wage order no. ncr-19
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Wage Order No. NCR-19TRANSCRIPT
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Wage Order No. NCR-18
Regional Tripartite Wages and Productivity Board – National Capital Region
Approved : 06 September 2013
Affirmed : 18 September 2013
Published : 19 September 2013
The Philippine Star
Effectivity : 04 October 2013
IR Published : 12 October 2013
The Manila Times
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Outline of Presentation
1. The Process
2. WO NCR-18: Salient Features
3. Other Details
4. Views on WO NCR-18
Regional Tripartite Wages and Productivity Board – National Capital Region
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Regional Tripartite Wages and Productivity Board – National Capital Region
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Approved by the Board : September 6, 2013
Affirmed by the Commission : September 18, 2013
Published : September 19, 2013
: The Philippine Star
Effectivity : October 4, 2013
Implementing Rules Signed : October 09, 2013
Published : October 12, 2013
: The Manila Times
Regional Tripartite Wages and Productivity Board – National Capital Region
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Regional Tripartite Wages and Productivity Board – National Capital Region
Mendoza (filed on July 1) Herrera (filed on June 7)
P 456.00 MW since 2012 9.63 2.1% price increase
from March 2012 to Feb.2013
27.36 Projected 6% price increase (March to Dec. 2013)
48.00 Equity Supplement (P2/yr. x 24 yrs.)
P 541.00 Wage Increase is P541.00 - 456.00 P 85.00/day
P 404.00 MW in July 2010 31.50 7.8% price increase
from July 2010 to April 2013
21.78 Projected 5% price increase (May to Dec. 2013)
72.00 Equity Supplement (P3/yr. x 24 yrs.)
P 529.00 Wage Increase is P529.00 - 446.00 P 83.00/day
Both petitions asked for an across-the-board increase
TUCP Wage Petitions
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Formulation Timeline
a. TUCP Petitions filed on:
April 3, 2013 (Dismissed for premature filing)
June 7, 2013
July 1, 2013 (Dismissed Petition refiled)
b. Consultations conducted on:
July 5, 2013
Philippine Trade and Training Center, Manila
(130 participants from 77 organizations/companies)
July 17, 2013
Occupational Safety and Health Center (OSHC), Quezon City
(170 participants from 93 organizations/companies)
Regional Tripartite Wages and Productivity Board – National Capital Region
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Formulation Timeline
c. Public Hearing:
August 8, 2013
OSHC, Quezon City
(108 participants)
d. Wage Deliberation:
September 6, 2013
Regional Tripartite Wages and Productivity Board – National Capital Region
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Criteria for Minimum Wage Fixing
Regional Tripartite Wages and Productivity Board – National Capital Region
Minimum Wage
Needs of Workers and their Families
Capacity to Pay
Comparable Wages and Incomes
Requirements of Economic and Social
Development
Art. 124. LCP, as amended; IRR
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Regional Tripartite Wages and Productivity Board – National Capital Region
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The Wage Order mandates:
P10.00/day Basic Wage increase effective October 4, 2013
P15.00/day COLA integration into the BW effective January 1, 2014 (from the P30.00/day COLA under WO No. NCR-17)
Regional Tripartite Wages and Productivity Board – National Capital Region
Regional Tripartite Wages and Productivity Board – National Capital Region
a. Effective October 4, 2013
Basic Wage WO No. NCR-17
Basic Wage WO No. NCR-18
(+ P10.00)
COLA
Minimum Wage Rates
WO No. NCR-18
Non-Agriculture P426.00 P436.00 P30.00 P466.00 Agriculture P389.00 P399.00 P30.00 P429.00 Private Hospitals w/ Bed Capacity of 100 or less
P389.00 P399.00 P30.00 P429.00
Retail/Service Establishments employing 15 workers or less
P389.00 P399.00 P30.00 P429.00
Manufacturing Establishments regularly employing less than 10 workers
P399.00 P399.00 P30.00 P429.00
Regional Tripartite Wages and Productivity Board – National Capital Region
b. Effective January 1, 2014 Basic Wage
October 4, 2013
Basic Wage January 1,
