Below is the Handbook on Workers’ Statutory Monetary Benefits As released by the Department of Labor and Employment, Bureau of Working Conditions, Intramuros Manila (2017). Their address is at 3rd Floor, DOLE Bldg., Intramuros, Manila. Phone number: 5273000 locals 303, 308
Subsidized Meals and Snacks
The employer may provide subsidized meals and snacks to his employees provided that the subsidy shall not be less than 30% of the fair and reasonable value of such facilities. In such case, the employer may deduct from the wages of the employees not more than 70% of the value of the meals and snacks enjoyed by the employees, provided further that such deduction is with the written authorization of the employees concerned. (Sec. 4 Rule VII-A, Book III of the Rules Implementing the Labor Code). For the computation of the fair and reasonable value of the meals given, the employer may seek assistance from concerned Regional Tripartite Wages and Productivity Board (RTWPBs).
Salary of Kasambahay who works as a salesclerk
A Kasambahay who works as salesclerk should receive a salary in accordance with the prescribed minimum wage which is applicable in the retail and service establishments, under existing Wage Orders.
1 Minimum Wage
Republic Act No. 6727 (also known as the “Wage Rationalization Act”) mandates the fixing of the minimum wages applicable to different industrial sectors, namely, non-agricultural. agriculture plantation, and non-plantation, cottage/handicraft, and retail/service depending on the number of workers or capitalization or annual gross sales in some sectors.
The Rules Implementing RA 6727 define the industrial sectors as follows:
“Agriculture” refers to farmingin 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, raiisng 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 conjuction with such farming operations, but does not include the manufacturing and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm products.
“Retail Establishment” is 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.
“Service Establishment” is one princippaly engaged in the sale of service to individuals for their own or household use and is generally recognized as such.
The said law rationalized wage determination by establishing the mechanism and proper standards through the creation of Regional Tripartite Wages and Productivity Boards (RTWPBs) authorized to determine the daily minimum wage rates in the following different regions based on established criteria:
National Capital Region (NCR) or Metro Manila
Cordillera Administrative Region (CAR)
Region 1 – Northern Luzon or Ilocos
Region 2 – Cagayan Valley
Region 3 – Central Luzon
Region 4-A – CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon)
Region 4-B – MIMAROPA (Mindoro, Marinduque, Romblon, Palawan)
Region 5 – Bicol
Region 6 – Western Visayas
Region 7 – Central Visayas
Region 8 – Eastern Visayas
Region 9 – Western Mindanao or Zamboanga Peninsula
Region 10 – Northern Mindanao
Region 11 – Southern Mindanao or Davao
Region 12 – Central Mindanao or SOCCSKSARGEN (Cotabato, Sultan Kudarat, Saranggani, General Santos)
Region 13 – CARAGA
Autonomous Region in Muslim Mindanao (ARMM)
The 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.
A.1 The 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.
A.2. Upon 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.
B. Minimum Wage Rates
The basis of the minimum wage rates prescribed by law shall be the normal working hours of eight (8) hours a day.
D. Monthly-Paid Employees and Daily Paid Employees
Monthly-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 an on unworked regular holidays.
Computation of the Estimated Equivalent Monthly Rate (EEMR) of Monthly-Paid and Daily-Paid Employees
For monthly-paid employees:
Factor 365 days in a year is used in determining the equivalent annual and monthly salary of monthly paid employees. To compute their Estimated Equivalent Monthly Rate (EEMR), the procedure is as follows:
For daily-paid employees:
The following factors and formula may be used in computing the EEMR of different groups of daily paid employees for purposes of entitlement to minimum wages and allied benefits under existing laws:
E. Minimum Wage and Rights of Kasambahay
The minimum wage of Kasambahay shall not be less than the following:
a) Two thousand five hundred pesos (P2,500) a month for those employed in the National Capital Region (NCR);
b) Two thousand pesos (P2,000) a month for those employed in chartered cities and first class municipalities; and
c) One thousand five hundred pesos (P1,500) a month for those employed in other municipalities.
After one year from the effectivity of the Batas Kasambahay and periodically thereafter, the Regional Tripartite Wages and Productivity Boards (RTWPBs) shall review and if proper, determine and adjust the minimum wage rates of Kasambahay. The RTWPBs shall conduct consultations/hearings with stakeholders prior to the issuance of a wage order.
