Providing an Increase in the Daily Minimum Wage in the National Capital Region

Providing an Increase in the Daily Minimum Wage in the National Capital Region

Wage Order No. NCR-08Oct 6, 2000Other Rules and Procedures8 min read

Wage Order No. NCR-08, issued on October 6, 2000, mandates an increase in the daily minimum wage for private sector workers in the National Capital Region of the Philippines. The new minimum wage is set at P250.00 per day, an increase of P26.50 from the previous rate, while certain sectors will see a smaller increase to P213.00 per day. The Order applies to all minimum wage earners, excluding domestic helpers and personal service workers. Exemptions may be granted for small businesses and distressed establishments upon application. The Wage Order takes effect on November 1, 2000, and non-compliance may result in penalties.

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What is Providing an Increase in the Daily Minimum Wage in the National Capital Region about?: Wage Order No. NCR-08, issued on October 6, 2000, mandates an increase in the daily minimum wage for private sector workers in the National Capital Region of the Philippines. The new minimum wage is set at P250.00 per day, an increase of P26.50 from the previous rate, while certain sectors will see a smaller increase to P213.00 per day. The Order applies to all minimum wage earners, excluding domestic helpers and personal service workers. Exemptions may be granted for small businesses and distressed establishments upon application. The Wage Order takes effect on November 1, 2000, and non-compliance may result in penalties.
What type of law is Wage Order No. NCR-08?: Providing an Increase in the Daily Minimum Wage in the National Capital Region (Wage Order No. NCR-08) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
When was Providing an Increase in the Daily Minimum Wage in the National Capital Region enacted?: Providing an Increase in the Daily Minimum Wage in the National Capital Region (Wage Order No. NCR-08) was enacted on Oct 6, 2000.
What is the citation for Providing an Increase in the Daily Minimum Wage in the National Capital Region?: Providing an Increase in the Daily Minimum Wage in the National Capital Region, Wage Order No. NCR-08, Oct 6, 2000 (Philippines)

Law Information

Reference Number: Wage Order No. NCR-08
Date Enacted: Oct 6, 2000
Category: Other Rules and Procedures
Subcategory: Labor and Employment
Jurisdiction: Philippines
Enacting Body: Congress of the Philippines

October 6, 2000

WAGE ORDER NO. NCR-08

PROVIDING AN INCREASE IN THE DAILY MINIMUM WAGE IN THE NATIONAL CAPITAL REGION

WHEREAS, The Regional Tripartite Wages Productivity Board-National Capital Region, has its mandate to conduct continuing studies of wage rates, unemployment and other conditions in the region; CDTHSI

WHEREAS, the Board views the need to alleviate the plight of the private sector workers and employees in the National Capital Region in order to address the present economic condition in the light of the recent series of oil and transportation fare increases;

NOW THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, otherwise known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board - National Capital Region hereby issues this Wage Order:

SECTION 1. Upon the effectivity of this Wage Order, private sector workers and employees in the National Capital Region receiving the prescribed daily minimum wage rate of P223.50 shall receive an increase of TWENTY SIX PESOS and FIFTY CENTAVOS (P26.50) per day, thereby setting the new minimum wage rate in the National Capital Region at TWO HUNDRED FIFTY PESOS (P250.00) per day.

SECTION 2. Workers in the following sectors/industries receiving the prescribed minimum wage rate of P198.00 per day shall receive an increase of FIFTEEN PESOS (P15.00) per day, thereby setting the prescribed minimum wage rate for these class of workers in the Region at TWO HUNDRED THIRTEEN (P 213.00) per day. SIacTE

a.1. Agriculture Workers

- Plantation

- Non-Plantation

a.2. Private hospitals with bed capacity of one hundred (100) or less

a.3. Retail/Service Establishments regularly employing fifteen (15) workers or less

a.4. Manufacturing establishments regularly employing less than ten (10) workers

All other establishments heretofore not previously covered under Wage Order No. NCR-07 shall pay the prescribed minimum wage rate of TWO HUNDRED FIFTY PESOS (P250.00) per day, payable in three (3) tranches as follows:

Amt of Increase	Prescribed Min. Wage	Effectivity

P20.00	P218.00/day	01 November 2000
20.00	238.00/day	01 May 2001
12.00	250.00/day	01 October 2001

SECTION 3. The new minimum wage rates prescribed under this Order shall apply to all minimum wage earners in the private sector in the Region regardless of their position, designation or status and irrespective of the method by which their wages are paid. DAHCaI

SECTION 4. Exempted from the provisions of this Order are household or domestic helpers and persons in the personal service of another, including family drivers.

