BAGUIO CITY – The National Wages and Productivity Commission (NWPC) recently approved the implementing rules and regulations for Wage Order No. RB-CAR-18 that fixed the minimum wage for minimum wage earners in the Cordillera.
See full text: Ordinances and Implementing Rules and Regulations
Under the new rules, minimum wage refers to the lowest wage rates that an employer is obliged to pay his workers as fixed by the board, basic wage refers to all renumerations or earnings paid by an employer to a worker for services rendered on normal working days and hours but does not include Cost of Living Allowance (COLA), profit sharing payments, premium payments, 13th month pay and other monetary benefits which are not considered as part of or integrated into the regular salary of the worker on the date the wage became effective while floor wage refers to the lowest level of wages prescribed by the board to be paid to minimum wage earners in accordance with the two tiered wage system.
On the other hand, wage distortion refers to a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employees’ groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on the skills, length of service or other logical basis of differentiation.
Based on the approved rules, covered private sector workers and employees receiving the minimum wage in the Cordillera Administrative Region (CAR) regardless of their position, designation or status and irrespective of their method their wages are paid are covered by the wage order while not covered by the order are persons employed in the personal service of another, domestic workers by virtue of Republic Act 10361 otherwise known as the Batas Kasambahay and workers in the registered barangay micro-business enterprises with certificate of authority pursuant to RA 9178 otherwise known as the Barangay Micro-business Enterprises Act of 20002.
For all industries and sectors employing 11 or more workers, the minimum wage in Baguio and La Trinidad was pegged at P300 while those in Tabuk city, Bangued, Abra, Lagawe, Ifugao, Buguais, Benguet, Bauko, Bontoc and Sagada, Mountain Province and Tublay, Benguet will be receiving P290 daily minimum wage.
For workers in industries and services sector employing 10 or less, those in Baguio and La Trinidad will be receiving P285 daily minimum wage while those in other areas in the region mentioned above will be receiving P280 minimum wage.
However, in the areas of Itogon, Tuba and Sablan, covered workers shall continue to receive the minimum wage rates provided by the previous wage order, comprising of P285 basic rate per day in all industries and P270 basic rate per day for micro-enterprises.
The rules provided that the minimum wage rates prescribed under the new order shall be for the normal working hours which shall not exceed 8 hours work a day and that the second tier or the productivity based pay shall continue to be implemented following the guidelines provided by Advisory No. 01, series of 2013 and Advisory No. 02, series of 2014 and other board advisories that may be subsequently issued.