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Tuesday, September 16, 2008

NCR Minimum Wage

I just had an epiphany! (Alelujah music playing in the background)

I o
riginally thought that this blog caters mostly to HR practitioners and managers looking for tips guidance and second opinion on how to run their company. Since I put a query form to allow readers to ask questions, I've been receiving questions from non-hr people looking for answers to their HR related questions like, how to compute for daily wage, asking if HR had the legal right to do such and such.

The questions made me realize that there are many out there who do not fully understand what HR is doing and are looking for answers
. Answers that I will give in the best ways I could. I will have to warn you though that I will be careful not to answer those questions about legalities. The best person to answer these types of questions are lawyers.

I have been asked twice about minimum wage in the Philippines so that's where I will start. The latest Wage order for National Capital Region was made effective June 14, 2008. FOr the copy of the order appropriate to your region, click here. To download a PDF copy of the Wage Order No. NCR 14, click here.

Here's the breakdown of the new minimum wage according to WAGE ORDER NO. NCR-14

Now, if you are not an HR practitioner and your current daily rate don't seem to match the ones in the table, don't panic just yet. There are several factors to consider in calculating your basic pay.

The region you belong to - Keep in mind that wages vary for different regions.
click the link I gave you above and look for your region if you are not from NCR.

Factors used for computing your salary - (This is tricky even for HR practitioners who are mathematically challenged people like me) The law allows
companies to use different factors for the computation of basic pay.

There's the 392.5 days used when you are required to work everyday including Sundays or rest days, special days and regular holidays:

Where 392.5 days:
299 -ordinary working days
22 - regular holidays
67.6 - 52 rest days x 130%
3.9 -3 special days x 130%
392.5 - Total no. of days/year

If you do not work but are considered paid on rest days, special days and regular holidays, The factor is 365 days

Where 365 days:
299 - Ordinary working days
11 - Regular holidays
52 -Sundays/rest days
3 -Special days
365 -Total no. of days/year

If you do not work and are not considered paid on Sundays or rest days, the factor is
Where 313 days:
299 -Ordinary working days
11 -Regular holidays
3 -Special days
313 -Total no. of days/year

And if you do not work and are not considered paid on Saturdays and Sundays or rest days, the factor is 261

Where 261 days are:
247 -Ordinary working days
11 - Regular holidays
3 - Special holidays
261 - Total no. of days/year

To know your daily rate, you have to multiply your monthly pay to 12 (months) and then divide it by the appropriate factor (paid days) I mentioned above and voila, your daily rate.

Compare it with what is stipulated in the wage order. If they don't match, you either messed up the calculation or they are not paying you right.

If you are a daily paid worker and you want to know how much your monthly pay is, multiply your daily wage by the factor used in your company and then divide it by 12. Got it?

To find out if you are using the right factor ask your HR. If they are staring you in the face like a roadkill. download the department order and give them a copy. :)


  1. I hope that they will increase the minimum wage because the prices of basic commodities is getting higher and higher.

  2. Can somebody help me out?
    I’m working as a maritime security for an agency. The company where I was assigned to work suddenly cut my working hours. Before, I go on duty aboard this company’s vessel for about 3-4 days in a week when we deliver cargo to other islands. When I get back, I am assigned to do other duties within the company (ex. warehouse duty-I was told this when I got hired

    After 4mos. thougf, I was told not to report/time-in at HQ anymore- just to report for work when there’s a trip – which is only 3 or 4 days in a week. No-work, no-pay. So, I get paid about 6-7 days every payday (15 days). I was told it would only be for a month. But it will be 5 months now and I still work “part-time”. And my payslip is evidence that I’m also earning part-time salary- my usual pay is now half the amount it used to be. And the IRONY is, I was told that it would be killing the budget if I work regular hours at headquarters like I used to but they are allowing regular hours plus overtime at headquarters to OTHER EMPLOYEES (ex. driver can go on warehouse duty, cargo loader can work as warehousemen). I feel that this is so unfair.

    Is this legal? Can I demand to be on regular duty when I’m not on duty aboard a vessel? PLEASE HELP!



If you have an opinion about this topic or a related experience you want to share, please feel free to leave a comment but please be respectful. No bad words please or I will be constrained to delete it.