RETAIL and establishments affected by natural calamities or human-induced disasters including the Covid-19 pandemic may apply for wage hike exemption under Omnibus Rules on Minimum Wage Determination.
These establishments include retail or service establishments regularly employing not more than 10 workers; and establishments affected by natural calamities and/or human-induced disasters, including the pandemic.
From the 2020 List of Establishments of the Philippine Statistics Authority, micro establishments comprise 88.77 percent of the total business enterprises in the Philippines. The exemption will temper the impact of the wage increase on the business operation of retail/service establishments employing not more than 10 workers.
The exemption will also provide a breathing space for micro, small and medium enterprises (MSMEs) that suffered from the pandemic to resume their business operations and fully recover.
Businesses in the retail/service sector employing not more than 10 workers shall submit their application for exemption, including their affidavit of the undertaking and certified true copy of their business permit, to the Regional Tripartite Wages and Productivity Boards having jurisdiction over their workplace not later than 75 days from the date of publication of the Wage Order.
MSMEs affected by the pandemic shall submit their affidavit showing the nature and impact of the pandemic on their business operation as well as Audited Financial Statements (AFS) for the last two (2) years stamped received by the Bureau of Internal Revenue. In extreme cases, the interim AFS may be required in lieu of the last two years’ AFS.
The granted exemption is valid for one year. Exempted establishments shall pay their workers with the prescribed and applicable wage rates in the previous Wage Order.