RMC No. 49-2014 — Publishes the new minimum wage and provides advisory guidelines on productivity based pay for private establishments in Region-IVA

REPUBLICOF THE PHILIPPINES BUREAU OF INTERNAL REVNAUE RECORDS MGT. DIVISI

DEPARTMENT OF FINANCE 1:26P.M BUREAU OFINTERNAL REVENUE Hezon City RECEIVED JUN 1 o 20t UMeqA

June 6, 2014

REVENUE MEMORANDUM CIRCULAR NO. 49-3014

SUBJECT Ciuidelines on Productivity Based pay for Private Establishments in Publishing the New Minimum Wage and Providing Advisory Region -- IVA

TO All Internal Revenue Officiais, Employees and Others Concerned

others concerned, we are publishing Wage Order No. IVA-16 which was issued on April 8, 2014 and published at Philippine Daily Inquirer on May 1, 2014: For the information and guidelines of all internal revenue officers, employees and

SS

Regional THparite Wag DEPARTI WAGE ORDER NO. IVA-16 Iatic aIiA Rapublic ot tha Philippin City of Calamba Laguna and Prc andProductivity Board No. IV-A BORAN tivit IPLOYMENT

t and PrOviDing aDvisorY GutaeWe FOR PRIVATE EStABLISHMENTS iN REGION SETTING Minimum wA -t TIVITY V Based PaY WHEREAs, the Regionat Tripartite Wage Wage Rationalization Act A oet shments in th: Region folicwing a standard minint tivityimpra mandated taA 5 and Froductivity Board - IVA,{RTWPB - fVA} undtr R. A, 6727 "T} ainstaring programs + set the applicabic r m waga fixing process aicitc WaOe tt dset of criteria and to Mhrxnreiatyrivate

WHEREAs, the Trade Union Congress of the Ptitipr. Services. 2013 and July 33, 20i3 suhmitting dalty ncinss the hoard increase of P75 and p79.50,'respectively: Adc unior Congress cf tte Phittoo S(CEO nes (rucr) ard confeder rtr-rt hit 2ti of Lat nd Aied soci on tu 20

sectorat consuttations on iz Septmmher 2o in Quez Grcis.series offonsttratior in Cnvite, 08 Octobe' 20l3 in Batangas, 2a October 2oia in Rizat and and Region wide public hearir WHET t thc Regional Board declar esprrtively, in consideration of petitions file& with the Boera and sssessment or wage 4 ed the conduct of a series of sectorai, provinciat and industry leve 7a0etd u4ac 29, 201 vtt5 207A1 Empioyers Sectar, Provin ugust 20i3 with Labor E

for the promotionnd generation of iong term investnents and quality "emplovment"as the region's such as: regtonal dnmestic outpur, net ermploy ecnnomy continue te pick up nitsEt Frr tte+ is Wag attri+ andt Jviding an increase in the minimum wage r b verty incider among others, and in suppo nciti tes of

Allowe W+ where the establshntents is situated te (sEA).where the W rder No. ivA i6, sets the new minimum wage for covered workers and employees in bitity depends on the sperifir: industry category and area configuration braan asptr eformof BasicPay(ep)

WHFtFA ornatctivit Pay is trctisc s, consisterit wirh rhe eovernment's noliry of enabling establishments achieve higher leveis nf atou ind cornpetitiveness nRO1 her with this Orcer? tn heir famittes, an Advifinry Guidelinas an Productivity/Performance Based romote investments that will create more employment, improve the

CAtAtARzON (as de 'tned under Execntive Order 103 Saries af 2002) which covers the provinces af Covitn WHEREAs, this Wagr: Order hecomer effective fifteen (1s) days upon pubiication in a circutation applicabic ta minimum wage wcrkars ard emptovees in orivate estabishmen aatn3.B nRirDAH doIAeRE iaBTaicntia

NOW,THFREFORE,ty virtue of ttc atry 1 refe izatiorAct,the RegicnalTripartite Wages and Productivity Board of Regionfv-A hereby issues and authority vested under Renubtic -tNo.C72T.Knwnatre

(P267.00} to Three umared sixty Twa Pesos and Fifty Cantnvos(ra62.s0) pet da) SECTION MiniMum wage minimt YA reoup fo trod

re atchsi Two Hundred Sixty Seven Pesos {p267.oo) per day is the fior ttiortnareuosoove erty threshotd, median wagc and renion-snecific 19 inte

cTirt n Ps0sP13.0) Socio-Eco c AtowanccsEA)per day 1

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increase in the form of Basic Pay (BP) or Socio-Economic Allowance (SEA), whichever is applicable. SECTION 2. AMOUNT AND FORM OF INCREASE IN THE MINiMUM WAGE. Upon effectivity of this Wage Order, minimum wage workers and employees in private establishments in Region IVA shall receive a daily

tranches yearly (01 May 2014 and 01 December 2014) and thereafter, until 01 December 2016, in addition to the wage adjustrr:ents prescribed under Wage Order No, iVA-15. For those receiving minimum wage rate of iess than Two Hundred Sixty Seven Pesos (P267.00) per day, a Twelve Pesos (P12.00) basic pay increase per day shall be effected in staggered basis, starting from the effectivity of the Orier, and thereafter, until 01 December 2016. Such increase shall be implemented in two

For those receiving minimum wage rate of more than Two Hundred Sixty Seven Pesos (P267.00) to Three Aflowance (CTPA) ot Twelve Pesos and Fifty Centavos (P12.50) under Wage Order No. IVA-15 inciuded, shall receive a Thirteen P asos (P13.00) per day Socio-Economic Allowance (SEA) in fuil amount upon effectivity af Hundred Forty Nine: Pesos and Fifty Centavos (P349.50) per day, the Conditional Temporary Productivity the Order.

specific indicators. SECTION 3. BASIS IN THE DETERMINATION OF THE INCREASES. The Twetve PeSOS (P12.OO) Basic Pay tncrease is arrived at taking into consideration the region's poverty threshold, median wage and region

the Gross Regional Comestic Product, Net Employment and Poverty Incidence. The Thirteen Pesos P13.00) Socio-Economic Allowance is derived at taking into account the growth rate in

implementation schedule of the Tweive Pesos (P12.00) Basic Pay increase and the effective minimum wage SECTION 4. IMPLEMENTATION SCHEDULE OF THE P1Z.00 BASIC PAY INCREASE.The Staggered rates of workers/eripioyees receiving a minimum wage of less than Two Hundred Sixty Seven Pesos (P267.00) per day, ir: covered industry and area classification shall be as follows:

