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Republic Act No. 6640· Enacted 1987-12-10

Minimum Wage Increase Philippines (RA 6640) — BatasKo ELI5

Ano ang ibig sabihin ng RA 6640? Learn how this 1987 minimum wage law protects Filipino workers — private, government, pakyaw, and more.

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Official text — Republic Act No. 6640

Jump to section ↓14 sections

Preamble

Eighth Congress

Republic Act No. 6640 December 10, 1987

AN ACT PROVIDING FOR AN INCREASE IN THE WAGE OF PUBLIC OR GOVERNMENT SECTOR EMPLOYEES ON A DAILY WAGE BASIS AND IN THE STATUTORY MINIMUM WAGE AND SALARY RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

Section 1.

All workers and employees in the public or government sector on a daily wage basis shall receive an increase in the sum of ten pesos (P10.00) a day.

The department of Budget and Management shall promulgate such rules and regulations to carry out the salary adjustment under this section.

Section 2

Section 2.

The statutory minimum wage rates of workers and employees in the private sector, whether agricultural or non-agricultural, shall be increased by ten pesos (P10.00) per day, except non-agricultural workers and employees outside Metro Manila who shall receive an increase of eleven pesos (P11.00) per day: provided, that those already receiving above the minimum wage up to one hundred pesos (P100.00) shall receive an increase of ten pesos (P10.00) per day. Excepted from the provisions of this Act are domestic helpers and persons employed in the personal service of another.

Section 3 — Where the application of the minimum wage increase prescribed under Section 2 →

Section 3.

Where the application of the minimum wage increase prescribed under Section 2 results in distortions in the wage structure within an establishment which gives rise to a dispute therein, such dispute shall first be settled voluntarily between the parties and in the event of a deadlock, such dispute shall be finally resolved through compulsory arbitration by the National Labor Relations Commission's arbitration branch having jurisdiction over the workplace.

It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising under this section within thirty (30) days from the time said dispute is formally submitted to it for arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of the wage increase covered by this Act.

For the purpose of this Act, wage distortion shall mean a situation where a legislated increase in minimum wages results in the elimination or severe contraction on intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical basis of differentiation.

Section 4 — All workers paid by result, including those who are paid on piecework, takay, →

Section 4.

All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the applicable statutory minimum wage prescribed herein per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

Section 5 — Learners, apprentices and handicapped workers shall be entitled to not less th→

Section 5.

Learners, apprentices and handicapped workers shall be entitled to not less than seventy-five percent (75%) of the applicable adjusted minimum wage. A handicapped worker is one whose efficiency or quality of work is impaired by his disability in relation to the work performed.

All recognized learnership and apprenticeship agreements entered into before the effective date of this Act shall be considered as automatically modified insofar as their wage clauses are concerned to reflect the increase provided in this Act.

Section 6 — In this case of contracts for construction projects and for security, janitori→

Section 6.

In this case of contracts for construction projects and for security, janitorial and similar services, the increase in the minimum wage of the workers shall be borne by the employers of the construction workers, security guards, janitors, and others similarly situated: provided, however, that the principal or client of the construction and service contractor shall be subsidiarily liable: provided, further, that the subsidiary liability shall not apply to construction of family homes worth not more than two hundred thousand pesos (P200,000.00).

Show 7 more sections +→
Section 7 — Nothing in this Act shall be construed to reduce any existing allowances and b→

Section 7.

Nothing in this Act shall be construed to reduce any existing allowances and benefits of any form under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement between workers and employers.

Section 8 — The Department of Labor and Employment may, upon application by an employer in→

Section 8.

The Department of Labor and Employment may, upon application by an employer in the retail business regularly employing not more than ten (10) workers, grant him exemption from compliance with the provisions of this Act.

Whenever an application for exemption has been duly filed with the National Wages Council, action by the Regional Office of the Department on any complaint for alleged non-compliance with this Act shall be deferred pending resolution of the application for exemption by the Council.

