Tag Archives: work

The System of Fixing the Minimum Wage in the Philippines

Calls for the increase of minimum wages have surfaced with the constant increase of oil prices. This increase in the prices of gasoline and diesel almost always have the effect of raising all prices of goods and commodities. How is minimum wage fixed? What is the process in fixing the minimum wage? Let’s have a brief discussion on minimum wage determination.

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P15 Minimum Wage Hike for NCR (Wage Order No. NCR-19, full text)

A 15-peso increase minimum wage was approved by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) and announced by Department of Labor and Employment (DOLE) Secretary Rosalinda Dimapilis-Baldoz. “The new minimum wage in the National Capital Region has been raised to P481 for workers in the non-agriculture sector and P444 for workers in the agricultural sector. The minimum wage hike is expected to be affirmed by the NWPC this week, and the RTWPB will publish it, after which it will take effect 15 days after its publication,” DOLE-NCR Regional Director Alex Avila said in a report. This issuance is Wage Order No. NCR-19, reproduced in full below (see also Primer on Wage Order NCR-19).

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Increase of Tax Exclusion to P82,000 for 13th Month Pay and Other Benefits (BIR Revenue Regulations No. 3-2015; Full Text)

REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVUENUE
Quezon City

March 9, 2015

REVENUE REGULATIONS NO. 3-2015

SUBJECT: Implementing the Provisions of Republic Act No. 10653, More Particularly on the Increase of the Total Amount of Exclusion to P82,000.oo for 13th Month Pay and Other Benefits from Gross Income Effectively Further Amending the Pertinent Provisions of Revenue Regulations No. 2-98

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Due Process in Termination and Disciplinary Actions; Minimum Period for Reply to Show-Cause Notice

Practitioners in the field of labor or Human Resources (HR), as well as managers and executive officers of companies, are aware that an employee may only be dismissed for cause. Disciplinary actions, including dismissal from work, must comply with both substantive and procedural due process. Substantive due process requires a valid cause for the dismissal. For procedural due process, outlined below, an interesting question is this: is there a minimum period that must be given to the employee to answer the show-cause notice?

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New Law Increasing the Exemption for 13th Month Pay and Other Benefits (Republic Act No. 10653)

Republic of the Philippines
Congress of the Philippines
Metro Manila

REPUBLIC ACT NO. 10653

AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

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FAQ on 13th-Month Pay in the Philippines

13th-month pay is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked).

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Eid’l Adha as National Holiday: Computation of Holiday Pay for November 27 and 28, 2009

[Malacanang declared November 27 and 28, 2009 as “national holidays”, in observance of Eid’l Adha, one of Islam’s greatest feasts. Many were wondering if “national holiday” means a regular holiday or a special holiday. This is clarified in the Labor Advisory issued by DOLE. The full text of Proclamation No. 1808 and the DOLE Labor Advisory are reproduced below. Many were also wondering why it’s a national holiday, when RA 9492 provides that it’s a regional holiday. Proclamation 1808-A was subsequently issued, providing that Eid’l Adha is a regional holiday in ARMM, not a national holiday.]

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Primer on the Minimum Wage Tax Exemption

It’s that time of the year when we are again required to pay taxes and file our income tax returns. Some, however, are exempt from paying income tax. Minimum wage earners are not required to pay income taxes. Here’s a primer of the new law.

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Christmas Bonus vs. 13th Month Pay

With the Christmas season (together with the requisite countdowns, shopping lists and family reunions) fast approaching, one thing is slowly creeping into the consciousness of the great host of salaried employees in the country – the Christmas Bonus. Indeed, many a gift is being thought of and many a budget is being drawn-up in anticipation of this gratuity, a reward if you will, for another year’s worth of blood, sweat and tears. But what exactly comprises this year-end gratuity? Who are entitled to receive a Christmas bonus? Can one correctly call the 13th-month pay a Christmas bonus?

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