RMC No. 51-2015 — Publishes the Daily Minimum Wage Rates of Private Sector Workers in the Cordillera Administrative Region pursuant to Wage Order No. RB-CAR-17

REPUBLIC OF THE PHILIPPINES RECORDS MGT DIVISION uarn sef 01 205 P INTRRNAU NNYUNUB 2:5 M

DEPARTMENT OF FINANCE a BUREAU OF INTERNAL REVENUE Quezon City RECEIVEI

GD August 13, 2015

REVENUE MEMORANDUM CIRCULAR NO. 51.0015

SUBJECT Publishing the Daily Minimum Wage Rates in Private Secior Workers in the Cordillera Administration Region Pursuant to Wage Order No. RB - CAR -- 17

TO : All Internal Revenue Officials, Employees and Others Concerned

Order No. RB-CAR 17 issued on May 14. 2015 and publishad in the Baguio Midiand Courier on June 14. 2015: For the information and guidance of all concerned, quoted hereunder is the fuil text of Wage

REGIONALTrIPArtrEWAGESaND PrOdUCtIVIty BOArD Naticnal Wages and Productivity Comn Department of Labor and Empiayrment Cordillera Administrative Region Republic of thg Philippinee Baguio City missior

WaGe Order no. rb-car-17 PRESCRIBING THE NEW MINIMUM WAGE RATES OF PRIVATE SECTOR WORKErSIN THE CORDILLERAADMINISTRATIVE REGION

Wages and Productivity Commission, in particular NWPc Guidelines No. oi of and fix minimum wage rates applicable in the regions and to issue the corresponding Wage Orders subject to the guidelines issued by the Nat 2007 owers the Regiona! -rripartite Wages and Productivity Boards to determine as amended by NwPC Guidelines No D2 of 2012: WHEREAS,RA 672?,otherwise known as the Wage Rationalizatian Act.

the irriplementation of RA 6727.t policy of the government to provide safety measures for (rtws) ir attain a higher level of croductivity in the work area, increase emplovment an auament contin T carirc WHEREAS 1CIV Cordilera AdministrativeRegicn (herein E he exercise of its minimum wage fixirig authority consistent witn the acheres to policy owth of business and interest of employers particulariy those ncome and in consonanca Works reguirenients the Regionai Tripartite Wages and s with the a iCF fo rementic referra wo-Tiered wage System lowly paid wortets AitECI ned guidelines f 3C Praductivity the Board PCoccari

the tnicro enterprises graup

Other Areas of the region after a certain period of time. aimed at enhancing the econornic welfare oi the most vuinerable group minimum wage earneis: c 15 to attain a singie fioor wage ievel for the BLisT Area and another for the VHEFEAs.itWaS the intent of the Board wher it issued of workers who are the vao r

e fiied. the Board in its meeting on February 13, 201s. the region aside from undertaking a series of public for the provinces'of ifugao initiate and conduct wage review. studies on the socio-economic condition of pravinces of Apayao and Kalinga, March 31,2015 for the province of Abra, and wace adiustrnents on the current PDADri7 2Gi5 forthE Drovi achad Whereas. WHEREAS and after its first anniversary date and no petition for wage ircrease had been the pub!ic corsutations were and Mountain Frovince. March 2s,m considerina tnat the of Benguet and Baguio City ninimum wage ievels; current Wage Order has consultations for possible FiCt solved Moto Proprio te d on March 24,2015 201S for

INTERNAL COMMUNICATIONS DiVISION BUREAUOF INTERNAL REYENU M SEP 072015 Page 1 of 6 it uea u

consultations, a werkshop for participants, grouped per sector shall be done to Wage System (TTwS), as procedure for wage adjustments sufficiently address elicit their respective positions on the following issues: (1) Does the Two-Tiered or is effective in balancing the interests of both workers and ermployers; and (2) The possibility of adjusting the minimum wage rates of workers under the First Tier and implementing the productivity based pay under the Secord Tier: WHEREAs, the Board further resolved that in conducting the public

consultations and studies on the socio-econiomic conditions prevailing in the for minimum wage adjustments, is well appreciated by both workers and empioyers claiming that it is more effective in balancing their respective more opportunities to grow and therefore increase their contribution"to the region, the Board has determined the following: (1) The TTWS, as a guideline interests: (2) There is a need to adjust the minimum wage leveis of workers in the region; and (3) The need to assist the micro enterprises, providing them region's economic development and ermploynent: WHEREAS, after a series of deliberations on the results of the public

