minimum wage

Download Minimum Wage

If you can't read please download the document

Post on 20-Feb-2017

177 views

Category:

Law

1 download

Embed Size (px)

TRANSCRIPT

JDP Consulting

Minimum WageLowest Prescribed Pay

29 October 2016

Concept of Minimum WageStatutory Monetary Benefits are employee benefits required by law to be given to the employees.

The ones giving the benefits are:The Employer; orThe Government.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

RTWPBMinimum wage is prescribed by the respective Regional Tripartite Wages and Productivity Boards (RTWPBs) in various regions:National Capital Region (NCR; Metro Manila)Cordillera Autonomous Region (CAR)Region I, II, III, IV-A, IV-B, V, VI, VII, VIII, IX, X, XI, XII, XIIIAutonomous Region in Muslim Mindanao (ARMM)

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC

Regional Wage OrdersThe Regional Wage Orders prescribe the daily minimum wage rates per industry per locality within the region and in some instances depending on the number of workers and the capitalization of enterprises. The Wage Orders likewise provide the basis and procedure for application for exemption from compliance therefrom. Some Wage Orders grant allowances instead of wage increases.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

CoverageThe wage increases prescribed under Wage Orders apply to all private sector workers and employees receiving the daily minimum wage rates or those receiving up to a certain daily wage ceiling, where applicable, regardless of their position, designation, or status of employment, and irrespective of the method by which their wages are paid, except workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificate of Authority issued by the Office of the Municipal or City Treasurer.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

CoverageUpon application with and as determined by an RTWPB, based on documentation and other requirements in accordance with applicable rules and regulations issued by the National Wages and Productivity Commission (NWPC), a company/establishment may be exempted from compliance with a Wage Order for a period not to exceed one (1) year.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Service EstablishmentService Establishment is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

BasisThe basis of the minimum wage rates prescribed by law shall be the normal working hours of eight (8) hours a day.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Monthly-Paid v. Daily-PaidMonthly-paid employees are those who are paid every day of the month, including unworked rest days, special days, and regular holidays. Factor 365 days in a year is used in determining the equivalent monthly salary of monthly-paid employees.

Daily-paid employees are those who are paid on the days they actually worked and on unworked regular holidays.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Estimated Equivalent Monthly RateFor monthly-paid employees: Factor 365 days in a year is used in determining the equivalent annual and monthly salary of monthly-paid employees.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Estimated Equivalent Monthly RateFor daily-paid employees: 1. For those who are required to work everyday, including Sundays or rest days, special days and regular holidays

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Estimated Equivalent Monthly RateFor daily-paid employees: 2. For those who do not work and are not considered paid on Sundays or rest days

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Estimated Equivalent Monthly RateFor daily-paid employees: 3. For those who do not work and are not considered paid on Saturdays and Sundays or rest days

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

Exempt from Income TaxMinimum Wage Earners are exempt from income tax:Statutory Minimum Wage (SMW) inclusive of COLA;Holiday Pay;Overtime Pay;Night Shift Differential Pay; andHazard Pay.

Citation: 2016 Handbook on Statutory Monetary Benefits by DOLE-BWC, citing R.A. 6727 (Wage Rationalization Act)

For more information:

Labor Law ComplianceBest Practices for Human Resourcewww.laborlaw.ph

We value feedback. For comments or permission to use slides, send us an email: info@jdpconsulting.ph.

Brought to you by:

JDP Consulting Ltd. Co.Empowering leaders with legal compliance

We focus on Small and Medium Enterprises.www.jdpconsulting.ph

Labor & Employment, Negotiations & Contracts, Intellectual Property, Commercial Litigation, and Legal Compliance.

Seminars & WorkshopsJoin us for learning sessions on these topics:HR Legal ComplianceLabor Unions Company PoliciesLabor ComplaintsOutsourcing ManpowerDisciplinary Actions

Visit: www.cpdc.phVenue of Seminars & Workshop:BGC Ascott, Taguig City

Recommended

View more >