RMC No. 71-2013 — Publishes the Daily Minimum Wage Rates in the National Capital Region pursuant to Wage Order No. NCR-18

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU QF INTERNAL REVENUE RECORDS MGT. DIVISION tV 1 8 20t3 11:b8AM.

November 5. 2013 RECEIVED doa

REVENUE MEMORANDUM CIRCULAR NO.-3012

SUBJECT Publishing the Daily Minimum Wage Rates in the National Capital

Region Pursuant to Wage Order No. NCR-18

TO All Internal Revenue Officials, Employees and Others Concerned

For the information and guidelines of all internal revenue officers, employees and others concerned, we are publishing Wage Order No. NCR-1 8 which was issued on September 6, 2013 and published at Philippine Star on September 19, 2013:

TRIPARTITE WAGES and NATIONAL CAPITAL REGION PRODUCTIVITY BOARD REGICNAL San Marcelino cor. Gen. Malvar Street Telefax: 527.51-55/400-67-65 Republic of the Philippine 2nd Fioor, 1650 DY International Building. Malate, Manila Webaite: www.nwpc.dole.gov.ph Department of Labor and Empioyment Exail wage..ncr@yahoo.com.ph

wage order no. ncr-18 RTWP.h-ek GMPI iMENTARY COPY

PrOVIDING FOR A WAgE iNCREASE iN tHE nAtiOnaL CAPItAL rEGIOn

National Capital Region (RTWPB-NCR) is mandated under R.A."6727 (The Wage Rationalization Act), to periodicatly assess wage rates and continuing"studies in the dotermination of the minimum wage applicabie in"the - region or industry: WHEREAS, the Regional Tripartite Wages and Productivity conduct Board.

Wage Fixing issued by the National Wages (NWPC).^the Wage Order may "not"be disturbed for a period"of tweive (12) goods/services, as determined by RTWPB-NCR and confirmed by the NWPC;.! months from its effectivity unless there is a supervening condition. such' as extraordinary under Sectior 3. Ruie"iV of the Amended Rules "of Procedure"on Minimum WHEREAS,Wage Order No. NCR-17 took effect on 03 June 2012 and increase I prices petroieum and Productivity products Commission anc basic

and Eighty Three Pesos (Pg3.o0) for an across-the-board daily wage increase; on April 3, 2013 and June 7, 2013 petitions for an Eighty Five Pesos (P85.00) WHEREAS, the Trade Union Congress of the Philippines (TUCP) filed

01. series of 2013. denying the petition for premature filing within the period of prohibition; WHEREAS, the RTWPB-NCR issued on 22 April 2013 Resolution No

3.2013 WHEREAS, the TUCP re-filed on 01 July 2013 the petition filed last Apri

08 August 20-3, to determine the propriety of issuing a new wage order: conducted wage consuttations on 05 and 17 Juiy 2013 and a public hearing on WHEREAS, after due notice to all concerned sectors, the RTWPB-NCR

increase shouid conform to the standards/criteria prescribed by iaw: across-the-board increases, it is suggested that subsequent petitions for wage WHEREAS, the Board, duly noting that the two petitions prayed fo

cost of living without impairing the viability of business and industry: conditions of the region, the RTWPB-NCR has detemined the need to provide Republic Act No. 6727,the RTWPB-NCR hereby issues this Wage Order. worker WHEREAs, after a thorough evaluation of the existing socio-economic s with immediate relief measures to enabie them to cope with the rising NOW THEREFORE, by virtue of the power and authority vested under

Saction 1. NEW WAGE RAtES.

a) Upon effectivity of this Wage Order, all minimum wage earners shalf receive an increase in the existing Basic Wage in the amount of TEN PESOS (P10.00) per day.

b) The new daily minimum wage rates of covered workers in the private sector in the National Capital Region shall be as follows:

Sector/industry Basic Wage increase Wage Baaic Basic Wage New COLA Wage Rates New

Non-Agricuiture P #26.00 2 10.00 R 436.00 P 30.00 p 466.00

Agriculture (Piantation and Non Privat Hospitals with bod capacity of 100 Or la$f RetaivSorvice Establishments employing P{antation) Mnnufacturing Establishmont rogutarty ompioying leas than 10 workors 15 workers or le p 389.00 # 369.00 p 389.00 p 389.00 R 10.00 R 10.00 P 10.00 R 10.00 P 399.00 P 399.00 P 399.00 P 399.00 p 30.00 P 30.00 R 30.00 R 30.00 R 429.00 P 429.00 R 429.00 R 429.00

c) Effective 01 January 2014, the Cost of Living Allowance (CQLA} af per day under Wage Order No. NCR-17 shall be integrated into the FIFTEEN PESOS (P15.00) of the existing Thirty Pesos (P30) COLA workers in the private sector in the National Capital Region as folows: Basic Wage making the new minimum wage rates of covered

