Republic of the Philippines

REGIONAL Department of Labor and Employment

TRIPARTITE WAGES and Room 11-C, 11/F, G.E. Antonino Building
corner T.M. Kalaw & J. Bocobo Streets,
PRODUCTIVITY BOARD Ermita, Manila
NATIONAL CAPITAL REGION Telefax: 527-51-55/400-67-65

WAGE ORDER No. NCR-12

PROVIDING AN INCREASE IN THE DAILY MINIMUM WAGE

IN THE NATIONAL CAPITAL REGION

WHEREAS, under R.A. No. 6727, the Regional Tripartite Wages and
Productivity Board - National Capital Region (RTWPB – NCR), is mandated to
periodically assess the wage rates, and to conduct continuing studies in the
determination of the minimum wage rates applicable in the region or industry;

WHEREAS, the continuing rise of the price of oil in the world market resulted to
frequent adjustments in the price of local oil and petroleum products;

WHEREAS, such adjustments have contributed to a substantial increase in the

prices of basic goods, and services and have eroded the real wage of the minimum wage
earners since the last wage order was issued;

WHEREAS, on 16 May 2006, the Trade Union Congress of the Philippines filed a
petition for a Seventy-Five Pesos (P
= 75.00) per day across-the-board and region-wide
basic wage increase;

WHEREAS, on 21 June 2006, the National Federation of Labor Unions lodged a

petition for the grant of One Hundred Pesos (P
= 100.00) increase in the basic pay and the
integration of the Fifty Pesos (P
= 50.00) Emergency Cost Of Living Allowance into the
basic pay;

WHEREAS, the Board, after due notice to all concerned sectors, conducted
consultations with Workers’and Employers’Sectors, the Regional Tripartite Industrial
Peace Council and Tripartite Industrial Peace Councils within Metro Manila on the 5th,
8th and 9th of June 2006, respectively, and a public hearing on the 21st of June 2006, to
determine the propriety of issuing a new wage order;

WHEREAS, it is necessary to restore the purchasing power of wages without

impairing the viability of businesses and industries, and to augment the income of the
workers and their families with immediate relief measures to enable them to cope with
the rising cost of living;

WHEREAS, the Regional Tripartite Wages and Productivity Board has deemed it
necessary to grant an increase in the minimum wage rates of workers and employees;

NOW THEREFORE, by virtue of the power and authority vested under

Republic Act No. 6727, as amended, otherwise known as the Wage Rationalization Act,
the Regional Tripartite Wages and Productivity Board - National Capital Region hereby
issues this Wage Order:
 Section 1. AMOUNT OF INCREASE. Upon the effectivity of this Wage Order,
all minimum wage workers in the private sector in the National Capital Region shall
receive an increase of TWENTY-FIVE PESOS (P= 25.00) per day in their basic pay.

Section 2. THE NEW MINIMUM WAGE RATES. The new daily minimum
wage rates in the National Capital Region shall be as follows:

Daily
BASIC Daily ECOLA TOTAL
WAGE per day ECOLA under WO DAILY
INDUSTRY/SECTOR
under WO under WO NCR - 10, MINIMUM
NCR – 12 NCR - 09 as, WAGE
amended
Non-Agriculture = 300
P = 30
P = 20
P = 350
P
Agriculture (Plantation and
= 263
P = 30
P = 20
P = 313
P
Non-Plantation)
Private Hospitals with bed
= 263
P = 30
P = 20
P = 313
P
capacity of 100 or less
Retail/Service Establishments
= 263
P = 30
P = 20
P = 313
P
employing 15 workers or less
Manufacturing Establishments
regularly employing less than = 263
P = 30
P = 20
P = 313
P
10 workers

Section 3. COVERAGE. The wage increase prescribed herein shall apply to all
minimum wage earners in the private sector in the Region, regardless of their position,
designation or status, and irrespective of the method by which their wages are paid.

This Wage Order shall not cover household or domestic helpers; persons in the
personal service of another, including family drivers; and workers of registered
Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority.

Section 4. BASIS OF MINIMUM WAGE RATES. The minimum wage rates

prescribed under this Order shall be for the normal working hours which shall not
exceed eight (8) hours of work a day.

Section 5. APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In

the case of private educational institutions, the share of covered workers and employees
in the increase in tuition fees for School Year 2006-2007 shall be considered as
compliance with the increase prescribed herein. However, payment of any shortfall in
the wage increase set forth herein shall be covered starting School Year 2007-2008.

Private educational institutions, which have not increased their tuition fees for
the School Year 2006-2007, may defer compliance with the provisions of this Wage
Order until the beginning School Year 2007-2008.

In any case, all private educational institutions shall implement the increase
prescribed herein starting School Year 2007-2008.

Section 6. APPLICATION TO CONTRACTORS. In case of contracts for

construction projects and for security, janitorial and similar services, the increase in the
minimum wage prescribed herein shall be borne by the principal or client of the

Wage Order No. NCR-12 2

contractor and the contract shall be deemed amended accordingly as mandated under
the Labor Code.

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

Section 7. WORKERS PAID BY RESULT. All workers paid by result, including

those who are paid on piecework, “takay,” “pakyaw” or task basis, shall be entitled to
receive the prescribed increase per eight (8) hours work a day, or a proportion thereof
for working less than eight (8) hours.

