NWPC lauds signing of tax exemption law

The  National  Wages and Productivity  Commission lauded the signing into law of Republic Act 9504 or An Act Amending Sections 22, 24, 34, 35, 51, and 79 of RA 8424 or the National Internal Revenue Code of 1997.

RA 9504  provides that minimum wage earners shall be exempt from the payment of income tax.  Said exemption also extends to  holiday pay, night shift differential, hazard pay and overtime pay of minimum wage earners.

NWPC Executive Director  Ciriaco  A.  Lagunzad III stated that the tax exemption law comes at a very opportune  time because  it gives our wage earners a larger take home pay to  help them catch up with the rising  prices of goods and commodities.

Lagunzad added that RA 9504 is part of the  non-wage benefits for workers which are being enhanced by the government to help augment the income of the Filipino workers and their families.

RA 9504 also  increases the allowance for personal exemption of individual taxpayers to a flat rate of P50,000 per individual Taxpayers regardless of status and further exemptions of P25,000 per  qualified dependent for up to four dependents in a family.

It increases personal exemptions for individual taxpayers to P50,000 from 20,000 for single; from P25,000 for head of the family; from P32,000 for married; and from P8,000 to P25,000 for each qualified dependents of up to four.  Thus, in the case of a family of six with two working spouses and four dependent children, who  used to enjoy total exemptions of P96,000, the total  amount of exemptions under the new law  would be P200,000.

The new law is expected to help ease the impact of continuing rise in oil and food prices on the people, as it would provide relief and additional money to spend for basic necessities especially for minimum wage earners

It is estimated that there are  more than half a million minimum wage earners in both the private and public sectors who will benefit from this new law.  

The Bureau of Internal  Revenue is expected to  release the Revenue Regulations to implement the new  law, as soon as possible.

Updated June 27, 2008

NCR Wage Order takes effect June 14, 2008

The National  Wages and Productivity said that the new wage hike for minimum wage workers in the private sector in the National Capital Region (NCR) took effect Saturday, (June 14, 2008).

NWPC Executive Director Ciriaco  A.  Lagunbzad III  said the effectivity of the wage hike is based on Wage Order No. 14, issued by the Regional Tripartite Wages and Productivity Board (RTWPB) in the NCR, which granted a P20 per day increase for minimum wage workers in private sector in the region on May 16.
Roque said that the P20 wage increase consists of P15 increase in the basic pay, and P5 cost-of-living-allowance (COLA) which will be automatically integrated into the basic pay on August 28, 2008.

Amidst the development, the Labor Chief cited an earlier report of DOLE National Wages and Productivity Commission (NWPC) Executive Director Ciriaco A. Lagunzad III that all wage boards in the nation's 17 regions have completed the new wage rounds.

Roque said that on top of the NCR, these are the wage boards, respectively, in the Cordillera Administrative Region (CAR), Region I (Ilocos), Region II (Cagayan Valley), Region III (Central Luzon), Region IV-A (CALABARZON), Region IV-B (MIMAROPA), Region V (Bicol), Region VI (Western Visayas), Region VII (Central Visayas), Region VIII (Eastern Visayas), Region IX (Zamboanga Peninsula), Region X (Northern Mindanao), Region XI (Davao Region), Region XII (SOCKSARGEN), Region XIII (CARAGA), and the Autonomous Region in Muslim Mindanao (ARMM).

Roque was apprised by Lagunzad that, after completing their deliberations, the wage boards in the said regions have granted wage increases to the minimum wage workers in the private sector, as follows: Cordillera Administrative Region (CAR)- P10 and P15 additional COLA was granted by the Regional Board on May 27; Region I (Ilocos)- P10 COLA was granted by the Regional Board on May 29;

