DAILY MINIMUM WAGE RATES
Cordillera Administrative Region (CAR) a/
Wage Order No. RB-CAR-15 b/
(Effective June 18, 2012)
DAILY M I N I M U M W A G E R A T E S
Baguio City,
Municipalities of La
Industry/Sector
Trinidad, Tuba, Itogon Other Areas in the Region
and Sablan, Benguet
(BLIST)
BASIC
WAGE
Non-Agriculture
P
COLA
TOTAL
P 37.00
P
243.00
Agriculture
BASIC
WAGE
COLA
P 237.00 P 26.00
TOTAL
P 263.00
280.00
230.00
32.00
262.00
224.00
22.00
246.00
more 243.00
37.00
280.00
237.00
26.00
263.00
37.00
260.00
217.00
22.00
239.00
Retail/Service
Employing
than 10
workers
Employing 10
workers or
223.00
less
a/ Covers the Provinces of Mt. Province, Abra, Benguet, Ifugao, Kalinga and
Apayao and the City of Baguio.
b/ Grants an P8.00 per day wage increase.
Issued on May 18, 2012 and published at Baguio Midland Courier on June 3, 2012.
Posted: 13 June 2012/June 18, 2012
DAILY MINIMUM WAGE RATES
National Capital Region (NCR) a/
Per Wage Order No. NCR-17 b/
Effective: 3 June 2012
Upon Effectivity:
Sector/Industry
Non-Agriculture
Agriculture (Plantation and Non
Plantation)
Private Hospitals with bed
capacity of 100 or less
Retail/Service Establishments
employing 15 workers or less
Manufacturing Establishments
regularly employing less than 10
worker
Basic Wage
After COLA
Integration
COLA
New
Minimum
Wage
Rates
P 426.00
P 20.00
P 446.00
P 389.00
P 20.00
P 409.00
P 389.00
P20.00
P 409.00
P 389.00
P20.00
P 409.00
P 389.00
P 20.00
P 409.00
Effective 01 November 2012:
Sector/Industry
Non-Agriculture
Agriculture (Plantation and Non
Plantation)
Private Hospitals with bed
capacity of 100 or less
Retail/Service Establishments
employing 15 workers or less
Manufacturing Establishments
regularly employing less than 10
workers
a/ Covers
Basic Wage
COLA
New
After
COLA Effective Minimum
COLA
Effective
1
Wage
Integration 3 June November Rates
2012
2012
P 426.00
P 20.00
P 10.00
P 456.00
P 389.00
P 20.00
P10.00
P 419.00
P 389.00
P20.00
P10.00
P 419.00
P 389.00
P20.00
P10.00
P 419.00
P 389.00
P 20.00 P 10.00 P 419.00
the Cities of Caloocan, Las Pinas, Makati, Malabon,
Mandaluyong, Manila, Marikina, Muntinlupa, Paranaque, Pasay,
Pasig, Quezon, San Juan, Taguig, and Valenzuela and
Municipalities of Navotas and Pateros.
b/ Grants the following to all minimum wage workers in the private
sector in the region:
a. Integration of P22.00 COLA under W.O. No. RB-NCR-16 into the
basic wage.
b. P30.00 COLA per day to be given into two (2) tranches:
> P20.00/day upon effectivity of this Wage Order
> P10.00/day effective November 1, 2012
W.O. issued 17 May 2012, published at Philippine Daily Inquirer on
19 May 2012.
Basis.
All employees required to work beyond eight hours in one workday is entitled to overtime pay. The basis
of overtime pay is found in Article 87 of the Labor Code.
Article 87. Overtime work. Work may be performed beyond eight hours a day provided that
theemployee is paid for the overtime work an additional compensation equivalent to his regular wage
plus at least twenty-five percent thereof. Work performed beyond eight hours on a holiday or rest day
shall be paid an additional compensation equivalent to the rate for the first eight hours on a holiday or
rest day plus at least 30 percent thereof.
Terminology.
Overtime Pay.
Overtime pay is the additional compensation payable to employee for services or work rendered beyond
the normal eight hours of work. It is computed by multiplying the overtime rate with the number of hours
in excess of the regular eight hours of work.
Overtime Work.
Any work performed beyond the normal 8 hours of work in one workday is considered as overtime work.
Workday.
A workday is the consecutive 24-hour period which commences from the time the employee starts to
work and ends at the same time the following day. To illustrate, if the employee regularly works from 8AM
to 4PM, his regular workday is the 24-hour period from 8AM to 8AM of the following day. Workdays do
not necessarily corresponds to calendar days.
