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Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
National Wages and Productivity Commission
Regional Tripartite Wages and Productivity Board
Regional Board No. VIII
Tacloban City

RULES IMPLEMENTING WAGE ORDER NO. RB VIII-14

Pursuant to Section 6, Rule IV of the NWPC Revised Rules of Procedure on Minimum Wage Fixing and Section 21 of Wage Order No. RB VIII-14 the following rules are hereby issued for the guidance and compliance of all concerned.

Rule I
General Provisions

Section 1. Title.  This Rules shall be known as the “Rules Implementing Wage Order No. RB VIII-14.”

Section 2. Definition of Terms.  As used in this Rules.

1. “Order” refers to Wage Order No. RB VIII-14;
2. “Regional Board” refers to the Regional Tripartite Wages and Productivity Board of Region VIII;
3. “Commission” refers to the National Wages and Productivity Commission;
4. “Department” refers to the Department of Labor and Employment;
5. “Region VIII” covers the Provinces of Leyte, Southern Leyte, Biliran, Samar, Eastern Samar, Northern Samar and the Cities of Tacloban, Ormoc, Maasin, Catbalogan, Borongan, Baybay and Calbayog;
6. “DTI” refers to the Department of Trade and Industry;
7. “CDA” refers to the Cooperative Development Authority;
8. “SEC” refers to the Securities and Exchange Commission;
9. “COLA” refers to the Cost of Living Allowance;
10. “Minimum Wage Rates” refers to the lowest wage rates that an employer can pay his workers, as fixed by the Regional Board;
11. “Wage Distortion” refers to the 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 employee groups in an establishment as to effectively obliterate the distinctions in such wage structure based on skills, length of service, or other bases of differentiation;
12. “CBA” refers to the negotiated contract between a legitimate labor organization and the employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit, including mandatory provisions for grievance and arbitration machineries;
13. “Agriculture” refers to farming in all its branches and among others, includes the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any agricultural or horticultural commodities, dairying, raising of livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and any activities performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, but does not include the manufacturing and/or processing of sugar, coconut, abaca, pineapple, aquatic or other farm products;
14. “Plantation Agricultural Enterprise” refers to one engaged in agriculture with an area of more than 24 hectares in a locality or which employs at least 20 workers.  Any other agricultural enterprise shall be considered as “Non-Plantation Agricultural Enterprise”;
15. “Retail Establishment” refers to one principally engaged in the sale of goods to end-users for personal or household use. A retail establishment that regularly engages in wholesale activities loses its retail character;
16. “Service Establishment” refers to one principally engaged in the sale of service to individuals for their own household and is generally recognized as such;
17. “Cottage/Handicraft Establishment” refers to one engaged in an economic endeavor in which the products are primarily done in the home or such other places for profit which requires manual dexterity and craftsmanship and/or whose capitalization does not exceed PhP1,500,000.00 regardless of previous registration with the defunct NACIDA.

Rule II
New Minimum Wages

Section 1. Amount of COLA.Upon effectivity of the Wage Order, workers and employees in Eastern Visayas receiving the minimum wage shall receive a Cost of Living Allowance of EIGHT PESOS (PhP8.00) per day.

Sec. 4. New Minimum Wage Rates.  As a result of the grant of the COLA, the minimum wage rates in Eastern Visayas are as follows:

Sec.  5. Basis of the New Wage Structure.  The COLA under the Order shall be for the normal working hours, which shall not exceed eight (8) hours a day.

Sec.  6. Coverage. The COLA under the Order shall be applicable to all private sector minimum wage workers in Eastern Visayas regardless of their position, designation or status of employment and irrespective of the method by which their wages are paid except:

• Household or domestic helpers, including family drivers and workers in the personal service of another;
• Workers in duly registered Barangay Micro Business Enterprises with Certificates of Authority pursuant to Republic Act 9178.

Sec.  7. Exemption.No exemption from compliance under this Wage Order shall be allowed.

