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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
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