Art. 97 - DEFINITION 2.

FACILITIES distinguished from SUPPLEMENTS

1. Wage and Salary Defined FACILITIES – shall include articles or services for the benefit of the employee or his
family but shall not include tools of the trade or articles or service primarily for the
Wage vs. Salary benefit of the employer or necessary to the conduct of the employer’s business.

Wage: SUPPLEMENTS - constitute extra remuneration or special privileges or benefits given

to or received by the laborers over and above their ordinary earnings or wages.
o Applies to the compensation for manual labor
o Indicates inconsiderable pay for a lower and less responsible employment -Facilities are WAGE DEDUCTIBLE, Supplements are NOT.

Salary: 2.1 Requirements for Deducting Value of Facilities

o Denotes a higher degree of employment In Mabeza vs. NLRC , enumerates the following requirements for deducting
o Larger and more permanent or fixed compensation for more important the value of the facilities and they are as follows:
service
1. Proof must be shown that such facilities are customarily furnished by
1.1 “Wage” Includes Sales Commissions the trade.

 Commission is included in the definition of wage. 2. The provision of deductible facilities must be voluntarily accepted in
 The Court takes judicial notice to the fact that some salesmen do not writing by the employee.
receive any basic salary but depend on commissions and allowances or
commissions alone. ( Songco vs. NLRC ) 3. Facilities must be charged at fair and reasonable value.

1.2 Wages includes FACILITIES or COMMODITIES 2.2 Salary excludes Allowances

 Wage includes the fair and reasonable value of board, lodging, or other -Existing laws excludes allowances from the basic salary or wage.
facilities customarily furnished by the employer for employee.
3. SALARY distinguished from GRATUITY
 Employer may provide food and housing to his employees and he may
deduct their values from the employee’s wages.
GRATUITY – something freely given, without recompense; a gift something voluntarily
MEALS AND SNACKS given in return for a favor or services.

o Deduction must not be more than 70% of the value of the meals GRATUITY PAY – money benefit given to the workers whose purpose is to reward
employees or laborers who have rendered satisfactory and efficient service.
and snacks.
o Authorized in writing by the Employees.
4. FAIR DAY’S WAGE for FAIR DAY”S LABOR
o Other 30% has to be subsidized.
o If there is no work performed by the employee there can be no wage.
LODGING FACILITY
o UNLESS he was able and willing but prevented or illegally locked out,
suspended or dismissed.
 Value is determined to be COST OF OPERATION AND
MAINTENANCE, including adequate DEPRACIATION PLUS
5. EQUAL PAY FOR EQUAL WORK
REASONABLE ALLOWANCE.
 Must not be greater than FAIR RENTAL VALUE.
- If an employer accords employees the same position and rank, the presumption is
 If greater, FRV will be the cost. that these employees perform equal work and thus be paid under the principle of EQUAL PAY
 Employee must accept it voluntary. FOR EQUAL WORK.

6. AGRICULTURAL work

- BASIC.
 ART. 98 NON-APPLICATION OF TITLE

-BASIC.

ART. 99 REGIONAL MINIMUM WAGES

1. MINIMUM WAGE DEFINITION

STATUTORY MINIMUM WAGE – lowest wage rate fixed by law that an employer can
pay his workers.