Overtime Pay Rates.
Overtime pay rates depend upon the day the work is performed, whether it is ordinary
working day, special day, holiday or rest day.
For ordinary working day, an additional compensation equivalent to his regular hourly
rate plus at least 25% thereof.
For holiday, special day and rest day, an additional compensation equivalent to the rate
for the first eight hours on a holiday or rest day plus at least 30% thereof.
Computation of Overtime Pay
Assuming that the mininum wage rate is P250, how much is the overtime rate per hour?
On ordinary day
On an ordinary day, the overtime rate per hour is determined as follows:
First, compute the hourly rate of the employee:
Regular hourly rate = Minumum wage rate ÷ 8 hours
= P250 ÷ 8 hours
= P31.25 per hour
Now to determine overtime rate per hour:
Overtime rate = Regular hourly rate + 25% of Regular hourly rate
Overtime rate = P31.25 + (25% of P31.25)
= P31.25 x 1.25
= P39.06 per hour
On rest day and special day
Compute the hour rate of the employee on a rest day or special day:
Hourly rate = 130% of Regular hourly rate
= P31.25 x 1.30
= P40.625 per hour
(Note: The hourly rate on rest day and special day is 130% of the regular rate.)
To determine overtime rate per hour:
Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest day
= P40.625 + (30% of P40.625)
= P40.625 x 1.30
= P52.81 per hour
On rest day which falls on a special day
Compute the hourly rate of the employee on a rest day which falls on a special day:
Hourly rate = 150% of Regular hourly rate
= P31.25 x 1.50
= P46.875 per hour
To determine overtime rate per hour:
Overtime rate = Hourly rate + 30% of Hourly rate
= P46.875 + (30% of P46.875)
= P46.875 x 1.30
= P60.94 per hour
On a regular holiday
Compute the hourly rate on regular holiday:
Hourly rate = 200% of Regular hourly rate
= P31.25 x 2
= P62.5 per hour
To determine overtime rate per hour:
Overtime rate = Hourly rate + 30% of Hourly rate
= P62.50 + (30% of P62.50)
= P62.50 x 1.30
= P81.25 per hour
On a rest day which falls on a regular holiday
Compute the hourly rate:
Hourly rate = 260% of Regular hourly rate
= P31.25 x 2.60
= P81.25 per hour
To determine overtime rate per hour:
Overtime rate = Hourly rate + 30% of Hourly rate
= P81.25 + (30% of P81.25)
= P81.25 x 1.30
= P105.625 per hour
Computation of wages
The Department of Labor and Employment (DOLE) has set out the following rules in
computing overtime pay, pay for work done on holidays, premium on nightshift and
13th month pay:
Computing Overtime:
On Ordinary Days
Plus 25% of the hourly rate multiplied by the number of hours.
On a rest day, special day or regular holiday
Plus 30% of the hourly rate on said days multiplied by the number of hours.
Computing pay for work done on:
A special day (130% x basic pay)
A special day, which is also a scheduled rest day (150% x basic pay)
A regular holiday (200% x basic pay)
A regular holiday, which is also a scheduled rest day (260% x basic pay)
Computing Night Shift Premium Where Night Shift is a Regular Work:
On Ordinary day (110% x basic hourly rate)
On a rest day, special day, regular holiday (110% of regular hourly rate for a rest day,
special day, regular holiday)
The Labor Code provides that every employee is entitled to a night shift differential or night
shift pay of not less than ten percent (10%) of his regular wage for each hour of work performed
between 10 p.m. and 6 a.m. night shift differential pay also known as Night Shift Pay to
compensate them for the hazards and inconvenience of working at odd hours when the body is
normally asleep.
If overtime work or work in excess of eight (8) hours falls within the night shift period,
premiums for overtime work should first be integrated into the regular hourly rate of the
employee before computing night shift pay.
Computing Overtime on Night Shift:
On ordinary day (110% x overtime hourly rate)
On rest day, special day or regular holiday (110% x overtime hourly rate for rest days,
special days, regular holidays)
Computing 13th Month Pay:
Total basic salary earned for the year exclusive of allowances, overtime, holiday, and
night shift differential pay divided by 12 months = 13th month pay.
Sample computation of Overtime Pay per
Hour
Let us assume a regular daily wage rate of Php 404.00, what is the overtime rate per
hour?
