P15 Minimum Wage Hike for NCR (Wage Order No. NCR-19, full text)

A 15-peso increase minimum wage was approved by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) and announced by Department of Labor and Employment (DOLE) Secretary Rosalinda Dimapilis-Baldoz. “The new minimum wage in the National Capital Region has been raised to P481 for workers in the non-agriculture sector and P444 for workers in the agricultural sector. The minimum wage hike is expected to be affirmed by the NWPC this week, and the RTWPB will publish it, after which it will take effect 15 days after its publication,” DOLE-NCR Regional Director Alex Avila said in a report. This issuance is Wage Order No. NCR-19, reproduced in full below (see also Primer on Wage Order NCR-19).

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Republic of the Philippines
Department of Labor and Employment
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
National Capital Region

WAGE ORDER No. NCR-19

PROVIDING FOR A WAGE INCREASE IN THE NATIONAL CAPITAL REGION

WHEREAS, the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) is mandated under R.A. No. 6727 (The Wage Rationalization Act), to periodically assess wage rates and conduct continuing studies in the determination of the minimum wage applicable in the region or industry;

WHEREAS, Wage Order No. NCR-18 took effect on 04 October 2013 and under Section 3, Rule IV of the Amended Rules of Procedure on Minimum Wage Fixing issued by the National Wages and Productivity Commission (NWPC), the Wage Order may not be disturbed for a period of twelve (12) months from its effectivity unless there is a supervening condition, such as extraordinary increase in prices of petroleum products and basic goods/services, as determined by RTWPB-NCR and confirmed by the NWPC;

WHEREAS, the Association of Minimum Wage Earners and Advocates-Philippine Trade and General Workers Organization (AMWEA-PTGWO) filed on November 28, 2014 a petition for One Hundred Forty Six Pesos and Eighty Centavos (P146.80) wage increase per day;

WHEREAS, after due notice to all concerned sectors, the RTWPB-NCR conducted consultations motto propio with labor, employer and government sectors on January 29, February 10 and 17, 2015, respectively, and a public hearing on March 6, 2015, to determine the propriety of issuing a new wage order;

WHEREAS, the Trade Union Congress of the Philippines filed on March 6, 2015 a petition for a One Hundred Thirty Six Pesos (P136.00) across-the-board daily wage increase;

WHEREAS, the Board, duly noting that the TUCP petition prayed for an across-the-board increase, suggested that subsequent petitions for wage increase should conform to the standards/criteria prescribed by law;

WHEREAS, after a thorough evaluation of the existing socio-economic conditions of the region, the RTWPB-NCR has determined the need to provide workers with immediate relief measures to enable them to cope with the rising cost of living without impairing the viability of business and industry;

WHEREAS, consistent with the government’s policy of achieving higher levels of productivity to promote economic growth and generate employment, and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement programs.

NOW, THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, the RTWPB-NCR hereby issues this Wage Order.

Section 1. NEW MINIMUM WAGE RATES.

a.) Upon effectivity of this Wage Order, all private sector minimum wage workers and employees in the National Capital Region shall receive an increase in the existing Basic Wage in the amount of FIFTEEN PESOS (P15.00) per day.

b.) The new daily minimum wage rates of covered workers in the private sector in the National Capital Region shall be as follows:

Sector/Industry Basic Wage Basic Wage Increase
New Basic Wage COLA New  Wage Rates
Non-Agriculture P451.00 P15.00 P466.00 P15.00 P481.00
Agriculture (Plantation and Non-Plantation) P414.00 P15.00 P429.00 P15.00 P444.00
Private Hospitals with bed capacity of 100 or less P414.00 P15.00 P429.00 P15.00 P444.00
Retail/Service Establishments employing 15 workers or less P414.00 P15.00 P429.00 P15.00 P444.00
Manufacturing Establishments regularly employing less than 10 workers P414.00 P15.00 P429.00 P15.00 P444.00

Section 2. COVERAGE. The wage rates per day prescribed in this 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.

This Wage Order shall not cover kasambahay/domestic workers; persons in the personal service of another, including family drivers, and workers of duly registered Barangay Business Enterprises (BMBEs) with Certificates of Authority pursuant to Republic Act 9178, as amended.

Section 3. BASIS OF INCREASE. The wage increase prescribed under this Wage Order shall be for the normal working hours which shall not exceed eight (8) hours work a day.

Section 4. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects and for security, janitorial and similar services, the wage rates prescribed in this Order shall be borne by the principals or clients of the service contractors and the contract shall be deemed amended accordingly.

In the event, however, that the principals or clients fail to pay the prescribed wage rates, the service contractor shall be jointly and severally liable with his principal or client.

