REPUBLIC ACT NO.

6727
AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING THE MECHANISM AND PROPER STANDARDS THEREFOR, AMENDING FOR THE PURPOSE ARTICLE 99 OF, AND INCORPORATING ARTICLES 120, 121, 122, 123, 124, 126 AND 127 INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, FIXING NEW WAGE RATES, PROVIDING WAGE INCENTIVES FOR INDUSTRIAL DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER PURPOSES.

Section 1. This Act shall be known as the "Wage Rationalization Act." Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on investment, expansion and growth.chanroblesvirtuallawlibrary The State shall promote collective bargaining as the primary mode of setting wages and other terms and conditions of employment; and, whenever necessary, the minimum wage rates shall be adjusted in a fair and equitable manner, considering existing regional disparities in the cost of living and other socio-economic factors and the national economic and social development plans. Sec. 3. In line with the declared policy under this Act, Article 99 of Presidential Decree No. 442, as amended, is hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127, are hereby incorporated into Presidential Decree No. 442, as amended, to read as follows: "Art. 99. Regional Minimum Wages. - The minimum wage rates for agricultural and non- agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards."
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"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby created a National Wages and Productivity Commission, hereinafter referred to as the Commission, which shall be attached to the Department of Labor and Employment (DOLE) for policy and program coordination." chanroblesvirtuallawlibrary

"Art. 121. Powers and Functions of the Commission. - The Commission shall have the following powers and functions: (a) To act as the national consultative and advisory body to the President of the Philippines and Congress on matters relating to wages, incomes and productivity; (b) To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry and national levels; (c) To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measures at the regional, provincial or industry levels; (d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if these are in accordance with prescribed guidelines and national development plans; (e) To undertake studies, researches and surveys necessary for the attainment of its functions and objectives, and to collect and compile data and periodically disseminate information on wages and productivity and other related information, including, but not limited to, employment, cost-of-living, labor costs, investments and returns; (f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine whether these are consistent with national development plans; (g) To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity Boards; (h) To call, from time to time, a national tripartite conference of representatives of government, workers and employers for the consideration of measures to promote wage rationalization and productivity; and

(i) To exercise such powers and functions as may be necessary to implement this Act. "The Commission shall be composed of the Secretary of Labor and Employment as ex officio chairman, the Director-General of the National Economic and Development Authority [NEDA] as ex officiovice-chairman, and two [2] members each from workers and employers sectors who shall be appointed by the President of the Philippines upon recommendation of the Secretary of Labor and Employment to be made on the basis of the list of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a term of five [5] years. The Executive Director of the Commission Secretariat shall also be a member of the Commission. "The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two [2] Deputy Directors, who shall be appointed by the President of the Philippines, upon recommendation of the Secretary of Labor and Employment. "The Executive Director shall have the same rank, salary, benefits and other emoluments as that of a Department Assistant Secretary, while the Deputy Directors shall have the same rank, salary, benefits and other emoluments as that of a Bureau Director. The members of the Commission representing labor and management shall have the same rank, emoluments, allowances and other benefits as those prescribed by law for labor and management representatives in the Employees' Compensation Commission." "Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in all regions, including autonomous regions as may be established by law. The Commission shall determine the offices/headquarters of the respective Regional Boards. "The Regional Boards shall have the following powers and functions in their respective territorial jurisdiction: "(a) To develop plans, programs and projects relative to wages, incomes and productivity improvement for their respective regions;

"(b) To determine and fix minimum wage rates applicable in their region, provinces or industries therein and to issue the corresponding wage orders, subject to guidelines issued by the Commission; "(c) To undertake studies, researches, and surveys necessary for the attainment of their functions, objectives and programs, and to collect and compile data on wages, incomes, productivity and other related information and periodically disseminate the same; "(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and intention of this Code; "(e) To receive, process and act on applications for exemption from prescribed wage rates as may be provided by law or any Wage Order; and "(f) To exercise such other powers and functions as may be necessary to carry out their mandate under this Code. "Implementation of the plans, programs and projects of the Regional Boards referred to in the second paragraph, letter (a) of this Article, shall be through the respective regional offices of the Department of Labor and Employment within their territorial jurisdiction: Provided, however, That the Regional Boards shall have technical supervision over the regional office of the Department of Labor and Employment with respect to the implementation of said plans, programs and projects. "Each Regional Board shall be composed of the Regional Director of the Department of Labor and Employment as chairman, the Regional Directors of the National Economic and Development Authority and the Department of Trade and Industry as vice-chairmen of two [2] members each from workers and employers sectors who shall be appointed by the President of the Philippines, upon the recommendation of the Secretary of Labor and Employment, to be made on the basis of the list of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a term of five [5] years.

"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat. "Art. 123. Wage Order. - Whenever conditions in the region so warrant, the Regional Board shall investigate and study all pertinent facts; and, based on the standards and criteria herein prescribed, shall proceed to determine whether a Wage Order should be issued. Any such Wage Order shall take effect after fifteen [15] days from its complete publication in at least one [1] newspaper of general circulation in the region. "In the performance of its wage-determining functions, the Regional Board shall conduct public hearings/consultations, giving notices to employees' and employers' groups, provincial, city and municipal officials, and other interested parties. "Any party aggrieved by the Wage Order issued by the Regional Board, may appeal such order to the Commission, within ten [10] calendar days from the publication of such order. It shall be mandatory for the Commission to decide such appeal within sixty [60] calendar days from the filing thereof. "The filing of the appeal does not operate to stay the order unless the person appealing such order shall file with the Commission an undertaking with a surety or sureties satisfactory to the Commission for the payment to the employees affected by the order of the corresponding increase, in the event such order is affirmed." chanroblesvirtuallawlibrary "Art. 124. Standards/Criteria for Minimum Wage Fixing. - The regional minimum wages to be established by the Regional Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national economic and social development program. In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors, consider the following: "(a) The demand for living wages; "(b) Wage index; adjustment vis-a-vis the consumer price