Sec.  8. Creditable Wage Increase.Wage Increases granted by an employer in an organized establishment within three (3) months prior to the effectivity of the Order shall be credited as compliance with the prescribed COLA set forth therein, provided that an agreement to this effect has been forged between the parties or a provision in the Collective Bargaining Agreement allowing creditability exists.  In the absence of such an agreement of provision in the CBA, any increase granted by the employer shall not be credited as compliance with the COLA prescribed in this Order

In unorganised establishments, wage increases granted by the employer within three (3) months prior to the effectivity of the Order shall be credited as compliance.

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

Sec.  9.  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 2007-2008 shall be considered as compliance with the increase prescribed herein.  However payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2008-2009.

Private educational institutions, which have not increased their tuition fees for the School Year 2007-2008, may defer compliance with the provisions of this Wage Order until the beginning of School Year 2008-2009.

In any case, all private educational institutions shall implement the increase prescribed herein starting School Year 2008-2009.

Sec.  10.  Application to Contractors.In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed COLA under this Order shall be borne by the principals or clients of the construction/service contractors and the contract shall be deemed amended accordingly.  In the event, however, that the principal or client fails to pay the prescribed COLA, the construction/service contractor shall be jointly and severally liable with his principal or client.

Sec.  11.  Workers Paid by Results.  All workers paid by results, including those who are paid on piecework, takay, pakyaw or task basis, shall be entitled to receive not less than the prescribed COLA per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours a day.

The adjusted rates for workers paid by results shall be computed in accordance with the following steps:

1. Amount of AMW*    X 100  =  % increase
     Previous AMW*
   
2. Existing rate/piece X % increase  =  Increase in rate/piece;
3. Existing rate/piece + Increase in rate/piece  =  Adjusted rate/piece

       * Where AMW is the applicable minimum wage rate.

The wages of workers who are paid by results shall continue to be established in accordance with Article 101 of the Labor Code, as amended and its implementing regulations.

Sec.  12.  Wages of Special Groups of Workers.  The COLA of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable COLA prescribed herein.

All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage clauses are concerned to reflect the COLA prescribed herein.

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

Sec.  12.  Suggested Formula in Determining the Equivalent Monthly Rates. Without prejudice to existing company practices, agreements or policies, the following formula may be used as guides in determining the equivalent monthly rates:cralaw:red

a) For those who are required to work everyday including Sundays or rest days, special days and regular holidays:

        Equivalent
Monthly Rate (EMR) = Applicable Daily Rate (ADR) X 392.50 days
                       12
Where 392.50 days:

      299       days      -   Ordinary working days
        22      days       -    11 regular holidays X 200%
        67.60 days       -    52 rest days X 130%
          3.90 days       -     3 special days X 130%
      ______
       392.50 days       -     Total equivalent number of days/year

b) For those who do not work but are considered paid on rest days, special days and regular holidays:cralaw:red

EMR      =      ADR X 365 days
         12
Where 365 days:

      299       days      -      Ordinary working days
        52       days      -      Rest days
        11      days      -      Regular holidays
          3       days      -      Special days
      365      days      -      Total equivalent number of days/year

c) For those who do not work and are not considered paid on Sundays or rest days:

EMR      =      ADR X 313 days
           12
Where 313 days:

       299    days      -      Ordinary working days
         11    days      -      Regular holidays
          3    days       -      3 Special days (if considered paid; if actually worked this 
                  equivalent to 3.9 days)
      313    days      -      Total equivalent number of days/year

d) For those who do not work and are not considered paid on Saturdays and Sundays or rest days:

EMR      =      ADR X 261 days
          12
Where 261 days:

      247       days      -    Ordinary working days
        11      days       -    Regular holidays
          3       days      -    3 Special days (if considered paid; if actually worked this
                  equivalent to 3.9 days)
      261      days      -      Total equivalent number of days/year

Sec.  13.  Mobile and Branch Workers.  The COLA of workers who by nature of their work have to travel shall be those applicable in the domicile or head office of the employer.
          
The minimum wage rates of workers working in branches or agencies of establishments within the Region shall be those applicable in the place where they are stationed.

Sec.  14.  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 the other regions with higher wages shall be entitled to the minimum wage rates applicable therein.

Rule III
Special Provisions

Done in Tacloban City, this 12th day of November 2007.