In SLL v. NLRC, G.R. No. 172161, March 2, 2011, citing Atok-Big Wedge Assn. v. Atok-Big Wedge Co.

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[22] facilities and supplements were distinguished from one another in this wise:
Supplements, therefore, constitute extra remuneration or special privileges or benefits given to or
received by the laborers over and above their ordinary earnings or wages. Facilities, on the other hand,
are items of expense necessary for the laborers and his familys existence and subsistence so that by
express provision of law (Sec. 2[g]), they form part of the wage and when furnished by the employer are
deductible therefrom, since if they are not so furnished, the laborer would spend and pay for them just the
same.
In short, the benefit or privilege given to the employee which constitutes an extra remuneration above and
over his basic or ordinary earning or wage is supplement; and when said benefit or privilege is part of the
laborers basic wages, it is a facility. The distinction lies not so much in the kind of benefit or item (food,
lodging, bonus or sick leave) given, but in the purpose for which it is given.

In Songco the Court explained that both words (as well as salary) generally refer to one and the same
meaning, i.e., a reward or recompense for services performed. Specifically, "wage" is defined in letter (f) as
the remuneration or earnings, however designated, capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating
the same, which is payable by an employer to an employee under a written or unwritten contract of
employment for work done or to be done, or for services rendered or to be rendered and includes the fair
and reasonable value, as determined by the Secretary of Labor, of board, lodging, or other facilities
customarily furnished by the employer to the employee.

We invite attention to the above-underlined clause. Stated differently, when an employer customarily
furnishes his employee board, lodging or other facilities, the fair and reasonable value thereof, as
determined by the Secretary of Labor and Employment, is included in "wage." In order to ascertain
whether the subject allowances form part of petitioner's "wages," we divide the discussion on the following
- "customarily furnished;" "board, lodging or other facilities;" and, "fair and reasonable value as determined
by the Secretary of Labor."

Wage" paid to any employee shall mean the remuneration or earnings, however designated, capable of
being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission
basis, or other method of calculating the same, which is payable by an employer to an employee under a
written or unwritten contract of employment for work done or to be done, or for services rendered or to be
rendered and includes the fair and reasonable value, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily furnished by the employer to the employee.
"Fair and reasonable value" shall not include any profit to the employer, or to any person affiliated with the
employer.

Minimum Wage of Workers Paid by Results All workers paid by results, including homeworkers and
those who are paid on piece rate, takay, pakyaw, or task basis, shall receive not less than the prescribed
minimum wage rates under the Regional Wage Orders for normal working hours which shall not exceed
eight (8) hours a day, or a proportion thereof. The wage rates of workers who are paid by results shall
continue to be established in accordance with Article 101 of the Labor Code of the Philippines, as
amended, and its implementing regulations. This will be done through: 1. Time and motion studies. 2.
Consultation with representatives of employers and workers organizations in a tripartite conference called
by the DOLE Secretary. Request for the conduct of time and motion studies, to determine whether the
nontime employees in an enterprise are being paid fair and reasonable wage rates, may be filed with the
proper Regional Office. Where the output rates established by the employer do not conform with the
standards set under the foregoing methods for establishing output rates, the employee shall be entitled to
the difference between the amount he or she is entitled to receive and the amount paid by the employer.
SOURCE: HANDBOOK ON WORKERS STATUTORY MONETARY BENEFITS BUREAU OF WORKING
CONDITIONS DEPARTMENT OF LABOR AND EMPLOYMENT INTRAMUROS, MANILA 2010

Wage" paid to any employee shall mean the remuneration or earnings, however designated, capable of
being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission
basis, or other method of calculating the same, which is payable by an employer to an employee under a
written or unwritten contract of employment for work done or to be done, or for services rendered or to be
rendered and includes the fair and reasonable value, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily furnished by the employer to the employee.
"Fair and reasonable value" shall not include any profit to the employer, or to any person affiliated with the
employer.
Basic Pay is a fixed amount of salary that an employee is eligible for in return of the work he does. It does
not include benefits, bonuses or any other potential form of compensation from the employer.