"(c) The cost of living and changes or increases therein;

"(d)

The

needs

of

workers

and

their

families;

"(e) The need to induce industries to invest in the countryside; "(f) "(g) Improvements The in standards wage of living; levels;

prevailing

"(h) Fair return of the capital invested and capacity to pay of employers; "(i) Effects on employment generation and family income; and "(j) The equitable distribution of income and wealth along the imperatives of economic and social development. chanroblesvirtuallawlibrary "The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing minimum wages in every region. These wages shall include wages varying with industries, provinces or localities if in the judgment of the Regional Board conditions make such local differentiation proper and necessary to effectuate the purpose of this Title. "Any person, company, corporation, partnership or any other entity engaged in business shall file and register annually with the appropriate Regional Board, Commission and the National Statistics Office an itemized listing of their labor component, specifying the names of their workers and employees below the managerial level, including learners, apprentices and disabled/handicapped workers who were hired under the terms prescribed in the employment contracts, and their corresponding salaries and wages. "Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by any Regional Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel of voluntary arbitrators within ten [10] calendar days from the time said dispute was referred to voluntary

arbitration. chanroblesvirtuallawlibrary "In cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten [10] calendar days of conciliation, shall be referred to the appropriate branch of the National Labor Relations Commission [NLRC]. It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty [20] calendar days from the time said dispute is submitted for compulsory arbitration. "The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed wage rates pursuant to the provisions of law or Wage Order. "As used herein, a wage distortion shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. chanroblesvirtuallawlibrary "All workers paid by result, including those who are paid on piecework,takay, pakyaw or task basis, shall receive not less than the prescribed wage rates per eight [8] hours work a day, or a proportion thereof for working less than eight [8] hours. "All recognized learnership and apprenticeship agreements shall be considered automatically modified insofar as their wage clauses are concerned to reflect the prescribed wage rates." "Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or other entity against any proceedings before the Commission or the Regional Boards." "Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any Regional Board shall provide for wage rates lower than the statutory minimum wage rates prescribed by Congress." Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all workers and employees in the private sector,

whether agricultural or non-agricultural, shall be increased by Twenty-five pesos [P25.00] per day, except that workers and employees in plantation agricultural enterprises outside of the National Capital Region [NCR] with an annual gross sales of less than Five million pesos [P5,000,000.00] in the preceding year shall be paid an increase of Twenty pesos [P20.00], and except further that workers and employees of cottage/handicraft industries, nonplantation agricultural enterprises, retail/service establishments regularly employing not more than ten [10] workers, and business enterprises with a capitalization of not more than Five hundred thousand pesos [P500,000.00] and employing not more than twenty [20] employees, which are located or operating outside the NCR, shall be paid only an increase of Fifteen pesos [P15.00]: Provided, That those already receiving above the minimum wage rates up to One hundred pesos [P100.00] shall also receive an increase of Twenty-five pesos [P25.00] per day, except that the workers and employees mentioned in the first exception clause of this Section shall also be paid only an increase of Twenty pesos [P20.00], and except further that those employees enumerated in the second exception clause of this section shall also be paid an increase of Fifteen pesos [P15.00]: Provided, further, That the appropriate Regional Board is hereby authorized to grant additional increases to the workers and employees mentioned in the exception clauses of this section if, on the basis of its determination pursuant to Article 124 of the Labor Code such increases are necessary. (b) The increase of Twenty-five pesos [P25.00] prescribed under this section shall apply to all workers and employees entitled to the same in private educational institutions as soon as they have increased or are granted authority to increase their tuition fees during school year 1989-1990. Otherwise, such increase shall be so applicable not later than the opening of the next school year beginning 1990. (c) Exempted from the provisions of this Act are household or domestic helpers and persons employed in the personal service of another, including family drivers. chanroblesvirtuallawlibrary Retail/service establishments regularly employing not more than ten [10] workers may be exempted from the applicability of this Act, upon application with, and as determined by, the appropriate Regional Board in accordance with the applicable rules and regulations issued by the Commission. Whenever an application for exemption has been duly filed with the appropriate Regional Board, action on any complaint for alleged non-compliance with this Act

shall be deferred pending resolution of the application for exemption by the appropriate Regional Board. In the event that applications for exemptions are not granted, employees shall receive the appropriate compensation due them as provided for by this Act plus interest of one percent [1%] per month retroactive to the effectivity of this Act.
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(d) If expressly provided for and agreed upon in the collective bargaining agreements, all increases in the daily basic wage rates granted by the employers three [3] months before the effectivity of this Act shall be credited as compliance with the increases in the wage rates prescribed herein, provided that, where such increases are less than the prescribed increases in the wage rates under this Act, the employer shall pay the difference. Such increases shall not include anniversary wage increases, merit wage increases and those resulting from the regularization or promotion of employees. Where the application of the increases in the wage rates under this section results in distortions as defined under existing laws in the wage structure within an establishment and gives rise to a dispute therein, such dispute shall first be settled voluntarily between the parties and in the event of a deadlock, the same shall be finally resolved through compulsory arbitration by the regional arbitration branch of the National Labor Relations Commission [NLRC] having jurisdiction over the workplace. chanroblesvirtuallawlibrary It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising under this section within twenty [20] calendar days from the time said dispute is formally submitted to it for arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of the increases in the wage rates prescribed under this section.
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Sec. 5. Within a period of four [4] years from the effectivity of this Act and without prejudice to collective bargaining negotiations or agreements or other employment contracts between employers and workers, new business enterprises that may be established outside the NCR and export processing zones whose operation or investments need initial assistance as may be determined by the Department of Labor and Employment in consultation with the Department of Trade and Industry or the Department of Agriculture, as the case may be, shall be exempt from the application of this Act for not more than three [3] years from the start of their operations: Provided, That such new business enterprises established in Region III [Central Luzon] and Region IV [Southern

