BARMM Minimum Wage: How the Bangsamoro Regional Wage Order Is Set

The BARMM minimum wage is fixed by the Bangsamoro Tripartite Wages and Productivity Board (BTWPB-BARMM) through a regional wage order. Under Republic Act No. 6727, the Wage Rationalization Act, the Board is mandated to determine and fix the minimum wage rates applicable in the Bangsamoro Region. Wage Order No. BARMM-01, issued on November 13, 2019, set the region's daily minimum rates: P300.00 for non-agriculture and P290.00 for agriculture in the provinces of Maguindanao, Lanao del Sur, Basilan, Sulu and Tawi-Tawi and the cities of Marawi and Lamitan; and P325.00 for non-agriculture and P300.00 for agriculture in Cotabato City and the 63 barangays in North Cotabato.

Who sets the BARMM minimum wage

The BTWPB-BARMM is the regional body that determines and fixes minimum wage rates in the Bangsamoro Autonomous Region in Muslim Mindanao. Its authority flows from Republic Act No. 6727, also known as the Wage Rationalization Act.

The Board's issuances are regional wage orders. The most recent one quoted in the materials available is Wage Order No. BARMM-01, which was issued on November 13, 2019 and published at Mindanao Exposé on December 17, 2019. Its full text is reproduced in a Bureau of Internal Revenue issuance published in 2020. The text of that revenue issuance is what the ASG law library holds; the wage order itself should be read in its official form.

Before Wage Order No. BARMM-01, the last wage order in the defunct ARMM was Wage Order No. ARMM-17, which raised rates by P15.00/day for both the non-agriculture and agriculture sectors, bringing them to P280.00/day and P270.00/day, respectively, effective May 11, 2018.

How the Board arrives at a wage order

The Board does not fix rates arbitrarily. Before issuing Wage Order No. BARMM-01, the BTWPB-BARMM conducted public consultations and dialogues with the tripartite sectors region-wide, including sessions in Maguindanao, Marawi City and Lanao del Sur, Basilan, Sulu and Tawi-Tawi, and Cotabato City. A separate consultation with the employers sector was held in Cotabato City.

From those consultations, the Board made assessments, among them that employers and workers supported a minimum wage increase; that all sectors supported a productivity-based scheme at the company level; and that employers would continue to develop and improve policies on non-wage benefits, bonuses and related incentives.

The current BARMM minimum wage rates

Under Wage Order No. BARMM-01, the new minimum wage rates for covered workers in the private sector are as follows.

For the provinces of Maguindanao, Lanao del Sur, Basilan, Sulu and Tawi-Tawi and the cities of Marawi and Lamitan, the basic wage increase was P20.00/day for both non-agriculture and agriculture. This brought the rates to P300.00/day for non-agriculture and P290.00/day for agriculture.

For Cotabato City and the 63 barangays in North Cotabato, the increase was P14.00/day for non-agriculture and P10.00/day for agriculture. This brought the rates to P325.00/day for non-agriculture and P300.00/day for agriculture.

The rates apply to the normal working hours, which must not exceed eight hours a day. Workers paid by results — including those paid on piecework, takay, pakyaw or task basis — are entitled to the prescribed minimum basic wage rate per eight hours of work, or a proportion of it for work of less than eight hours.

Coverage and who may be exempted

Wage Order No. BARMM-01 applies to all minimum wage earners in the region, except family drivers, those employed in the personal service of another, and workers in registered Barangay Micro Business Enterprises with certificates of authority under Republic Act No. 9178.

Upon application with and as determined by the Board, and in accordance with the NWPC Guidelines No. 02, Series of 2007, the following may be exempted: retail and service establishments regularly employing not more than 10 workers; distressed establishments; new business enterprises; and establishments adversely affected by calamities such as natural and human-induced disasters.

Publication, effectivity and appeals

A wage order does not take effect immediately. Under Section 20 of Wage Order No. BARMM-01, the order takes effect fifteen (15) days after publication in at least one newspaper of general circulation in the region. This is why the Bureau of Internal Revenue publishes the rates through a revenue memorandum circular — to inform revenue officials, employees and others concerned.

Any party aggrieved by the wage order may file a verified appeal with the Commission through the Board within ten (10) calendar days from the publication of the order. Filing an appeal does not stay the order unless the party files an undertaking, with a surety satisfactory to the Commission, for payment of the corresponding basic wage increase if the order is affirmed.

Compliance, complaints and benefits

Complaints for non-compliance with the wage order are filed with the Ministry of Labor and Employment (MOLE) having jurisdiction over the workplace and are subject to the mandatory thirty-day conciliation and mediation process under the Single Entry Approach (SEnA). If settlement fails, the case becomes subject to enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.

The wage order also contains a non-diminution clause: nothing in it may be construed to reduce existing wage rates, allowances and benefits under existing laws, decrees, issuances, executive orders, or contracts between workers and employers. It does not prevent workers in particular firms or enterprises from bargaining for higher wages with their employers.

Frequently asked questions

What is the minimum wage in BARMM? Under Wage Order No. BARMM-01, the daily minimum is P300.00 for non-agriculture and P290.00 for agriculture in Maguindanao, Lanao del Sur, Basilan, Sulu, Tawi-Tawi, Marawi City and Lamitan; and P325.00 for non-agriculture and P300.00 for agriculture in Cotabato City and the 63 barangays in North Cotabato.

When did Wage Order No. BARMM-01 take effect? It took effect fifteen (15) days after publication in at least one newspaper of general circulation in the region. It was issued on November 13, 2019 and published on December 17, 2019.

Who is exempt from the BARMM minimum wage? Family drivers, those employed in the personal service of another, and workers in registered Barangay Micro Business Enterprises with certificates of authority under R.A. 9178 are excluded from coverage. Retail and service establishments with not more than 10 workers, distressed establishments, new business enterprises, and establishments affected by calamities may apply for exemption.

Practical takeaways

• The BARMM minimum wage is set by the Bangsamoro Tripartite Wages and Productivity Board through a regional wage order issued under R.A. 6727.
• Wage Order No. BARMM-01 sets daily rates of P300.00 (non-agriculture) and P290.00 (agriculture) for most BARMM areas, and P325.00 and P300.00 respectively for Cotabato City and the 63 barangays in North Cotabato.
• A wage order takes effect fifteen (15) days after publication in a newspaper of general circulation in the region.
• An aggrieved party may appeal within ten (10) calendar days from publication; the appeal does not automatically stop the order.
• Complaints for non-compliance go through the MOLE and the SEnA conciliation process before enforcement under Articles 128 and 129 of the Labor Code.

Primary sources

The rules discussed above are drawn from the following issuances, embedded here in full for your reference.

RMC No. 19-2020 — Publishes the Daily Minimum Wage Rates in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) under Wage Order No. BARMM-01Open in Law LibraryDownload PDF

RMC No. 59-2016 — Publishes the Daily Minimum Wage Rates in ARMM pursuant to Wage Order No. ARMM-16Open in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.