Question & AnswerQ&A (Republic Act No. 6640)
The law mandates an increase of ten pesos (₱10.00) per day for all public or government sector employees on a daily wage basis.
The statutory minimum wage rates for private sector workers shall be increased by ten pesos (₱10.00) per day, except for non-agricultural workers outside Metro Manila who shall receive an increase of eleven pesos (₱11.00) per day.
No, domestic helpers and persons employed in the personal service of another are explicitly excepted from the provisions of the Act.
Disputes must first be settled voluntarily between parties; if deadlocked, they are finally resolved through compulsory arbitration by the National Labor Relations Commission's arbitration branch within 30 days of submission.
'Wage distortion' refers to a situation where the legislated increase in minimum wages results in the elimination or severe contraction of intentional quantitative differences in wages among employee groups within an establishment, obliterating distinctions based on skills, length of service, or other logical bases.
Yes, all workers paid by result including those on piecework, takay, pakyaw or task basis shall receive not less than the applicable statutory minimum wage per eight (8) hours work a day or a proportion thereof.
They shall be entitled to not less than seventy-five percent (75%) of the applicable adjusted minimum wage.
Employers of construction workers, security guards, janitors, and others similarly situated shall bear the increase, but the principal or client is subsidiarily liable, except in the case of family homes worth not more than ₱200,000.
Yes, upon application to the Department of Labor and Employment and after evaluation by the National Wages Council, such employers may be granted exemption.
Violators may be fined up to ₱25,000 and/or imprisoned for not less than one year nor more than two years, with responsible officers of corporate entities also liable for imprisonment.
No, nothing in the Act shall be construed to reduce any existing allowances and benefits under existing laws, issuances, or contracts.
The wage increase shall be funded from the Compensation and Organizational Adjustment Fund, the Contingent Fund, other savings under Executive Order No. 87, or from unappropriated funds of the National Treasury.
The Act took effect the day following its publication in two national newspapers of general circulation, after its approval on December 10, 1987.