Retail & Service Establishment Employing Not More Than 10 Workers

A E A R G 2012 (W Mn My Rt 15 Amount ncrease {WO 1s) T Mhy 15 Mini We M Rat e 214 MY (w 16} O0 Amdunt ot Incrtase {Wt y Ma 'S 2014 15 20 (W D May '} Wage Rate Minimum 2014 ( MY 15 5 ncrease iout Dacem be? (WO16 214 Q Min mu W ge Ratt 1 Q 215 (W M Amoxfnt of In creas ( MY 201' 15 2015 (we My 16 Wage Rate Minimum G 201 (WG May 1 15 tncrebse Amount Dacamber {WO 16} 2015 11 Mtnt mum Wage Rate ncreere Qf (WO 15 2616 M 1 Mink W t Rate Mu inct e Ymou of Decamt*: (WO 16) 2016 H Mnt Y

20 255 25 9 263 4 267 U 2 28 $B 246 0 255 A 25 263 4 26

2 18 243 12 255 259 263 4 267 208 18 226 18 244 248 11 22 263 K 267

A C L9 1o 18 18 212 213 18 18 230 231 4 235 234 18 1 25 2 253 4 4 257 256 6 1 263 2663 267 267

A 190 183 18 18 208 201 1 18 226 219 0 223 230 18 18 241 248 4 4 245 252 11 18 263 263 4 267 267

WO 15 refers to Wage Order No. NVA-15, tront hes of increase in minirmum wage wlth effect/vity dates 15 May 2012, 15 May 2013, 15 May 2014, 15 May 2015, and 15 Moy 2016. WQ 16 refers to Wupe Order No. IVA-16, tranc tes of increase in minimum wgg Z015, and 01 December 2016. witheffectivity dates Q1 May 2014,01 December 2014,01 May 2015,01 ecember

( BUREAU OF INTERNAL HEVENU RECORDS MGT DIVISION I: 3 AM

R A L Minlnum Wage Ratc {WO 15} Amount of Inctets Agriculture (Non-Plantation) Minlmum Wage Rate Amount hm W Mint Amount {Mtnimum WAge A R E Minimum Wage Rate (WO 15) Agri -. ulture(Plantation) Amount Mint We mu Amount Mint Thu

Increase Rite Ingruase OF Raic locreast Rte increave

Ma 112 1S 2013 M 201 MY My 2014 1 My 2 G1 201A SS M De cembe! 21 DL 2015 MY Y2 MY 1 MaY 20 13 $$ 2014 MaY Q Detember 201 Q2

E 253 2SS 2S {W 6 6 {WO 15} {WO 1} 261 261 (WO 15) 6 G {WO 26 267 [WO 1G] G 25 5 6 WOG 26 1 6 {WO 1G} 267 G

R 8 1 248 244 231 255 255 249 6 6 6 261 261 25 5 6 6 6 267 26 261 6 267 B A R 25 2S 251 2S5 6 6 2O1 26 1 261 6 6 0 2.6 2.67 267

A 6

R R S A E A P 0 Minjmum Wat 20:1 2SS My Rate (wO i5. 1 M 1 Amount of Increase 6 01 M# 2014 {O 1} Non-Agriculture "Minimum Ware 261 Rate Amount of (ncres 6 Q1 Decembar 2014 {WO R *Minimum Wage 267 Ra

GCA refers to Growth Corridor Area; EGA refers to Emerging Growth Area; and RBA refers to Resource Based Area

No. IVA-15 plus Tweive Pesos and Fifty Centavos (P12.50) per day Conditional Temporary Productivity Aflowance (CTPA} prescribed under WO IVA-15, plus Thirteen Pesos {P13.00) Socio-Economic Atiowance SECTION 5. NEW MINIMUM WAGE RATES. The new daily minimum wage rate for workers/cmployees receiving minimum wage rate of more than Two Hundred Sixty Seven Pesos (P267.00) to Three Hundred Forty Nine Pesos and Fifty Centavos (P349.50) per day, is composed of the basic pay under Wage Order (sEA) granted under wO iVA16. For workers/employees receiving less than Two Hundred Sixty Seven Pesos (P267.00) per day, the daity May 2012 and 15 May 2013 respectively, plus 8asic Pay increase of Tweive Pesos (P12.00), given in tranches starting upon the effectivity of Wage Order No. IVA-15. minimum wage is composed of the Basic Pay increases under Wage Order No. IVA-15 made effective is

The daily minimum wage rates of workers and employees in private establishments in the Region shalt be as follows:

GROWTH CORRIDOR AREA AREAS WO IVA- Bastc Pay 15 M Undar Wage Orde? No. IVA-16 NON-AGRICULTURE WD IVA- Minimum Wage Rate CTPA L iVA8 SEA WO 2 Minlmum Wage Naw WO IVA Basic P ay 15 M under Wage Order No. IVA-16 Minimum Wage Rate WO IVA. CTPA AGRICULTURE 15 M Plantation IVA-16 SEA WO 2 Minimum Wage New

337.00 12.50 13.00 362.50 312.00 12.50 13.00 337.50 CAVITE Bacoor, Imus LAGUNA Binan City. Laguna Techno Park, San Pedro

Cainta, Taytay RIZAL

A 2/ Anpiicobie Increase In the Minimum Wuge In the form of Soclo-Economic Allowance (SEA) 'under Wage Order No, tVA-16 effective 01 May 2014. 1/ Applicable Minimum Wuge under Wage Order No. iVA-15, composed of ( Baslc Pay Plus Conditional Temporary Productivity Allowance) AA effectivc 15 May2012.

BUREAU OF INTERNAL REVENUE RFCORDS MGT TYYO

NON-AGRICULTURE AGRICULTURE

ArEaS under Wage Order No. IVA-16 Minimum Wage Rate e wge Oe No. A-6 Minimum Wage Rate Plantation

GROWTH CORRIDOR AREA WO IVA. Basic Pay 1 WO IVA- CTPA 15 M IVA-16 SEA WO 2 Minlmum Wage New WO IVA- Basic Pay 15 1 WO iVA CTPA 1 IVA-18 SEA WO 2 Minimum Wag* New

Carmona, Cavite City. Dasmarifias City, Gen, Trias, CaVIte Rosaria 315.00 12.50 13.00 340.50 290.00 12.50 13.00 315.50

Cabuyao, Calamba City. Los BaAos, San Pabia City Santa Cruz, Santa Rosa City LAGUNA

RIZAL Antipolo City

Tagaytay City, Tanza, Trece Gen. Alvarez, Kawit, Eilang. Martires City CAVITE 310.00 12.50 13.00 335.50 285.00 12.50 13.00 310.50*

City, LiMA Technology Batangas City. Bauan. Lipa Center, San Pascual, Santo Tomas, Tanauan City BatAnGas

Rodriguez, Tanay RIZAL

Lucena City QUEZON

AREAS under Waga Order No. IVA-16 NON-AGRICULTURE Minimum Wago Rate under Wage Order No. IVA-16 Minimum Waga Rate AGRICULTURE Plantation

