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MINIMUM WAGE

Republic Act 6727 (otherwise known as the Wage Rationalization Act) fixed the
statutory minimum wages applicable to different industrial sectors, namely: nonagricultural, agricultural plantation and non-plantation, cottage/handicraft, retail
and service, depending upon the number of workers or capitalization or annual
gross sales in some sectors.
The Rules Implementing RA 6727 define the industrial sectors, as follows:
Agriculture refers to farming in all its branches and among others, includes to
cultivation and tillage of the soil, production, cultivation, growing, and harvesting
of any agricultural or horticultural commodities, dairying, raising of livestock or
poultry, the culture of fish and other aquatic products in farms or ponds, and any
activity performed by a farmer or on a farm as an incident to or in conjunction
with such farming operations, but does not include the manufacturing and/or
processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm
products.
Plantation Agricultural Enterprise is one engaged in agriculture with an area
of more than 24 hectares in a locality or which employs at least 20 workers. Any
other agricultural enterprise shall be considered as Non-Plantation Agricultural
Enterprise
Retail Establishment is one principally engaged in the sale of service to
individual for their own or household use and is generally recognized as such.
Cottage/Handicraft Establishment is one engaged in an economic endeavor
in which the products are primarily done in the home or such other places for
profit which requires manual dexterity and craftsmanship and whose
capitalization does not exceed P500,000.00 regardless of previous registration
with the defunct NACIDA.
The Act rationalized wage policy determination by establishing the mechanism
and proper standards, through the creation of Regional Tripartite and Productivity
Boards to determine the wage rates in the different regions based on established
criteria.
Existing Regional Wage Orders prescribe the daily minimum basic wage rates
per industry per locality within the region, in some instances depending upon the
number of workers and the capitalization. The Wage Orders likewise provide the
basis and procedure for exemption from compliance. Some Wage Orders grant
allowances instead of wage increases.

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Coverage:
The wage increase prescribed under Wage Orders apply to all private sectors
and employees regardless of their position, designation or status, and
irrespective of the method by which their wages are paid, except the following:
Household or domestic helpers, including family drivers and
workers in the personal service of another; (their conditions of work
are prescribed in R.A. No. 7655)
Workers and employees in the retail/service establishments
regularly employing not more than 10 when specifically exempted
from compliance for a period fixed by the Board.
Workers and employees of distressed establishments when
exempted from compliance for a period fixed by the Board.
Workers and employees of other firms or employers as determined
by the Board when exempted from compliance for a fixed point.
BASIS OF MINIMUM WAGE
The basis of the minimum wage rates prescribed by the law shall be the normal
working hours of eight (8) hours a day
MONTHLY-PAID EMPLOYEES AS DISTINGUISHED FROM DAILY-PAID
EMPLOYEES
Monthly-paid employees are those who are paid every day of the month,
including unworked rest days, special days and regular holidays.
Daily-paid employees are those who are paid on the days they actually worked
and on unworked regular holidays.
MINIMUM WAGE OF WORKERS PAID BY RESULTS
All workers paid by results, including homeworkers and those who are paid on
piecework, takay, pakyaw, or task basis, shall receive not less than the applicable
statutory minimum wage rates prescribed under the Regional Wage Orders for
normal working hours, or a portion thereof.

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MINIMUM WAGE OF APPRENTICES, LEARNERS AND HANDICAPPED
WORKERS
Wages of apprentices, learners and handicapped workers shall in no case be
less than seventy five percent (75%) of the applicable statutory wage rates.
Apprentices and learners are those covered by apprentices/learnership
agreements duly approved by DOLE.
A handicapped worker is one whose working capacity is impaired by his age,
physical defect or mental deficiency or injury.
EFFECT OF REDUCTION OF WORKDAYS ON WAGES
In situations where the reduction in the number of regular working days is
resorted to by the employer to prevent serious losses such as when there is
substantial slump in the demand for his goods or services, or when there is lack
of raw materials, the employer may deduct the wages corresponding to the days
taken off from the workweek, consistent with the principle of no work, no pay.
This is of course without prejudice to an agreement or policy, which provides
otherwise.