Region, hereby issues this Wage Order. Repubic Act No. 6727. otherwise known as the Wage Rationalization Act. the Regional Tri partite Wages and Productivity Board, Cordillera Administrative NOW THEREFORE. by virtue of the power and authority vested under

T Section I. Coverage. Administrative Region regardless of their position, designation or status and irrespective of the method their wages are paid are domestic workers or persons employed in the personal service of Barangay Micro Business Enterprises with Certificate of Authority covered by this Wage Order. Noi covered are house helpers or another including family drivers and workers in the registered pursuant to R.A. 9178. otherwise known as "Barangay Micro Business Enterprises (BMBE) Act of 2002" All minimum wage earners in the Cordillera

Sectiori 2. The Minimum Wage Levels, The new levels of minimum wages as provided by this Wage Order shall be as follows:

a, Upon Effectivity of this Wage Order

DAILY MINIMUM WAGE RAtES

Industry Sector of La Trinidad, itogon, Sabian, and Bagulo Clty, Municlpalities Tuba, Benguet(BLiST) Other Areas in the Region

Basic COLA Total Basic COLA Total

Retai/Service with 11 Non-Agsiculture & 270 15 285 255 1 26 5

workers and below Retai/ Service with 10 Agriculture & workers and above 260 10 27 245 10 25 5

K 1 3

T

Page 2 of s BUREAJ OF INTCRNAL REVENUE RECORES MCT. OVSICR SLP0205/ 33 P.. Maa

RECEIVED WU

b. Effective January 01, 2016. the new daily basic minimum wage levels and structures after the integration in the basic wage of the remaining P10.00 and P15.00 COLAs shall be as follows:

NEW DAILY BASIC MINIMUM WAGE RATES Industry Sectar of La Trinidad, ftogon, Sabian, and Baguio City, Municlpalities Tuba, Benguet(BLIST) Other Areas in the Region

All industnesSectors 28 5 26 5

Microenterprises 270 255

Section 3. Basis of Minimurn Wage. The minimum wage rates prescribed under this Wage Order shall be for the normal working hours. which shall not exceed eight (&) hours work a day.

Section 4. Implernentation of Second Tier. The Second Tier or the Advisory 02 of 2014 and subsequent Advisories which may be Preductivity Based Pay shall continue to be implemented iollowing the guidelines provided by Advisory No. 01, series oi 2013. issued by the Board.

Section 5. Creditable Productivity Based Pay. For establishments identified as priority industries and already granting Productivity Based Pay or its equivalent to their workers, this may be credited as compliance to the Second Tier. Merit increases, anniversary promotion of the empioyees per company policy or as provided by iaw are not credited as compliance to the Second Tier ncreases or wage increases resulting from the reguiarization or

Section 6. Appfication to Private Educational institutions. in the case of private educational institutions, the share of covered wotkers and employees ir the tuition fee increases for School Year 2014-2015 shall be considered as compliance to this Wage Order. However. payment of any shortfall shall be done starting School Year 2015. 2016.

Private Educational institutions which did not increase their tuition fees for the School Year 2014-2015, may defer compiiance with this Wage Order Unti! Schoof Year 2015-2016 in any case, all private educational institutions shall implement this Wage Order starting School Year 2015-2016.

Section ?. construction projects and for security, janitorial and other simiiar shall be deermed amended accordingly.. in the event, however. Application to Contraciors.. services, the prescribed increases shall be borne by the principals or clients of the constructioniservice contractors and the contract that the principals or clients fail to pay the prescribed increases the construction/service contraciors shall be jointly and severaiiy tiabie with their principals or clients. In the case of contracts for

J y 2 E Y

BUREAU OF INTERNAL REVENUE RECORLS MGT.DTVISION 2Ss* HM. Page 3 of 6

sEr w i 20S A

naa

RECEIVEY

Section 8, shall receive not less than the adjusted amount prescribed by this Workars Faid bu Aesults Al workers paid by results,including those wha are paid on piecework, takay, pakyaw, or task basis, Order for the normal working hours which shall not exceed eight (8) hours per day or a proportion thereof for working less than eight (8) hours.

Section g. Apprenticeship or iearnership agreement shalt be entitled to not iess than Seventy Five Percent (75%) of the new minimum wage Apprentices and iearners. rate under this Order. Persons empicyed under

the effectivity of this Order shall be automatically modified insofar All learnership and apprenticeship agreements entered into before as their wage clauses are concerned to reflect the new prescribed Wage rates.

