RMC No. 51-2017 — Publishes the Daily Minimum Wage Rates in CAR pursuant to Wage Order No. RB-CAR-18

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE July 04,2017

tippt REVENUE MEMORANDUM CIRCULAR NO. 51- 30 /7

SUBJECT Publishing the Daily Minimum Wage Rates in CAR

Pursuant to Wage Order No. RB-CAR-18

TO .. All Internal Revenue Officials, Employees and Others Concerned

concerned, we are publishing Wage Order No. RB-CAR-18 which was issued on April 26, 2017 and published at Baguio Midland Courier on May 21, 2017: For the information and guidelines of all internal revenue officers, employees and others

PUREAU OF ITERNAL REVENUE RECORDE MGT DIVISION RECEIVI JUL 2 0 2017 2:33PM. lMugr E REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD PRESCRIBING THE NEWMINIMUMWAGE RATES OF PRIVATE SECTOR WORKERS IN THE CORDILLERA ADMINISTRATIVE REGION Netonal Wages an Froiuctviy Cortimsson Depantment ot Labor and Employment WAGE ORDER NO.RB-CAR-18 Cordmara Admsnisttathe Fegion Ropubc ot te Prtippines Bamo Chy

Wages ard Productiviy Commiasion, in particular NWPC Guideknes No.C1 of empoxwars the Regional Tripartte Wages ana Productivity Boards to delermine and fx minimum wage rates upplcabie in the regions and to issue the corresponding Wape Orders subject to the guidetinas Bsued oy tne National 2007.as amendad by NwPC Guidelines No.02 ot 2012: WHEREAS,RA 6727,ohorwise know as the Wage Ratonalization Act.

(TTWs) in the exercise of its minimum wage fixing autnority consistent with the pokcy ot thn govemment to provide safety measures for lowly paid workers. attain a highet level of productivity in the work area. increase empioyment and #mplementation ot RA 6727, the Regional Trinartite Wages "and Productivity Boari m Cordllera Administativa Regior (herein reterred to as the Board) contruously adineres to policy teauiraments of the Two-Tiered wage Systen augment the mpairing the growth of bueineas and interest of empioyers WhEREAs, n consonance with the aforementioned audelines for tne ne oror through iaentives. without nscessarity

the Bonrd deciced motu proprio to iritiate wage review and thereater scheduiod e series of Public Consuitations/Hearings throughout the region es tolows:Moming of November 29,2016 at Hotei Supreme. Magsaysay Ave aogug City tor Bonual and ne City of Baguo,Moninn of December 13.201e + Southille innEagawa lor ifugap, Morning of Deember 14 WHerEAs, in the abeence of any petition for a wage adjustment filed. 2016 20t7 at Goken Berres Hel San JuanTabuk for Katinga. Motning ot January 11.2017 at the Municlpal Halt,tuna for Apayao and Moming of 3anuary 12 tubseauenty oonduted by te Boatd as schoduad Ricgebrook, Sarmoxi Bontoc kx Mountain Province. Motning ot January 10 2017 at Lucky's Holel & Restaurant Bangued fot Abia Thase activites wete

wukstop tor rat#opart was done to ebot ther respecthe positione on tne workers ard formal sfrctor workers and #he appticablny of TTWs. wane insuas ioarel on he possibiay ot wage adusiments fot dtoats WHEREA5, in the conduct of Pubic Consu tationHearings, seciora

he fotoing rdcatore. among others. prevatng Soria-aconomt conditon of to togon, oyetaf orcyc porkmgrco (GRDF}, ciassifcalion c cts are muvopanas baxe o irwre. ecorormwc yryh oerters.er okymont vestsort ane maebon tates srdke WHEREAs, in fomung #* new wage der,te Board consore. tmtary mex ar popuao arayse.

revising the ciassificalions of sector/industry and geographical atea categoras socio-ecoromic conditons prevailing in various areas of the region but wthout veering away with the prirciple of wage smplifiontion and otrer policy drecves. so that the new wage adjustments shall be responsive to the diverse and actuat WHEREAS, the series of delberetions resulted to tho fealization of

provided under Sedion 2 of thes mew Wage Order. toveon. the Secior r industry and the goographecal arens were recinsstied as WHEREAs. as n nocessary consegucoco ol te akremenboned

case of Hogon, Tuba, and Sablan clustered together with Boguio Ciry and La economic situation of the concerned municipalties. significantly alower than that of Baguio City and La Trinidac and therefore. tney have to be dissociated and treated differonty. again to roflect the aclual Trinided to forr the BusT Area. Their aconornic growh and development are WHEreAs. the neceooary eclossficaton is soecificaly luwtrated r the