On Ordinary days:
First, let’s compute for the hourly wage rate as follows:
Regular hourly rate = Daily wage rate / 8 hours
= P404/8
= P50.5 per hour
Then, let’s compute for the overtime rate per hour as follows:
Overtime rate = hourly rate + 25% of hourly rate
= P50.5 + (.25 x 50.5)
=P50.5 + 12.65
=P63.125 per hour
On a rest day and special day
Computation of hourly wage rate:
Hourly rate = 130% of Regular Hourly Rate
= P50.5 x 1.3
= P65.65 per hour
Computation of overtime rate:
Overtime rate = Hourly rate + 30% of Hourly rate
= P65.65 + (30% of P65.65)
= P65.65 + P19.695
= P85.345 per hour
On a rest day which falls on a special day
Computation of hourly wage rate:
Hourly rate = 150% of Regular hourly rate
=P50.5 x 1.5
=P75.75 per hour
Computation of overtime rate:
Overtime rate = Hourly rate + 30% of Hourly rate
= P75.75 + (30% of P75.75)
= P75.75 + 22.725
= P98.475
On a regular holiday
Computation of hourly wage rate:
Hourly rate = 200% of Regular hourly rate
=P50.5 x 2
=P101 per hour
Computation of overtime rate:
Overtime rate = Hourly rate + 30% of Hourly rate
=P 101 + (30% of P101)
=P101 + 30.3
=P131.3 per hour
On a rest day which falls on regular holiday
Computation of hourly wage rate:
Hourly rate = 260% of Regular hourly rate
=P50.5 x 2.6
=P131.3 per hour
Computation of overtime rate:
Overtime rate = Hourly rate + 30% of Hourly rate
=P 131.3 + (30% of P131.3)
=P131.3 + 39.39
=P170.69 per hour
Here are the Basic Benefits for Employees covered by the Philippine Labor Code:
1.
Social
Security
Systems
(SSS)
Contributions
Republic Act No. 8282, otherwise known as the Social Security Act of 1997, refers to the social security system in the Philippines
that is initiated, developed and promoted by its Government. The social security system is aimed at providing protection for the
SSS member against socially recognized hazard conditions, such as sickness, disability, maternity, old age and death, or other
such contingencies not stated but resulted in loss of income or results to a financial burden.
The employee and his/her employer(s) are to contribute for the social security benefits of the said employee in accordance to a
given schedule by the Philippine Social Security System. Monthly employee contribution depends on the employee's actual
monthly salary. (See: Circular No. 33-P)
2.
Contribution
to
National
Health
Insurance
Program
(NHIP)
The employee and his/her employer(s) are to contribute for the medical insurance of the said employee in accordance to the
Republic Act 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth).
Monthly employee contribution depends on the employee's actual monthly salary. The contribution schedule is provided by
Philhealth. (See: Philhealth Premium Contribution Schedule)
3.
Contribution
to
Home
Development
and
Mutual
Fund
(HDMF)
The employer(s) is required to contribute per month not less than P100.00 to the employee's Home Development and Mutual
Fund. In accordance to the periodic remittance schedule provided by HDMF, the employer(s) will remit this contribution, in addition
to that of the employee's, which is to be deducted from his/her payroll.
4.
The
13th
Month
Pay
As mandated by the Presidential Decree No. 851, the employee shall receive a bonus salary equivalent to one (1) month,
regardless of the nature of his/her employment, not later than December 24 of every year.
5.
Service
Incentive
Leave
Book III, Chapter III of the Labor Code of the Philippines covers the employee's benefit for Service Incentive Leaves. According to
Article 95, an employee who has rendered at least one year of service is entitled to a yearly five days service incentive leave with
pay. (See: Article 95, Conditions of Employment)
6.
Meal
and
Rest
Periods
Under Article 83, the employee is provided a one-hour employee benefit for regular meals, when working on an eight (8 hour)
stretch. Employees are also provided adequate rest periods in the morning and afternoon which shall be counted as hours
worked. (See: Article 83, Conditions of Employment).
All these provisions apply in addition to every new employee benefits furnished that are in excess of what is stipulated by the Philippine
Labor Code. Other regular Philippine employees benefits furnished by the employer(s) but are outside of the mandated employee benefit
includes, but not limited to:
1.
2.
3.
4.
5.
Housing and housing plans
Expense Account
Company sponsored vehicle
Paid Holiday and Vacation
Educational assistance or plans to the employee and/or his direct dependents.
1.