Tagalog] shall be exempt from such increases only for two [2] years from the start of their operations, except those established in the Provinces of Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora, which shall enjoy such exemption for not more than three [3] years from the start of their operations. Sec. 6. In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases in the wage rates of the workers shall be borne by the principals or clients of the construction/service contractors and the contract shall be deemed amended accordingly. In the event, however, that the principal or client fails to pay the prescribed wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.chanroblesvirtuallawlibrary Sec. 7. Upon written petition of the majority of the employees or workers concerned, all private establishments, companies, businesses, and other entities with twenty-five (25) or more employees and located within one (1) kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees through any of said banks and within the period for payment of wages fixed by Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines. Sec. 8. Whenever applicable and upon request of a concerned worker or union, the bank shall issue a certification of the record of payment of wages of a particular worker or workers for a particular payroll period.
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Sec. 9. The Department of Labor and Employment shall conduct inspections as often as possible within its manpower constraint of the payroll and other financial records kept by the company or business to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or any Wage Order. In unionized companies, the Department of Labor and Employment inspectors shall always be accompanied by the president or any responsible officer of the recognized bargaining unit or of any interested union in the conduct of the inspection. In non-unionized companies, establishments or businesses, the inspection should be carried out in the presence of a worker representing the workers in the said company. The workers' representative shall have the right to submit his own findings to the Department of Labor and Employment and to testify on the same if he cannot concur with the findings of the labor inspector.chanroblesvirtuallawlibrarychanroblesvirtuallawlibrary

Sec. 10. The funds necessary to carry out the provisions of this Act shall be taken from the Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings under Republic Act No. 6688, otherwise known as the General Appropriations Act of 1989, or from any unappropriated funds of the National Treasury: Provided, That the funding requirements necessary to implement this Act shall be included in the annual General Appropriations Act for the succeeding years. Sec. 11. The National Wages Council created under Executive Order No. 614 and the National Productivity Commission created under Executive Order No. 615 are hereby abolished. All properties, records, equipment, buildings, facilities, and other assets, liabilities and appropriations of and belonging to the abovementioned offices, as well as other matters pending therein, shall be transferred to the Commission. All personnel of the above-abolished offices shall continue to function in a holdover capacity and shall be preferentially considered for appointments to or placement in the Commission. Any official or employee separated from the service as a result of the abolition of offices pursuant to this Act shall be entitled to appropriate separation pay and retirement and other benefits accruing to them under existing laws. In lieu, thereof, at the option of the employee, he shall be preferentially considered for employment in the government or in any of its subdivisions, instrumentalities, or agencies, including government-owned or controlled corporations and their subsidiaries.chanroblesvirtuallawlibrary Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a fine not exceeding Twenty-five thousand pesos [P25,000.00] and/or imprisonment of not less than one [1] year nor more than two [2] years: Provided, That any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law. If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed on the entity's responsible officers, including, but not limited to, the president, vice-president, chief executive officer, general manager, managing director or partner.
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Sec. 13. The Secretary of Labor and Employment shall promulgate the necessary rules and regulations to implement the provisions of

this

Act.

Sec. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly. If any provision or part of this Act, or the application thereof to any person or circumstance, is held invalid or unconstitutional, the remainder of this Act or the application of such provision or part hereof to other persons or circumstances shall not be affected thereby. Nothing in this Act shall be construed to reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement between the workers and employers. chanroblesvirtuallawlibrary Sec. 15. This Act takes effect fifteen [15] days after its complete publication in the Official Gazette or in at least two [2] national newspapers of general circulation, whichever comes earlier.chanroblesvirtuallawlibrary Approved: June 9, 1989.

RULES OF PROCEDURE ON MINIMUM WAGE FIXING.

Pursuant to Article 121(c) of the Labor Code as amended by Section 3 of R.A. 6727, the National Wages and Productivity Commission hereby adopts and promulgates the following rules of procedure governing the proceedings in the Commission and the Regional Tripartite Wages and Productivity Boards in the fixing of minimum wage rates by region, province, or industry.

