DOLE reports high minimum-wage compliance rate

MANILA, Philippines – The Department of Labor and Employment (DOLE) on Sunday reported a high compliance rate of the private sector in the minimum wages set by the various Regional Tripartite Wages and Productivity Board (RTWPBs).

“In the minimum-wage compliance, ang report sa amin is 81% compliant ang mga companies natin…ito ang pinaka-importanteng benefit na kailangan,” Labor Undersecretary Lourdes Trasmonte said.

Labor officials expect the compliance rate to increase further when the inspection of companies nationwide has been completed.

The department has been undertaking an expanded and enhanced Labor Enforcement and Action Program (LEAP) to achieve a higher rate of compliance with general labor standards by companies and establishments since September.

At the same time, Trasmonte reported that only about 50% of companies in the country have complied with the payment of the holiday pay to their employees.

Based on the inspections conducted by the Dole under LEAP, Trasmonte said that only half of the 35,680 establishments inspected nationwide have complied with the holiday payment rules.

She explained that based on the labor standards inspection nationwide, employers are more often found violating the holiday pay regulation than the minimum wage standards.

“Nahihirapan silang sumunod sa holiday pay kasi marami tayong holidays,” Trasmonte said.

“There is about 50-percent compliance rate, although ang target namin diyan eh it will go up to 65%-70% compliance,” Trasmonte added.

Under the law, employers are required to pay their employees, who will go on duty on an officially declared holiday, an additional percentage based on their regular pay depending on the type of holiday declared by the government.

The inspection program has been suspended from December 1, 2010 until January 16, 2011 to prevent DOLE personnel from soliciting Christmas gifts from employers. –S. Fabunan, Business Mirror