EMERGING GROWTH AREA WO IVA- Basic Pay 1 WO IVA- CTPA 16 N IVA-16 SEA WO Mnimum Wage Naw WO IVA Basic Pay 1 WO IVA- CTPA 15 1 WD IVA. SEA 1 Minimum Wage Now

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Balayan, Calaca, Cataragan. Rosario. San Jose Lemery, Mabini, Nasugbu. Batangas 291.00 12.50 13.00 316.50 266.00 12.50 13.00 291.50

Angono, Binangonan. San Mateo RIZAL

Candelaria, Sariaya QUEZON

A "1/ Appl/cable Minimum Wage Under Wage Order No. WVA-15, composed af ( Basic Pay Plus Conditional Temporary Productivity Allowance) 2/ Appllcabie increase in the Minimum Wage in the form of 5ocio-Economic Allowance (SEA) under Wage Qrder No. IVA-16 effpb TMinimum wage rate applicable to the Sugor Industry-Agricufture Plantation and Non-Piantation. effective 15 May 2312 G At/ve 01 May 2014.

RIREAIOEINTTERNAY REVTNIIT

NON-AGRICULTURE AGRICULTURE

EMERGING GROWTH AREA AREAS WO iA Basic Pay 16 1 under Wage Order No. IVA-16 WO IVA- CTPA Minimum Waga Rate 116 VA-16 SEA WO 2f Minimum Waga Nw WO IVA15 Minimum Wage Under Wage Order No. IVA-16 3 Mirimum Wage Rate Plantation Basic Pay Increase 4 Mirimurm Wage New

Indang. Naic, Noveleta. Ternate CaVite 280.00 12.50 13.00 305.50 255.00 6.00 261.00

LAGUNA Paete, Pakil

BAtAngaS San Juan

RIZAL Pitilia

QUEZON Tiaong

275.00 12,50 13.00 300.50 255.00 6.00 261.00 BATANGAS Taysan RIZAL Teresa

RESOURCE BASED AREA WO IVA- Basic Pay 16 WO IVA- CTPA 15 1 1VA-16 SEA WO 2 Minimum Wage Naw WO IVA15 Minimum Wage 3 Basic Pay Increasa 4 Minimum Wage Naw

271.00 12.50 13.00 296.50 255.00 6.00 261.00

Alfonso, Amadeo, Gern . Aguinaldo, Magalianes. CAVItE Maragondon, Mendez

Ataminos, Bay, Caiauan, Pagsanjan. Pangit, Pila, Rizal. Cavinti, Famy, Kalayaan. Liliw, Luisiana, Lumban, Mabitac, Magdatena. LAGUNA Majayjay, Nagcarlan. Santa Maria, Siniioar, Victoria

Kahoy. Padre Garcia, San Luis, San Nicolas, San:a Agoncillo, Alitagtag. Balete. Lobo. Malvar, Malaas na Teresita, Taal, Talisay. Tingloy, Tuy Cuenca, ibaan.Laurel. Lian. Batangas

Baras, Cardona, Jaia-Jala. Morong RIZAL

2/ Applicabre increase In the Miaimum Wage in the form of Socio-Economic Allowance (SEA) under Wage Order Na. IVA-16 effective O1 May201x) 1/ App/tcabte Minimum Wage under Wage Order No. VA-15, composed of ( Basic Pay Pfus Condittonal Temporary Productivhty Altowance 3/ App/lcable Minimum Woge as of 15 May 2013 under Wage Order No. IVA-15 after effecting tranche of increases on 15 May, 2012 and / Appiicable increase In the Minimum Wage In the form of Bpsfc Pay under Wage Order No. IVA-15 effect/ve 01 May 2014 effective 15 Moy 201z. 15 May 2013. T

BUREAU OF INTERNAL REVENUE

RESOURCE BASED AREA AREAS Minimum Wage WO IVa-15 3 undar Waga Order No. IVA-16 NON-AGRICULTURE Minimum Wage Rate Ba3|c Pay Incrua New Minimum Wag? Minimum Wage WO IVA15 Under Wage Ordor Nc. IVA-16 3 Minimum Wage Rate AGRICULTURE Plantation Basic Pay Increast Minimum Wage Nw

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Tayabas City..Unisan. Mulanay, Padre Burgos Plaridet, Polilio, Quezon, Reat, Antonio, San Francisco, San Narciso, Tagkawayan, Buenavista, Burdeos. Calauag, Catanauan. Dolores. Lucban, Macalelon, Mauban, Pagbilao, Panukulan. Patnanungan,Perez.Pitogo Sampaloc, San Andres, San QUEZON Agdangan, Alabat, Atimonan. Gen Lung Gen. Nakar Guinayangan, Gumaca, Infanta. Jomalig, Lopez. 255.00 6.00 264.00 255.00 6.00 264.00

GROWTH CORRIDOR AREA AREAS WO IYA-1'S "Bstic Pay A under Wege Order No IVA-16 WO (VA-15 Minimum Waga Rate CTPA AGRICULTURE Non-Plantation M WO tVA 16 SEA 2 Minimum Wug Nw "Minimum Wage WO IVA -15 ESTABLISHMENT EMPLOYING NOT Under Wage Order No. IVA-16 3 MORE THAN 10 WORKERS RETAIL AND SERVICE Minimum Wago Rate Basic Pay Incraas# Minimum Wuga Now

CAVITE Bacoor, imus 292.00 12.50 13.00 317.50 255.00 4.00 259.00

Binan City, Laguna Techno LAgUna Park, San Pedro

Dasmarinas City, Gen. Triae. Carmona. Cavite City Cainta, Taytay CAVITE Rosario RIZAL WO iVA-I's Basic Pay 270.00 M WO IVA-16 12.50 CTPA WO fVA 16 13.00 SEA G Minimum 295.50 Wage Nat "Mininum Wage" WO IVA -15 246.00 3 Basic Pay Incroase 5 Minimum Wage. Now

Cabuyao, Calamba City, Los Laguna Banos, San Pablo City. Santa Cruz, Santa Rosa City

Antipolo City RIZAL

Gen. Alvarez, Kawit, Silang. CAVITE Tagaytay City. Tanza. Trece Martires City 265.00 12.50 13.00 290.50 243.00

Center, San Pascual. Santo Batangas City. Bauan, Lipa City. LIMA Technology Tomas, Tanauan City BatangaS

