Manpower Costs

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Manpower Costs MANPOWER RESOURCES (LABOR): The laws on labor standards and employment relations are consolidated in the Labor Code of the Philippines. The salient points of employment conditions and employee benefits under the Philippine labor laws are as follows: Hours of Work. Eight (8) hours per day or 48 hours per week. Rest periods of short duration during work hours shall be counted as hours worked. Work Day. A day is the 24-hour period which commences from the time the employee regularly starts to work. Minimum Wage (Manufacturing Sector). The minimum wage rate for agricultural and non-agricultural workers in every region are determined by the Regional Tripartite Wages and Productivity Board. Fringe Benefits. This refers to goods, services, or other benefits furnished by an employer in cash or kind, in adddition to basic salaries; to managerial or supervisory employees such as but not limited to the following: · Housing · Expense Account · Vehicle of Any Kind · Household personnel, such as maid, driver and others · Interest on loans at less than market rate to the extent of the difference between the market rate and actual rate granted; · Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations; · Holiday and vacation expenses · Educational assistance to the employee or his dependents; and · Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows Managerial employees refer to those who are given powers or prerogatives to lay down and execute managerial policies and or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requirres the use of independent judgment. Overtime (OT) Remuneration. Overtime premium is alloted for work exceeding the maximum prescribed period. Every employee who is entitled to premium pay is likewise entitled to the benefit of overtime pay. Computation of Wages. Source: Bureau of Working Conditions Department of Labor and Employment http://www.bwc.dole.gov.ph/faq.asp#com_wage Computing Overtime: On Ordinary Days Number of hours in excess of 8 hours (125% x hourly rate) On a Rest Day, Special Day or Regular Holiday Number of hours in excess of 8 hours (130% x hourly rate) Computing pay for work done on: A Special Day (130% x basic pay) A Special Day, which is also a sheduled Rest Day (150% x basic pay) A Regular Holiday (200% x basic pay) A Regular Holiday, which is also a scheduled Rest Day (260% x basic pay) Computing Night Shift Premium where Night Shift is a Regular Work: On Ordinary Day (110% x basic hourly rate) On a Rest Day, Special Day, Regular Holiday (110% of regular hourly rate for Rest Day, Special Day, Regular Holiday) Computing Overtime on Night Shift: On Ordinary Day (110% x overtime hourly rate) On Rest Day, Special Day or Regular Holiday (110% x overtime hourly rate for Rest Days, Special Days, Regular Holidays) Computing 13th Month Pay: Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential pay divided by 12 = 13th month pay. Night-Shift Differential Pay. Night-shift employees must be paid a differential of not less than 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. Service Incentive Leave. Every employee who has rendered at least one year of service is entitled to a yearly service incentive of five days with pay. Meal and Rest Periods. One-hour time-off for regular meals. MANDATORY EMPLOYMENT CONTRIBUTION 13th Month Pay. By law, companies are required to give its employees a 13th pay equivalent to one (1) month salary. Social Security System (SSS) Contributions. As Mandated by law, both employer and employees are to contribute for the social security benefits of the employees in accordance with the new schedule provided by SSS. SSS Contribution Schedule - Effective January 1, 2007 (pdf file) Source: Social Security System http://www.sss.gov.ph/docs/new_contri_sched.pdf Contribution to Home Development and Mutual Fund (HDMF). Companies/employers are also required to contribute at least P100.00 per month to HDMF for employee benefits. Companies/employers remit this contribution plus that of the employees's which will be deducted from their payroll, in accordance with the periodic remittance schedule provided by HDMF. Contribution to National Health Insurance Program (NHIP). As mandated by Republic Act 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth), both employers and employees are to contribute for the medical insurance/benefits of the employees in accordance with the schedule provided by Philhealth. Premium Contribution Schedule - For the Employed Sector - Effective January 1, 2007 (pdf file) Source: Philippine Health Insurance Corporation http://www.philhealth.gov.ph/contribution.htm