Section 5. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private educational institutions, the share of covered workers and employees in the increase in tuition fees for School Year 2015-2016 shall be considered as compliance with the wage rates prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2016-2017.

Private educational institutions which have not increased their tuition fees for School Year 2015-2016 may defer compliance with the wage rates prescribed herein until the beginning of School Year 2016-2017.

In any case, all private educational institutions shall implement the wage rates prescribed herein starting School Year 2016-2017.

Section 6. WORKERS PAID BY RESULT. All workers paid by result, including those who are paid on piecework, “takay”, “pakyaw” or task basis, shall be entitled to receive not less than the prescribed wage rates per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

Section 7. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable new wage rates prescribed in this Order.

All recognized learnership agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage clauses are considered automatically modified insofar as their wage clauses are concerned to reflect the new wage rates.

All qualified handicapped workers shall receive the full amount of the new wage rates prescribed herein pursuant to Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons.

Section 8. EXEMPTIONS. Upon application with and as determined by the Board, based on documentation and other requirements in accordance with applicable rules and regulations issued by the NWPC, the following may be exempted from the applicability of this Order:

1. Distressed Establishments;

2. Retail/Service Establishments Regularly Employing Not More Than Ten (10) workers; and

3. Establishments Adversely Affected by Natural Calamities.

Section 9. APPEAL TO THE COMMISSION. Any party aggrieved by this Wage Order may file an appeal to the NWPC, through the Board, in three (3) printed copies, not later than ten (10) days from the publication of this Wage Order.

Section 10. CREDITABLE WAGE INCREASE. Any increase granted by an employer in an organized establishment within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increase set forth herein, provided that an agreement to this effect has been forged between the parties or a collective bargaining agreement provision allowing creditability exists. In the absence of such an agreement or provision in the CBA, any increase granted by the employer shall not be credited as compliance with the wage rates prescribed in this Order.

In unorganized establishments, any increase granted by the employer within five (5) months prior to the effectivity of this Order shall be credited as compliance therewith.

In case the increases given are less than the prescribed wage rates, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization or promotion of employees.

Section 11. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the wage rates prescribed in this Order results in distortions in the wage structure within the establishment, it shall be corrected in accordance with the procedure provided for under Article 124 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines.

Section 12. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Order shall be filed with the National Capital Region Office of the Department of Labor and Employment, and shall be the subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.

Section 13. PRODUCTIVITY AND OTHER 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 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.

Section 14. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders and/or under any contract or agreement between the workers and employers.

Section 15. PROHIBITION AGAINST INJUNCTION. No preliminary or permanent injunction, or temporary restraining order may be issued by any court, tribunal or other entity against any proceedings before the Board.

Section 16. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular firms or enterprises or industries from bargaining for higher wages with their respective employers.

Section 17. REPORTING REQUIREMENT. Any person, company, corporation, partnership or any entity engaged in business shall submit a verified report on their wage structure to the Board not later than January 31, 2016 and every year thereafter in accordance with the form prescribed by the National Wages and Productivity Commission.

Section 18. PENAL PROVISION. Any employer who refuses or fails to comply with this Order shall be subject to penalties specified under RA 6727, as amended by R.A. No. 8188.

Section 19. REPEALING CLAUSE. All orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Wage Order are hereby repealed, amended or modified accordingly.

Section 20. SEPARABILITY CLAUSE. If any provision or part of this Wage Order is declared unconstitutional, or in conflict with existing law, the other provisions or parts thereof shall remain valid.

Section 21. IMPLEMENTING RULES. The Regional Tripartite Wages and Productivity Board-National Capital Region shall submit to the Commission the necessary Rules and Regulations to implement this Order subject to approval of the Secretary of Labor and Employment not later than ten (10) days from the publication of the Wage Order.

Section 22. ADVISORY ON PRODUCTIVITY BASED PAY. Pursuant to the Two-Tiered Wage System, Wage Advisory No. NCR-01 has been issued to guide private establishments in the formulation, adoption and implementation of productivity programs and performance and productivity-based incentive schemes that an enterprise may provide based on agreement between workers and management.

Section 23. EFFECTIVITY. This Wage Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

APPROVED.

Manila, Philippines, 16 March 2015.

4 thoughts on “P15 Minimum Wage Hike for NCR (Wage Order No. NCR-19, full text)

  1. RoadBlock

    SALAMAT SA DIOS! Kahit papaano makakatulong ito sa panggastos ng mga minimum wage earners… Salamat! Keep up the great work! Philippine Government!

    Reply
  2. cynthia

    On Distortion Method: The annual increase given by the employer falls on the same day of the effectivity date of the wage order, What shall prevail? a. Shall the employer effect first the annual increase before computing the distortion method or b: Shall the employer use the old rate before the computation using the distortion method. Please enlighten us on this.

    Reply

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