Region II (Cagayan Valley)- P12 wage increase was granted by the Regional Board on May 22, along with integration of the P8 COLA under Wage Order (WO) No. RTWPB II-9 into the basic wage upon effectivity of the Order; Region III (Central Luzon)- P15 increase (P10 in the basic pay and P5 COLA) was granted by the Regional Board on May 21, along with integration of the P9 COLA under WO No. RB III-13 into the basic wage upon effectivity of the Order; Region IV-A (CALABARZON)- P12 to P20 increase in the basic pay was granted by the Regional Board on May 14; Region IV-B (MIMAROPA)- P10 wage increase for all sectors, and P5.00 COLA for non-agriculture sector only, was granted by the Regional Board on May 21; Region V (Bicol)- P13 COLA (P6 to be integrated to the basic wage 6 months after effectivity) was granted by the Regional Board on May 29; Region VI (Western Visayas)- P15 Emergency Relief Allowance (ERA) was granted by the Regional Board on May 22; Region VII (Central Visayas)- P17 increase in basic pay was granted by the Regional Board on May 22; Region VIII (Eastern Visayas)- P10 COLA additional COLA was granted by the Regional Board on May 20; Region IX- (Zamboanga Peninsula)- P5 basic pay and P10 COLA (for a period of three months, thereafter integration of P5 out of the P10 COLA under WO No. IX-14 into the basic pay); Region X (Northern Mindanao)- P12 COLA was granted by the Regional Board on May 14, along with integration of the P16 COLA under WO No. RX-12 to the basic wage upon effectivity of the Order, and integration of the P10 COLA under WO No. RBX-13 on November 16, 2008; Region XI (Davao Region)- P15 COLA was granted by the Regional Board on May 21, along with integration of the P16 COLA under WO No. RTWPB XI-13 upon effectivity of the Order, and integration of the P10 COLA under WO No. RTWPB XI-14 on September 16, 2008; Region XII (SOCKSARGEN)- P7 to P10.50 increase in basic pay, and P3 to P5 COLA, was granted by the Regional Board on May 22; Region XIII (CARAGA)- P8 increase in basic pay and P5 additional COLA was granted by the Regional Board on May 28, 2008; and, ARMM- P10 increase in the basic pay.

Updated June 12, 2008

Regional Boards complete wage issuances

The National Wages and Productivity Commission said that the wage boards have completed their wage deliberations and granted wage hikes to the minimum wage workers in the private sector.
NWPC Executive Director Ciriaco A. Lagunzad III said that the 17 regions have granted wage hikes as follows:

¨ National Capital Region (NCR) - P20 increase (P15 on the basic pay and P5 cost of living allowance or COLA to be integrated to the basic pay on August 28, 2008) was granted by the Regional Board on May 16, 2008;
¨ Cordillera Administrative Region (CAR) - P10 and P15 additional COLA was granted by the Regional Board on May 27;
¨ Region I (Ilocos) - P10 COLA was granted by the Regional Board on May 29;
¨ Region II (Cagayan Valley) - P12 wage increase was granted by the Regional Board on May 22, along with integration of the P8 COLA under Wage Order (WO) No. RTWPB II-9 into the basic wage upon effectivity of the Order;
¨ Region III (Central Luzon) - P15 increase (P5 in the basic pay and P10 COLA) was granted by the Regional Board on May 21, along with integration of the P9 COLA under WO No. RB III-13 into the basic wage upon effectivity of the Order;
¨ Region IV-A (CALABARZON) - P12 to P20 increase in the basic pay was granted by the Regional Board on May 14;
¨ Region IV-B (MIMAROPA) - P10 wage increase for all sectors, and P5.00 COLA for non-agriculture sector only, was granted by the Regional Board on May 21;
¨ Region V (Bicol) - P13 COLA (P6 to be integrated to the basic wage 6 months after effectivity) was granted by the Regional Board on May 29;

¨ Region VI (Western Visayas) - P15 Emergency Relief Allowance (ERA) was granted by the Regional Board on May 22;
¨ Region VII (Central Visayas) - P17 increase in basic pay was granted by the Regional Board on May 22;
¨ Region VIII (Eastern Visayas) - P10 COLA additional COLA was granted by the Regional Board on May 20;
Region IX- (Davao Region) – P5 basic pay and P10 COLA (for a period of three months; thereafter integration of P5 out of the P10 COLA under XO No. IX-14 into the basic pay).
¨ Region X (Northern Mindanao) - P12 COLA was granted by the Regional Board on May 14, along with integration of the P16 COLA under WO No. RX-12 to the basic wage upon effectivity of the Order, and integration of the P10 COLA under WO No. RBX-13 on November 16, 2008;
¨ Region XI (Davao Region) - P15 COLA was granted by the Regional Board on May 21, along with integration of the P16 COLA under WO No. RTWPB XI-13 upon effectivity of the Order, and integration of the P10 COLA under WO No. RTWPB XI-14 on September 16, 2008;
¨ Region XII (SOCKSARGEN) - P7 to P10.50 increase in basic pay, and P3 to P5 COLA, was granted by the Regional Board on May 22; and,
¨ Region XIII (CARAGA) - P8 increase in basic pay and P5 additional COLA was granted by the Regional Board on May 28, 2008.
ARMM- P10 increase in the basic pay.

