Wage Order No. NCR-18 Increasing Minimum Wage by P10 Effective October 4, 2013

Finally, the Ten (10)-peso increase in minimum wage in Metro Manila (wage hike) has now issued with Wage Order No. NCR-18 which will take effect on October 4, 2013.  The Regional Tripartite Wages and Productivity Board (RTWPB) of the National Wages and Productivity Commission has finally posted the minimum wage in their website.

The issuance of this wage order is long awaited by employers to determine when should they comply as well as employees to know when will they receive their increases.  Recall that On September 6, 2013, the internet and all other media is shocked by the announced increase in minimum wages and public has a mixed reaction about the matter.  Others say “it is a joke” and others say “better than never”.

Some of the companies are actually having a dilemma on whether they are going to comply with this increase due to the constraints in budget.  Setting that thought aside, most of the companies covered prefer to comply with the requirements in order to avoid complications non-compliance could bring about.

The Minimum Wage Structure

The new minimum wage structure, incorporating the P10 increase as mandated by Wage Order No. NCR-18 is as follows:

 DAILY MINIMUM WAGE RATES
National Capital Region (NCR)
Per Wage Order No. NCR-18
(Effective: 4 October 2013)
Upon Effectivity:
Sector/Industry Basic Wage Basic Wage Increase New Basic Wage COLA New
Wage Rates
Non-Agriculture
P 426.00 P10.00 P436.00 P30.00 P 466.00
Agriculture (Plantation and Non Plantation) P 389.00 P10.00 P399.00 P30.00 P 429.00
Private Hospitals with bed capacity of 100 or less P 389.00 P10.00 P399.00 P30.00 P 429.00
Retail/Service Establishments employing 15 workers or less P 389.00 P10.00 P399.00 P30.00 P 429.00
Manufacturing Establishments regularly employing less than 10 worker P 389.00 P10.00 P399.00 P30.00 P 429.00

Effective 01 January 2014:
Sector/Industry New Basic Wage COLA Integration Effective
01 January 2014
Basic Wage After Integration COLA New Minimum Wage Rates Effective
01 January 2014
Non-Agriculture P 436.00 P15.00 P 451.00 P15.00 P 466.00
Agriculture (Plantation and Non Plantation) P 399.00 P15.00 P 414.00 P15.00 P 429.00
Private Hospitals with bed capacity of 100 or less
P 399.00 P15.00 P 414.00 P15.00 P 429.00
Retail/Service Establishments employing 15 workers or less
P 399.00 P15.00 P 414.00 P15.00 P 429.00
Manufacturing Establishments regularly employing less than 10 workers
P 399.00 P15.00 P 414.00 P15.00 P 429.00

National Capital Region (NRC) covers the Cities of Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Parañaque, Pasay, Pasig, Quezon, San Juan, Taguig, and Valenzuela and Municipalities of Navotas and Pateros.

Grants the following to all minimum wage workers in the private sector in the region:

  • Upon effectivity: P10.00 per day basic wage increase
  • Effective January 2014: Integration of P15.00 COLA from the P30.00 COLA under W.O. No. NCR-17

Wage Order was issued September 6, 2013, published at Philippine Star on September 19, 2013 and is effective October 4, 2013.

Coverage

  • Wage rates per day prescribed in this wage order shall apply to all minimum wage earners in the private sector in the Region regardless of their position, designation or status of employment and irrespective of the method by which they are paid.
  • The wage order does not cover household or domestic helpers; persons in their personal service of another, including family drivers, and workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificate of Authority pursuant to Republic Act 9178.

Exemptions

Upon application with and as determined by the Board, based on the documentation and other requirements in accordance with applicable rules and regulations issued by the NWPC, the following may be exempted from the applicability of the wage order:

  • Distressed establishments;
  • Retail/Service establishments regularly employing not more than Ten (10) workers;
  • Establishments whose total assets (ETA) including those arising from loans but exclusive of land on which particular business entity’s office, plant and equipment are situated, are not more than P3 million; and
  • Establishments adversely affected by natural calamities

Within one year, from the grant of exemption to a qualified ETA, said ETA is encouraged to register as BMBE.

Other Important Matters

  • Private educational institution which have not increased their tuition fees for the school year 2013-2014 may defer compliance until the beginning of school year 2014-2015
  • Increase granted by employer within 3 months prior to the effectivity of the wage order shall be credited as compliance provided forged between the party or a CBA allowing creditability.
  • Entities should correct any wage structure distortion (meaning in higher level of employees were close to minimum wage, then an increase to them would be effected)
  • See other relevant provision of the Wage Order No. NCR-18Click Here.

Download the full text of the RTWPB Wage Order No. NCR-18Click Here.

Like this update?  Hit like and take time to comment! ;) (898)


Orlando Calundan is a CPA currently working at SGV & Co. (a member of EY Global) as an Audit Manager. He has exposures in audit of financial statements of entities in various industries such as real estate, food/restaurants, manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements.

Comments

Powered by WordPress · Designed by Theme Junkie