Minimum Wage and Related Labor Laws

A comprehensive set of flashcards covering essential terms, definitions, and components related to minimum wage laws and labor regulations.

Minimum Wage

The lowest remuneration that employers can legally pay their workers.

Republic Act No. 6727

Also known as the Wage Rationalization Act, it mandates the fixing of minimum wages across various sectors.

Wage Rationalization Act

Legislation that defines and standardizes minimum wage rates in different industrial sectors.

Agriculture

Refers to farming activities, including cultivation, dairying, and livestock raising.

Retail establishment

Business primarily engaged in selling goods directly to consumers for personal use.

Service establishment

A business that primarily sells services to individuals for personal or household needs.

Regional Tripartite Wages and Productivity Boards (RTWPBs)

Entities authorized to determine minimum wage rates in various regions.

National Capital Region (NCR)

The metropolitan area of Manila and its surrounding municipalities.

Compensable hours worked

Time during which an employee is either required to be on duty or is permitted to work.

Waiting time

Time spent by an employee awaiting work or instructions which may be considered working time under specific conditions.

Overtime pay

Additional payment for hours worked beyond the standard eight hours per day.

Holiday pay

Payment for work done on regular holidays or for unworked regular holidays.

Premium pay

Additional compensation for work performed on rest days or special days.

Night shift differential

Additional compensation for work performed during nighttime hours.

Service Incentive Leave (SIL)

Paid leave of five days granted to employees who have rendered at least one year of service.

Thirteenth-Month Pay

One-twelfth of total basic salary earned by an employee within a calendar year.

Barangay Micro Business Enterprises (BMBES)

Small businesses with total assets of no more than P3,000,000, not covered by the minimum wage law.

Kasambahay

Domestic workers who are entitled to minimum wage and other labor benefits.

Compensation income of Minimum Wage Earners (MWES)

Income of workers receiving the minimum wage which is exempt from withholding tax.

Monthly-paid employees

Employees who receive payment monthly, including regular holidays and rest days.

Daily-paid employees

Employees who are paid only for the days they work.

Exemption

A provision allowing certain businesses or workers to be free from regulations, such as minimum wage laws.

Republic Act No. 10644

Law promoting job generation through the development of micro, small, and medium enterprises.

Republic Act No. 7901

Legislation creating a new administrative region to enhance regional governance.

Executive Order No. 103 (2002)

Order that divided Region IV into four separate regions for better administrative purposes.

Annual Establishment Report on Wages (AERW)

Mandatory submission by establishments detailing their labor component and wage statistics.

Labor Code of the Philippines

The collection of laws governing labor relations and worker's rights in the Philippines.

Income Tax Exemption

Policy that allows certain payments or allowances to be free from income tax.

Employee's compensation

Benefits provided to employees in the event of job-related injuries or illnesses.

Deductions from wages

Reductions in an employee's salary for various reasons, including taxes or business-related costs.

Compensatory adjustments

Changes in wage or benefit structures to align with new laws or guidelines.

Wage Orders

Regulations issued by the RTWPBs to determine minimum wage rates for specific sectors.

Commuting service incentive leave

The option for employees to convert unused service incentive leave to monetary equivalent.

Holidays

Designated days where employees are entitled to specific wage benefits whether they work or not.

Putative wages

Wages believed to be owed to employees based on their enforceable rights under the law.

Cut-off period

The time frame used to compute entitlements such as the thirteenth-month pay or service incentive leave.

Job order workers

Specific laborers who are engaged in work tasks based on contracts rather than permanent employment.

Salary deduction limits

Legal caps on how much employers can withhold from employees’ wages for various reasons.

Regular working hours

Typically defined as eight hours per day for which standard wages apply.

Labor relations framework

The structure governing how workers and employers interact, particularly regarding wages and conditions.

Labor market policies

Strategies and regulations that affect employment levels, wages, and worker rights.

Collective Bargaining Agreement (CBA)

An agreement between an employer and a group of employees regarding terms of employment.

Compliance monitoring

Oversight mechanisms to ensure adherence to labor laws and regulations.

Piece-rate work

A payment method where workers are paid based on the amount of work completed.

Trial work period

A specified time during which an employee's performance is assessed prior to full employment.

Legal liabilities

Obligations that employers must meet under labor laws to prevent penalties.

Exceptional cases

Situations that deviate from standard labor law applications, often requiring specific oversight.

Internship remuneration

Payments or benefits given to interns for their work during training periods.

Employee benefits compliance

Meticulous adherence to laws related to employee welfare and benefits.

Statutory minimum wage

The legal minimum amount an employer is required to pay for work.