Rodriguez, Tanay RIZAL

u 1/ Applicable Minimum Wage undar Wape Order No, IVA-15, composed of ( Bas/c Pay Plus Conditionaf Tamparary Productivity Allowancef affective 1s May 2012. 3/ Appicable Minmum Wage as of 1s May 2013 under Wage Order Na. iVA-1S atar ffecting tranche o) inereaser on is May, 2012 and 15 May Y013. Lucena City A/ Appicabfe (ncrease m the Minhmum Wage In the form of Baskc Pay under Wage Drder No. Va-16 effectve O1 May 2014. 2/ Applicabie incr#e In the Minimum Wage in the form of 5octo-Ecanomic Affowance (SEN under Wage Order Na. tVA-36 c#fettive a1 May 2014. 5/ Appicoble tranche of Increose In the Minimum Wage under WQ 15 shall toke effuct on t5 May 2as4 ond tranche of tncrease in the Minimtur QUEZON taron aIecember201 Woge under WQ16 shatt ae0 X

BUREAU OF INTERNAL REVENUE RTTORDS MET TGR

EMERGING GROWTH AREA AREAS Minlmum Wage WO IVA-15 Under Wage Order No. IVA-16 3 Minimum Wage Rate AGRICULtURE Non-Plantation Basic Pay Increase Minimum Wage Nw RETAIL AND SERVICE ESTABLISHMENT WO IVA -15 Minimum EMPLOYING NOT MORE THAN 10 Wage under Wag Order No. VA-16 Minimum Wage Rate WORKERS Baaic Pay increase 5 Minimum Wage Now

Balayan, Caiaca, Caiatagan, Lemery, Mabini, Nasugbu. Rosario, San Jose BATANGAS 255.00 6.00 261.00 226.00

Angono, Binangonan. RIZAL San Mateo

Candelaria, Sariaya QUEZON

Indang, Naic. Noveleta, Ternate CAVITE 255.00 6.00 261.00 213.00

LAGUNA Paete, Pakil

San Juan BATANGAS

RIZAL Pitilia QUEZON Tiaong

Taysan BatangaS 255.00 6.00 261.00 212.00

RIZAL Teresa ReSourCe BaSed Area

Aguinaldo, Magallanes, Maragondon, Mendez Alfonso, Amadeo, Get. CAVITE 255.00 6.00 261.00 208.00

Cavinti, Farmy, Kalayaan. Kiliw, Luisiana. Lumban. Pagsanjan, Pangii, Pila, Rizat. Alaminos, Bay, Calauan. Mabitac, Magdalena, Majayjay, Nagcarlan. LAgUnA Santa Maria, Siniloan. Victoria

Agoncillo, Alitaglag, Balate, Lobo, Malvar, Mataas na Kahoy. Padre Garcia, San Luis, San Nicolas, Santa BATANGAS Cuenca, ibaan. Laurel, Lian. Teresita, Taal, Talisay Tingloy. Tuy

Baras, Cardona, Jata-Jala. Morong RIZAL

3/ Aplicable Minmum Woge as of 15 May 2013 under Wage Order Na.IVA-15 after effecting tranche of increases an 15 May, 2012 ond 1s May 201: 4/ Applicable Increase In the Minimum Wage tn the form af Basit Pay under Wage Orater No. iVA-15 effecthve O1 May 2oi4. 5/ Appicabfe tranche of incretise in the Minimsim Wage under wO 15 shalt take cffect on 15 May z014 and tranche of Increose in the Minimum Wage unger WO 1& shall start Ap Of Oerember 201t O0

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION 1: 0M

AREAS Minimum Wags WO IVA-15 under Wage Order No. IVA.16 3 Minimum Wage Rate Non-Piantation AGRICULTURE Basic Pay Increase Minimum Wage Now Rate ESTABLISHMENT EMPLOYING NOT WO IVA-1S Minimum Wage MORE THAN 10 WORKERS 3 under Wage Order No.IVA-16 RETAIL AND SERVICE Minirmum Wage Rate Basic Pay (ncrease 5 Minimum Wage Now Rate

RESOURCE BASED ArEA

QUEZON 249.00 201.00

Mulanay, Padre Burgos. Antonio. San Francisco, San Buenavista, Burdeos Gen. Luna, Gen. Nakar Guinayangan, Gumaca. Lucban, Macalelon, Mauban. Pagbilao. Panukulan Piaridel, Polilio, Quezon, Reat. Sampaioc, San Andres, Sar Narciso, Tagkawayan. Tayabas City. Unisan Calauag. Catanauan, Dolores Infanta, Jomalig. Lopez. Patnar Agdangan, Alabat, Atimonan. PerezPitogo

3/Applicable Minfmum Wuge os af 15 May 2013 under Wage Order No.tVA-15 gfter effecting tronche of Increoses on 15 May, 2012 and 15 May 2013. 5/Appflcabl# tronche p} Incre Under WO 16 thalf starr on 01 December 2014. Se fn the Minlmum Wage under WO 15 shalf take effect on 15 May 2014 and tranche of Increc e In the Mintmum Wage

be adjusted at least to the new minimum wage rates prescribed herein. All workers covered by this Wage Order receiving wage rates iess than the prescribed minimum wage shall

SECTION 6. APPLICATION OF THE SOCIO-ECONOMIC ALLOWANCE (SEA).The SEA is a daily a{loWanCe,an increase in the daily minimum wage of warkers/employees receiving more than Two Hundred Sixty Seven (P267.00) to Three Hundred Forty Nine Pesos and Fifty Centavos (P349.50) per day.

separation pay. it shail not be considered in the computztion of overtime pay, premium pay, night shift differential, 13t" month pay and retirement pay. The payment of SEA under this Order shall follow the "No Work", "No SEA" policy for daily paid workers and empioyees. The SEA shall be integrated in the payment of holiday pay, government mandated benefits and

The SEA shall not be credited as part of Productivity Based Pay.

normal working hours, which shall not exceed eight (8) hours work a day. SECTION 7. BASiS OF MINIMUM WAGE. The minimum wage prescribed under this Order shall be for the

SECTION 8. COVERED WORKERS AND EMPLOYEES. The minimum wage rates prescribed under this Order shall apply to ali minimum wage workers and employees in private establishments in Region (V-A regardless of their position, designation or status of employment and payment method by which their wages are paid.

including family drivers and workers of Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority, pursuant to R.A. 9178. This Wage Order shall not cover household warkers, persons employed in the personal service of another,

hours which shall not exceed eight (8) hours work a day, or a proportion thereof for working less than the normat working hours. SECTION 9. APPLICATION TO WORKERS PAID BY RESULTS. AfI workers paid bY result, including those who are paid on piece work, takay, pakyaw or task basis, shall receive the minimum wage for the normal working

