UNIVERSITY OF SANTO TOMAS FACULTY OF ENGINEERING ELECTRONICS AND COMMUNICATIONS ENGINEERING DEPARTMENT

REPORT IN ENGINEERING MANAGEMENT: JOB AND WAGE STANDARDS

Professor: Engr. Seigfred Prado

Members: Andico, Alyssa Fajardo, Frederick Ignacio, Jeff Marty, Marc Bryan Mercado, Aaron Solano, Ariel

What are Job Standards?

Job Standard is a work performance in terms of quantity and quality expected from each employee.

What are Wage Standards?

Wage standards are the wage terms accepted by both the employer and employee in a contract. What is the difference between Wage and Salary?
A wage is better because you get paid for how many hours you work, while, with a salary, you get a set amount of payment. An example of a job that gets a salary is a teacher. It doesn't matter how much homework they grade over weekends and vacations, they get the same amount of money. Wage is payment received by an employee in exchange for labor. It may be in goods or services or food during the labor and its improvement. As per the old custom, the wage is decided as per the hardship of the work, for example, a mason $100, a carpenter $110, a helper $60, a supervisor $80, or so. Besides, when once paid, the relationship of the worker and employer is over. But salary, is the form of money only, i.e., is paid or regular basis such a weekly, monthly along with related insurance plan and retirement benefits and it is fixed on the basis of category / nature of work. A person can get different wages in the same month depending on the work he does but a person can get only one fixed salary for a month. A person who earns wages has no fixed work whereas the person earning salary have a fixed post and a particular work schedule to do.

Wage is paid only on the basis of the work done, irrespective of provision of work by the employer or not, but what the worker has carried out, whereas salary is paid every interval of week or month based on the schedule of work entrusted and not the work carried out. In terms of accounts, wages is direct expense and is included in trading account whereas salary is indirect expense and is included in profit and loss account. Labor wages Labor wages in the Philippines can be viewed through the official website of the Department of Labor and Employment, National Wages and Productivity Commision. LINK - http://www.nwpc.dole.gov.ph

Labor Issues These are some of the Philippines Labor issues: 1. Labor Productivity Total Factor Productivity (TFP), the efficiency in use of both labor and capital, is important because labor income depends on labor productivity growth. This growth is the average product of labor which correlates with labors contribution to enterprise revenue and profits. Improvements in workers real wages and earnings are related to labor productivity growth and not exactly to employment growth. Improvements in real wages, improves the poverty incidence of the people thus helping in poverty reduction. 2. Underemployment With the declining earnings, people are looking for additional hours of work (underemployed), or going abroad (overseas employment) or choose to be self-employed. This also shows how they are not content with the quality of employment. The selfemployed are actually indifferent between the wage employment and self-employment that they decided to be on their own. 3. Youth Employment In 2010, half of the 2.9 million unemployed Filipinos were age 15-24. More than half of the unemployed youth are such due to lack of job opportunities, lack of skills and the competition with older ones. This lack of training and skills and incompetence may be due to poor education, which shows that indeed, education must be improved. Pre-Employment Policies Below are some of the Policies of Pre-employment every employee needs to know: 1. Minimum Employable Age The minimum age for employment is 15 years old and below that age is not allowed. Persons of age 15 to 18 can be employed given that they work in non-hazardous environments 2. Overseas Employment As for overseas employment of Filipinos, foreign employers are not allowed to directly hire Philippine nationals except through board and entities authorized by the Secretary of Labor. Travel agencies also cannot transact or help in any transactions for the employment or placement of Filipino workers abroad. Once Filipinos have a job in a foreign country, they are required to remit or send a portion of their income to their families, dependents, and/or beneficiaries in the Philippines.

Regulation on Conditions of Employment 1. Minimum Wage Rate The minimum wage rate for Non-Agriculture employees established under Wage Order No. NCR 15 is P404 per day, but in May 9, 2011, a (cost of living allowance) of P22 per day was added to P404 wage, making the minimum wage P426 as of the current date. COLA was also added to the previous P367 minimum wage for the following sectors: Agriculture, Private Hospitals (with bed capacity of 100 or less), and manufacturing establishments (with less than 10 workers), leaving the sectors with P389 as minimum wage 2. Regular Work Hours and Rest Period The Labor Code set the regular hours of work per day to be no more than 8 hours and not exceeding 5 days a week. Health personnel such as nurses, pharmacists, midwives, paramedical technicians, physicians, and more, are exempted to the 5 days working limit if their services are deemed necessary, but with an additional compensation of 30% of their regular wage rate. 3. Rest Days All employees have the right to have a 24 consecutive hours of rest day after every 6 days of work. Employers are responsible for determining and scheduling the rest day of employees except only if the employee prefers a different day based on religious grounds. However, the employer may require an employee to work during his/her rest day in cases of emergencies, special circumstances at work in which employees are seriously needed, to prevent losses or damage to any goods or to the employer, and other cases that have reasonable grounds.

Our Video Report

In our Video Report, we discussed some of the Labor issues concerning wages which are in the form of a question and have been answered by us live, and some are answered via another video.