Soctorfindustry Now Basic Wag 01 January Integration Effoctive COLA 201 Basic Wage Intogration Aftor COLA New Minimum January 2014 Wage Rates Effective 01

Non-Agricutture R 436.00 R 15.00 R 451.00 R 15.00 R 466.00

..employing ioss than 10 workors Agriculture (Plantation and Non) Retai/Sorvice"Establi hment mploying Piantation) Private Hoopitais with bod capacity of 100 or koes Manufacturing Establiehments reguiarty 15 workor or iesx p 399.00 P 399.00 R 399.00 P 399.00 P: 15.00 R 15.00 R 15.00 R 15.00 R 414.00 P 414.00 R 414.00 P 414.00 R 15.00 R 15.00 R 15.00 P 15.00 R 429.00 P 429.00 p 429.00 P 429.00

Region, regardiess of their position, designation or status of empioyment and Order shall apply to all minimum wage earners in the private sector in the irrespective of the method by which they are paid. Section 2. COVERAGE. The wage rates per day prescribed in this

Authority pursuant to Republic Act 9178. in the personal service of another, including family drivers, and workers of duty registered Barangay Micro Business Enterprises (BMBEs) with Certificates of This Wage Order shall not cover household or domestic helpers; persons

eight (8) hours work a day. this Wage Order shall be for the normal working hours, which shall not exceed Section 3. BASIS OF INCREASE. The wage increase prescribed under

2 Wagc Order No. NR-18 BLREAH OF INTERNAL REVENIE

contracts for construction projects and for security, janitorial and similar services, the wage rates prescribed in this Order shall be borne by the principais or clients of the construction/service contractors and the contract shall be deemed amended accordingly. Section 4. APPLICATION TO CONTRACTORS. In the Case of

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:

INsTITuTiONs. In the case of private educational institutions, the share of covered workers and empioyees in the increase in tuition fees for School Year 2013-2014 shall be considered as compliance with the wage rates prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2014-2015. Section 5. APPLICATION TO PRIVATE EDUCATiOnAL

fees for School Year 2013-2014 may defer compliance with the wage rates prescribed herein until the beginning of School Year 2014-2015. Private educational institutions which have not increased their tuition

In any case, atl private educational institutions shall implement the wage rates prescribed herein starting School Year 2014-2015.

including those who are paid on piecework, "takay" or task basis, shall be thereof for working less than eight (8) hours. entitled to receive not less than the prescribed wage rates a day, or a proportion Section 6. WORKERS PAID BY RESULT. All workers paid by result

of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable new wage rates prescribod in this Order. Section 7. WAGES OF SPECIAL GROUPS OF WORKERS. Wages

insofar as their wage clauses are concerned to reflect the new wage rates. before the effectivity of this Order shali be considered automatically modified All recognized ieamership and apprenticeship agreements entered into

new wage rates prescribed herein pursuant to Republic Act No. 7277, otherwise All qualified handicapped workers shail receive the full amount of the

known as the Magna Carta for Disabled Persons.

Section 8.EXEMPTIONS. Upon application with and as determined by the Board, based on documentation and other requirements in accordance with applicabie rules and regulations issued by the NWPC, the foliowing may be exempted from the applicability of this Order:

2. 3 1 Distressed Estabiishments: Retail/Service Establishments Regularly Employing Not More Than Establishments whose Totai Assets (ETA) inciuding those arising from Ten (10) workers; loans but exclusive of the land on which the particular business

entity's office, plant and equipment are situated, are not more than P3

Establishments Adversely Affected by Natural Caiamities. Million; and

Wage Oraer No. NCR-18 3

Within one (1) year from the grant of exemption to a quaiified ETA. said ETA is encouraged to register as Barangay Micro Business Enterprise under the BMBE Law.