RULE I General Provisions Section 1. Title. This Rules shall be known as the Rules of Procedure on Minimum Wage Fixing. Sec. 2. Construction. This Rules shall be liberally construed to carry out the objectives of R.A. 6727. Sec. 3. Scope. This Rules shall govern proceedings in the National Wages and Productivity Commission and the Regional Tripartite Wages and Productivity Boards in the fixing of minimum wage rates. Sec. 4. Definition of Terms. As used in this Rules: (a) "Act" means Republic Act No. 6727; (b) "Board" means the Regional Tripartite Wages and Productivity Board; (c) "Chairman" means Chairman of the Commission; (d) "Commission" means the National Wages and Productivity Commission; (e) "Industry" refers to a trade, business or a sector thereof, or group of businesses in similar or allied activities in which individuals are gainfully employed; (f) "Locality" refers to a geographical area smaller than a province and includes industrial estates/export processing zones; (g) "Member" refers to the members of the Commission or Board, including its Chairman; (h) "Minimum Wage Rates" refer to the lowest basic wage rates that an employer can pay his workers, as fixed by the Board, and which shall not be lower than the applicable statutory minimum wage rates; (i) "Party" means any legitimate organization of workers or employers with substantial interest in the region, province or industry therein as determined by the Board, and who stands to be directly affected by the Commission/Board proceedings, orders, decision or resolutions. (j) "Region" refers to a geographical area composed of a group of provinces and/or cities as defined under PD 1, as amended, including those that may be subsequently established by law; (k) "Regional Chairman" means the Chairman of the Board; (l) "Statutory Minimum Wages" refer to the lowest basic wages as provided by law; (m) "Wage Distortion" shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation; (n) "Wage Order" refers to the Order promulgated by the Board pursuant to its wage fixing authority.
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RULE II Minimum Wage Fixing Sec. 1. Conduct of Wage and Productivity Studies. The Board shall, subject to guidelines issued by the Commission, conduct continuing studies of wage rates, productivity and other conditions in the region, provinces or industries therein. The Board shall investigate and study all pertinent facts, and based on standards and criteria prescribed herein, shall determine whether a wage order should be issued. Sec. 2. Standards/Criteria for Minimum Wage Fixing. The minimum wage rates to be established by the Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the workers within the framework of national economic and social development goals. In the determination of regional minimum wages, the Board shall, among other relevant factors, consider the following: (a) Demand for living wages; (b) Wage adjustment vis-a-vis the consumer price index; (c) Cost of living and changes therein; (d) Needs of workers and their families; (e) Need to induce industries to invest in the countryside; (f) Improvements in standards of living; (g) Prevailing wage levels; (h) Fair return on capital invested and capacity to pay of employers; (i) Effects on employment generation and family income; (j) Productivity; and (k) Equitable distribution of income and wealth along the imperatives of economic and social development. Sec. 3. Procedures in Minimum Wage Fixing. (a) Motu Proprio by the Board. Whenever conditions in the region, province or industry so warrant, the Board may, motu proprio or as directed by the Commission mandate action or inquiry to determine whether a wage order should be issued. The Board shall conduct public hearings/consultations in the manner prescribed herein. (b) Wage Fixing by Virtue of a Petition Filed. 1. Form and Content of Petition. Any party may file a verified petition for wage increase with the appropriate Board in ten (10) typewritten legible copies which shall contain the following: (a) name/s, and address/es of petitioner/s and signature/s of authorized official/s; (b) grounds relied upon to justify the increase being sought; (c) amount of wage increase being sought; (d) area and/or industry covered.
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2. Board Action. If the petition conforms with the requirements prescribed in the preceding sub-section b.1, the Board shall conduct public hearings/consultations in the manner prescribed herein, to determine whether a wage order should be issued. 3. Publication of Notice of Petition/Public Hearing. A notice of the petition and/or public hearing shall be published in a newspaper of general circulation in the region, and/or posted in public places as determined by the Board. The notice shall include the name/s and address/es of the petitioner/s, the subject of the petition and the date/s, place/s and time of the hearings. The publication or posting shall be made at least fifteen (15) days before the date of initial hearing and shall be in accordance with the suggested form herein attached as Annex "A". 4. Opposition. Any party may file his opposition to the petition on or before the initial hearing, copy furnished the petitioner/s. The opposition shall be filed with the appropriate Board in ten (10) typewritten legible copies which shall contain the following: (a) name/s and address/es of the oppositor/s and signature/s of authorized official/s; (b) reasons or grounds for the opposition; and (c) relief sought. 5. Consolidation of Petitions. If there is more than one petition filed, the Board may, motu proprio or on motion of any party, consolidate these for purposes of conducting joint hearings or proceedings to expedite resolutions of petitions. Petitions received after publication of an earlier petition need not go through the publication/posting requirement. 6. Assistance of Other Government and Private Organizations. The Board may enlist the assistance and cooperation of any government agency or private person or organization to furnish information in aid of its wage fixing function. RULE III Conduct of Hearings Sec. 1. Public Hearings/Consultations. In the performance of its wage fixing functions, the Board shall conduct public hearing/consultations, giving notices to employees' and employers' groups, provincial, city and municipal officials and other interested parties. Sec. 2. Who May Conduct. Hearings may be conducted by the Board en banc or by a duly authorized committee thereof. The Board shall determine the date/s, place/s and time of the hearings which shall be open to the
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public except as otherwise requested by a party and so determined by the Board. Sec. 3. Order of Hearing. As much as practicable, the petitioner/s shall present his/their evidence first, followed by the oppositor/s. The Board may then call on other persons to present their views and submit position papers and other supporting documents. Sec. 4. Duration of Hearings. Hearings shall be concluded as soon as practicable, preferably within forty five (45) days from date of initial bearing except when conditions in the region warrant otherwise. Sec. 5. Records of Proceedings. The Board Secretariat shall keep records/minutes of all Board proceedings, duly noted by the members of the Board. Sec. 6. Non-applicability of Technical Rules. The Board shall not be bound strictly by technical rules of evidence and procedures. Sec. 7. Prohibition Against Injunction. No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or any other entity against any proceeding before the Commission or Board. RULE IV Wage Order Sec. 1. Issuance of Wage Order. Within thirty (30) days after conclusion of the last hearing, the Board shall decide on the merits of the petition, and where appropriate, issue a wage order establishing the minimum wage rates to be paid by employers in the region, which shall in no case be lower than the applicable statutory minimum wage rates. These minimum wage rates include wages by industry, province or locality as may be deemed necessary by the Board: provided, however, that such wage rates shall not be lower than the regional wage rates unless expressly specified in the wage order. The Board shall furnish the Commission a copy of the decision on the petition or the Wage Order. Sec. 2. Contents of Wage Order. A Wage Order shall specify the region, province, or industry to which the minimum wage rates prescribed therein shall apply and exemptions, if any. Sec. 3. Frequency of Wage Order. Any Wage Order issued by the Board may not be disturbed for a period of twelve (12) months from its effectivity, and no petition for 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.

