shortage on a component

We have only one single source for the component and the
WHY
supplier could not deliver the component
(the root cause) Source: http://resources.hartfordtechnologies.com/blog/the-ultimate-list-of-lean-man
tools
Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Identifies the underlying
ROOT CAUSE cause/s of a problem to find
multiple solutions to prevent
ANALYSIS recurrence of a problem

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 ROOT CAUSE ANALYSIS
EVOLVES AROUND
DEFINE
3 BASIC QUESTIONS:

What is the Problem?

A n a ly z e
Why did it happen?

What can be done to prevent it from

s o lv e
happening again?

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Also known as Ishikawa Diagram

FISHBONE Aids in sorting potential causes of a

problem because of its visual nature
ANALYSIS
Often used when developing new
products or troubleshooting failures
or defects

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 People Method Measurement

Children Alarm Clock Bonus

Demotivated Waking Time Clocking In

Tired Route to Work Incentive

Lazy Distance to Work Late for School

Late for work Food

Car Traffic Jam Clothes

Train Rain Petrol

Alarm Clock Holiday Electricity

Machine Environment Materials

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 IDENTIFY YOUR BUSINESS
STEP 3 OBJECTIVE

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 Who, what, where , when,
which and why

SPECIFIC

Develop attitudes, abilities,

Create criteria
skills

MEASURABLE
SMART ATTAINABLE

Track your progress Plan your steps

REALISTIC TIMELY

Willing and able to work Anchor your goal to a

towards the goal specific date

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 BUSINESS OBJECTIVE
WITH SMART
WITHOUT SMART
100% knowledge of
Be responsive to product specifications by
customers with product all frontline staff
complaints
reduce by 10% product
returns /refunds by end of
the month
Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 LET'S

DESIGN YOUR

PRODUCTIVITY
INCENTIVE
SCHEME!
Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 MEASURABLE VALUE THAT
KEY SHOWS HOW A COMPANY
PERFORMANCE IS ACHIEVING ITS
INDICATORS BUSINESS OBJECTIVES

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 INDUSTRY SPECIFIC KPIS

INDUSTRY KPIS

• Percentage reduction in inventory levels

• Percentage reduction in manufacturing

MANUFACTURING • Lead times

• Planned work to total work ratio
• Quality improvement (first-pass yield)
• Reduction in penalties
• Wa s t e r a t i o r e d u c t i o n
• Time on floor to be packed
 INDUSTRY SPECIFIC KPIS

INDUSTRY KPIS
• Number of complaints
• Percentage of customer service requests
answered in given time frame
RETAIL TRADE • Answering percentage (number of sales
calls answered/total number of sales calls
offered)
• Hit rate (products sold compared to total
received sales calls)
• Queuing time
• Cycle time to retrieve order from the time
order is placed
 INDUSTRY SPECIFIC KPIS

INDUSTRY KPIS
• Call quota
• Closed sales
• Customer churn ratio – no. of customers

RETAIL TRADE • Lost during a period / no. of customers at

the beginning of the period
• Customer loyalty
• Customer satisfaction
• Sales cycle time
• Revenue per sales person
 INDUSTRY SPECIFIC KPIS

INDUSTRY KPIS

• Customer Complaints Reduction

ACCOMODATION AND • Reduce Process Cyc le Time
FOOD SERVICE • Shorter queuing time

ACTIVITIES • Production time per dish

• Food wasted per food purchased
• Social media following
• Vi s i t s / r e t u r n s / b o o k i n g s
 INDUSTRY SPECIFIC KPIS

INDUSTRY KPIS

ACCOMODATION AND • Av e r a g e r e v e n u e p e r g u e s t
• Av e r a g e r e v e n u e p e r t a b l e
FOOD SERVICE • Complaints per head
ACTIVITIES • Complaints per order
• Minutes per table turn
• Stock turnover
• Number of function inquiries
 Attendance,
KPIs  Punctuality
COMMON TO ALL Reduction in Utility
INDUSTRIES Consumption

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 CLARIFY WHO ARE
COVERED BY THE
COVERAGE
PRODUCTIVITY INCENTIVE
SCHEMES

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 DESCRIBE CONDITIONS
PERFORMANCE THAT WILL INDICATE THAT
METRICS TARGET FOR A KPI HAS
BEEN MET

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 KPI Absences’ Reduction
Target Reduce absences to 3 days per quarter
Condition Production target is met
REDUCE Coverage Machine shop

PERSONNEL No. of days absent Rating Incentive

Zero absences 5 P2,000
DOWNTIME
1 day absent 4 P1,500
2-3 days absent 3 P500

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 REWARDS GIVEN TO
WORKERS AS A RESULT OF
INCENTIVES
INCREASED
PRODUCTIVITY

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 MONETARY
• Cash

NON-MONETARY
• Gift/food certificates
EXAMPLES OF • Communication load
INCENTIVES • Personal or grocery items
• Free travels
• Hotel accommodations

COMBINATION
• Free travel with pocket
money
Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 AGREE ON THE SCHEDULE OF
INCENTIVE-GIVING
Rewards should follow the
performance ASAP

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 PROMOTE THE PRODUCTIVITY
INCENTIVE SCHEME AND ITS
SUCCESS!

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n
 TRACK THE IMPLEMENTATION OF
YOUR PRODUCTIVITY INCENTIVE
SCHEME

Na t i o n al Wag es an d Pr o du ct i v i t y C o m m i s s i o n