REPUBLIC ACT NO.

6727 Regional Tripartite Wages and Productivity Boards

REPUBLIC ACT NO. 6727 - AN ACT TO to determine if these are in accordance with
RATIONALIZE WAGE POLICY DETERMINATION prescribed guidelines and national development
BY ESTABLISHING THE MECHANISM AND plans;
PROPER STANDARDS THEREFORE,
AMENDING FOR THE PURPOSE ARTICLE 99 "(e)    To undertake studies, researches and
OF, AND INCORPORATING ARTICLES 120, 121, surveys necessary for the attainment of its
122, 123, 124, 126 AND 127 INTO, functions and objectives, and to collect and compile
PRESIDENTIAL DECREE NO. 442, AS data and periodically disseminate information on
AMENDED, OTHERWISE KNOWN AS THE wages and productivity and other related
LABOR CODE OF THE PHILIPPINES, FIXING information, including, but not limited to,
NEW WAGE RATES, PROVIDING WAGE employment, cost-of-living, labor costs, investments
INCENTIVES FOR INDUSTRIAL DISPERSAL TO and returns;
THE COUNTRYSIDE, AND FOR OTHER
PURPOSES "(f)    To review plans and programs of the Regional
SECTION 1.    This Act shall be known as the Tripartite Wages and Productivity Boards to
"Wage Rationalization Act." determine whether these are consistent with
national development plans;
SECTION 2.    It is hereby declared the policy of
the State to rationalize the fixing of minimum wages "(g)    To exercise technical and administrative
and to promote productivity-improvement and gain- supervision over the Regional Tripartite Wages and
sharing measures to ensure a decent standard of Productivity Boards;
living for the workers and their families; to
guarantee the rights of labor to its just share in the "(h)    To call, from time to time, a national tripartite
fruits of production; to enhance employment conference of representatives of government,
generation in the countryside through industry workers and employers for the consideration of
dispersal; and to allow business and industry measures to promote wage rationalization and
reasonable returns on investment, expansion and productivity; and
growth.
"(i)    To exercise such powers and functions as
The State shall promote collective bargaining as the may be necessary to implement this Act.
primary mode of settling wages and other terms
and conditions of employment; and whenever “The Commission shall be composed of the
necessary, the minimum wage rates shall be Secretary of Labor and Employment as ex-officio
adjusted in a fair and equitable manner, chairman, the Director-General of the National
considering existing regional disparities in the cost Economic and Development Authority (NEDA) as
of living and other socio-economic factors and the ex-officio vice-chairman, and two (2) members each
national economic and social development plans. from workers and employers sectors who shall be
appointed by the President of the Philippines upon
SECTION 3.    In line with the declared policy under recommendation of the Secretary of Labor and
this Act, Article 99 of Presidential Decree No. 442, Employment to be made on the basis of the list of
as amended, is hereby amended and Articles 120, nominees submitted by the workers and employers
121, 122, 123, 124, 126 and 127 are hereby sectors, respectively, and who shall serve for a
incorporated into Presidential Decree No. 442, as term of five (5) years. The Executive Director of the
amended, to read as follows: Commission shall also be a member of the
Commission.
"Art. 99.    Regional Minimum Wages. — The
minimum wage rates for agricultural and non- “The Commission shall be assisted by a Secretariat
agricultural employees and workers in each and to be headed by an Executive Director and two (2)
every region of the country shall be those Deputy Directors, who shall be appointed by the
prescribed by the Regional Tripartite Wages and President of the Philippines, upon the
Productivity Boards." recommendation of the Secretary of Labor and
Employment.
"Art. 120.    Creation of the National Wages and
Productivity Commission. — There is hereby “The Executive Director shall have the same rank,
created a National Wages and Productivity salary, benefits and other emoluments as that of a
Commission, hereinafter referred to as the Department Assistant Secretary, while the Deputy
Commission, which shall be attached to the Directors shall have the same rank, salary, benefits
Department of Labor and Employment (DOLE) for and other emoluments as that of a Bureau Director.
policy and program coordination." The members of the Commission representing
labor and management shall have the same rank,
"Art. 121.    Powers and Functions of the emoluments, allowances and other benefits as
Commission. — The Commission shall have the those prescribed by law for labor and management
following powers and functions: representatives in the Employees' Compensation
Commission.
"(a)    To act as the national consultative and
advisory body to the President of the Philippines "Art. 122.    Creation of Regional Tripartite Wages
and Congress on matters relating to wages, and Productivity Boards. — There is hereby created
incomes and productivity; Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all
"(b)    To formulate policies and guidelines on regions, including autonomous regions as may be
wages, incomes and productivity improvement at established by law. The Commission shall
the enterprise, industry and national levels; determine the offices/headquarters of the
respective Regional Boards.
"(c)    To prescribe rules and guidelines for the
determination of appropriate minimum wage and “The Regional Boards shall have the following
productivity measures at the regional, provincial or powers and functions in their respective territorial
industry levels; jurisdiction:

"(d)    To review regional wage levels set by the "(a)    To develop plans, programs and projects
relative to wages, incomes and productivity unless the person appealing such order shall file
improvement for their respective regions; with the Commission an undertaking with a surety
or sureties satisfactory to the Commission for the
"(b)    To determine and fix minimum wage rates payment to the employees affected by the order of
applicable in their region, provinces or industries the corresponding increase, in the event such order
therein and to issue the corresponding wage is affirmed."
orders, subject to guidelines issued by the
Commission; "Art. 124.    Standards/Criteria for Minimum Wage
Fixing. — The regional minimum wages to be
"(c)    To undertake studies, researches and established by the Regional Board shall be as
surveys necessary for the attainment of their nearly adequate as is economically feasible to
functions, objectives and programs, and to collect maintain the minimum standards of living necessary
and compile data on wages, incomes, productivity for the health, efficiency and general well-being of
and other related information and periodically the employees within the framework of the national
disseminate the same; economic and social development program.n the
determination of such regional minimum wages, the
"(d)    To coordinate with the other Regional Boards Regional Board shall, among other relevant factors,
as may be necessary to attain the policy and consider the following:
intention of this Code;
"(a)    The demand for living wages;
"(e)    To receive, process and act on applications
for exemption from prescribed wage rates as may "(b)    Wage adjustment vis-a-vis the consumer
be provided by law or any Wage Order; and price index;

"(f)    To exercise such other powers and functions "(c)    The cost of living and changes or increases
as may be necessary to carry out their mandate therein;
under this Code.
"(d)    The needs of workers and their families;
Implementation of the plans, programs and projects
of the Regional Boards referred to in the second "(e)    The need to induce industries to invest in the
paragraph, letter (a) of this Article, shall be through countryside;
the respective regional offices of the Department of
Labor and Employment within their territorial "(f)    Improvements in standards of living;
jurisdiction; provided, however, that the Regional
Boards shall have technical supervision over the "(g)    The prevailing wage levels;
regional office of the Department of Labor and
Employment with respect to the implementation of "(h)    Fair return of the capital invested and
said plans, programs and projects. capacity to pay of employers;

"Each Regional Board shall be composed of the "(i)    Effects on employment generation and family
Regional Director of the Department of Labor and income; and
Employment as chairman, the Regional Directors of
the National Economic and Development Authority "(j)    The equitable distribution of income and
and the Department of Trade and Industry as vice- wealth along the imperatives of economic and
chairmen and two (2) members each from workers social development.
and employers sectors who shall be appointed by
the President of the Philippines, upon the “The wages prescribed in accordance with the
recommendation of the Secretary of Labor and provisions of this Title shall be the standard
Employment, to be made on the basis of the list of prevailing minimum wages in every region. These
nominees submitted by the workers and employers wages shall include wages varying within
sectors, respectively, and who shall serve for a industries, provinces or localities if in the judgment
term of five (5) years. of the Regional Board conditions make such local
differentiation proper and necessary to effectuate
"Each Regional Board to be headed by its chairman the purpose of this Title.
shall be assisted by a Secretariat.
"Any person, company, corporation, partnership or
"Art. 123.     Wage Order. — Whenever conditions any other entity engaged in business shall file and
in the region so warrant, the Regional Board shall register annually with the appropriate Regional
investigate and study all pertinent facts; and based Board, Commission and the National Statistics
on the standards and criteria herein prescribed, Office an itemized listing of their labor component,
shall proceed to determine whether a Wage Order specifying the names of their workers and
should be issued. Any such Wage Order shall take employees below the managerial level, including
effect after fifteen (15) days from its complete learners, apprentices and disabled/handicapped
publication in at least one (1) newspaper of general workers who were hired under the terms prescribed
circulation in the region. in the employment contracts, and their
corresponding salaries and wages.
"In the performance of its wage determining
functions, the Regional Board shall conduct public "Where the application of any prescribed wage
hearings/consultations, giving notices to increase by virtue of law or Wage order issued by
employees' and employers' groups, provincial, city any Regional Board results in distortions of the
and municipal officials and other interested parties. wage structure within an establishment, the
employer and the union shall negotiate to correct
"Any party aggrieved by the Wage Order issued by the distortions. Any dispute arising from wage
the Regional Board may appeal such order to the distortions shall be resolved through the grievance
Commission within ten (10) calendar days from the procedure under their collective bargaining
publication of such order.t shall be mandatory for agreement and, if it remains unresolved, through
the Commission to decide such appeal within sixty voluntary arbitration. Unless otherwise agreed by
(60) calendar days from the filing thereof. the parties in writing, such dispute shall be decided
by the voluntary arbitrator or panel of voluntary
“The filing of the appeal does not stay the order arbitrators within ten (10) calendar days from the
time said dispute was referred to voluntary or fails to pay any of the prescribed
arbitration. increases or adjustments in the
wage rates  made in accordance
"In cases where there are no collective agreements with this Act shall be punished by a
or recognized labor unions, the employers and fine  not less than Twenty-five
workers shall endeavor to correct such distortions. thousand pesos (P25,000) nor
Any dispute arising therefrom shall be settled more than  One hundred thousand
through the National Conciliation and Mediation pesos (P100,000) or imprisonment
Board and, if it remains unresolved after ten (10) of not  less than two (2) years nor
calendar days of conciliation, shall be referred to more than four (4) years, or both
the appropriate branch of the National Labor such  fine and imprisonment at the
Relations Commission (NLRC). It shall be discretion of the court: Provided, 
mandatory for the NLRC to conduct continuous That any person convicted under
hearings and decide the dispute within twenty (20) this Act shall not be entitled to  the
calendar days from the time said dispute is benefits provided for under the
submitted for compulsory arbitration. Probation Law.
 