2014 (+ P15.00)
COLA January 1,
2014 (- P15.00)
Minimum Wage Rates January 1,
2014 Non-Agriculture P436.00 P451.00 P15.00 P466.00 Agriculture P399.00 P414.00 P15.00 P429.00 Private Hospitals w/ Bed Capacity of 100 or less
P399.00
P414.00
P15.00
P429.00
Retail/Service Establishments employing 15 workers or less
P399.00
P414.00
P15.00
P429.00
Manufacturing Establishments regularly employing less than 10 workers
P399.00
P414.00
P15.00
P429.00
Regional Tripartite Wages and Productivity Board – National Capital Region
Employer Cost/month
WO No. NCR-17 WO No. NCR-18 October 4, 2013 January 1, 2014
P426.00 BW 30.00 COLA P456.00/day
P436.00 BW 30.00 COLA P466.00/day
P451 BW 15 COLA P466.00/day
Monthly Wage P11,780.00 P12,038.33 P12,038.33 SSS + EC 858.00 858.00 858.00 Philhealth 137.50 137.50 137.50 Pag-Ibig 100.00 100.00 100.00
P12,875.50 P13,133.83 (+2.0%)
P13,133.83 (+2.0%)
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13th Month Pay (Affected by date of BW Increase)
a. 2012 – Jan to May (5mos) : P404 BW June to Dec (7mos) : P426 BW 13th Mo Pay = x + x = P10,769.00
b. 2013 – Jan to Sept (9mos) : P426BW Oct. to Dec. (3mos) : P436BW 13th Mo Pay = x + x = P11,070 (+2.8%)*
c. 2014 – Jan to Dec (12mos) : P451 BW (Assuming there is no BW increase) 13th Mo Pay = = P11,651 (+8.3%)**
Regional Tripartite Wages and Productivity Board – National Capital Region
5 P404x310 9 P426x310 12 12 12 12
9 P426x310 3 P436x310 12 12 12 12
P451x310 12
* Increase of 13th Mo. Pay between 2012 to 2013
** Increase of 13th Mo. Pay between 2012 to 2014
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Worker’s Take Home Pay/month WO No. NCR-17 WO No. NCR-18
October 4, 2013 January 1, 2014
P426.00 BW 30.00 COLA P456.00/day
P436.00 BW 30.00 COLA P466.00/day
P451 BW 15 COLA P466.00/day
Monthly Wage P11,780.00 P12,038.33 P12,038.33 SSS 400.00 400.00 400.00 Philhealth 137.50 137.50 137.50 Pag-IBIG 235.60 240.77 240.77
P11,006.90 P11,260.06 (+2.3%)
P11,260.06 (+2.3%)
a. OT Pay/hr 426 8
436 8 (+2.3%)
451 8 (+5.9%)
b. NDP/hr 426 8
436 8 (+2.4%)
451 8 (+5.9%)
X1.25= P66.56 X1.25= P68.12 X1.25= P70.07
X1.10= P58.57 X1.10= P59.95 X1.10= P62.01
Regional Tripartite Wages and Productivity Board – National Capital Region
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Regional Tripartite Wages and Productivity Board – National Capital Region
COVERAGE / BASIS
All MINIMUM WAGE EARNERS in the private sector in the NCR regardless of their position, designation or status, and irrespective of the method by which their wages are paid.
For normal working hours (8 hours per day)
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Exclusions
Household or domestic helpers (RA 10361);
Persons in the personal service of another, including family drivers ;
Workers of registered BMBEs with Certificates of Authority (RA 9178).
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Sec. 4 Application to Contractors In case of contracts for construction, security and
similar services:
The Wage increase and COLA integration shall
be borne by the principals or clients
The existing contract is deemed amended
The contractor shall be jointly and severally
liable with the principal or client if the latter fails
to pay the prescribed wage rates
Regional Tripartite Wages and Productivity Board – National Capital Region
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Sec. 5 Application to Private Educational Institutions For schools that increased tuition fees in SY 2013-2014:
Workers’ share in tuition fee increase shall be
credited as compliance with the Wage Order
Any shortfall shall be given starting SY 2014-2015
For SY 2014-2015
All Schools shall implement the Wage Order
whether they increased tuition fees or not
Regional Tripartite Wages and Productivity Board – National Capital Region
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IR, Rule II, Sec. 9. Mobile and Branch Workers
The MW rates of workers, who, by the nature of
their work have to travel, shall be those applicable in
the domicile or head office of the employer
The MW rates of workers working in branches or
agencies of establishments in or outside the NCR
shall be those applicable in the place where they are
stationed.
