WAGE WAGE ORDER NO. ORDER NO.

IVA-16IVA-16

Regional Tripartite Wages and Productivity Regional Tripartite Wages and Productivity Board IVABoard IVA

Telephone Nos. (049) 5455511; (049) 8344030Telephone Nos. (049) 5455511; (049) 8344030

Email AddEmail Add: : rtwpb4a@yahoo.com ; ; rtwpb4a@gmail.comWebsite: www.nwpc.dole.gov.ph

Effectivity Effectivity Date: Date: 01 MAY 201401 MAY 2014

COMPONENCOMPONENTSTS

MINIMUM WAGE

MANDATORY MANDATORY COMPONENTCOMPONENT

Adjustment in the MW Php Adjustment in the MW Php 13.00 per day 13.00 per day SEA* SEA* workers receiving workers receiving

ABOVE P267 to 349.50ABOVE P267 to 349.50

* Socio Economic Allowance* Socio Economic Allowance

ABOVE P 267 ABOVE P 267

BASIS OF 13.00 BASIS OF 13.00 INCREASE INCREASE

Php 12.29

Region Specific Adjustment Estimate

CRITERIA/INDICATORS PREVIOUS LATEST WEIGH

TDERIVED

RATIO

WEIGHTED WAGE

MULTIPLIER

1

GRDP/GVA growth rate (All Sectors) 1,026,046,727 1,097,720,281 0.35 1.0699 0.3744

(2011) (2012)    

2Employment Rate 90.6 90.9 0.30 1.0033 0.3010(July 2012) (July 2013)    

3

Unemployment Rate 9.4 9.1 0.05 1.0330 0.0516

(July 2012) (July 2013)    

4

Underemployment Rate 21.1 19.3 0.05 1.0933 0.0547

(July 2012) (July 2013)

5Poverty Incidence Rate (Families)

10.8 11.2 0.25 1.0370 0.2593

 (2009)  (2012)    

Total 100.00  1.0410

Computed PESO VALUE Php

10.46  

SOCIO ECONOMIC SOCIO ECONOMIC ALLOWANCEALLOWANCE

Areas

GROWTH CORRIDOR AREAS EMA to GCA *Laguna Techno Park Growth Corridor Area (GCA) *Lima Technology Center

EMERGING GROWTH AREAS Emerging Growth Area (EGA)

Resource Based Area to EGA

RESOURCE BASED AREAS Resource Based Area

WO14 WO15 WO16 New CTPA SEA CTPA SEA MWRs

337 12.50 13.00 362.50 315 12.50 13.00 340.50 310 12.50 13.00 335.50

291 12.50 13.00 316.50 280 12.50 13.00 305.50 275 12.50 13.00 300.50

271 12.50 13.00 296.50

MINIMUM WAGE MINIMUM WAGE RATESRATESNON-AGRICULTURE

Implementation Guide

SOCIO ECONOMIC SOCIO ECONOMIC ALLOWANCEALLOWANCE

Minimum WageFLOOR FLOOR WAGEWAGE

Floor Wage (WO 16) = P267.00 (WO 15) = P255.00 P 12.00

FLOOR FLOOR WAGEWAGE

 A Adjusted POVERTY THRESHOLD    Daily/Capita (inflated as of Oct 2013) 54.99   OECD household size 3.70   Daily PT for a Family 203.46   Weight 0.50 

  Adjusted POVERTY THRESHOLD 101.73 101.73             Β Adjusted MEDIAN WAGE      Median Wage 436.13    0.70    305.29    Weight 0.50    Adjusted MEDIAN WAGE 152.65 152.65            

 

Total Adjusted POVERTY THRESHOLD and MEDIAN WAGE (a + b)  

254.38

    δ REGION SPECIFIC ADJUSTMENT 12.29

a.Increase in price of prime commodities 1.83

  b. Socio-economic indicators 10.46      Total Adjusted PT, AW & RSA (a + b + δ) 266.67 Floor Wage under Wage Order No. IVA-15 255.00 Amount of Increase   11.67

FLOOR WAGE FLOOR WAGE EstimateEstimate

AREAS 

Retail & Service Establishment Employing Not Retail & Service Establishment Employing Not More Than 10 WorkersMore Than 10 Workers

Mini-mum Wage Rate

 15

May2012 (WO 15)

Amount of

Increase

Mini-mum Wage Rate

Amount of Increase

Minimum Wage Rate

 

Amount of

Increase

Mini-mum Wage Rate

15May2013

 (WO 15)

01 May 2014

 (WO 16)

15May2014

 (WO 15)

01 May 2014

 (WO 16)

15May2014

 (WO 15)

01December

2014 

(WO 16)

GCA

250 5 255 4 - 259 - 4 263

228 18 246 - 9 - 255 4 259

225 18 243 - 12 - 255 4 259

EGA

208 18 226 - 18 - 244 4 248

195 18 213 - 18 - 231 4 235

194 18 212 - 18 - 230 4 234

RBA

190 18 208 - 18 - 226 4 230

183 18 201 - 18 - 219 4 223

P 267 & P 267 & BELOW BELOW

AREAS

 

Agriculture (Non-Plantation)

Minimum Wage Rate

Amount of Increase

Minimum Wage Rate

 