Sec. 4. Effectivity. A Wage Order shall take effect fifteen (15) days after its publication in at least one (1) newspaper of general circulation in the region. Sec. 5. Implementing Rules/Regulations. The Board shall prepare the necessary rules and regulations to implement the Wage Order, subject to approval of the Secretary of Labor and Employment. Sec. 6. Correction of Error. The Board may, motu proprio or upon manifestation of any party, proceed to correct any patent error, errors in computation or typographical errors in any wage order. RULE V Appeal Sec. 1. Appeal to the Commission. Any party aggrieved by a Wage Order issued by the Board may appeal such Order to the Commission by filing a verified appeal with the Board in three (3) typewritten legible copies, not later than ten (10) days from the date of publication of the Order. The appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied upon and the arguments in support thereof. The Board shall serve notice of the appeal to concerned parties. Sec. 2. Grounds for Appeal. An appeal may be filed on the following grounds: 1. non-conformity with prescribed guidelines and/or procedures; 2. questions of law; 3. grave abuse of discretion. Sec. 3. Transmittal of Records. Immediately upon receipt of the appeal, the Board Secretariat shall transmit to the Commission Secretariat the appeal and a copy of the subject Wage Order together with all relevant documents. Sec. 4. Period to Act on Appeal. The Commission shall decide on the appeal within sixty (60) days from the filing thereof. Sec. 5. Effect of Appeal. The filing of the appeal does not operate to stay the Order unless the party appealing such Order shall file with the Commission an undertaking with a surety or sureties satisfactory to the Commission for payment to employees affected by the Order of the corresponding increase, in the event such Order is affirmed. RULE VI Quorum Sec. 1. Quorum. Four (4) members of the Commission or Board shall constitute a quorum to transact business, provided each sector is represented. The Board may dispense with the latter proviso if the two (2) representatives of any sector fail to attend two (2) consecutive scheduled meetings with proper notice, without justifiable reason. Sec. 2. Votes Required. Any decision of the Commission or Board shall require the affirmative vote of not less than four (4) of its members.
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RULE VII Wage Distortion Sec. 1. Correction of Wage Distortion. Where the application of any prescribed wage increase by virtue of a Wage Order issued by the Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel of voluntary arbitrators within ten (10) days from the time said dispute was referred to voluntary arbitration. In cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10) days of conciliation, shall be referred to the appropriate branch of the National Labor Relations Commissions (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty (20) days from the time said dispute is submitted for compulsory arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed wage rates pursuant to the provisions of the Wage Order. RULE VIII Exemptions Sec. 1. Application For Exemption. Whenever a wage order provides for exemption, applications thereto shall be filed with the appropriate Board which shall process the same, subject to guidelines issued by the Commission. RULE IX Enforcement Sec. 1. Enforcement of Wage Orders. Compliance with the Wage Orders issued by the Board shall be enforced by the appropriate Regional Office of the Department of Labor and Employment in accordance with enforcement procedures under Articles 128 and 129 of the Labor Code as amended. RULE X Disposition of Pending Matters Sec. 1. Disposition of Pending Matters. The Commission/Board shall exert all efforts to dispose of all matters pending before it within the shortest possible time. RULE XI Official Records

Sec. 1. Commission/Board Records. All official records of the Commission/Board may be made available to interested parties, upon request, except those considered confidential and which cannot be divulged without violating a private right or prejudicing the public interest. Sec. 2. Custody of Records and Other Documents. The Executive Director of the Commission Secretariat and the Head of the Board Secretariat shall be responsible for the safekeeping of all official records of the Commission and Board, respectively. RULE XII Repeal and Separability Sec. 1. Repeal and Separability.All existing rules, regulations or orders or any part thereof inconsistent with this Rules are hereby repealed, amended or modified accordingly. If any part or provision of this Rules is declared unconstitutional or illegal, the other parts or provisions shall remain valid. RULE XIII Effectivity Sec. 1. Effectivity. This Rules shall take effect fifteen (15) days after last publication in two newspapers of general circulation.