CURRENT DAILY MINIMUM WAGE RATES National Capital Region (NCR) a/ Per Wage Order No. NCR-13 b/ Effective 28 August 2007 (In pesos) INDUSTRY/SECTOR Basic Wage After COLA Integration Basic Wage Increase New Minimum Wage Rates Non-Agriculture 350.00 12.00 362.00 Agriculture (Plantation & Non-Plantation) 313.00 12.00 325.00 Private Hospitals with bed capacity of 100 or less 313.00 12.00 325.00 Retail/Service Establishments Employing 15 workers or less 313.00 12.00 325.00 Manufacturing Establishments Regularly employing less than (10) workers 313.00 12.00 325.00 a/ Covers the cities of Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Markina, Muntinlupa, Paranaque, Pasay, Pasig, Quezon, Taguig, San Juan, Navotas and Valenzuela and the Municipality of Pateros. b/ Grants a P12.00 per day basic wage increase to all minimum wage workers in the private sector in the r egion. The existing P50.00 per day COLA under Wage Order Nos. NCR-09 and NCR-10 is integrated in to the basic wage of covered workers. Source:National Wages and Productivity Commission Department of Labor and Employment http://www.nwpc.dole.gov.ph/pages/ncr/cmwr_table.html
SUMMARY OF CURRENT REGIONAL DAILY MINIMUM WAGE RATES Non-Agriculture, Agriculture As of March 2008 (In pesos) REGION WO No. / Date of Effectivity NON-AGRICULTURE AGRICULTURE Plantation Non-Plantation NCR a/ WO 13 / Aug. 28, 2007 325.00 – 362.00 325.00 325.00 CAR b/ WO 12 / Jan. 07, 2008 233.00 – 245.00 216.00 – 227.00 216.00 – 227.00 I c/ WO 12 / Dec. 31, 2007 210.00 – 230.00 210.00 185.00 II d/ WO 12 / Nov. 25, 2007 215.00 – 223.00 203.00 – 211.00 203.00 – 211.00 III e/ WO 13 / Sep. 27, 2007 236.00 – 287.00 221.00 – 257.00 201.00 – 241.00 IV-A f/ WO 12 / Oct. 05, 2007 224.00 – 300.00 204.00 – 275.00 184.00 – 255.00 IV-B g/ WO 03 / Nov. 25, 2007 225.00 – 237.00 188.00 – 197.00 168.00 – 177.00 V h/ WO 11 / Dec. 01, 2007 183.00 – 226.00 194.00 – 204.00 174.00 – 184.00 VI i/ WO 15 / Oct. 05, 2007 215.00 – 235.00 195.00 – 203.00 193.00 VII j/ WO 13 / Nov. 11, 2007 205.00 – 250.00 185.00 – 232.00 185.00 – 232.00 VIII k/ WO 14 / Dec. 16, 2007 228.00 209.00 209.00 IX l/ WO 14 / Jan. 23, 2008 225.00 200.00 180.00 X m/ WO 13 / Nov. 16, 2007 229.00 – 244.00 217.00-232.00 217.00-232.00 XI n/ WO 14 / Sep. 16, 2007 248.00 – 250.00 238.00 – 240.00 217.00 – 219.00 XII o/ WO 14 / Oct. 08, 2007 229.50 212.00 209.00 XIII p/ WO 08 / Nov. 07, 2007 220.00 210.00 200.00 ARMM q/ WO 09 / Aug. 04, 2006 200.00 200.00 200.00 a/ Granted a P12 per day wage increase after integration of the P50 COLA to the basic pay; b/ Granted P10 wage increase and integrated into the basic wage the P51 COLA granted under WO Nos. 5, 9 & 10; c/ Granted P3-13 wage increase and integrated into the basic wage the P12 COLA granted under WO No. 10; d/ Granted P5 wage increase; e/ Granted P9 COLA; f/ Granted P6-13 wage increase as follows: P10-13 (Growth Corridor Area), P8-9 (Emerging Growth Area), P6 (Resource Based Area); g/ Granted P2-16 wage increase; h/ Granted P6 wage increase; i/ Granted P4-41 wage increase due to simplification to be given in three tranches: P4-16 (Oct. 5, 2007), P8-15 (May 1, 2008, P7-11 (Sep. 16, 2008); j/ Granted P5 & P9 wage increase; k/ Granted P14 wage increase and integrated into the basic wage the P18 COLA granted under WO Nos. 11 & 12; P2-14 in selected sectors due to restructuring; l/ Granted P15 wage increase and integrated into the basic wage the P20 COLA granted under WO No. 12; m/ Granted P10 additional COLA; n/ Granted additional P10 COLA; o/ Granted P3-5 additional COLA; p/ Granted P6 COLA; q/ Granted P10 wage increase and P10 COLA (cash or non-cash) and integrated into the basic wage the P10 COLA granted under WO No. 8. Source: National Wages and Productivity Commission Department of Labor and Employment http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html

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