Minimum Wage Earners

A minimum wage earner shall refer to a worker in the private sector paid the
statutory minimum wage or to an employee in the public sector with compensation income
of not more than the statutory minimum wage in the non-agricultural sector where he/she is
assigned (Section 1, R.A. 9504).

Benefit: Tax Exemption

Minimum wage earners shall be exempted from payment of income tax on their taxable
income. The holiday pay, overtime pay, night shift differential pay and hazard pay received
by minimum wage earners shall likewise be exempted from income tax (Section 2, R.A.
9504).

Minimum wage in Baguio City

WAGE ORDER NO. RB-CAR-16REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD Cordillera
Administrative Region
Baguio City

PRESCRIBING NEW MINIMUM WAGE RATES AND PARTIAL INTEGRATION OF THE COST OF LIVING
ALLOWANCE (COLA) TO THE BASIC PAY OF PRIVATE SECTOR EMPLOYEES IN THE CORDILLERA
ADMINISTRATIVE REGION

Date of Effectivity: February 3, 2014

Service Establishment - is one principally engaged in the sale of services to individuals

for their own or household use and is generally recognized as such;

Minimum Wage – refers to the lowest wage rates that an employer is obliged to pay his
workers as fixed by the Board;

Basic Wage - refers to all remunerations or earnings paid by an employer to a worker

for services rendered on normal working days and hours but does not include cost of
living allowance, profit sharing payments, premium payments, 13th month pay and
other monetary benefits which are not considered as part of or integrated into
the regular salary of the worker on the date the wage became effective;

Floor Wage- refers to the lowest level of wages prescribed by the Board to be paid to
minimum wage earners in accordance with the Two Tiered Wage System;

Section 3. The Minimum Wage Levels.

Upon effectivity of the Order, the levels of applicable minimum wages in the Region shall be
as follows:
Industry/ DAILY MINIMUM WAGE RATES
Sector
Baguio City, Municipalities Other Areas in the
of La Trinidad, Region
Itogon, Sablan, and
Tuba, Benguet (BLIST)

Basic COLA Total Basic COLA Total

Non-Agriculture & 260.00 20.00 280.00 243.00 20.00 263.00

Retail/Service with 11 workers
and above

Agriculture & Retail/Service 248.00 20.00 268.00 227.00 20.00 247.00

with 10 workers and below

Section 4. Basis of Minimum Wage

The minimum wage rates prescribed under the Order shall be for the normal working
hours, which shall not exceed eight (8) hours work a day.