RECORDS MGT.DIVISION BUREAU OF INTERNAL REVENUE

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minimum wage, provided for under Sections 1, 2 and 3 of this Wage Order. The prescribed wage rates of shall be deemed arnended accordingly. in the event, however, that the principal fails to pay the prescribed wages, the contractor or sub-contractor shall be jointty and severally liabfe with the principal or "user covered workers shall be borne by the principal or "user enterprise" and the service agreement or contract enterprise". Egitimate contractor or subcontractor in the construction and other industries are entitled to the prescribed SECTION 10. APPLICATION TO WORKERS OF CONTRACTORS OR SUBCONTRACTORS. AII WOrkerS of

worker/employee is based. In the case of mobile worker/employee, the home base rate shall apply. in cases of transfer from a high rate city/municipality to a lower rate city/municipality, the higher rate shall continue SECTION 11. APPLICATION TO TRANSFER, BRANCH AND MOBILE EMPLOYEE$. In caSeS where the establishment may have branches in different parts of the region or where its headquarters is outside the region, the applicable minimum wage is the rate of the particuiar city/municipality where the to be applied.

temporary or promo jobber workers directly hired by the principal or engaged by a contractor or subcontractor shall receive the prescribed minimum wage. SECTiON 12. APPLICATION TO SEASONAL OR TEMPORARY WORKERS. Seasonal, reliever, week-ender

no case be less than seventy-five percent (75%) of the minimurm wage prescribed in this Order. SECTION 13. APPLICATION TO SPECIAL GROUPS OF WORKERS. Wages of apprentices and learners shall in

provisions of this Wage Order. All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automaticaffy modified insofar as their wage clauses are concerned to reflect the

SECTION14. EXEMPTION. No exemption from compliance with this Wage Order shall be allowed. SECTION 15. PRODUCTIVITY BASED PAY (PBP). Productivity 8ased Pay (PBP} is an incentive given to workers and employees, on top of the minimum wage increase, in the form of productivity bonus or incentive in recognition to worker's productivity and/or performance, value of the job, contribution to business' competitiveness and profitability, among others. All workers and employees in private establishments in the region may be entitled to PBP, as may be determined and agreed upon by the PHIC or equivalent management system in the establishment. All qualified handicapped workers shall receive the full amount of the minimum wage prescribed in this Order, pursuant to R.A. 7277, otherwise known as the Magna Carta for Disabled Persons.

The PBP is voluntary and flexible in character, its implementation will be discussed through the PiIC or equivaient structure that allows labor-management decision making, guided by the Advisory Guidelines on Productivity Based P ay that is included in this Wage Order. Nothing however, will preclude establishments from providing higher productivity - based pay than what is suggested in the said Advisory Guidelines on Productivity Based Pay. SECTION 16. MECHANISM FOR THE IMPLEMENTATION OF PRODUCTIVITY BASED PAY. Private Guidelines on Productivity Based Pay at the establishment levet. estabiishments in the: region are encouraged to organize a PlIc that will effectively implement the Advisory

function of managing the implementation of the Advisory Guidelines on Productivity Based Pay at the The PlIC is a structure composed of equal representation from both labor and management with the cor establishment level.

both tabor and management. The PIIC wili determine and recommend the terms and conditions of providing PBP such as: amount of PBP performance standards, criteria, coverage, frequency and manner of payment, and monitoring of impact in

It is recommended that the PlIC will have an equal representation from labor and management. For the organized establishments the recognized Union officers and members shall be the iabor representatives in the Pltc. For the unorganized establishments,.the workers' representatives shali be selected among tht workers and the same wili have to be proper! communicated to the management.

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION I: 26 p.M

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GTripartite Wages and Productivity Board-IVA and/or the DOLE RO-IVA will provide the technical assistance to private establishments in the development of productivity improvement programs and/or productivity based pay formula for purposes of implementing the Advisory Guidelines on Productivity Based Pay of this Order. SECTION 17. TECHNICAL ASSISTANCE ON PRODUCTIVITY BASED PAY. UpOn request, the Regional

prescribed under this Wage Order results in distortion in the wage structure within the establishments, it 124 of the Labor Code, as amended. SECTION 18. EFFECTS ON EXISTING WAGE STRUCTURE. Where the application of the Wage increa$e shall be left to the parties concerned to address the issue in accordance with the procedure under Article

SECTION 19. MONITORING. Compliance monitoring with the mandatory provisions of this Wage Order Advisory formulae to correct distortions will he contained in the Implementing Rules of this Wage Order. shalf be the function of the Department of Labor and Empioyment- Regional Office-IVA and/or its Provincial Field Offices. SECTION 20. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-compliance with this Order shall Provincial Field Office in the Region, and shalf be the subject of Single Entry Approach (SENA) or criminal prosecution which may be undertaken against those who fail to comply. be filed with the Department of Labor and Employment- Regional Office-IVA (DOLE-RO IVA) or to any DOLE- enforcement proceedings under Article 128 and 129 of the Labor Code, as amended without prejudice to

regards to the interpretation of the Guidelines on Productivity Based Pay. SECTION 21. DISPUTES AND GRIEVANCES. In cases of disputes, grievances, or other matters arising from the interpretation or implementation of the Order, labor and management shall meet to resolve the dispute, or may seek the assistance of the Regional Tripartite Wages and Productivity Board-IVA with

SECTION 24. PENAL PROVISIONS. Any employer who refuses or fails to pay the corresponding minimum R.A.8188. SECTION 23. NON-DIMINUTION OF BENEFITS. Nothing in this Order shalt be construed to reduce any orders and/or under any contract of agreement between the workers and ermployers. wage rates provided under this Order shall be subject to the penalties under RA. 6727, as amended by SECTION 22. FREEDOM TO BARGAIN. This Order shall not be construed to prevent workers in particular enterprises from bargaining for higher wages with thelr respective employers. existing wage rates, allowances, and benefits of any form under existing laws, decrees, issuances, executive

proceedings before the Regional Board. SECTION 25. PROHISITION AGAINST INJUNCTION. No preliminary injunction or temporary restraining Order maybe issued by any court, tribuna! or any entity against the Board, this Wage Order or any SECTION 26. REPORTING REQUIREMENT. AIl business establishments shall submit a notarized composition and objectives of the Productivity Improvement and Incentives Committee or equivaient structure, the criteria and measurements in determining and distributing productivity incentives, including the ievels and frequency of PBP distribution. The report shali be submitted to the Regional Tripartite Wages and Productivity Board-IVA or to the DOLE- CALA8ARZON Provincial Offices not later than January 31, 2015 and every year thereafter in accordance with the form prescribed by the National Wages and Productivity Establishment Report Form 01 S. 2012, describing their Productivity Improvement Programs, the Commission.

unconstitutionat or invalid, the other provisions or parts shall remain valid. SECTION 27. REPEALING CLAUSE. Ail orders, issuances, rules and regulations, or parts thereof inconsistent with this Wage Order are hereby repealed, amended or modified accordingly. SECTION 28. SEPARABILITY CLAUSE. If for any reason, any section or provision of this Order is declared

to implement this Wage Order, subject to the approval of the Secretary of Labor and Employment SECTION 29. IMPLEMENTING RULES.The Regional Board shall prepare the ni es and regulattor

BUREAU_OF INTERNAL REVENUE RECORDS MGT. DIVISION

SECTION 30. EFFECTIVITY. This Order shall take effect fifteen (15) days upon pubiication in a.newspaper of general circulation. Approved this 08t day of April 2014 in Calamba City, Laguna.