Minimum wage = P426 per day
2. 13th month pay (after 1 month of service) = 1/12 of the total basic salary earned by an employee within a calendar year
3. Overtime pay= 25% premium on hourly rate
4. Night shift differential if work between 10:00 PM to 6:00 AM = 10% premium on hourly rate
5. Special Non-Working day = 30% premium if worked
6. Regular holiday pay= 100% premium if worked, paid if unworked
7. Service Incentive Leave = 5 days after 1 year of service
8. Maternity Leave = daily maternity benefit equivalent to one hundred percent (100%) of her average salary credit for sixty (60) days or
seventy-eight (78) days
9. Paternity leave = 7 days leave with pay (married only)
10. Parental leave for solo parents= 7 days leave with pay
11. Social Security System contribution (based on salary)
12. Pag-ibig contribution (based on salary)
13. Philhealth contribution (based on salary)
Premium Pay
Premium Pay refers to the additional compensation required by law for work performed
within eight (8) hours on non-working days, such as rest days and special days.
Special Days (e.g. Special (Non-Working) Holiday)
Special Days
During special days, the principle of "no work, no pay" applies and on such other special
days as may be proclaimed by the President or by the Congress.
Workers who were not required or permitted to work on those days are not by law entitled
to any compensation. This, however, is without prejudice to any voluntary practice or
provision in the Collective Bargaining Agreement (CBA) providing for payment of wages
and other benefits for days declared as special days even if unworked.
Under Executive Order No. 292 as amended by Republic Act No. 9849 unless otherwise
modified by law,order or proclamation, the following are the special days in a year under
that shall be observed in the country:



Ninoy Aquino Day
All Saints Day
Last Day of the year
Monday Nearest Aug. 21
November 1
December 31
Holiday Pay
Holiday Pay refers to the payment of the regular daily wage for any unworked regular
holiday.
Regular Holidays
Every employee covered by the holiday pay rule is entitled to his daily wage for any
unworked regular holiday. This means that the employee is entitled to at least 100% of his
wage even if he did not report for work, provided he is present or is on leave of absence with
pay on the work day immediately preceding the holiday.
Under Executive Order No. 292, as amended by RA 9849: unless otherwise modified by
law, order or proclamation, the following are the regular holidays in a year:

New Year's Day
January 1











Maundy Thursday
Good Friday
Araw ng Kagitingan
Labor Day
Independence Day
National Heroes Day
Eid ul Fi'tr
Eid ul Adha
Bonifacio Day
Christmas Day
Rizal Day
Movable date
Movable date
Monday nearest April 9
Monday nearest May 1
Monday nearest June 12
last Monday of August
Movable date
Movable date
Monday nearest November 30
December 25
Monday nearest December 30
Overtime Pay
Overtime Pay refers to the additional compensation for work performed beyond eight (8)
hours a day.
Night Shift Differential
Night Shift Differential refers to the additional compensation of ten percent (10%) of an
employee's regular wage for each hour of work performed between 10:00PM and 6:00AM.
13th Month Pay
All employers are required to pay their rank and file employees regardless of the nature of
their employment and irrespective of the method by which their wages are paid provided
they worked for at least one (1) month during a calendar year. 13th Month Pay should be
given to the employees not later than December 24 of every year.
Computation of Wages
Computation of wages is governed by the following rules:
Computing Overtime:
On Ordinary Days
Plus 25% of the hourly rate multiplied by the number of hours.
On a rest day, special day or regular holiday
Plus 30% of the hourly rate on said days multiplied by the number of hours.
Computing pay for work done on:
A special day (a total of 130% x basic pay)
A special day, which is also a scheduled rest day (a total of 150% x basic pay)
A regular holiday (a total of 200% x basic pay)
A regular holiday, which is also a scheduled rest day (a total of 260% x basic pay)
Computing Night Shift Premium Where Night Shift is a Regular Work:
On Ordinary day (110% x basic hourly rate)
On a rest day, special day, regular holiday (110% of regular hourly rate for a rest day,
special day, regular holiday)
Computing Overtime on Night Shift:
On ordinary day (110% x overtime hourly rate)
On rest day, special day or regular holiday (110% x overtime hourly rate for rest days,
special days, regular holidays)
Computing 13th Month Pay:
Total basic salary earned for the year exclusive of allowances, overtime, holiday,
premium and night shift differential pay divided by 12 months = 13th month pay.
