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

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Summary

RMC No. 49-2014 publishes Wage Order No. IVA-16, which sets the new minimum wage and advisory guidelines on productivity based pay for private establishments in Region-IVA.

Key points

  1. Workers earning under P 267.00 a day. A P 12.00 basic pay increase per day is given in staggered form until 01 December 2016. It comes in two yearly tranches (01 May 2014 and 01 December 2014 and so on), on top of the adjustments under Wage Order No. IVA-15.
  2. Workers above P 267.00 up to P 349.50. They receive a P 13.00 per day Socio-Economic Allowance (SEA) in full upon effectivity of the Order, with the P 12.50 Conditional Temporary Productivity Allowance under Wage Order No. IVA-15 included. The “No Work”, “No SEA” policy applies to daily paid workers.
  3. How the SEA is treated. The SEA is integrated in holiday pay, government mandated benefits and separation pay. It is not counted in overtime pay, premium pay, night shift differential, 13th month pay and retirement pay, and it is not credited as part of Productivity Based Pay.
  4. Coverage and exclusions. The rates apply to normal working hours not exceeding eight (8) hours a day, for all minimum wage workers in private establishments in Region IV-A regardless of position, status or payment method. Household workers, persons in the personal service of another including family drivers, and workers of Barangay Micro Business Enterprises with Certificates of Authority under Republic Act No. 9178 are not covered.
  5. No exemption. The Wage Order specifies how the minimum wage applies to several special groups of workers, and no exemption from compliance is allowed.

Who is affected

  • Minimum wage workers in private establishments in Region-IVA

Deadlines and effectivity

  • Issued June 10, 2014
  • Tranches 01 May 2014 and 01 December 2014, continuing until 01 December 2016

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.