Section 8. WAGES OF SPECIAL GROUPS OF WORKERS. Wages of

apprentices and learners shall in no case be less than seventy-five percent (75%) of the
applicable minimum wage rates prescribed in this Order. All qualified handicapped
workers shall receive the full amount of the minimum wage rate prescribed herein
pursuant to Republic Act No. 7277, otherwise known as the Magna Carta for Disabled
Persons.

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 prescribed minimum wage.

Section 9. EXEMPTIONS. Upon application with and as determined by the

Board, based on documentation and other requirements in accordance with applicable
rules and regulations issued by the Commission, the following may be exempted from
the applicability of this Order:

1. Distressed Establishments;
2. Establishments Facing Potential Losses;
3. Retail/Service Establishments Employing Not More Than Ten (10) Workers;
and,
4. 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 Three Million Pesos (P =
3,000,000.00).

Section 10. APPLICATION FOR EXEMPTION. Pursuant to the National Wages

and Productivity Commission Resolution No. 01, series of 1999, all applications for
exemption from compliance with this Order shall be filed within seventy-five (75) days
from the date of publication of the Rules Implementing this Order, with complete
supporting documents as specified in the Rules and as may be further required by the
Board. Failure to submit the required supporting documents within the prescribed
period will be sufficient basis for the dismissal of the application for exemption.

The Board may grant a partial or full exemption of one (1) year in accordance
with the NWPC Rules on Exemption, but in no case shall any exemption exceed one (1)
year from the effectivity of this Order.

Section 11. EFFECT OF APPLICATION FOR EXEMPTION. Whenever an

application for exemption has been duly filed with the Board, action on any complaint
for alleged non-compliance with this Wage Order shall be deferred pending its
resolution.

Wage Order No. NCR-12 3

 In the event that the application for exemption is not granted, or otherwise not
confirmed in accordance with the Rules, the employees of the applicant firm shall
receive the mandated wage increase under this Order, plus one percent (1%) interest per
month retroactive to the effectivity of this Order.

Section 12. APPEAL TO THE COMMISSION. Any party aggrieved by this

Wage Order may file an appeal to the Commission, through the Board, in two legible
copies, not later than ten (10) days from the publication of this Wage Order.

Section 13. CREDITABLE WAGE INCREASE. An 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 increase prescribed in this Order.

In unorganized establishments, an 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 adjustment, 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.

Section 14. EFFECTS ON EXISTING WAGE STRUCTURE. Where the

application of the increase prescribed in this Order results in distortions in the wage
structure within the establishment, it shall be corrected in accordance with the
procedure provided for under Article 124 of Presidential Decree No. 442, as amended,
otherwise known as the Labor Code of the Philippines.

Section 15. COMPLAINTS FOR NON-COMPLIANCE. Complaints for non-

compliance with the wage increase set forth in this Order shall be filed with the National
Capital Regional Office of the Department of Labor and Employment, and shall be the
subject of enforcement proceedings under Articles 128 and 129 of the Labor Code, as
amended.

Section 16. NON-DIMINUTION OF BENEFITS. Nothing in this Order shall be

construed to eliminate or in any way diminish, or as authorizing the reduction of any
existing wage rates, allowances, benefits and supplements of any form under existing
laws, decrees, issuances, executive orders, and/or under any contract or agreement
between the workers and employers, or employer practices or policies, being enjoyed at
the time of the promulgation of this Order.

Section 17. PROHIBITION AGAINST INJUNCTION. No preliminary or

permanent injunction, or temporary restraining order may be issued by any court,
tribunal or other entity against any proceeding before the Board.

Section 18. FREEDOM TO BARGAIN. The Order shall not be construed to

prevent workers in particular firms or enterprises of industries from bargaining for
higher wages and flexible working arrangements with their respective employers.

Wage Order No. NCR-12 4

 Section 19. PENAL PROVISIONS. Any employer who refuses or fails to pay the
prescribed minimum wage rate provided under this Wage Order shall be subject to the
penalties specified under R.A. No. 6727, as amended by R.A. No. 8188.

Section 20. REPEALING CLAUSE. All orders, issuances, rules and regulations
or parts thereof inconsistent with the provisions of this Order are hereby repealed,
amended or modified accordingly.

Section 21. SEPARABILITY CLAUSE. If any provision or part of this Wage

Order is declared unconstitutional, or in conflict with existing law, the other provisions
or parts thereof shall remain valid. Nothing in this Order shall be construed to reduce
any existing wage rate, allowance or other benefit under existing laws, decrees, issuance,
and orders or under any contract or agreement between workers and employers.

Section 22. IMPLEMENTING RULES. The Regional Tripartite Wages and

Productivity Board - National Capital Region shall prepare the necessary Rules and
Regulations to implement this Order subject to approval by the Secretary of Labor and
Employment.

Section 23. EFFECTIVITY. This Order shall take effect fifteen (15) days after its
publication in a newspaper of general circulation.

APPROVED.

Manila, Philippines, 23 June 2006.

I dissent.

DANIEL R. ANG VICENTE LEOGARDO, JR.

Labor Representative Employer Representative

I dissent. On leave.

GERMAN N. PASCUA, JR. CLETO T. VILLATUYA

Labor Representative Employer Representative

MA. THERESA L. PELAYO DENNIS M. ARROYO

Vice-Chairperson Vice-Chairperson

RICARDO S. MARTINEZ, SR.

Chairperson

Wage Order No. NCR-12 5