Updated June 5, 2008

Regional Boards 6, 8, 12 approve wage adjustment

The National Wages and Productivity Commission announced today that three more Regional Tripartite Wages and Productivity Boards have approved the wage adjustments in their respective regions.

According to Esther F. Guirao, Officer-in-Charge of the NWPC, the Regional Boards in Western Visayas or Region VI, Central Visayas or Region VII and SOCKSARGEN (South Cotabato, Koronadal, Saranggani and General Santos) or Region 12 granted increases in the daily minimum wage of workers in the private sector.

The new wage orders brings to 11 the total of wage issuances of the Regional Boards this month. Earlier, Regional Boards NCR, 2, 3, 4-A, 4-B, 8, 10 and 11 granted increases to minimum wage earners.

The Regional Board in Western Visayas approved Wage Order RTWPB VI-16 granting a P15.00 Emergency Relief Allowance (ERA) per day, while the Central Visayas regional board granted a P17.00 per day increase in the basic pay. The Regional Board in SOCKSARGEN, on the other hand, approved a P7.00 to P10.50 per day increase in the basic pay and an additional P3.00 to P5.00 cost of living allowance per day.

Upon effectivity of the new wage order in Western Visayas, the minimum wage in the sugar industry will range from P208-250 per day inclusive of the P15.00 ERA. Non-agriculture and retail/service establishment workers will get P250 per day while those in the agriculture sector will receive P118.00 per day inclusive of the P15.00 ERA.

In the new wage order, minimum wage earners in Central Visayas in the non-agricultural sector will range from P222.00 to 267.00 per day while those in the agriculture sector will range from P222.00 to 249.00 per day depending on the area classification

Bsed on the new wage order which was approved unanimously by the SOCKSARGEN Regional Board, the total compensation of private sector workers in SOCKSARGEN will be P245.00 per day in the non-agriculture, P220.00 to 225.00 per day in the agriculture, and P219.00 per day to 222.00 in the retail/service establishments inclusive of P3.00 to P5.00 cola per day.

The new minimum wage rates, according to the latest wage orders, applies 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.

Only six Regional Boards are yet to issue their wage orders, as follows: Cordillera Administrative Region, 1, 5, 9 , 13 and Autonomous Region of Muslim Mindanao.

Updated May 23, 2008

Regions 3, 8 wage hike

The National Wages and Productivity Commission announced yesterday that the Regional Tripartite Wages and Productivity Boards in Central Luzon and Eastern Visayas approved the wage adjustments in their respective areas for minimum wage earners in the private sector.

According to NWPC Executive Director Ciriaco A. Lagunzad III, Regions III and VIII have issued new wage orders which will increase the minimum wage rates in their respective regions.

The Regional Board in Central Luzon approved Wage Order RBIII-14 which will grant an increase of P15.00 per day in the minimum wage rate of the said region.

The P15.00 per day increase is composed of an additional P5.00 in the basic pay and P10.00 cost of living allowance. The previous P9.00 cola under Wage Order RB III-13 will be integrated to the basic pay upon effectivity of the new wage order.

The total compensation of non-agriculture sector workers in Region III will be P302.00 per day while those in the agricultural plantation will have P272.00 and plantation P256.00 inclusive of the P10.00 cola per day. Workers in the retail/service sector will get 291.00, and manufacturing sector is from P325.00 to P345.00 including the P10.00 per day cola.

The Regional Board in Central Visayas, on the other hand, granted an increase of P10 per day in the cost of living allowance for the minimum wage earners in the said region. The said amount will be added to the P8.00 cola which was approved under Wage Order RBVIII No. 14 last year.

Lagunzad said the amount was unanimously approved by the wage board, whose membership is composed of representatives from the Department of labor and Employment (DOLE), Department of Trade and Industry (DTI), the National Economic and Development Authority (NEDA), labor and employers group.

