WAGE RATES: RULES IMPLEMENTING
WAGE ORDER NO. NCR-11
Section 1. Amount
and Effectivity of the New Minimum Wage Rates. Effective
16 June 2005, all minimum wage workers in the private
sector in the National Capital Region shall receive
an increase of TWENTY FIVE PESOS (P25.00) per day in
their basic pay.
Section 2. The New Mini um Wage Rates.
The total compensation of workers earning the prevailing
minimum wage rates in the National Capital Region shall
be as follows:
Section 3., Coverage.
The wage increase prescribed herein shall apply to all
minimum wage earners in the private sector in the Region,
regardless of their position, designation or status
and irrespective of the method ny which their wages
This Wage Order shall not cover household or domestic
helpers; persons in the personal service of another,
including family drivers; and workers of registered
Barangay Micro Business Enterprises (BMBE's) with Certificates
Section 4. Basis of Minimum Wage Rates.
The minimum wage rates prescribed under this Order shall
be for the normal working hours which shall not exceed
eight (8) hours of work a day.
Section 5. Application to Private Educational
Institutions. In the case of private educational
institutions, the share of covered workers and employees
in the increase in tuition fees for School Year 2005-2006
shall be considered as compliance with the increase
prescribed herein. However, payment of any shortfall
in the wage increase set forth herein shall be covered
starting School Year 2006-2007
Section 6. Application To Contractors.
In case of contracts for construction projects and for
security, janitorial and similar services, the increase
in the minimum wage prescribed herein shall be borne
by the principal or client of the contractor and the
contract shall be deemed amended accordingly.
Section 7. Workers Paid by Result. All
workers paid by result, including those who are paid
on piecework, "takay", "pakyaw"
or task basis, shall receive not less than the applicable
minimum wage rates prescribed under the Order for the
normal working hours which shall not exceed eight (8)
hours work a day, or a proportion thereof for working
less than the normal working hours.
The adjusted minimum wage rates for workers paid by
result shall be compute in accordance with the following
a. Amount of increase in AMW/Previous AMV = per cent
b. Existing rate/piece x Per cent increase = increase
c. Existing rate/piece + increase in rate/piece = Adjusted
*Where AMW is the Applicable Minimum Wage rate.
The wage rate of workers who are paid by result shall
continue to be established in accordance with Article
101 of the Labor Code of the Philippines, as amended,
and its implementing rules and regulations.
Section 8. Wages of Special Groups
of Workers. Wages of apprentices and learners shall
be in no case be less than seventy-five (75%) of the
applicable minimum wage rates prescribed in the Order.
All qualified handicapped workers shall receive the
full amount of the minimum wage rate prescribed herein
pursuant to R.A. 7277.
Under the Constitution of India, Labor is a subject
in the Concurrent List where both the central and State
Governments are competent to enact legislation subject
to certain matters being reserved for the Central.
The salient features of some of the important Labor
Acts, which are applicable for carrying out business
in India are:
Employees' Provident Fund and Miscellaneous
Provisions Act, 1952
Benefits available to workers include the provident
fund, employees deposit linked insurance, and the pension
to the workers and their families.
Employees' State Insurance Act, 1948
This law provides for health care and cash benefits
in cases of sickness, maternity, and employment injury.
Maternity Benefit Act, 1961
Regulates employment of women before and after child
birth and provides for 12 weeks maternity leave, medical
bonus, and certain other benefits.
Payment of Gratuity Act, 1972.
Provides for payment of gratuity at 15 days' wages for
every completed year of service of part thereof, in
excess of seven months.
Factories Act, 1948.
Regulates health, safety, welfare, and other
working conditions of workers in factories. Enforced
by the State Governments through their factory inspectors.
Mines Act, 1952.
Contains provisions for measures for the health, safety,
and welfare of workers in the coal, metal, and oil mines.
Dock Workers (Safety, health, and Welfare) Act,
1986. Contains provisions for the health, safety
and welfare of workers working in ports/docks Administered
by Director General Factory Advice Service and Labor
Institutes, Directorate General FASLI as the Chief Inspector
there are inspectors of dock safety at major ports in
India. Overall emphasis in the activities of the inspectors
is to contain the accident rates and the number of accidents
at the ports.
The Payments of Wages Act, 1936.
The Payment of Wages Act was enacted during the British
Rule in 1936 on the recommendations of the Royal Commission
on Labor. The Act regulates the payment of wages to
workers and ensures that the employers within the stimulated
time frame and without any unauthorized deductions disburse
Minimum Wages Act.
A minimum Wages Bill was introduced in the Central Legislative
Assembly in 1948 to provide for fixation of minimum
wages in certain employments. It came into force with
effect from 15.3.48.
The Payment of Bonus Act.
the payment of Bonus Act is applicable where 20 or more
persons are employed on any day during an accounting
The Contract Labour (Regulation and Abolition)
Act 1970. Every principal employer who intends
to employ contract labor in his establishment/factory
shall make an application in specified form to the concerned
authority of the area in which the establishment sought
to be registered is located.