Regonhereby iua ti Wage Order Reput ir Act No 6727.otherwise known as the Wage Rationaliration Act, th- Regional Tipartle Wages and Productvty Board. Cwdllera Administratve NOW THEREFORE by virtue of the power and aurhority vasted uraer

Section t. Administratve Region regaraless ot ther posilon, designation or known as Barangay Micro Business Enterprisey (BMBE) Act of covered by this Wage Order Not covered are persans empioyed workers in the regisiered Barangay Micrn Business Enterprises with Certifcate of Authorty pursuant to R.A 9178. ofnenwise Coverage. status and imespectve of the method their wages are prid ara R.A. 10381, otherwie known as tho Balas Kasambahay and 202 in ine porsonal service of anotrer domestic workers bv vinue c Al minimun wane eamers in the Corditera

Section 2. The Minimum Wagc Lcvals

in tne Corcillera Adminestatve Renion chall be as fotowe Upon effectivity of tes Wage Corder, he levo's ct minmum wagos

Daily Minimum Wage Rates Sertor Innustry Bapulo Qty & i Trinidsi tolac tagawe, Baoaen. Tutas. Hakn, Sagada Tabu at,Larrwed. & Tublay Other Areae u the Beglian

Alltadustries / Soctors wmployitt it ot more. BASIC+COLA 283+13 BASIC+COLA 27$+15 BASIC-COLA 2

Al laduuritscorg wwployinp 14 *lers PASC+COLA T* BASIC+COLA 6+ BASIC+COLA +$$*1

r T

In the areas of ilogon. Tuba, and Sablan, covered wctkers shal Nevious Wage Order, comprising ot P285 basic rate per day in al continue to racelve the minimum wage rates provided by the Inrtustries and 270 basic rate per day for rnicroenterprises. A

BUREAU OF INTERNAL REVENE RECORDS MGT. DIVISION JUL 2 0 2017 2:33 D.M.

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Section 3. Basis of Minimum Wage. The minimum wage rates proscribod which shall not axceed eight (8) houra work a day. undar tnie wage Order shall be for the norrini working hours.

Section 4. construed to reduce or eliminate any existry wage rates allowances and benefrts of any form under existing iaws, detrees, issuances. executive orders and/or under any contrnct cr agreement betweon the workers and employers or employer practices or policies beng enjoyed by the workers pror io tne Non-Diminution of Benefits. Nothing in this Ordot shall te issuance of this Order.

Section s. the gudelines provided by Advisory No. 01, series of 20:3 Implementation of Second Tier. The Second Tier or te Productivity Based Pay shall cortinue to be umpiermeniod jolowrg Advieory 02 of 2014 and subsequent Advsoros wh ch moy t* issuedoy the Board

Section G. increases or wage inoreases resutirg from he eguarization cr Creditable Productivity Based Pay. For esteblsAments idontited as priority industries ard aready grantim Productrvty Based Pay or is equivalent to therr workers.this moy be credined as compliance to tho Second Tier. Mart ineraases. annwersary promotion of the empoyees per conpany polcy or as provdod py Iaw are not credited as complance to the Second Tar.

Soction ?. Application to Private Educational Institutions. in the case of private educational instturions. the share ot workers ang employecs covered in the inorease in tuton fees for School Year than what s ptovded heten, the employer shal pay the cifferenoe starting school Yea: 2018-2019 2017-2018 shat bo onexered a* comptance wth this Wage Ordar. Whate te share of he wrkars ana empioyens is less

Private educational nstautons wtich shall not incense ther wih the provisions of es Wage Ordor until Schaol Year 2010- tunon fees for te Scroot Year 2017-2018 may deter compliance 20.0

increace prescribed nerein starting School Year 2018-2019. In any case, al pmate educatonai insttutions shall imploment the

Soction 8. Workers Paid by Results. All workers paid by results, including tose who are paid om piecenork, takay, patyaw, or task baais C hours pet day or a proportian thereof for working less than chall receve not lezs than the adjustod amount proscribed by ths Ordar for the noumal worxing hours which shall not exeeed eight ognt (a} hourg

Section g. Apprentices and leorners. Apprentoeship or learnership agreement shall be entited to nct wss than Seventy Five Percont (75%) of the new mirirnum vage Iate under h's Order. Persons employed unda

Afi lsarnarship and apprenticaship ogreements entered into before tie affectvity ot this Order shall be automatically modlfied insofar as thoit wige cfausos are concerned to feflect ne new prescribed Wage ntes. A

REORDS MGR DIVISION DUREAU CTNTERNAL RNENT RFCTIVEO JUL 2 0 2017 2:33 P.M. ULaN IA

Soction 10. Mohile and Branch Workers. The mininuun wage rales of workers, who by the nature of ther work have to travel, shall be thoso apnhable in the domicte or head otfice ot the employer.