Under the new wage order, minimum wage earners in Eastern Visayas will receive P238.00, inclusive of the P18.00 cost of living allowance (COLA) per day. The previous minimum wage rate in the said area was P220.00.

Workers who are employed in the sugar mills will get P240.00 per day while those in the plantation and non-plantation will be given P213.50 and 198.50 per day , respectively, inclusive of the P18.00 COLA per day.

The new minimum wage rate per day, including the P18.00 cola, of the Agriculture (non-sugar) sector workers will be P219.00 while those in the retail/service establishments which are employing 10 workers and below will have P207.00. Cottage/handicraft industry workers, on the other hand, will get P216.00 per day.

Lagunzad noted that the new wage order in Central Visayas does not have provision for exemption.

He explained that in the latest wage orders, the regional wage boards in Regions III and VIII resolved to respond to the urgent need to provide for a wage hike for minimum wage earners to help them cope with price increases without impairing the viability of business in their regions.

The new minimum wage rates, according to the latest wage orders, applies 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.

The new wage order brings to five the total of wage issuances of the Regional Boards this month. Earlier, Regional Boards X, IV-A and NCR granted increases to minimum wage earners.

Region X granted an additional P12 cost of living allowance (COLA) to all minimum wage earners in the region. The Northern Mindanao regional wage board also integrated the existing COLA of P16 to the basic wage of workers to bring the level of the minimum wage rate to P244 per day.

Region IV-A approved Wage Order No. IVA-13 which granted an increase of P 12.00-20.00 in their daily basic pay depending on the area, category and sector. Upon effectivity of the new wage order, the highest minimum basic wage in the Calabarzon region will be P320 per day.

The Regional Board in NCR, on the other hand, has approved a P20.00 increase in the minimum wage of Metro Manila workers through Wage Order No. 14 . The wage increase will compose of P15.00 in the basic pay and P5.00 in the cost of living allowance. The minimum wage hike will bring the total compensation of minimum wage earners in the non-agriculture sector in Metro Manila from P362.00 ay to 382.00 pesos per day while those in the agricultural, retail/service, and manufacturing sector is from P325.00 to P345.00.

Updated May 22, 2008

Learning Session on Wage Order NCR 14

Issues and clarifications on the implementation of Wage Order No. 14 in the National Capital Region will be clarified by the National Wages and Productivity Commission in the Learning Sessions which will be held on May 28, 2008 at the 11th floor of the G.E. Antonino Bldg., T.M. Kalaw cor. Jorge Bocobo St. Ermita, Manila

As provided in Wage Order NCR 14 which took effect on July 11, 2006, all private sector workers and employees in the National Capital Region (NCR) will receive daily wages between P350 and P313.

The said wage order increased the prevailing daily rate for minimum wage workers in NCR from P362 to P382 inclusive of the P5.00 cost of living allowance.

A minimal fee of P500.00 per participant will be charged to cover snacks, materials and venue rental. Interested participants are encouraged to pre-register as seats are limited.

According to Executive Director Ciriaco A.Lagunzad III, the learning session will give participants informed knowledge and understanding of the implementation of the new wage order which was issued by the Regional Tripartite Wages and Productivity Boards (RTWPBs) as well as appreciation of the importance of productivity in boosting the success potentials of any organization. The project also aims to familiarize the public on the various services, programs, accomplishments and plans of the Commission.

The learning sessions which will be held from 1 to 5 pm will feature new and relevant topics every month, including correcting wage distortions, exemptions, overtime and holidays pays, premiums and other wager-related matters.

For any queries regarding the activity please contact the Information and Publication Division at telephone numbers 527-8011-17 loc. 103/104 and telefax no. 527-5139 or at log on towww.nwpc.dole.gov.ph

Updated: 19, 2008

NCR workers get pay hike

The Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region (NCR) approved yesterday Wage Order 14 increasing the amount in minimum wage for private workers in the said region.

According to Department of Labor and Employment Secretary Marianito D. Roque, the Regional Board in NCR approved a P20.00 increase in the minimum wage of Metro Manila workers.

With the approval of Wage Order No. 14, the additional P15.00 in the basic pay and P5.00 in the cost of living allowance will bring the total compensation of minimum wage earners in the non-agriculture sector in Metro Manila from P362.00 ay to 382.00 pesos per day while those in the agricultural, retail/service, and manufacturing sector is from P325.00 to P345.00.