Service Charges
Employees of employers collecting service charges are entitled to an equal share in the
85% of the total of such charges, except managerial employees. The remaining 15% of the
charges may be retained by the management to answer for losses and breakages and for
distribution to managerial employees, at the discretion of the management in the latter case.
Service charges are collected by most hotels and some restaurants, night clubs, cocktail
lounges, among others.
Service Incentive Leave
Every employee who has rendered at least one (1) year of service is entitled to a yearly
service incentive leave of five (5) days with pay.
This benefit does not apply to the following:
* government employees
* house helpers and persons in the personal service of another
* managerial employees
* field personnel and those whose time and performance is unsupervised by the employer
* those already enjoying this benefit
* those enjoying vacation leave with pay of at least five (5) days
* those employed in establishments regularly employing less than ten (10) employees
Meaning of "one year of service"
The phrase "one year of service" of the employee means service within 12 months,
whether continuous or broken, reckoned from the date the employee started working. The
period includes authorized absences unworked weekly rest days, and paid regular holidays.
Where by individual or collective agreement, practice or policy, the period of working days
is less than 12 months, said period shall be considered as one year for the purpose of
determining entitlement to the service incentive leave.
Availment/Commutation to Cash
The service incentive leave may be used for sick and vacation leave purposes. The unused
service incentive leave is commutable to its monetary equivalent at the end of the year. In
computing, the basis shall be the salary rate at the date of commutation.
The availment and commutation of this benefit may be on a pro rata basis.
Paternity Leave (RA 8187)
Paternity Leave is granted to all married male employees in the private sector, regardless
of employment status, (e. g. probationary, regular, contractual, project-based) the purpose of
which is to allow the husband to lend support to his wife during her period of recovery
and/or in the nursing of her newborn child.
The paternity leave shall be for seven (7) calendar days, with full pay, consisting of
basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided
that his pay shall not be less than the mandated minimum wage.
Availment of the paternity leave shall be after the delivery, without prejudice to an
employer's policy of allowing the employee to avail of the benefit before or during the
delivery, provided that the total number of days shall not be more than seven (7) days for
each covered delivery.
Maternity Leave (RA 8282)
Every pregnant woman in the private sector, whether married or unmarried, is entitled to
maternity leave of sixty (60) days in case of normal delivery, or miscarriage, or seventyeight (78) days in case of caesarian section delivery, with benefits equivalent to 100% of the
average daily salary credit of the employee as defined under the Social Security Law.
Parental Leave for Solo Parents (RA 8972)
Parental leave for solo parents is granted to any solo parent or individual who is left alone
with the responsibility of parenthood to enable him/her to perform parental duties and
responsibilities where physical presence is required.
The parental leave in addition to leave privileges under existing laws, shall be for seven
(7) work days every year, with full pay, consisting of basic salary and mandatory allowances
fixed by the Regional Wage Board, if any, provided that his/her pay shall not be less than the
mandated minimum wage.
Emergency and contingency leave provided under a company policy or a collective
bargaining agreement shall not be credited as compliance with the parental leave.
Leave for Victims of Violence Against Women and Their Children (VAWC)
(RA 9762)
VAWC leave is granted to private sector women employees who are victims as defined in
the law. The leave benefit shall cover the days that the women employee has to attend to
medical and legal concerns.
In addition to other paid leaves under existing labor laws, company policy, and/or
collective bargaining agreement, the qualified victim employee shall be entitled to a leave of
up to ten (10) days with full pay, consisting of basic salary and mandatory allowances fixed
by the Regional Wage Board, if any.
Special Leave for Women (RA 9710)
A women employee, who has rendered continuous aggregate eployment service of at least
6 months for the last 12 months, is entitled to a special leave benefit of 2 months with full
pay based on her gross monthly compensation following surgery caused by gynecological
disorders.
Separation Pay
Separation pay is given to employees in instances covered by Articles 283 and 284 of the
Labor Code. An employee's entitlement to separation pay depends on the reason or ground
for the termination of his services. An employee may be terminated for just cause (i.e. gross
and habitual neglect of duty, fraud or commission of a crime) and other similar causes as
enumerated under Article 282 of the Labor Code and generally, may not be entitled to
separation pay.
On the other hand, where the termination is for authorized causes, separation pay is due.
Retirement Pay
Retirment pay is given to employees if they have reached the age of sixty (60) years or
more but not beyond sixty-five (65) years old and have served the establishment for at least
five (5) years. This retirement benefit is separate and distinct from that granted by the
Social Security System.
Date Last Reviewed: 2009-12-21 12:00:18