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

Key points

1. Increase and new rates. All minimum wage earners get a P10.00 per day increase in basic wage. For non-agriculture the new basic wage is P 436.00 and with the P 30.00 COLA the new wage rate is P 466.00. Agriculture, private hospitals with 100 beds or less, retail or service establishments with 15 workers or less, and manufacturing establishments regularly employing less than 10 workers go from P 389.00 to P 399.00 basic, and P 429.00 with COLA.
2. COLA integration. Effective 01 January 2014, P15.00 of the existing P30 COLA under Wage Order No. NCR-17 is integrated into the basic wage. Non-agriculture then has a basic wage of P 451.00 and a COLA of P 15.00, for P 466.00. The other sectors listed have P 414.00 basic and P 15.00 COLA, for P 429.00.
3. Coverage and exclusions. The rates apply to all minimum wage earners in the private sector in the Region, regardless of position, status of employment or method of payment. The Order does not cover household or domestic helpers, persons in the personal service of another including family drivers, or workers of registered Barangay Micro Business Enterprises with Certificates of Authority under RA No. 9178.
4. Special cases. Principals or clients bear the new rates in construction, security, janitorial and similar service contracts, and contractors are jointly and severally liable if principals do not pay. Private educational institutions count the workers’ share of SY 2013-2014 tuition increases, with any shortfall covered from SY 2014-2015. Workers paid by result get at least the prescribed rates or a proportion for less than 8 hours. Apprentices and learners get at least 75% of the new rates, and qualified handicapped workers get the full amount under RA No. 7277.
5. Exemptions and creditable increases. On application to the Board, exemption may be granted to distressed establishments, retail or service establishments with not more than 10 workers, establishments with total assets of not more than P 3 Million excluding land, and establishments hit by natural calamities. Increases given within 3 months before effectivity in organized establishments count as compliance if there is an agreement or CBA provision, and within 5 months in unorganized establishments. Anniversary, merit and regularization or promotion increases are not counted.
6. Appeal, complaints and reports. An aggrieved party may appeal to the NWPC through the Board in 3 printed copies not later than 10 days from publication. Complaints go to the NCR Office of the Department of Labor and Employment under Articles 128 and 129 of the Labor Code. A verified report on wage structure is due to the Board not later than January 31, 2014 and every year after, and non-compliance is penalized under RA No. 6727, as amended by RA No. 8188.

Who is affected

• Minimum wage earners in the private sector in the NCR
• Employers in the NCR
• Private educational institutions
• Apprentices, learners and qualified handicapped workers

Deadlines and effectivity

• COLA integration effective 01 January 2014
• Appeal not later than 10 days from publication of the Wage Order
• Verified wage structure report not later than January 31, 2014 and every year thereafter
• Private educational institutions: rates implemented starting SY 2014-2015