MA.ZENAIDA ANGARA-CAMPITA Regional Director, DOLE -IVA CDr Chairman

OiC-R&gjonpl Director, NEDA -fVA AaNes M. EsPiNA Yicekhairman Regional crector, DTf-iVA MARIIOU Q. TOLEDO Vice Chairman

implovers' RENATO B.ALMEQA sresentative Employers' Representative LUCILA C.TARRIELA

Workers' Representative JUANITO S, FACUNDO AOSENT Workers' Representative JESUS B. VIEEAMOR 11

Regional Tripartite Wages and Productivity Board No. iV-A DEPARTMENT OF LABOR AND EMPLOYMENt National Wages and Productivity Commission Republic of the Philippines City of Calamba. Laguna]

AN ADVISORY GUIDELINE IN THE IMPLEMENTATION OF PRODUCTIVITY-BASED PAY UNDER WAGE ORDER NO. IVA-16, FOR PRIVATE ENTERPRISES IN REGION IV-A

PART !- REGIONALECONOMIC PERFORMANCE AND BUSINESS OUTLOOK Economic Growth Region IVA- CALABARZON economy is mostly Industrial in nature, the Industry comprised 61.3%, the from 6.6% to 6.3% in 2012. (Figure 1) 32.1% in 2011 to 32.4% in 2012. While the share of Agriculture, Forestry and Fishing sector decreased same share as in 2011. The Services sector is slowly gaining in its share in the region's economy from

1.2 percent in 2011. (Figures 2 and 3 and Table 1) was attributed to all major sectors' overalt contribution in the Region's economy notably, is the industry Forestry and Fishing sector also posted a better growth of 2.5 percent in 2012 from a modest growth of of 17.4 percent to the country's total domestic output in 2012. it registered an impressive growth rate of 7.0 percent in 2012 from 1.7 percent in 2011, even higher than the national growth rate of 6.8%. This sector's significant aceleration hy 6.8 percentage points i.e. from a meager growth of 0.1 percent in 2011 to 6.9 peroent in 2012. This was followed by the Services sector with an impressive growth of 3.1 percentage points, from a growth rate of 4.9 percent in 2011 to 8.0 percent in 2012. The Agricuiture, Region tVA-CA:ABARZON's economy is the second largest econamy in the country, contributing a share

and Repair of Motor Vehicles, Motorcyctes, Personal and Househoid Goods from 4.4 per cent to 7.3 per cent in 201z. White other services accelerated fromn 1.8% to 5.7% in 2012. (Tables 2 and 3) attributed to the strong growth of Construction which rebounded from a negative growth of 3.2% in 2011 to a double digit growth of 23.5% in 2012. The Services sector's drivers for its 8.0 percent growth are the sub-sectors: Financial Intermediation which more than doubled its growth from 5.3% in 2011 to 11.1% in 2012, Transportation, Storage &. Communication frorm 3.4 per cent to 7.8 per cent, and Trade Looking at the sub-sectors, the Industry sector's positive performance at 6.9 percent in 2012 was

The per copita Gross Regional Domestic Product stands at P82,393, higher than the country's per capita of P65,904. (Figure 4)

Labor Force eased from 21.1 to 19.3 in the same period last year. (Tables 4 and 5) The Region's employment rate in second quarter of 2013 went up to 90.9 per cent from 90.6 per cent in 2012. The Increase in ermptoyment was propelled by industry and service sector which more than offset the decline in agriculture sector. Of the total employment of 4,869 T in the region, about 67 per cent are wage and salary workers who can be the direct beneficiary of wage issuances by the Regional Board. Unemployment dropped to 9.1 per cent in 2013 from 9.4 per cent in 2012. While underemployment

Labor Productivity Labor productivity registered an overall growth rate of 5.0 per cent In 2012 from 2011 ievels. Surprisingly, the Agriculture sector contributed most at 5.5 pet cent, follawed dosety by Service sector at S.4 per cent while Industry sector at 3.1 per cent. (Tabfe 6) Industry Outlook inflows, resumption of manufacturing activities in the garments, automotive and electronics sector, stability in client's orders, and accelerated infrastructure projects remain the possible sources of rebound. Source: BSP's Business Confidence Survey Businesses' outiook in the Region for Q1 and Q2 2014 continue to be optimistic, indicators such as: inflation rate, interest rate, peso-doilar exchange rate remain positive. The continuing investment

Firm Level Implementation of Productivity Based Pay In Region IV-A (An Initial Assessment) The Productivity Based Pay under the two-tiered wage policy was in effect in Regior IVA on 15 May 2012 Survey on the impfementation of Productivity Based Pay at the Enterprise Level, with a total of 359 under Wage Order No. IVA-15. Preliminary results of the on line survey entitled: Impact Evaluation respondent establishments as of December: 2013 is summarized as follows:

BUREAU OF INTERNAL REVENUE YTET DIVSIOK

For the iabor sector, the Productivity Based Pay palicy had signifirant impact on the following areas: 1) determination of P8P .criteria and metrics, and 3) provision of fair and reasonable PBP to deserving and standard of living of workers and enhancerment of problem-solving and decision-making skills of teamwork and cooperation arnong the workers and functionat units, 2) participation of warkers in the workers and employees. Meanwhile, moderate impact was noted on the improvement of remuneration workers in workplace.

had significant impact on the following areas: 1) improvement in company policy/system on pay and For the management sector, the Productivity Based Pay as an integral part of the management system incentives, 2) enhancement of existing performance evaluation system as a metric in determining PBP. 3) dellberate implementation of PiPs that will support the provision of PBP, and 4) clarification on the relationship between meeting company goals and targets with the distribution of PBP.

and company's productivity. The most common criteria used in the granting of PBP are attendance and The poilcy changes and/or improvement that woutd significantly improve implementation of the PSP at the company level are: 1) exemption from taxes of PBP higher than #30,000.00 and the revivat of LMC programs. At the operational level, the following improvements were suggested: 1) communication and sharing of PBP best practices, 2) impiementation of tMC programs, and 3) continued provision of technical assistance in operationalizing the PBP by the RTWPB-IVA and DOLE. Overall, forty-nine percent (49%) affirmed that Wage Order IVA-15 had a major influence in improving their employees performance.