The new wage order does not cover household or domestic helpers and others in the personal service of another, including family drivers and workers of registered Barangay Micro Business Enterprises (BMBEs) hired after its effectivity.

Regional Director Raymundo Agravante said the amount was reached by the wage board, whose membership is composed of representatives from the Department of Trade and Industry (DTI), the National Economic and Development Authority (Neda), labor and employers group with the goal of preserving jobs and providing additional benefits to workers.

He added that the increase will take effect 15 days after the publication of Wage Order No. NCR-14 in a newspaper of general circulation

There are an estimated five million minimum wage earners in the country and majority of them are in Metro Manila,.

Lagunzad also said that the other regional wage boards are expected to announce their decision in the following weeks

Updated May 16, 2008

Calabarzon workers get P20 pay hike

WORKERS in the private sector in the Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) will receive pay adjustments following the release of Wage Order No. IVA-13 by the Regional Tripartite Wages and Productivity Board in the said region, the National Wages and Productivity Commission (NWPC) said today.

According to NWPC Executive Director Ciriaco A. Lagunzad III, Wage Order No. IVA-13 granted an increase of P 12.00-20.00 in their daily basic pay depending on the area, category and sector.

The wage increase will take effect sometime next month or 15 days after the publication of the new wage order in a newspaper of general circulation. Upon effectivity, the highest minimum wage rate in the region will be P320.00 per day.

The said wage order stated that minimum wage earners in specific areas in Calabarzon will get additional increases: Growth Corridor Area - P16.00-20.00 per day; Emerging Growth Area - P14.00; and Resource Based Area, P12.00 per day.

Lagunzad said that the Regional Board took into consideration the increases in the prices of products and services brought about by the shortages in supply , high importation costs, and upward trend in world market prices.

He added that Regional Board which is a tripartite body, had exhaustive consultations with various representatives from both labor and employer sectors and other stakeholders across the regions to ensure the continued employment of the workers and viability of business in Calabarzon.

The Regional Board which was motivated to respond to the urgency of the issue, supported by the results of its overall assessment of the socio-economic condition in the region, declared the existence of supervening condition on April 17, 2008. The declaration allowed the Regional Board to review the wage level anew in less than one year.

The new minimum wage rates, according to the 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."

Expressly exempted from the provisions of the wage order are household or domestic helpers and persons in the personal service of another, including family drivers, and workers of Barangay Micro Business Enterprises (BMBEs). Upon application with the Regional Board, new business enterprises, distressed establishments and exporters may be exempted from compliance with the new wage increase.

Wage Order 4A-13 also encourages the implementation of a productivity and gainsharing programs at the enterprise level to increase the net take home pay of the workers and enhance the competitiveness of business.

Updated May 15, 2008

Supervening condition declared in Region 4-A

The Regional Tripartite Wages and Productivity Board in Region IV has declared a ”supervening condition” that requires an adjustment in the minimum wage of workers in CALABARZON.

According to the National Wages and Productivity Commission, RTWPB IV-A has affirmed through a resolution, the existence of a supervening condition in the provinces of Cavite, Laguna, Batangas, Rizal and Quezon.

The affirmation of the supervening condition means that the Regional Board will convene and grant a salary increase within 30 days.

NWPC Executive Director Ciriaco A. Lagunzad III said that without the declaration of the supervening condition, the wage board is mandated to resolve whether or not to grant a salary increase with in 60 to 90 days.

RTWPB IV-A is set to conduct a public hearing on May 13, 2008.

The Regional Board in the National Capital Region has likewise declared a “supervening condition” last Tuesday (April 22, 2008) and will meet next week to deliberate on the amount and form of increase in the minimum wage of workers in the NCR.

As a general rule, any Wage Order issued by the Regional Boards may not be disturbed for a period of twelve (12) months from its effectivity, and no petition for a wage increase shall be entertained within the said period. In the event, however, that supervening conditions, such as extraordinary increase in prices of petroleum products and basic goods/services, demand a review of the minimum wage rates as determined by the Board and confirmed by the Commission, the Board shall proceed to exercise its wage fixing function even before the expiration of the said period.