this Wage Order may file an appeal to the NWPC, through the Board, in three Order subject to compliance with Article 123 of the Labor Code, as amended (3) printed copies, not later than ten (10) days from the publication of this Wage Soction 9. APPEAL TO THE cOMMISSION. Any party aggrieved by

forged between the parties or a collective bargaining agreement provision 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 the CBA, any increase granted by the empioyer shall not be credited as cormpliance with the wage rates prescribed in this Order. increase set forth herein, provided that an agreement to this effect has been aliowing creditability exists. in the absence of such an agreement or provision in Soction 10. CREDITABLE WAGE iNCREASE. Any increase granted by

within five (5) months prior to the effectivity of this Order shall be credited as In unorganized establishments, any increase granted by the empioyer

compliance therewith.

employer shall pay the difference. Such increases shall not inciude anniversary In case the increases given are less than the prescribed wage rates, the

increases, merit wage increases and those resuiting from the regularization or promotion of employees.

Section 11.EFFECTS ON EXISTING WAGE STRUCTURE. Where the

wage structure within the establishment, it shall be corrected in accordance with the procedure provided for under Articie 124 of the Labor Code, as amended. application of the wage rates prescribed in this Order resuits in distortions in the

to adopt productivity improvement schemes that will improve the quality of tife of INCENTIVE PROGRAMS. in order to sustain rising levels of wages and enhance competitiveness, labor and management as partners are encouraged workers and in turn enable them to produce more and earn more, such as time SeCtion12, PRODUCTIVITY ANDQTHER PERFORMANCE

cooperation as well as implement gain-sharing and other performance incentive and motion studies, good housekeeping. quality circles, iabor and management

programs.

Section 13. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliarice with this Order shall be filed with the National Capital Region Office of the Department of Labor and Empioyment, and shall be the subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.

shall be construed to reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders and/or Section 14. NON-DIMINUTION OF BENEFITS. Nothing in this Order

under any contract or agreement between the workers and empioyers.

permanent injunction, or temporary restraining order may be issued by any court, tribunat or other entity against any proceedings before the Board in Section 15. PROHIBITION AGAINST INJUNCTION. No preliminary or

accordance with pertinent provisions of the Labor Code, as amended. A Wage Order No.NCR-18

Section 16, FREEDOM TO BARGAlN, This Order shal not be

bargaining for higher wages with their respective empioyers. construed to prevent workers in particular firms or enterprises or industries from

Nationai Wages and Productivity Commission. 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. 2014 and every year thereafter in accordance with the form prescribed by the Soction 17. REPORTING REQUIREMENT. Any person, company.

RA 6727, as amended by R.A. No. 8188. fails to comply with this Order shall be subject to the penalties specified under Section 18. PENAL PROVISION. Any employer who refuses or

are hereby repealed, amended or modified accordingly. regulations or parts thereof inconsistent with the provisions of this Wage Order Section 19. REPEALING CLAUSE. All orders. issuances, rules and

Wage Order is declared unconstitutional, or in conflict with existing law, the other provisions or parts thereot shall remain valid. Soction 20. SEPARABILITY CLAUSE. If any provision or part of this

Section 2t. iMPLEMENTlNG RULES. The Reaionat Tripartite Wages

the necessary Rules and Regulations to implement this Order subject to approval of the Secretary of Labor and Ernployment not later than ten (1o) days from the publication of the Wage Order. and Productivity Board-Nationai Capital Region shall submit to the Commission

on the 2nd tier or the productivity based pay which shall serve as guidelines for the Two-Tiered Wage System, the Board shall issue corresponding advisories private establishments on the range of productivity bonuses and incentives that an enterprise 'may provide based on agreement between workers and Section 22, ADVISORY ON PRODUCTIVITY BASED PAY. Pursuant to

management.

(15) days after its publication in a newspaper of general circulation. Section 23. EFFEcTIViTY. This Wage Order shall take effect fifteen

APPROVED.

Manila, Philippines, 05 Septembor 2013

LaborRerlesontative f Aguilar Employors Representative NTE LEOGArDGR

German n. Pascua, Jr Labor tESEoT presentative Empioyers' Representative ALBERTO R. QUIMPO

FERDIA Vico chairperson MANFoSte :osemakie g. edillon Vics Chairporson TL-ATZA

aLEX V. avILA Chairperson

Wage Order No NCR-18

All concerned are hereby enjoined to be guided accordingly and to give this Circular as wide a publicity as possible.

BUREAU OF INTERNAL REVENUE RECORDS MGT DIVISION &V 1 8 203 I:08A.m. Commi'ssioner of Internal Revenue KIM S CINTO-HENARES