Rights and Benefits of Kasambahay:
1. Minimum wage;
2. Other mandatory benefits, such as the daily and weekly rest periods;
3. Service Incentive Leave;
4. 13th month pay;
5. Freedom from employers’ interference in the disposal of wages;
6. Coverage under the SSS, PhilHealth and Pag-IBIG laws;
7. Standard of treatment;
8. Board, lodging and medical attendance;
9. Right to privacy;
10. Access to outside communication;
11. Access to education and training;
12. Right to form, join, or assist labor organization;
13. Right to be provided a copy of the employment contract;
14. Right to certificate of employment;
15. Right to terminate the employment; and
16. Right to exercise their own religious beliefs and cultural practices.
F. Effect of Reduction of Workdays on Wages
In situations where the employer has to reduce the number of regular working days to prevent serious losses, such as when there is a substantial slump in the demand for his or her goods or services or when there is lack of raw materials, the employer may deduct the wages corresponding to the days taken off from the workweek, consistent with the principle of “no work, no pay”. This is without prejudice to an agreement or company policy which provides otherwise.
G. Penalty and Double Indemnity for Violation of the Prescribed Increased or Adjustments in the Wage Rates (RA 8188)
Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases of adjustments in the wage rates made in accordance with RA 6727, shall be punished by a fine of not less than Twenty-five thousand pesos (P25,000) nor more than One Hundred Thousand Pesos (P100,000) or imprisonment of not less than two (2) years nor more than four (4) years, or both such fine and imprisonment at the discretion of the court: Provided, That any person convicted hereof shall not be entitled to the benefits provided for under the Probation Law.
The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided, that payment of indemnity shall not absolve the employer from the criminal liability imposable hereof.
If the violation is committed by a corporation, trust, firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entity’s responsible officers, including but not limited to, the president, vice-president, chief executive officer, general manager, managing director or partner.
H. Barangay Micro Business Enterprises (BMBEs)
BMBEs or business enterprises engaged in the production, processing or manufacturing of products or commodities including agro-processing, trading, and services whose total assets, excluding the land on which the particular business entity’s office, plant and equipment are situated are not more than Three Million Pesos (P3,000,000) shall be exempt from the coverage of the Minimum Wage Law; Provided, that all employees shall still be entitled to the same benefits given to regular employees such as social security and healthcare benefits.
The DTI, through the Negosyo Center in the city or municipality level, shall have the sole power to issue the Certificate of Authority for BMBEs to avail of the benefits provided by R.A. No. 9178, otherwise known as the “Barangay Micro Business Enterprises (BMBEs) Act of 2012”.
The BMBE workers and owners shall agree on the acceptable wage rates on the wage advisories issued by RTWPBs.
I. Minimum Wage of Workers Paid by Results
All workers paid by results, including homeworkers and those who are paid on piece rate, takay, pakyaw or task basis, shall receive not less than the prescribed minimum wage rates under the Regional Wage Orders for normal working hours which shall not exceed eight (8) hours a day, or a proportion thereof.
The wage rates of workers who are paid by results may be determined through time and motion studies or consultation with representatives of employers’ and workers’ organizations in a tripartite called by the DOLE Secretary.
J. Minimum Wage of Apprentices, Learners, and Persons with disability
The wage of apprentices and learners shall in no case be less than seventy-five (75%) percent of the applicable minimum wage rates.
Apprentices and learners are those who are covered by apprenticeship and learnership agreements duly approved by the Technical Education and Skills Development Authority (TESDA).
A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits or allowances as a qualified able-bodied person (Sec.1 of RA 10524 or the Magna Carta for Persons with disability).
K. Coverage from Income Tax of Minimum Wage Earners
Effective July 6, 2008, minimum wage earners (MWEs) are exempt from income tax. (R.A. No. 9504, as implemented by Revenue Regulations No. 10-2008)
The following income of MWEs shall also be exempt from income tax:
1. Statutory Minimum Wage (SMW) inclusive of the COLA;
2. Holiday pay;
3. Overtime pay;
4. Night shift differential pay; and
5. Hazard pay.