Labor Law and Social Legislation › Labor Standards › Wages (See also RA 6727 and 8188) › Definition, Components, and Exclusions
a. Wage vs. Salary
Wage vs. Salary
| WAGE | SALARY |
| Paid for skilled or unskilled manual labor | Paid to white collar workers and denote a higher grade of employment |
| Not subject to execution, garnishment or attachment except for debts related to necessities (Civil Code, Art. 1708) | A salary is not automatically exempt or nonexempt from execution, garnishment or attachment. Whether Civil Code, Art. 1708 protects the compensation depends on the nature of the employment, not its label; the salary at issue in Gaa was not protected. (Gaa v. CA, G.R. No. L-44169, 1985) |
The applicable minimum wage is set by law or wage order issued by the Regional Tripartite Wages and Productivity Boards (RTWPB’s). An employer may fix a higher wage, but not one lower than the legally mandated minimum wage for agricultural or non-agricultural workers.
Wage or Salary includes:
Commissions paid as remuneration for work and the fair and reasonable value of qualifying facilities; supplements are not deductible as facilities.