PART 11 - PRODUCTIVITY BASED PAY

Rationale f 2. b. C. C To establish a closer link between adjustments in wages and productivity to enhance the To provide a venue for the employers and workers corne up with a deliberate and systematic To provide a work environment for workers to improve their skills and capabilities through To encourage business establishments to organize a Productivity Improvement and Incentives Ta encourage the implementation of enterprise ievel Productivity improvement Program and To ensure workers' share in the gains from business growth, in cognizance to the principle of competitiveness of business and labor, promote the creation and sustainability of employment; approach for improving performance and compensation of workers, strengthen collective bargaining through bipartite mechanism; Committee to oversee the implementation: of the Productivity Based Pay in the company: participation and involvement in Productivity improvement Programs or similar initiatives: Productivity Based Pay in private estabfishments:

fairness, equity, and sociat justice. Suggested Range of Productivity Based Pay Increases by Major Industry

industry classification is as follows: establishment determines its industry classification. Specificalfy, the PBP range of increases by major The Productivity Based Pay percentage increases applicable in the Region ranges from 6.1 per cent to 15.8 of the estahlishment and capacity of the employers to pay. per cent of the applicable basic wage of the workers or employec, depending on the industry classification The nature of the core business of the

Industry Classification Agriculture In dustry Service Per cent Range 6.1-12.9 8.5-13.1 8.4-15.8 Basic Formula in Cornputing the Per cent Range of Productivity Based Pay:

Productivity Based Pay (Percentage Increase) = X (labor productivity growth rate of wage and salary workers j) + Y (changes in labor market condition j) + Z (industry's actual and predicted growth j) {Table 6}

BUREAU OF INTERNAL REVENUE RECORDS MG!

PART HI - ENTERPRISE LEVEL OPERATIONALIZATION OF PRODUCTIVITY BASED PAY

Productivity Based Pay (PBP) as a human resource management strategy. PBp is a rranagement system to recognize and pay the monetary value of workers productivity/performance contribution in the overall business profitability and growth. 2 Praductivity Based Pay (PBP) refers to the productivity-based incentive on top of the minimum wage, in the form of productivity bonus or incentive given to workers and employees with remarkabie by major industry may serve as a guide in determining the r employees. The bonus or incentive may be given on a monthly, quarterty, semi-annuai or yearly basis. productivity, performance or skills, and a Incentive Comnittee (PlIC) or its equivalent structure within the company. The suggested ranges of PBP teco imended by the Productivity Improvement and reasonable amount ot PBp for its workers and

Nature, Scope and Coverate.of Psr Productivity-based incentives are essentlally voluntary, fiexible and negotiable. Representatives of through consultation and voluntary negotiation at the enterprise fevel. The mechanism management to pay the same in the manner and in the amount and frequency agreed upon. workers and employers voluntarily determine the formula, sharing ratio and frequency of the grant Once agreement is reached on the grant of productivity based pay, it becomes a cornmitment o the guidelines is a joint labor-management body like PlIC or Labor - Management Committee (LMC). to impiement

System else, the contractor have to set up its own PlIc. The provision cf PBP increases is company-wide in application. contractor or subcontractor in the principat ar "user I enterprise" may be covered by the principal's PBP Workers and employees of legitimate

cannot be converted as PBP consideration. Pay increases tke merit increases. or increases arising from promation, regutarization of the worker

3. Productivity Improvement and Incentives Committee (Puc) is an organizationat structure within the provisions of the Wage Order, within the principle of fairness, equity and good organizational enterprise whose primarily function is to operationalize the implementation of the PBP practice.

Managemert Council, Total Quality Management System, Work improvement Team, Kaizen Team, 5s Committee, Safety Committee, Quality Circle, among others. The PlIC may be a newly created organizational structure or an existing labor-management organization enhanced to function as such. Examples af L-M organizations are: labor-

The compositioi of the PIIC shall have equal representation from labor and management to be headed by the top ievel management.

among themselves representing the majority and to he properiy communicated to the management. For the organized establishments the recognized Union shall be the labor representative in the Pilc. For the unorganized estabishments, the workefs. representatives shall be determined by the workers

Functions of the PuC: The functions of the PiiC are, but not limited to the following:

Communicates metrics of work performance, standards of work, cost controls, work attitude. Develops aompany poicy on PBP operated along with key performance indicators/targets performance appraisat/rating system, and company practice and culture Establishes performance evaluation criteria and standards, functionat units' performance targets. measurements, scope and coverage punctua s attendance, etc. directly attributed to the provision of PBP, including frequency. d. Pians, implements and monitors Productivity Improvement Programs, making sure that everyone is Prepares and submits teportorial requirements to the RTWPB-IVA. involved, regardless of their position, status of employment if necessar 4anages the implementation of the PBP, resolves complaints, review and revise PBP poticy/system arner and methods of PBp navmen fund sour

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION IFEN t: 1 n 204 P.M

4 -developrment of new products/services, improvement of processes, six sigma analysis, suggestion Productivity Improvement Program (PIP) -- refers to any intervention or scientific process designed to competitive pricing, on time production and delivery of quality goods and services, that satisfy the scherme, reduction in process cycle time, increase productivity, increase profit, increase customer satisfaction, inarease market share, impravement nf supplier-customer relationship, etc. involve: everyone in the organization in impraving productivity through efficient use of resources, requirements ot the customer. The focus ot PiPs may be: reduction of costs, improvement of quality.

5 Compliance Monttoring. The implementation of PBP is voluntary in nature and character; however. compliance, the DOLE RO IVA shall issue compliance certificates for those establishments that implemented the Productivity Based Pay. The same initiative will be complemented by RTWPB and the DOLE-PFOs through the provision of technical assistance in the installation of PIPs and PBP schemes enterprises are encouraged to implement the PBP provisions of the Order. For effectiveness of policy

6 Advisory Formula and illustrative Compurtation. A menu of PBP schemes provided for in this advisory suited to the nature of the business and/or industry. guideline is far reference onfy. The illustrative computation of PBP amount is based on pre-determined criteria. Nothing however, will prevent labor and management from agreeing on other formulas best

6.1 Attendance and Performance-Based

Criteria:

Performance Rating (PR), Individual Performance Rating for the month, not below average Attendance (A}, number of days worked within the working days in a mon th Tardiness (T), number of tardiness/undertime incurred within the working days in a month

Productivity Based Pay Amount (PBP), equivalent tabte matrix supplied Formuta: % AT= (%A+%T)/2

Performance (Efficiency) Rating. (should not be below average) Assumptlons Applicabte Basic Pay-Php337.00 per day Industry Sector -using the lower range of 6.1% Illustra tive Computation :

-PR{average} B -Absences (3 days) -Tardiness (none) -Absences (1 day) -PR(3verage) -Tardiness {1 day} FL Employee 26 working days 26 working d ays = 96.2% 23.days present # 88.5% 25 days present *00 *100 Attendance = 96.2 26 days not tardy 26 working days 26 working days *100 100% 25 days not tardy *100 Tardiness (96.2%+96.2%)/2 (88.5%+100%)/2 = 96.2% =94.25% {%A+%T}/2 % AT Performance average average Rating PBP Amount P 19.00/day P 18.00/day of increase