Regional Tripartite Wages and Productivity Board – National Capital Region
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IR, Rule II, Sec. 10. Transfer of Personnel
The transfer of personnel to areas outside the
Region shall not be a valid ground for the
reduction of the wage rates being enjoyed by
the workers prior to such transfer. The workers
transferred to other Regions with higher wage
rates shall be entitled to the minimum wage
rates applicable therein.
Regional Tripartite Wages and Productivity Board – National Capital Region
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Sec. 8 Exemptions
Upon application with the Board 75 days from the date of publication of IRR. (10/19/13, Manila Times; Dec. 26, 2013)
1. Distressed Establishments 2. Retail and Service establishments employing not more than ten
(10) Workers 3. Establishments whose total assets inclusive of loans but exclusive
of the land on which the office, plant and equipment are located, are not more than P3M
4. Establishments adversely affected by natural calamities
Regional Tripartite Wages and Productivity Board – National Capital Region
EXEMPTION IS FOR A MAXIMUM PERIOD OF ONE YEAR FROM EFFECTIVITY OF THE WAGE ORDER
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Sec. 10 Creditable Wage Increase
For Organized Firms
Wage increase granted within 3 months prior to effectivity (i.e. July 3 to October 3, 2013) may be credited, if specified in CBA
Regional Tripartite Wages and Productivity Board – National Capital Region
For Unorganized Firms
Wage increase granted within 5 months prior to effectivity (i.e. May 3 to October 3, 2013) may be credited
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In both cases:
Does not include anniversary, merit increase, and those resulting from regularization or promotion of employees
If the increase granted is less than the prescribed adjustment, the employer shall pay the difference
An increase given in the form of an allowance shall be integrated into he basic wage of the workers
Regional Tripartite Wages and Productivity Board – National Capital Region
Sec. 10 Creditable Wage Increase
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Wage Distortion - happens when the implementation of a mandated minimum wage increase results in:
Elimination or disappearance of a wage differential
or
Severe contraction
Elimination - the previous wage differential or gap no longer exists.
Severe contraction – contraction by more than 50% of the previous wage differential or gap in pay between two groups of workers in an establishment (Metrobank and Trust Company Employees Union – ALU-TUCP vs. NLRC, 226 SCRA 268)
Cf. Art. 124, Labor Code, as amended
Regional Tripartite Wages and Productivity Board – National Capital Region
Sec. 11 Effects on Existing Wage Structure
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CONTRACTION = x 100
If the Result is more than 50%, there is a Wage Distortion
Regional Tripartite Wages and Productivity Board – National Capital Region
Severe Contraction
(Previous Wage Difference) – (New Wage Difference) Previous Wage Difference
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Regional Tripartite Wages and Productivity Board – National Capital Region
Correction for Wage Distortion
CONTRACTION = x 100
= 32.3% (There is no Wage Distortion)
(P500 – P470) – (P500 – P479.70) (P500 – P470)
CONTRACTION = x 100
= 71.4% (There is Wage Distortion)
Correction = P456 P470 New Wage = P470 + P9.70 = P479.70
(P470 – P456) – (P470 – P466) (P470 – P456)
X P10 = P9.70
P500
P470 +P9.70
P456 +P10 BW Increase
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Other Provisions
The other provisions are standard
provisions contained in the 18
Wage Orders issued since 1990.
Regional Tripartite Wages and Productivity Board – National Capital Region
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WO, Sec. 12 & IR, Rule V. Productivity and Performance Incentive Programs
In order to sustain rising levels of wages and enhance
competitiveness, labor and management as partners are
encouraged to adopt productivity improvement schemes
that will improve the quality of life of workers and in turn
enable them to produce more and earn more, such as time
and motion studies, good housekeeping, quality circles,
labor and management cooperation as well as implement
gain-sharing and other performance incentive programs.
Regional Tripartite Wages and Productivity Board – National Capital Region
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Regional Tripartite Wages and Productivity Board – National Capital Region
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Labor Sector and other allied groups
“Barya Barya Lang! Mumo!”
Labor groups started the clamor for a P125/day across-the-board wage increase in 1999. Since then, the NCR Board has increased the Minimum Wage 12 times for a total of P268 per day or more than double P125.