Meanwhile, Lagunzad said that the Regional Board in Caraga (Region 13) has received a petition for an increase in the minimum wage. Trade Union Congress of the Philippines (TUCP) filed a P125,00 across-the-board wage hike for the said region.

The wage hike petition cited the need to help workers cope up with the rising cost of living and the demand of workers to recoup their lost purchasing power which eroded due to spiraling cost of oil, rice and other basic commodities.

Lagunzad added that the rest of the Regional Boards are continually monitoring and reviewing the wage situation in the country , and in coordination with other government agencies, are monitoring and assessing the wage situation across the country based on national and regional socio-economic indicators.

Updated: April 24, 2008

4 wage hike petitions filed

The National Wages and Productivity Commission yesterday said that four petitions for increases in the minimum wage have been filed with the different Regional Tripartite Wages and Productivity Boards.

The Trade Union Congress of the Philippines (TUCP) has recently filed petitions to increase the minimum wage in the different regions. The Regional Board in NCR and Cagayan de Oro (Region 10) were the latest to receive across-the-board petitions for a wage increase of P80.00 and P100.00, respectively.

TUCP and National Congress of Unions in the Sugar Industry of the Philippines or NACUSIP also filed a P50.00 wage increase in Region 6. Alliance of Progressive Labor, ALU-TUCP, on the other hand, petitioned for a P150.45 increase in the minimum wage in Central Visayas (Region 7).

The wage hike petition cited the need to help workers cope up with the rising cost of living and the demand of workers to recoup their lost purchasing power which eroded due to spiraling cost of oil, rice and other basic commodities.

Executive Director Ciriaco A. Lagunzad III of the National Wages and Productivity Commission said that the Regional Tripartite Wages and Productivity Boards are ready to provide win-win options to resolve the current wage issue.

Lagunzad said that the Regional Boards are regularly assessing the socio-economic situation to come up with the best possible options that will benefit both the worker and employer sectors.

“The Boards are continually performing the delicate and difficult task of balancing the interests of workers and employers, as well as of government. The Boards have constantly uphold the mandate of providing a decent standard of living for workers and ensuring the survival and viability of businesses, more so, of micro, small and medium enterprises,” explained Lagunzad.

Lagunzad also explained that in setting the minimum wage, the Regional Boards take into consideration various socio-economic indicators to ensure a fair and reasonable wage adjustment. The criteria include needs of workers and their families, capacity to pay of employers, and other critical indicators of national development such as gross domestic product, employment/unemployment, inflation and price movements, and if any of these factors were neglected it will indicate negative implications to the country's economy.

Wage Orders issued by the Regional Boards may not be disturbed for a period of 12 months from its effectivity and no petition for a wage hike will be entertained within that period. However, the Boards can exercise their wage fixing function and review the minimum wage rates even before the one-year expiration period if there is an extraordinary increase in the prices of petroleum products and basic commodities and services or in the event of a supervening condition.

Earlier, President Gloria Macapagal-Arroyo has ordered the regional wage boards to convene and consider a possible wage hike to help both management and labor to cope with the existing economic situation.

The President has also provided debt relief for Social Security System and Government Service Insurance System members by extending the condonation period for the unpaid salary and housing loans for one year. She also told Congress to hasten the approval of the bill granting tax exemptions for minimum wage earners,

In NCR, the last daily wage increase was in the amount of P12 in August last year, raising the basic pay to P362 per day.

Updated April 16, 2008

RTWPBs monitor wage situation

The National Wages and Productivity Commission (NWPC) said that the Regional Tripartite Wages and Productivity Boards (RTWPBs) are continually monitoring and reviewing the wage situation in the country.

According to NWPC Executive Director Ciriaco A. Lagunzad III, the 17 Regional Boards, in coordination with other government agencies, are monitoring and assessing the wage situation across the country based on national and regional socio-economic indicators. Workers are clamoring for a wage hike due to increases in the cost of goods following a surge in prices of oil and domestic products.

Lagunzad also said that the decision to raise or not to raise wages will depend on the Regional Boards based on their assessment of the economic needs of the workers, the capacity of the employers to pay a wage increase, and the development requirements of the region.

He explained that while the policy of minimum wage fixing is to protect the purchasing power of low-income workers, it is also aimed at preserving existing jobs.