“The pendency of a dispute arising from a wage       "The employer concerned shall
distortion shall not in any way delay the applicability be ordered to pay an   amount
of any increase in prescribed wage rates pursuant equivalent to double the unpaid
to the provisions of law or Wage Order. benefits owing to the employees:
Provided, That payment of
"As used herein, a wage distortion shall mean a indemnity shall not  absolve the
situation where an increase in prescribed wage employer from the criminal liability
rates results in the elimination or severe contraction imposable
of intentional quantitative differences in wage or under this Act.
salary rates between and among employee groups
in an establishment as to effectively obliterate the      "If the violation is committed by
distinctions embodied in such wage structure based a corporation, trust or  firm,
on skills, length of service, or other logical bases of partnership, association or any
differentiation. other entity the penalty  of
imprisonment shall be imposed
"All workers paid by result, including those who are upon the entity's responsible
paid on piecework, takay, pakyaw or task basis, officers, including, but not limited
shall receive not less than the prescribed wage to, the president, vice-president,
rates per eight (8) hours work a day, or a proportion chief executive officer, general
thereof for working less than eight (8) hours. manager, managing  director or
partner."
"All recognized learnership and apprenticeship
agreements shall be considered automatically      SECTION 2. All laws, presidential decrees,
modified insofar as their wage clauses are executive orders,  rules and regulations or parts
concerned to reflect the prescribed wage rates." thereof inconsistent with the  provisions of this Act
are hereby repealed or modified accordingly.
"Art. 126.    Prohibition Against Injunction. — No  
preliminary or permanent injunction or temporary      SECTION 3. This Act shall take effect fifteen
restraining order may be issued by any court, (15) days after  its complete publication in a
tribunal or other entity against any proceedings newspaper of general circulation.
before the Commission or the Regional Boards."

"Art. 127.    Non-diminution of Benefits. — No  

Wage Order issued by any Regional Board shall  
provide for wage rates lower than the statutory       Approved: June 11, 1996
minimum wage rates prescribed by Congress."
      (SGD.) FIDEL V. RAMOS
REPUBLIC ACT NO. 8188       President of the Philippines
 
AN ACT INCREASING THE PENALTY AND
INCREASING DOUBLE INDEMNITY FOR
VIOLATION OF THE PRESCRIBED INCREASES
OR ADJUSTMENT  IN THE WAGE RATES,
AMENDING FOR THE PURPOSE SECTION
TWELVE OF REPUBLIC ACT NUMBERED
SIXTY-SEVEN HUNDRED TWENTY-SEVEN, 
OTHERWISE KNOWN AS THE WAGE
RATIONALIZATION ACT

     Be it enacted by the Senate and House of

Representatives of  the Philippines in Congress
assembled:
 
     SECTION 1. Section 12 of Republic Act
Numbered Sixty-seven hundred twenty-seven is
hereby amended to read to as follows:

     "Section 12. Any person,

corporation, trust, firm, partnership,
association or entity which refuses