Conceptual and Empirical Framework for Determining Minimum Wage for Domestic Workers

The enactment of Republic Act No. 10361 otherwise known as the “Kasambahay Law” on 18 January 2013 is in support of the Philippines’ ratification of ILO Convention No. 189 or the Domestic Workers Convention.  The ILO Convention was crafted to protect the rights and safeguard the welfare of domestic workers.

RA 10361 presribes standards on working conditions for domestic workers including  minimum wages which were initially set at P2,500 for NCR; P2,000 for first class cities and municipalities and P1,500 for the rest of the country.  It also mandated the Regional Tripartite Wages and Productivity Boards to review and adjust these rates one year from the effectivity of the law.

To guide the Boards in the exercise of its wage setting function, the NWPC drafted a policy guideline on the determination of minimum wages for domestic workers, taking into consideration the principle of balancing needs of workers with employers’ capacity to pay.

The IRR of the law also directs the NWPC, in coordination with TESDA, to develop of a skills/competency-based pay system, over and above the minimum wage, as guide to employers and domestic workers. This is aligned with the law’s overall thrust to professionalize domestic workers by encouraging them to improve their competencies and enhance their employability within and outside the household setting.

REPUBLIC OF THE PHILIPPINES

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