Amount of

Increase

Mini-mum Wage Rate

 

 

 

15 May2012

(WO 15)

15 May2013

(WO 15)

01May2014

 (WO 16)

15 May 2014

 (WO 15)

01May2014

 (WO 16)

15 May 2014

 (WO 15)

01December

2014 

(WO 16)

 

EGA

255 -  6 - 261 - 6 267  

253 255 6 - 261 - 6 267  

248 255 6 - 261 - 6 267  

RBA

244 255 6 - 261 - 6 267  

231 249 - 6  - 255 6 261  

P 267 & P 267 & BELOW BELOW

AREAS

Agriculture (Plantation)

Minimum Wage Rate  

Amount of

Increase

Minimum Wage

Rate

Amount of Increase

Minimum Wage Rate

 

15May2012

(WO 15)

15May2013

(WO 15)

01May 2014

  (WO 16)

01December

2014 

(WO 16)

EGA

 - -   - -   - -255  - 6 261 6 267

255  - 6 261 6 267

RBA

255  - 6 261 6 267

251 255 6 261 6 267

P 267 & P 267 & BELOW BELOW

PRODUCTIVITY BASED PAY

Labor

PRODUCTIVITY BASED PAY

PRODUCTIVITY PRODUCTIVITY BASED PAYBASED PAY

Suggested Productivity Based Pay Levels

Industry Classification

Percent Ranges of PBP

Agriculture 8.5 – 13.1

Industry 6.1 – 12.9

Service 8.4 – 15.8

PBP Percent Increase = x (labor productivity growth rate of wage & salary workers j) + y (changes in labor market condition j) + z (industry’s actual and

predicted growth j) (2011-2012 LP & LM Growth Rate)LP for wage & salary workers, extrapolated using 2009 & 2010 dataLM is the net employment (employment-unemployment), all class of workers, 2011 & 2012 actual dataGDP Growth Rate, National for 2011-2012 actual data

PRODUCTIVITY PRODUCTIVITY BASED PAYBASED PAY

PRODUCTIVITY PRODUCTIVITY BASED PAYBASED PAY

PRODUCTIVITY PRODUCTIVITY BASED PAY POLICYBASED PAY POLICY

Operator

Line Leader/

QA

Chairman

Members-Management Members –

Labor

Secretary

Production

HRD/Finance

Sales/Marketing

Support Services

PIIC Manager

PIIC STRUCTURE

Q

D C

COST

QUALITY

DELIVERYTIME

5S Committee

SHITSUKE(SELF-DISCIPLINE)

SEIKETSU(SANITIZE)

SEISO(SWEEP)

SEITON(SYSTEMATIZE)

SEIRI(SORT)

PIIC STRUCTURE

Innovation

KAIZEN

Maintenance

Top-Management

MiddleManagement

Supervisors

Workers

Concepts

SystemsHR

CQ D

Tools

PIIC STRUCTURE

CustomerDriven

PeopleCulture

LeadershipInvolvementCommitment

PROPBLEM IDENTIFICATION

IDENTIFICATIONOF

ROOT CAUSES

STANDARDIZATIONSOLUTION

IMPLEMENTATION

SELECTION OF ALTERNATIVE

SOLUTIONS

SELF-EVALUATIONAND

FUTURE PLAN

ANALYSIS OF THE PRESENT

SYSTEM

EVALUATIONOF RESULTS

QUALITY CIRCLE

P

DCA

PRODUCTIVITY IMPROVEMENT

PROGRAMS

STEP 1Productivity

Targets/Goals

STEP 2Productivity

Diagnosis

STEP 3Productivity

Levers

STEP 4Productivity

Measurement

Setproductivity goals/targets

Diagnose your

organization;identify areas tofocus on

Increasesales/outputthrough

ProductivityImprovement

Programs

Implementfamily of

measures;establish

PerformanceManagement

Systems

PRODUCTIVITY IMPROVEMENT

PROGRAM

ProfitManagement

Q C DQuality &

safetymanagement

CostManagement

Logistic

management

Workers’operations Information Equipment

Products& materials

Standardization

5S ( Good housekeeping)

Muda Elimination

Team-workself- discipline

Morale enhancementQC circles

Suggestions

PRODUCTIVITY PRODUCTIVITY BASED PAYBASED PAY

Advisory Guidelines Provides Illustrative PRODUCTIVITY BASED PAY

MODELS

PRODUCTIVITY PRODUCTIVITY BASED PAYBASED PAY

Announcement:Announcement:

1. answer the on line SURVEY ON IMPACT 1. answer the on line SURVEY ON IMPACT ASSESSMENT ON TWO-TIER WAGE ORDER ASSESSMENT ON TWO-TIER WAGE ORDER (link @ www.nwpc.dole.gov.ph)(link @ www.nwpc.dole.gov.ph)

2. accomplish SURVEY QUESTIONNAIRE 2. accomplish SURVEY QUESTIONNAIRE ON KASAMBAHAYON KASAMBAHAY

3. download copy WO and PBP Guidelines 3. download copy WO and PBP Guidelines @ NWPC website: www.nwpc.dole.gov.ph@ NWPC website: www.nwpc.dole.gov.ph