Floor wage exemption outlawed in 4 regions-A A +A
Friday, October 19, 2012
ALL workers in the Cordillera Autonomous Region (CAR), Western Visayas, Eastern Visayas, and Calabarzon will now get to enjoy their minimum wage without exemption.
In an interview, Labor Secretary Rosalinda Baldoz said that four Regional Tripartite Wages and Productivity Boards (RTWPBs) have adopted payment rules barring exemption from wage hikes.
"Four out of the 11 wage boards that issued new wage orders have already moved away from the policy of granting exemption, which means all minimum wage earners will get their mandated wage increases," Baldoz said.
Republic Act 6727 or the Wage Rationalization Act, however, provides that establishments that may apply for exemption from a wage order are distressed establishments; retail/service establishments employing not more than 10 workers; establishments, whose total assets are not more than P3 million; and establishments adversely affected by natural calamities.
Baldoz said that while this provision of the law remains in effect, its effectivity will only be for a year, after which, the employers shall be required to comply with the new wage orders.
The labor chief also said that with the introduction of the two-tiered wage system in the country, she is confident that other regions will eventually be following suit.
"I see no reason why the rest of the wage boards cannot follow suit and eventually adopt a no exemption policy," Baldoz said.
As of September, 11 regional wage boards have issued new wage orders observing the two-tiered wage system, namely National Capital Region (NCR), Cordillera Administrative Region (CAR), 1 (Ilocos Region), 2 (Cagayan Valley), 3 (Central Luzon), 4-A (Calabarzon), 5 (Bicol Region), 6 (Western Visayas), 8 (Eastern Visayas), 12 (Soccsksargen), and the Autonomous Region of Muslim Mindanao (Armm).
On the other hand, Regions 4-B (Mimaropa), 7 (Central Visayas), 9 (Zamboanga Peninsula), 10 (Northern Mindanao), 11 (Davao Region), and 13 (Caraga) have yet to issue new wage orders. (HDT/Sunnex)