Lagunzad added that there should be a balance between providing a decent standard of living for workers and ensuring the survival and viability of business, more so, of small and medium enterprises.

Wage Orders issued by the Regional Boards may not be disturbed for a period of 12 months from its effectivity and no petition for a wage hike will be entertained within that period. However, the Board can exercise its wage fixing function and review the minimum wage rates even before the one-year expiration period if there is an extraordinary increase in the prices of petroleum products and basic commodities and services or in the event of a supervening condition.

In the NCR, the minimum wage was adjusted 15 times since 1989, the increases ranging from a low of P12.00 to a high of P26.50. The minimum wage compensation in NCR is P362 after the latest increase of P12.00 per day was granted by the Board on August 28, 2007.

Congress last enacted a minimum wage law in 1989, increasing the national minimum wage from P64.00 to P89.00. Since then, it has delegated the power to determine the minimum wage to the RTWPBs.

Updated April 8, 2008

Productivity Olympics 2008

The National Wages and Productivity Commission recently launched the Productivity Olympics 2008, a national competition of the best productivity improvement programs (PIPs) of business enterprises across sectors in the country.

Department of Labor and Employment Secretary Arturo D. Brion spearheaded the launching of the Productivity Olympics which aims to intensify national awareness on the importance of productivity improvement towards global competitiveness and economic development.

According to Secretary Brion, the Productivity Olympics, organized by the NWPC in coordination with all its Regional Tripartite Wages and Productivity Boards, will recognize the importance of PIPs to improve the performance and enhance the competitiveness of micro, small and medium enterprises.

Executive Director Ciriaco A. Lagunzad III stated that the Productivity Olympics is part of the national program on productivity awareness and showcases the exemplary accomplishments of business enterprises in quality and productivity (Q&P) improvement.

Productivity partners from the private sector, officials from government and non-government organizations, and the media attended the launching of the Productivity Olympics 2008. The productivity competition was conceived to inspire the competitive spirit of MSMEs to be parallel with global companies.

Th Productivity Olympics will have two categories— Best in People Development and Best in Business Excellence. MSMEs who are duly registered with the appropriate government agency e.g. DTI, SEC, CDA; have been in operation for at least 3 years by October 1, 2007 and a current or past beneficiary of the ISTIV Productivity Awareness Program or ISTIV Bayanihan program of the NWPC or the RTWPBs or have in place a productivity improvement program, can join the event.

A National Judging Panel, composed of selected productivity and quality champions, will select the winners in each of the categories.

The winners will be announced during the celebration of the Productivity Month in October.

Aside from trophies, winners in every category of the Productivity Olympics will be awarded cash prizes.

Updated March 14,2008

Launching of Productivity Olympics 2008

The National Wages and Productivity Commission yesterday announced the launching of the Productivity Olympics 2008 recently at the Occupational Safety and Health Center in North Avenue corner. Science Road, Quezon City.

The Productivity Olympics is a national competition of good productivity practices focused on people development and business excellence of micro, small and medium enterprises (MSME), nationwide. For the years 2007-2008, the theme of the productivity contest is “Improving Philippine Productivity for Competitiveness”.

The Productivity Olympics aims to intensify national awareness on the importance of productivity improvement towards global competitiveness and economic development and stimulate the competitive spirit of the MSMEs to align themselves with global companies.

Productivity partners in the private and government sector and non-government organizations were invited to grace the launching of the productivity contest.

The productivity contest which is organized by the NWPC in coordination with all its Regional Tripartite Wages and Productivity Boards, will have two categories—Best in People Development and Best in Business Excellence.

MSMEs who are duly registered with the appropriate government agency e.g. DTI, SEC, CDA, have been in operation for at least 3 years by October 1, 2007 and a current or past beneficiary of the ISTIV Productivity Awareness Program or ISTIV Bayanihan program of the NWPC or the RTWPBs or have in place a productivity improvement program can join the contest.

A National Judging Panel, composed of selected productivity and quality champions, will select the winners in each of the categories.

Winners of the Productivity Olympics will be announced during the celebration of the Productivity Month in October this year. Trophies and cash prizes will be awarded to the winners in each category.

Updated February 20,2008

NWPC reminds business owners

to submit Establishment Report

The National Wages and Productivity Commission reminded the public to to submit an Establishment Report not later than January 31 next year.

