Implementing rules for wage hike out

The Department of Labor and Employment (DOLE) yesterday released the implementing rules and regulations (IRR) of the order granting the P22 daily minimum wage increase for workers in Metro Manila, with businesses given 75 days from the publication of the guidelines to seek exemption.

The new daily minimum wage rate, effective July 1 for non-agriculture workers is P404 from P382 while workers belonging to agriculture (plantation and non-plantation), private hospitals with bed capacity of less than 100, retail /service establishments, and manufacturing establishments will get P367 from P345.

National Wages and Productivity Commission executive director Ciriaco A. Lagunzad IIII said that companies have 75 days from Friday, the IRR’s publication date, to file their petition for exemptions that will be subject to approval by the Metro Manila Board.

Those that can apply for exemption include distressed establishments, retail/service businesses employing not more than 10 workers, establishments with total assets of not more P3 million and those affected by natural calamities.

“If the application for exemption is approved, the company will be [exempted] for one year. After one year, they will need to pay the [additional] P22… If the application for exemption is not granted, the company will need to pay the amount from the effectivity of the order,” Mr. Lagunzad said in a phone interview.

The Metro Manila Board will act and decide on the application of exemption with complete documents, as long as 45 days from the date of filing, the rules read.

Mr. Lagunzad said that the Labor Secretary through DOLE’s regional offices will implement the rules.

“The inspector will make sure of compliance. But DOLE and the Regional Tripartite Wages and Productivity Board usually conducts orientations on implementation of wage order,” Mr. Lagunzad said.

Complaints for non-compliance with the order shall be filed with the DOLE regional office and be subject of enforcement proceedings under the Labor Code, the guidelines stated.

Those refusing to grant the prescribed increase shall be punished by a fine not less than P25,000 nor more that P100,000 or imprisonment of not less than two years nor more than four years, or both fine and imprisonment. — Ana Mae G. Roa, Businessworld