MANILA, Philippines — Last May 9, 2011, the Regional Tripartite Wages and Productivity Board National Capital Region (RTWPB – NCR) came out with Wage Order No. NCR-16 mandating the grant to all private sector minimum wage workers and employees in the National Capital Region to receive a Cost of Living Allowance (COLA) in the amount of Twenty-two (P22.00) pesos per day.

On May 11, 2011, the provisions of Wage Order No. NCR-16 appeared in a newspaper of general circulation. Since the Wage Order shall take effect fifteen (15) days after its publication of general circulation, Wage Order No. NCR-16 shall be effective on May 26, 2011.

As a public service, this column is summarizing hereunder the salient provisions of Wage Order No. NCR-16, as follows:

• The P22.00 per day COLA prescribed in this Order shall apply to all minimum wage earners in the private sector in NCR, regardless of their position, designation or status of employment and irrespective of the method by which they are paid;

• The P22.00 per day COLA shall NOT cover household or domestic helpers, persons in the personal service of another, including family drivers, and workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority pursuant to Republic Act 9178;

• The following may be exempted from the applicability of the Wage Order: 1) Distressed Establishments; 2) Retail/Service Establishments Regularly Employing Not More Than Ten (10) Workers; 3) Establishments whose Total Assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, are not more than P3 Million; and 4) Establishments Adversely Affected by Natural Calamities.

• This Order shall not reduce any existing wage rates, allowances and benefits of any form under existing laws, decrees, issuances, executive orders and/or under any contract or agreement between the workers and employers;

• This Order shall not prevent workers in particular firms or

Salient features of Wage

Order No. NCR–16enterprises or industries from bargaining for higher wages with their respective employers;

• Any increase granted by an employer in an organized establishment within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed increase set forth herein, provided that an agreement to this effect has been forged between the parties or a collective bargaining agreement provision allowing creditability exists. In the absence of such an agreement or provision in the CBA, any increase granted by the employer shall not be credited as compliance with the COLA prescribed in this Order.

In case the increases given are less than the prescribed COLA, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization or promotion of employees.

• In unorganized establishments, any increase granted by the employer within five (5) months prior to the effectivity of this Order shall be credited as compliance therewith.

In case the increases given are less than the prescribed COLA, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization or promotion of employees.

• In the case of contracts for construction projects and for security, janitorial and similar services, the COLA prescribed in this Order shall be borne by the principals or clients of the construction/service contractors and the contract shall be deemed amended accordingly.

In the event, however, that the principals or clients fail to pay the prescribed wage rates, the construction/service contractor shall be jointly and severally liable with his principal or client.

• In the case of private educational institutions, the share of covered workers and employees in the increase in tuition fees for School Year 2011-2012 shall be considered as compliance with the COLA prescribed herein. However, payment of any shortfall in the wage increase set forth herein shall be covered starting School Year 2012-2013.

Private educational institutions which have not increased their tuition fees for School Year 2011-2012 may defer compliance with the COLA prescribed herein until the beginning of School Year 2012-2013.

In any case, all private educational institutions shall implement the COLA prescribed herein starting School Year 2012-2013.

• All workers paid by result, including those who are paid on piecework, “takay” or task basis, shall be entitled to receive not less than the prescribed COLA a day, or a proportion thereof for working less than eight (8) hours;

• Wages of apprentices and learners shall in no case be less than seventy-five percent (75%) of the applicable new wage rates prescribed in this Order.

All recognized learnership and apprenticeship agreements entered into before the effectivity of this Order shall be considered automatically modified insofar as their wage clauses are concerned to reflect the new wage rates.

All qualified handicapped workers shall receive the full amount of the new wage rates prescribed herein pursuant to Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons.

Have a joyful day!