The filing of an Establishment Report is a requirement under Article 124 of RA 6727 or the Wage Rationalization Act which provides that any person, company, corporation, partnership or any entity engaged in business shall accomplish and submit an Establishment Report not later than January 31 of each year.to the Regional Tripartite Wages and Productivity Boards (RTWPB) having jurisdiction in the area/locality where a business is located.

This year, the NWPC has simplified the report form to make it more respondent-friendly as well as to facilitate its processing.

The revised Establishment Report form and can be downloaded from the NWPC website: www.nwpc.dole.gov.ph.

For further queries, contact the NWPC at telephone numbers 527-8012-17 local 103/104 or telefax no. 527-5139 or email: wageresearch@nwpc.dole.gov.ph or the nearest RTWPB in your area.

Instruction on how to fill up the form.

1. The form shall be printed back to back using A4 size.
2. Page 1 is to be filled out by respondents.
3. Page 2 contains the definition of terms/concepts used.
4. Pages 3 and 4 are wage and productivity statistics to be disseminated to respondents together with pages 1 and 2 of the reporting form as part of information dissemination.

Updated Dec. 27, 2007

HR practitioners benefits from NWPC Learning Session

Some 250 private practitioners have benefited from the National Wages and Productivity Commission’s Learning Session on Wages and Productivity since its re-launching last August.

The NWPC thru the Information and Publication Division has already conducted four Learning Session. Majority of the participants were human resource managers and finance officers from the private sector.

The learning sessions, a yearlong offering of the NWPC, intends to give participants informed knowledge and understanding of the interpretation and implementation of wage orders issued by the Regional Tripartite Wages and Productivity Boards (RTWPBs) as well as appreciation of the importance of productivity in boosting the success potentials of any organization.

It is also aimed in familiarizing the public on the various services, programs, accomplishments and plans of the Commission regarding wages and productivity.

Among the issues discussed on wages were the present wage orders, correction of wage distortion and the latest technologies on productivity.

Ciriaco A Lagunzad III, Executive Director of the NWPC, said that the productivity achievements of various small and medium enterprises will hopefully encourage the participants to avail of skills upgrading and training opportunities offered by the government through NWPC. CT Maring

Updated 31 October 2007

REGIONAL WAGE UPDATE

A total of six (6) petitions for a wage increases were filed by the Trade Union Council of the Philippines with the Regional Boards in Regions the NCR, IV-B, VII, X, XI and XII. The amounts of increase sought range from P75.00 – P93.00 daily across the board (ATB) increase.

In response to the current wage issues presented to the Boards, the actions undertaken by the various Boards are shown below:

Ø RTWPB NCR. The Board conducted two (2) consultations, one each with the Labor and the Employer Sectors in May; one (1) public hearing in June and three (3) Board Deliberations in July.

Ø RTWPB II. The Board held its wage consultation on July 11, 2007.

Ø RTWPB III. The Board scheduled three (3) consultations each with the Labor and Employer Sectors on July 23, 25 and 30. A public hearing has been set on August 6.

Ø RTWPB IV-A. The Secretariat has scheduled its consultations on June 10, 19 and on July 5, 12, and 19. The public hearing has been set for July 26. The Board commenced its meetings on the wage issue as early as June 6 and will continue with its deliberations until after the public hearing on July 26.

Ø RTWPB IV-B. The Board commenced with its meeting on the wage issue on July 20.

Ø RTWPB VII. The Board conducted its consultations on June 8 and 14 and its public hearing on July 6. The Board deliberations have been scheduled on July 19 and 26.

Ø RTWPB VIII. The Secretariat scheduled its next Board meeting on July 23.

Ø RTWPB IX. The Board held consultations on July 10-12 and 17; and its public hearing on July 18.

Ø RTWPB XI. The Board conducted its consultations as early as May 9 and 23; and held its 3-day public hearings on July 17-19; Board deliberations were scheduled on July 24, 25 and 27.

Ø RTWPB XII. The Board has denied the petition for a P76.00 ATB daily wage increase filed by Global Fruits Employees Union – Alliance of Labor Unions – Trade Union Congress of the Philippines. The Board, in its decision dated 18 May 2007, explained that the filing of the wage increase petition is still within the one-year prohibition period and the grounds cited for supervening conditions were unfounded.

Updated 15 October 2007