Section 1o. Mobile and Branch Workers. those applicabie in the domicile or head office of the employer. workers, who by the nature of their work have to trave!, shall be The minimum wage rates of

The minimum wage rates of workers working in branches or agencies of establishments in or outside the Region shall be those applicable in the place where they are stationed.

Section il. Exemption. Applications for exemption from compliance with this

induced disasters pursuant to NWPC Resoiution 01. Series oi Order shall not be allowed except in cases of establishments adversely affected by calamities such as natural and/or human 2014

Section 1z. Transfer of Personnel.The transfer of personnel from one province or region to another shall not be a valid reason for the reduction of the wage rate being enjoyed by the worker prior to the transfer.

Sectior 13. Board within ten (10) calendar days from the publication of this Order may file a veritied appeal with the Conmission through the Order. Appeal to the Commission. Any party aggrieved by this Wage

Section 14. Effect of Fijing of Appeal. The fling of the appeal does not

shall file with the Comrnission an undertaking with a surety or sureties satisfaotory to the Commission for payment of the Order is affirmed. operate to stay this Order uniess the pary appealina such Ordel corresponding increases for covered employecs in the event this

Section 15. Non-Diminution of Benefits. Nothing in this Order shall be benefits of any form under existing laws, decrees. executive construed to reduce any existing wage rates, allowances and orders and/or under any contract or agreement between the workers and empioyers.

S Be

Page 4 of 6 BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION SEP 020 3.55p.M A

RFCEIVEI

Section is. Effects on Exisffng Wage Structure. Where effects of the wage increases provided for by this Order result in the distortion of the wage structure within an establishnent, the sarrie shall be

corrected in accordanca with the procedure provided for under Art. 124 cf the Labor Code as armended

Section17. prosecution which may be undertaken against those who fail to Office of the Depariment of Labor and Employment (DOLE-CAR) and shail be the subject of enforcement proceedings under Article comply cornpliance with this wage order may be filed with the Regional 128 of the Labor Code, as amendeci,without prejudice to criminal Compaints far Non-Compliance. Complaints for non-

Section 18. Penal Provisions. Any person. corporation, trust or firm partnership, association or entity that refuses or fais to pay the subject to the penai provisions under R.A. G727, as amended by prescribed increases in accordarce with this Order shall be RA 8188

Section 19. Prohibition Againsf injunction. No preliminary or permanent court. tribunal or other entity against any proceedings before the Board. injunction or temporary restraining order mavbe issued by any

Section 20. Freedam to Bargain. This Order shall not be construed to prevent workers from bargaining for higher wages with their re spective employers.

Section 21. Reporting Requirement. Any person, company. corporation. partnership or any entity engaged in business shall submit e iater than January 31, 2016 and every year thereafter in verified itemized listing of their iabor component to the Board not accordance with the forn prescribed by the Commission.

Section 22. Repealing Ciauise. Al orders, issuances. rules and regulations are hereby repealed, amerded or modified accordingly or parts thereof inconsistent with the pravision of this Wage Order

Section 23. Rules Implementing this Order. The Board shall prepare the necessary rules to implement this Order subject to approval of the Secretary of Labor and Empioyment.

Section 24, Separability Clause. If, for any reason, a section or provision of this Order is declared unconstitutional or illegal. the other provisions or parts shall remain vaiid.

Section 25. Effectivity. This Order shall take effect fifteen (15) days after its pubiication in at least one (1) iccal newspaper genera

circulation in the Region. b e FZ(

Page 5 of 6 BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION SEF01205/7 2.SS p.M Maa

RECEIVED

APPROVEE this 14th day of May 2015,Baguio City.Phjlippines

MILTON LV BALAGTEY Workers' Repfesertative AlFonso t. Lao Fmployers Representative

RENERIOC.WARDIZABALJR Workers' Representative JUAN JOPNNY RYOE LA CRUZ Emplovers' Rspresertative

E

aaf UMZ

Vice-Chairperson MYRNAP.PABLO MILAGROS A.RIMANDO Vice-Chairperson

ENRY jalBuena T

nairperson

All revenue officials and employees are hereby enjoined to give this Circular a wide publicity as possible.

J-S BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION SEF 0 1 2015 2:55-P.M Ma Commissioner of Internal Revenue KIM S.JANTO-HENARES 034865

RECEIVED

Page 6 of 6