Dgercies of estabishments in or outsie the Rogion snad be those The minimun wage ratos ot workers working in branches or apoicable in the place where they are stationod.

Scction 11. Exemption. Applications fot exemiption frorm cormpliance with :hes Order shall not be allowed. However, n caso of a onlamity tho andmuman induced disastars pursuant to NWPc Resotution 01. Board may accapt aoptication from exomplion fled by establshments adversely afecied by calamties such as naiura Series of 2014

Section 12. Transfer of Porsonnet. Tha transfar of parsonnel from one reduction of the wage rete being enjoyed by the worker prior to province or region to another shall not bu a vald reason tor e the transter.

Soction i3. Order may file a verified appeal with the Commission thvough te Board within ten (10) calendar days from the pubtication of ts Otder. Appoal to the Commission. Any party aggrieved by this Wngo

Soction 14. Efect of Fiing of Appeal. The nfing of the aopeal does rot operate to stay this Order unzes the pany appoating such Ordet shall fle with the Commission an undertaring win a surety or Order it affimed corrocponding increasor for coyend ernpoyees in tha ovont thg suroties aatistacory to the Cormer toy oewman of Be

Section 15. Effects on Existing Wage Structure. Whire tne appication o! the wage increass providud for by thes Ordar reruts in the ursjer Ast 124 of tho Labor Codoos amondod. distortion of the wege structure wanin an astablishment the same snal be coecled n acoordance with the orocedure provided for

Soction16. coemprance win this Wage Order shall bo filed with the Regional AdministratNe Region (DOLE-CAR) having jurisdiction over the concliation and mediation procass under the Singie Entry Appioich {SEnA}. Howver, it settlament fada, the casc becomos suaiect s entoroement noceedings under Articte 128 ang 120 ot the Labor Coe, as amended. Otfce of he Department of Labor and Employment-Cordilera wirvkpiace and shalt be subjected to the mandatory thity (30) day Complaints for Non-Compllance. Complaints for non-

Section 17. Penai Provisions. partnorship, asociation or entiry that refuses or faile to pay the subiect to the penal provisions under R.A.6727,as amended by RA 8189. prencabed increaens in accordance wth this Order ehall be Any person, corporation, trust cr firm

Sectlon 18. Prohibition Agoinst injunction. No preiminary or permanent injunction or tempomry restraining order maybe issued oy ery cout, tritrunal or other entity agairst any proceedings before the Board

RECORUS MGT. DIVISON DAAU CE ITERNAL REVENR JuL. 2 0 2017 /- 2:33*p.M: aMaM

WRA 5

Section 19. Freedom to Bargain, This Order shall not be consirued to orevent workers from bargaining for hignor wanes witn tner

respectve employers.

Section 20. Reporting Requirement. iater than January 31. 2018 and every year thereafter in accordance with the form prescribed by the Cornmission. oartnerahip or any entity ergaged in busiress shall submit a verified itemized Esting of theit labor component to the Board not Any oerson. conpany, corporation

Sectlon 21. Repeating Clause. All orders, issuances,rules and regulatiors or parts thereof inconsistent with the provision of this Wage Order are hereby repealed, amended or modified accordingty

Soction 22. Rufes fmplementing this Order. The Board snall prepare ine neoessary rues to implement this Order subject to approval of the Secretary of Labor and Empioyment.

Section 23. Separability Clause. li, for any reason, a section or provision of this Order is deciared unoonstitutional or illegal. the other provisions or parts shall remain valid

Section 24, Effectivify. This Order shall take effect fiteen (15) days aftor its pubEcation in at leest one (t) iocal newspaper of general Circulation in the Region.

APPROVED: This 26day of April 2017, Baguio City, Philippines

MILTONYL BALAGTEY Workers Representative AlFonsGt.LAo Emplovers Representative

ReneriO D. LardIzabal, Jr. Wo kera Reoresantative JUAN JOHNNY R DE LA CRUZ Employers' Raoresentatve

MyrnA P.PABlo Vioe-Chairperson Vice-Chaiperson MiLAGROs A.RIMANDO h

EXEQUIEL RONIE A. GUZMAN Chairpeteon

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

1oenlw

CAESAR R. DULAY

J-5/momd EiJ OF NTERNAL REVN Commissioner of Intermal Revenue RECCRS MGT DIVSIGN JUL 2 0 2017 233pM" 007846

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RECEIVEDO