Regional Tripartite Wages and Productivity Board – National Capital Region
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The P268 come from these “Barya Barya”
Regional Tripartite Wages and Productivity Board – National Capital Region
WO No. NCR- Amount 7 (1999) P 25.50 8 (2000) 26.50
9 (2001/02) 30.00 10 (2004) 20.00 11 (2005) 25.00 12 (2006) 25.00 13 (2007) 12.00 (+ Integration of P30 COLA) 14 (2008) 20.00 15 (2010) 22.00 16 (2011) 22.00 17 (2012) 30.00 (+ Integration of P22 COLA) 18 (2013) 10.00 (+ Integration of P15 COLA)
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ECOP and other business groups NCR has the highest Minimum Wage in ASEAN
Regional Tripartite Wages and Productivity Board – National Capital Region
Philippines NCR IV-A III VII
9.39 – 10.21 5.71 – 7.83 6.38 – 7.53 5.82 – 6.83
Thailand Bangkok
6.89 – 9.31
Indonesia Jakarta
2.52 – 6.67
Vietnam 2.21 – 3.16 Cambodia 2.03 Myanmar 0.51
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Dep. Gov. D. Gunigundo, BSP (Philstar, 9/16/13)
The wage hike in NCR will not affect prices much. That’s within the broad assumption of the Bangko Sentral. Our inflation forecast already incorporates the adjustment in wages for NCR.
Regional Tripartite Wages and Productivity Board – National Capital Region
DDG E. Esguerra, NEDA (Business Mirror, 9/10/13)
The wage increase in NCR would have a bigger impact on employment than on inflation. It could negatively impact on the expansion plans of some firms.
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Senator Vicente Sotto III (Inquirer.net, 9/19/13)
The recent P10 increase in the minimum wage is too small. Wages have invisibly decreased due to the rise in prices of basic commodities. Improved business earnings have not cascaded on its own…Those who have less in life should have more in law. – Explanatory Note, SB 1645, mandating the grant of 14th month Pay to all government and non-government employees
Regional Tripartite Wages and Productivity Board – National Capital Region
BusinessWorld, Sept. 9, 2013 Headline
Wage hike lowest so far for Metro Manila Labor and business groups both normally reject mandated minimum wage hikes, with the former complaining the amounts are not enough and the latter decrying the added cost.
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Henry J. Schumacher, ECCP (BusinessWorld, 9/09/13)
This seems to be a fair decision, staying close to inflation…I don’t think it will lead to layoffs but it may well affect the hiring of more people.
Regional Tripartite Wages and Productivity Board – National Capital Region
John D. Forbes, AmCham (BusinessWorld, 9/09/13)
(The wage increase is) “fair”… [M]inimum wages in the Philippines is still not as competitive as that of Vietnam and Cambodia. It is still much higher than Burma’s and about the same as Jakarta’s.
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Ramon R. del Rosario, MBC (BusinessWorld, 9/09/13)
(our group would have no objection to the P10 increase if was the result of) “adequate tripartite representation”...With GDP growth above 7% for the last four quarters, most large companies should be able to cope with the proposed wage increase but some small- and medium-sized businesses may find the increase challenging… We should also be constantly conscious of the need to remain competitive in labor costs against our Asian neighbors.
Regional Tripartite Wages and Productivity Board – National Capital Region
Edgardo Lacson, ECOP (BusinessWorld, 9/09/13)
the “P10 should have been only P7”...non-compliance carried steep penalties for employers.
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Alan A. Tanjusay, TUCP (BusinessWorld, 9/09/13)
The P10/day increase is outrageous! This amount cannot even buy half a kilo of rice or take a worker to work and back home... This amount is a joke, a painful joke to working class who worked so hard to improve our economy… We will definitely appeal the decision.
Regional Tripartite Wages and Productivity Board – National Capital Region
Wilson Fortaleza, PM (BusinessWorld, 9/09/13)
Janet Napoles steals P10 billion from the people’s money and the government offers P10 in coins to workers as a consolation.
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Regional Tripartite Wages and Productivity Board – National Capital Region
2nd Flr DY International Bldg, San Marcelino cor Gen. Malvar Streets, Malate, Manila
Telephone Nos: 527-51-55 400-67-65
Email add: [email protected]
Salamat po...