Labor Law and Social Legislation › Labor Standards › Wages (See also RA 6727 and 8188)

3. Minimum Wage (See also RA 9178 and 9504)

Standards/Criteria for minimum wage fixing

The regional minimum wages to be established by the Regional Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national economic and social development program.

In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors, consider the following:

  • The demand for living wages;
  • Wage adjustment vis-à-vis the consumer price index
  • The cost of living and changes or increases therein
  • The needs of workers and their families
  • The need to induce industries to invest in the countryside
  • Improvements in standards of living
  • The prevailing wage levels
  • Fair return of the capital invested and capacity to pay of employers
  • Effects on employment generation and family income
  • The equitable distribution of income and wealth along the imperatives of economic and social development (Labor Code, Art. 124)

1. Floor Wage Method

The "floor-wage" method involves the fixing of a determinate amount to be added to the prevailing statutory minimum wage rates.

What is the wage rate of PWDs?

The wage rate of PWDs is 100% of the applicable minimum wage.

What is the wage rate of PWD if hired as apprentice or learner?

A PWD hired as an apprentice or learner shall be paid not less than seventy-five percent (75%) of the applicable minimum wage.