(Sgd.) RUBEN D. TORRES Chairman, NWPC and Secretary of Labor and Employment (Sgd.) CAYETANO W. PADERANGA, JR. Vice-Chairman, NWPC NEDA Director-General (Sgd.) CEDRIC R. BAGTAS Member, NWPC and Labor Sector Representative

(Sgd.) FRANCISCO R. FLORO Member, NWPC Employer Sector Representative

(Sgd.) VICENTE S. BATE Member, NWPC Labor Sector Representative

(Sgd.) EDUARDO T. RONDAIN Member, NWPC Employer Sector Representative and (Sgd.) CARMELITA M. PINEDA Member, NWPC Executive Director, NWPC Secretariat

ANNEX "A" MINIMUM WAGE ADJUSTMENT PETITION NOTICE IS HEREBY GIVEN THAT A PETITION FOR A MINIMUM WAGE INCREASE HAS BEEN FILED WITH THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD REGION __________, PURSUANT TO REPUBLIC ACT NO. 6727, DOCKETED AS CASE NO. ________ PETITIONER ___________________________________________ WAGE INCREASE SOUGHT: ______________________________ REASON/S: ______________________________________________ __________________________________________________________ _________________________________________________________ ANY INTERESTED PARTY MAY FILE AN OPPOSITION. INITIAL HEARING OF PETITION IS SET ON THE _____ DAY OF _________, 199 _____, AT ___________ A.M./P.M., AT ___________ ____________________ Regional Board Chairman

WAGE ORDERS
REPUBLIC ACT NO. 6640
AN ACT PROVIDING FOR AN INCREASE IN THE WAGE OF PUBLIC OR GOVERNMENT SECTOR EMPLOYEES ON A DAILY WAGE BASIS AND IN THE STATUTORY MINIMUM WAGE AND SALARY RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR AND FOR OTHER PURPOSES. Section 1. All workers and employees in the public or government sector on a daily wage basis shall receive an increase in the sum of ten pesos (P10.00) a day.
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The Department of Budget and Management shall promulgate such rules and regulations to carry out the salary adjustment under this section. Sec. 2. The statutory minimum wage rates of workers and employees in the private sector, whether agricultural or nonagricultural, shall be increased by ten pesos (P10.00) per day, except non-agricultural workers and employees outside Metro Manila who shall receive an increase of eleven pesos (P11.00) per day: Provided, That those already receiving above the minimum wage up to one hundred pesos (P100.00) shall receive an increase of ten pesos (P10.00) per day. Excepted from the provisions of this Act are domestic helpers and persons employed in the personal service of another. Sec. 3. Where the application of the minimum wage increase prescribed under Section 2 results in distortions in the wage structure within an establishment which gives rise to a dispute therein, such dispute shall first be settled voluntarily between the parties and in the event of a deadlock, such dispute shall be
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finally resolved through compulsory arbitration by the National Labor Relations Commission's arbitration branch having jurisdiction over the workplace. It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising under this section within thirty (30) days from the time said dispute is formally submitted to it for arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of the wage increase covered by this Act. For the purpose of this Act, wage distortion shall mean a situation where a legislated increase in minimum wages results in the elimination or severe contraction on intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical basis of differentiation. Sec. 4. All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the applicable statutory minimum wage prescribed herein per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours. Sec. 5. Learners, apprentices and handicapped workers shall be entitled to not less than seventy-five percent (75%) of the applicable adjusted minimum wage. A handicapped worker is one whose efficiency or quality of work is impaired by his disability in relation to the work performed. All recognized learnership and apprenticeship agreements entered into before the effective date of this Act shall be considered as automatically modified insofar as their wage clauses are concerned to reflect the increase provided in this Act. Sec. 6. In this case of contracts for construction projects and for security, janitorial and similar services, the increase in the minimum wage of the workers shall be borne by the employers of the construction workers, security guards, janitors, and others similarly situated: Provided, however, That the principal or client of the construction and service contractor shall be subsidiarily liable: Provided, further, That the subsidiary liability shall not apply to construction of family homes worth not more than two hundred thousand pesos (P200,000.00).
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Sec. 7. Nothing in this Act shall be construed to reduce any existing allowances and benefits of any form under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement between workers and employers. Sec. 8. The Department of Labor and Employment may, upon application by an employer in the retail business regularly employing not more than ten (10) workers, grant him exemption from compliance with the provisions of this Act. Whenever an application for exemption has been duly filed with the National Wages Council, action by the Regional Office of the Department on any complaint for alleged non-compliance with this Act shall be deferred pending resolution of the application for exemption by the Council. In the event that applications for exemption are not granted, employees shall receive the appropriate compensation due them as provided for by this law plus interest of one percent (1%) per month retroactive to the effectivity of this law. Sec. 9. The Secretary of Labor and Employment shall promulgate the necessary rules and regulations to implement this Act. Sec. 10.Any person, corporation, trust, firm, partnership, association or entity violating this Act shall be punished by a fine not exceeding twenty-five thousand pesos (P25,000.00) and/or imprisonment for not less than one (1) year nor more than two (2) years: Provided, That any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law. If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entity's responsible officers, including, but not limited to, the president, vicepresident, chief executive officer, general manager, managing director or partner. Sec. 11. The wage increase under Section 1 hereof shall be funded from the Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings under Executive Order No. 87, otherwise known as the General Appropriations Act for Fiscal Year 1987, or from any unappropriated funds of the National Treasury. Any deficiency shall be charged against the personal services savings of the National Government: Provided, That the corresponding amount for the increase therein will be
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included in the annual General Appropriations Act for the succeeding years. Sec. 12. All laws, orders, issuances, rules and regulations or part thereof inconsistent with the provisions of this Act are hereby repealed or amended accordingly. If any provision or part of this Act, or the application thereof to any person or circumstance, as held invalid or unconstitutional, the remainder of this Act or the application of such provision or part thereof to other persons or circumstances, shall not be affected thereby. Sec. 13. This Act shall take effect the day following its publication in two (2) national newspapers of general circulation.
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Approved: December 10, 1987

REPUBLIC ACT NO. 8188

AN ACT INCREASING THE PENALTY AND INCREASING DOUBLE INDEMNITY FOR VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN THE WAGE RATES, AMENDING FOR THE PURPOSE SECTION TWELVE OF REPUBLIC ACT NUMBERED SIXTY-SEVEN HUNDRED TWENTY-SEVEN, OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred twenty-seven is hereby amended to read to as follows: "Section 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a fine not less than Twenty-five thousand pesos (P25,000) nor more than One hundred thousand pesos (P100,000) or imprisonment of not less than two (2) years nor more than four (4) years, or both such fine and imprisonment at the discretion of the court: Provided, That any person convicted under this Act shall not be entitled to the benefits provided for

under

the

Probation

Law.