SECTION 5. In the case of private educational institutions, the share of covered workers and employees in the increase in tuition fees for School Year 2000-2001 shall be considered as compliance with the wage increase prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2001-2002.

Private educational institutions which did not increase their tuition fees for the School Year 2000-2001 may defer compliance with the provisions of this Wage Order until School Year 2001-2002.

In any case, all private educational institutions shall implement the increase in the daily minimum wage rate prescribed herein starting School Year 2001-2002.

SECTION 6. In the case of workers covered by contracts for works and services the prescribed increase in wage set forth herein shall be borne by the principal and the contract previously forged between the principal and the contractor is deemed amended accordingly. In the event that the principal fails to pay the prescribed increase, the contractor shall be jointly and severally liable with the principal. IECcaA

SECTION 7. All workers paid by result, including those who are paid on piecework, "takay", "pakyaw" or task basis, shall be entitled to receive the prescribed minimum wage increase per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

SECTION 8. Wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the minimum wage rate prescribed in this Order. Pursuant to Section 5, Title II of Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons, all handicapped employees shall receive the full minimum wage prescribed in this Order.

SECTION 9. Upon application with and as determined by the Board, based on documentation and other requirements in accordance with the applicable rules and regulations issued by the commission, the following may be exempt from the applicability of this Order:

1. Retail/Service establishments regularly employing not more than ten (10) workers; and

2. Distressed establishments as defined in the NWPC Guidelines No. 01, series of 1996 may be exempt from the applicability of this Order.

3. Exporters, including indirect exporters, with at least fifty percent (50%) export sale and with forward contracts with their foreign buyers/principals entered into on or twelve months (12) before the date of publication of this Order may be exempt during the lifetime of the said contract but not to exceed twelve (12) months from the effectivity of this Order. DHAcET

SECTION 10. All applications for exemption from compliance with this Order shall be filed within seventy five (75) days from the date of the publication of the Rules implementing this Order, with the complete supporting documents as specified in the Rules. Failure to submit the required supporting documents within the prescribed period will be tantamount to dismissal of the application for exemption. The Board has the discretion to grant full or partial exemption to such employer with respect to the amount or period of exemption but in no case shall it exceed one (1) year from the effectivity of this Order.

SECTION 11. Whenever an application for exemption has been duly filed with the Board, action on any complaint for alleged non-compliance with this Wage Order shall be deferred pending its resolution.

SECTION 12. In the event that the application for exemption is not granted, the employees of the applicant firm shall receive the appropriate compensation due them as provided for in this Order, together with the payment of interest amounting to one percent (1%) per month retroactive to the effectivity of this Order.

SECTION 13. Wage increases granted by an employer in an organized establishments within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increased set forth herein, provided 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 increase prescribed in this Order. cSIADH

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

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

SECTION 14. Where the application of the wage increase prescribed in this Order results in distortions in the wage structure within the establishment, the wage distortions may be resolved using the following formula:

Minimum Wage under WO-NCR-07	X	Amt of Min. Wage	=	Amount of adjustment
Present Salary		Adjustment in W.O. NCR-08		due to distortion

SECTION 15. Any employer who refuses or fails to pay the prescribed daily minimum wage rates provided under this Wage Order shall be subject to the penalties specified under R.A. 6727, as amended by R.A. 8188.

SECTION 16. The Regional Tripartite Wages and Productivity Board - National Capital Region shall prepare the necessary rules and regulations to implement this Order. ISCcAT

SECTION 17. If any provision or part of this Wage Order is declared unconstitutional, or illegal, the other provisions or parts thereof shall remain valid. Nothing in this Order shall be construed to reduce any existing wage rate, allowance or other benefit under existing laws, decrees, issuance, and executive orders or under any contract or agreement between workers and employers.

SECTION 18. This order shall take effect on 01 November 2000.

Approved.

Manila, Philippines, 06 October 2000.

Dissenting

(SGD.) DANIEL R. ANG

Labor Representative