C

-PR (average) -Absences (none} -Tardiness (none} 26 days present 26 working days +100 = 100% 26 working days 26.days not tardx *100 = 100 (100%+100%)/2 10 average p 21.00/day

BUREAU OF-INTERNAL-REVENUE RECORDS MGT. DIVISION

Productivity Based Pay Equivalent Matrix

F At teast average PR based on the applicable criteria and rature of work Performance Rating Ave. Attendance & Tardiness Rating 94- 95.99 96 - 97.99 98 - 99.99 90 - 91. 92 - 93.53 100 PBP Amount based on industry PBP Php337 x 6.1% = Php21.00 Range of increase Php16.00 17.00 20.00 19.00 18.00

6.2 Based on Muitiple Criteria

5. Attendance I. Job knowledge 2. Quality of work 4. Communication 3. Attitude C RITERIA Total {X} STANDARD SCORE (%) 100 20 26 17 10 2 Employee A 2 00 9 20 23 14 ACTUAL SCORE (%) Employee 8 25 16 2 19 Employee c 26 20 9o 26 1 9

Productivity Based Pay Equivaient Matrix Equivalent Amount of PBP (% of current wage rate) 10% of P400 Ot P40 12% of P400 Qr P48 14% of P400 or P56

95.01% - 100% 80.01% - 85% 85.01% -90% 90.01% - 95% 75.01% - 80% RATING LEVEL A E C D Equlvalent Amount of PBP (% of current wage rate} 14% 10 12 8 6% 6.3 Profit Cost & Efficiency Savings and Performance-Based

Hllustrative Computation: Assumptions: Criteria: Establishment belongs to Service Industry, uses the P8P lower range of 8.4% Applicable Baslc Pay - P315.00 - P600 per day Net Profit Before Tax or Returm on Saies (Profit Margin generated per Peso Sales) Productivity Increase or Savings (i.e. Actual vs. Allowable Cost, Target Production Yield) Performance Rating (individual Performance Rating)

Sharing of Total Savings from PtPs: 60% Managermert; 40% Labor Amount for Distribution(P100,000*8.4% + P50,000*40%) Total Savings in 3 mos. Total Labor Cost or Payroll (for the month) Net Profir Before Tax (additional yield, decrease in consumable cost, product reject) {for 3 months } P 100,000.00 p 50,000.00 41,607.00 28,400.00

Totat Payroll Employee B A C D Dally Basic Pay Php 315 X 337 40 600 Working days Present for Average Number of 26 days 25 days 26 days 23 days 3 mos. Y "Monthly Basic Pay "Php 7.245 10,000 15,600 4160 876

BUREAU OF INTERNAL REYDNUE RECORDS MGT DIVISION w

Totats B D A imployee Sasic Pay Month!y Php7,245 10,000 41,607 15,600 3 8762 Petfoxmarxce Aver age Rating b 92.5 85.0 90 88.5 ernplovee/ Basic Pay Multiplier (MonthlYy Tntals} per 20 0.2403 0.374 0170 C Work Days Ctedlted Average 266 23/26 26/26 25/26 {b xc x d} 0.1309 0.3468 0.8658 0.1836 0.2045 Waighted Points e employee Tota{s} atumn "(Pet 0.1512 0.2121 0.2362 D.4000 e f PBP for Sharing Total P28,400 28400 28.400 28,400 increase Months period for 3 (f x 8} PBP 11,377 28,400 P4,294 608 6,024 per month Average Increase P186.70 PaP {h/y} 268.32 437.S8 231.69 Y

Distribution is based on the ernployees' group/individual performance using the Performance Rating (PR), salary level, and credited work days. Performance Rating may indude criterla such as effidency, capabitity, attitude, attendante. Administrative violations and offenses, etc. Note: PBP Increase is given only if the NPBT or PM exceeded a pre-determined or threshold level.

6.4 Productivity-Based Pay Increase for Piece Rate Workers Target Efficiency: 85%, Anything beyond 85% target will be considered increase in iabor productivity Formula: PBP Increase per Day = Increase in Output/Day x Piece Rate/Day Basic Requirement: Piece Rate and Production Standard Order issued by RTWPB-IVA Itlustrative Cormputation: Assumptions: Company Standard Efficiency Level Applicable Wage Rate Php362.50 per day 85

Employee Wage Rate Minimum per Day Piec: Rate per Day {a/d} b Quota/Output Standard at 100% per Day C Quota/Output Standard per Day at 85% d Quan Quota/Output per tity e Actuai Day Efficiency Rate * subject to PBP Output/Day Incraase in Increase B tncrease per Day PBP h

D A B C Php362.50 362.5o 362.5o 362.50 Php4.26 4.26 4.26 4.26 10 100 10 100 8S 85 85 5 95 9g 16 90 86 95 98% 90% ed 1 13 10 Php 4.26 jgxb 42.60 55.38 21.30

tssued this 8th day af April 2014 in Calamba City,Laguna

MA. ZENAIOA ANGARA-CAMPitA Regiona! Director, DOLF-IVA Co Chairman

OC &6 iona) Director, NEDA-IVA Nice-Chairme GNES MYESPWAS mm Regional Director, DTI-IVA MARIL Vice chaiman I Q. ToLEDO

Ertployers' Repfesenta tive Renato B. ALMeDx Employers' Representative KUCILA C. TARRIELA C

Workers' Representative JUANITO s.FACUNDO AosrNt Workers' Represetrative JESUS B EAM T

BUREAU OF INTERNAL REVENUE RECORDS MGT. DIVISION T2t- -Pu-

ANNEX: DATA TOOLS FOR THE ADVISORY GUIDELINES ON PRODUCTIVITY BASED PAY WAGEORDER NO.IVA-I6

Figure 1. Gross Regional Domestic Product (GRDP) Percent Distribution by Sector, CALABARZON, 2010-2012, At Constant 2000 Prices

CALAearZON ECoRMC POIoTmY4

at Constant 2000 Frices,CALABARZON, 2010-20 12 GRDP Percent Distribution

Iodu: 61.39 industn 63.34

20 2012

Figure 2. Gross Regional Domestic Product (GRDP) Growth Rate, CALABARZON, 201O~2012 At Constant 2000 Prices

CALEAROAN EGRC PONAMKO GRDP Growth Rate (%) at Constant 2ooo Prices: CALABArZON. 2011 8 2012

8.0 0 7.0

E

12

L

C

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

BUREAU GH WNTEHNAL HEYENUE RECORDS MGT, HIVISION Ji 1 0 2014 1:26p.M. W u Commissioner of Internal Revenue KIM S.AA CINTO-HENARES

J-5/momd RECEIVED 024 64 9