"The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided, That payment of indemnity shall not absolve the employer from the criminal liability imposable under this Act. "If the violation is committed by a corporation, trust or firm, partnership, association or any other entity the penalty of imprisonment shall be imposed upon the entity's responsible officers, including, but not limited to, the president, vice-president, chief executive officer, general manager, managing director or partner." SECTION 2. All laws, presidential decrees, executive orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. SECTION 3. This Act shall take effect fifteen (15) days after its complete publication in a newspaper of general circulation. Approved: (SGD.) NEPTALI A. GONZALES President of the Senate (SGD.) JOSE DE VENECIA, JR. Speaker of the House of Representatives This Act, which is a consolidation of Senate Bill No. 407 and House Bill No. 5808 was finally passed by the Senate and the House of Representatives on June 7, 1996. (SGD.) HEZEL P. GACUTAN Secretary of the Senate (SGD.) CAMILO L. SABIO Secretary General House of Representatives Approved: June 11, 1996 (SGD.) FIDEL V. RAMOS President of the Philippines

NCR - NATIONAL CAPITAL REGION

MINIMUM WAGE RATE

Republic of the Philippines Department of Labor and Employment National Wages and Productivity Commission REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD National Capital Region WAGE ORDER No. NCR-13
RULES IMPLEMENTING WAGE ORDER NO. NCR-13

INCREASING THE DAILY MINIMUM WAGE RATES AND INTEGRATING OF EXISTING P50.00 ECOLA IN THE NATIONAL CAPITAL REGION WHEREAS, the Regional Tripartite Wages and Productivity Board- National Capital Region (RTWPB-NCR) is mandated under R.A. 6727 (The Wage Rationalization Act), to periodically assess the wage rates and conduct continuing studies in the determination of the minimum wage rates applicable in the region or industry; WHEREAS, the Trade Union Congress of the Philippines (TUCP) filed on April 12, 2007 a petition for a Seventy-Five Pesos (P75.00) per day across-the-board wage increase; WHEREAS, after due notice to all concerned sectors, the RTWPB-NCR conducted consultations with labor and employers sectors on the 21st and 31st of May 2007, respectively, and a public hearing on the 14th of June 2007, to determine the propriety of issuing a new wage order; WHEREAS, after a thorough evaluation of the existing socio-economic conditions of the region, the RTWPB-NCR determined the need to provide workers with immediate relief, without impairing business viability by integrating the existing cost of living allowances under Wage Order No. NCR9 and Wage Order No. NCR-10 into the basic wage, and providing an additional basic wage increase to compensate the projected erosion of the minimum wage rates due to inflation; WHEREAS, consistent with the governments policy of achieving higher levels of productivity to promote economic growth and generate employment, and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement programs. NOW THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, the RTWPB-NCR hereby issues this Wage Order.

Section 1. NEW MINIMUM WAGE RATES. Upon effectivity of this Wage Order: a)

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b) c)

The Cost of Living Allowances of THIRTY PESOS (P 30.00) per day under Wage Order No. NCR-09 and TWENTY PESOS (P 20.00) per day under Wage Order No. NCR-10 shall be integrated into the basic wage; After the integration of the Cost of Living Allowances, all minimum wage workers in the NCR shall receive an increase in the basic wage of P 12.00 per day; The new daily minimum wage rates of covered workers in the private sector in the National Capital Region shall be as follows: Basic Wage After COLA Integration P 350.00 P 313.00 Basic Wage Increase New Minimum Wage Rates

Sector/Industry

Non-Agriculture P 12.00 P 362.00 Agriculture (Plantation and Non P 12.00 P 325.00 Plantation) Private Hospitals with bed capacity of P 313.00 P 12.00 P 325.00 100 or less Retail/Service Establishments P 313.00 P 12.00 P 325.00 employing 15 workers or less Manufacturing Establishments P 313.00 P 12.00 P 325.00 regularly employing less than 10 workers Sec. 2. COVERAGE. The P12.00 wage increase prescribed in this Wage Order shall apply to all minimum wage earners in the private sector in the Region, regardless of their position, designation or status of employment and irrespective of the method by which they are paid. The P50.00 per day COLA integration shall apply to all covered workers under Wage Order Nos. NCR-09 and NCR-10. This Wage Order shall not cover household or domestic helpers; persons in the personal service of another, including family drivers, and workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority pursuant to Republic Act 9178. Sec. 3. BASIS OF MINIMUM WAGE RATES. The minimum wage rates prescribed under this Order shall be for the normal working hours which shall not exceed eight (8) hours of work a day. Sec. 4. APPLICATION TO CONTRACTORS. In the case of contracts for construction projects and for security, janitorial and similar services, the wage increase prescribed in this Order shall be borne by the principals or clients of the construction/service contractors and the contract shall be deemed amended accordingly. In the event, however, that the principals or clients fail to pay the prescribed wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client. Sec. 5. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private educational institutions, the share of covered workers and employees in the increase in tuition fees for School Year 2007-2008 shall be considered as compliance with the increase prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered

starting School Year 2008-2009. Private educational institutions which have not increased their tuition fees for the School Year 2007-2008 may defer compliance with the increase prescribed herein until the beginning of School Year 2008-2009. In any case, all private educational institutions shall implement the increase prescribed herein starting School Year 2008-2009. Sec. 6. WORKERS PAID BY RESULT. All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall be entitled to receive the prescribed increase per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours. Sec. 7. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable minimum wage rates prescribed in this Order. All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage clauses are concerned to reflect the new minimum wage rates. All qualified handicapped workers shall receive the full amount of the minimum wage rate prescribed herein pursuant to Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons. Sec. 8. EXEMPTIONS. Upon application with and as determined by the Board, based on documentation and other requirements in accordance with applicable rules and regulations issued by the Commission, the following may be exempted from the applicability of this Order:
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Distressed Establishments; Establishments Facing Potential Losses; Retail/Service Establishments Employing Not More Than Ten (10) Workers; Establishments whose total assets, including those arising from loans, but exclusive of the land on which the particular business entitys office, plant and equipment are situated, are not more than Three Million Pesos (P3,000,000.00); and, 5. Establishments adversely affected by natural calamities. Sec. 9. APPLICATIONS FOR EXEMPTION. Pursuant to the rules and regulations of the National Wages and Productivity Commission, all applications for exemption from compliance with this Order shall be filed within seventy-five (75) days from the date of publication of the Rules Implementing this Order, with complete supporting documents as specified in the Rules and as may be further required by the Board. Failure to submit the required supporting documents within the prescribed period will be sufficient basis for the dismissal of the application for exemption. The Board may grant a maximum period of exemption of one (1) year in accordance with the NWPC Rules on Exemption, but in no case shall any exemption exceed one (1) year from the effectivity of this Order. Sec. 10. EFFECT OF APPLICATION FOR EXEMPTION. Whenever an application for exemption has been duly filed with the Board, action on any complaint for alleged noncompliance with this Wage Order shall be deferred pending its resolution. In the event that the application for exemption is not granted in accordance with the Rules, the

1. 2. 3. 4.

employees of the applicant firm shall receive the mandated wage increase under this Order, plus one percent (1%) interest per month retroactive to the effectivity of this Order. Sec. 11. APPEAL TO THE COMMISSION. Any party aggrieved by this order Wage Order may file an appeal to the Commission, through the Board, in three (3) printed copies, not later than ten (10) days from the publication of this Wage Order. Sec. 12. CREDITABLE WAGE INCREASE. An increase granted by an employer in an organized establishment within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increase set forth herein, provided that 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. In unorganized establishments, an increase granted by the employer within five (5) months prior to the effectivity of this Order shall be credited as compliance therewith. In case the increases given are less than the prescribed adjustment, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization or promotion of employees. Sec. 13. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the increase prescribed in this Order results in distortions in the wage structure within the establishment, it shall be corrected in accordance with the procedure provided for under Article 124 ofPresidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines. Sec. 14. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Order shall be filed with the National Capital Regional Office of the Department of Labor and Employment, and shall be the subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended. Sec. 15. PRODUCTIVITY AND OTHER PERFORMANCE INCENTIVE PROGRAMS. In order to sustain rising levels of wages and enhance competitiveness, labor and management as partners are encouraged to adopt productivity improvement schemes that will improve the quality of life of workers and in turn enable them to produce more and earn more, such as time and motion studies, good housekeeping, quality circles, labor and management cooperation as well as implement gain-sharing and other performance incentive programs. Sec. 16. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be construed to reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders and/or under any contract or agreement between the workers and employers. Sec. 17. PROHIBITION AGAINST INJUCTION. No preliminary or permanent injunction, or temporary restraining order may be issued by any court, tribunal or other entity against any proceedings before the Board. Sec. 18. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular firms or enterprises or industries from bargaining for higher wages with their respective employers. Sec. 19. REPORTING REQUIREMENT. Any person, company, corporation, partnership or any

entity engaged in business shall submit a verified report on their wage structure to the Board not later than January 31, 2008 and every year thereafter in accordance with the form prescribed by the National Wages and Productivity Commission. Sec. 20. PENAL PROVISION. Any employer who refuses or fails to comply with this Order shall be subject to the penalties specified under R.A. 6727, as amended under R.A. No. 8188. Sec. 21. REPEALING CLAUSE. All orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Wage Order are hereby repealed, amended or modified accordingly. Sec. 22. SEPARABILITY CLAUSE. If any provision or part of this Wage Order is declared unconstitutional, or in conflict with existing law, the other provisions or parts thereof shall remain valid. Sec. 23. IMPLEMENTING RULES. The Regional Tripartite Wages and Productivity BoardNational Capital Region shall submit to the Commission the necessary Rules and Regulations to implement this Order subject to approval of the Secretary of Labor and Employment not later than ten (10) days from the publication of the Wage Order. Sec. 24. EFFECTIVITY. This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation. APRROVED. Manila, Philippines, 06 August 2007. Abstained (Sgd.) DANIEL R. ANG (Sgd.) VICENTE LEOGARDO, JR. Labor Representative Employer Representative Abstained (Sgd.) GERMAN N. PASCUA, JR. Labor Representative

(Sgd.) ALBERTO R. QUIMPO Employer Representative

(Sgd.) MA. THERESA L. PELAYO Vice-Chairperson

(Sgd,) DENNIS M. ARROYO Vice-Chairperson

(Sgd.) RAYMUNDO G. AGRAVANTE Chairperson