In the event that applications for exemption are not granted, employees shall receive the appropriate compensation due them as provided for by this law plus interest of one percent (1%) per month retroactive to the effectivity of this law.

Section 9 — The Secretary of Labor and Employment shall promulgate the necessary rules and→

Section 9.

The Secretary of Labor and Employment shall promulgate the necessary rules and regulations to implement this Act.

Section 10 — Any person, corporation, trust, firm, partnership, association or entity viol→

Section 10.

Any person, corporation, trust, firm, partnership, association or entity violating this Act shall be punished by a fine not exceeding twenty-five thousand pesos (P25,000.00) and/or imprisonment for not less than one (1) year nor more than two (2) years: provided, that any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.

If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed upon the entity's responsible officers, including, but not limited to, the president, vice-president, chief executive officer, general manager, managing director or partner.

Section 11 — The wage increase under Section 1 hereof shall be funded from the Compensatio→

Section 11.

The wage increase under Section 1 hereof shall be funded from the Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings under Executive Order No. 87, otherwise known as the General Appropriations Act for Fiscal Year 1987, or from any unappropriated funds of the National Treasury. Any deficiency shall be charged against the personal services savings of the National Government: provided, that the corresponding amount for the increase therein will be included in the annual General Appropriations Act for the succeeding years.

Section 12 — All laws, orders, issuances, rules and regulations or part thereof inconsiste→

Section 12.

All laws, orders, issuances, rules and regulations or part thereof inconsistent with the provisions of this Act are hereby repealed or amended accordingly.f any provision or part of this Act, or the application thereof to any person or circumstance, as held invalid or unconstitutional, the remainder of this Act or the application of such provision or part thereof to other persons or circumstances, shall not be affected thereby.

Section 13 — This Act shall take effect the day following its publication in two (2) natio→

Section 13.

This Act shall take effect the day following its publication in two (2) national newspapers of general circulation.

Approved:

December 10, 1987.

The Lawphil Project - Arellano Law Foundation

Full text on BatasKo. Original source: Official Gazette / Lawphil.

Nagtrabaho ka na ba nang buong linggo at nang makuha mo ang sweldo mo, hindi pa rin sya umabot sa dapat? O may narinig kang kasamahan sa trabaho na ang employer ay ayaw mag-adjust ng sahod kahit na may bagong batas? That's exactly what Republic Act No. 6640 was passed to fix.

ELI5 Summary: RA 6640, signed in December 1987, mandated a ₱10/day wage increase for private sector workers and government daily-wage employees across the Philippines. Non-agricultural workers outside Metro Manila got ₱11/day. The law also covers pakyaw and piecework workers, sets wage floors for apprentices and learners at 75% of minimum wage, and gives a resolution path when wage increases accidentally flatten salary differences within a company.

Real Filipino Scenario: Ang Virtual Assistant na Hindi Binibigyan ng Tamang Sahod

Corazon, 28, ay nagtatrabaho bilang virtual assistant sa isang maliit na BPO sa Cagayan de Oro noong 1987. Pinasok siya sa ₱80 bawat araw. Nang malaman niyang may bagong batas na nagbibigay ng ₱10 na dagdag na sahod, tinanong niya ang kanyang employer.

Sabi ng employer: "Wala tayong obligasyon. Higit ka na sa minimum wage."

Mali ang employer. Under Section 2 of RA 6640, kahit na ikaw ay nakatanggap na ng higit sa minimum wage — hangga't ang iyong daily rate ay hindi hihigit sa ₱100 — may karapatan ka pa rin sa ₱10/day na increase.

Corazon, na tumatanggap ng ₱80/day, ay malinaw na sakop. Ang kanyang bagong minimum rate ay magiging ₱90/day.

Ano ang dapat gawin ni Corazon:

  1. Itanong sa employer nang nakasulat ang bagong daily rate.
  2. Kung tatanggihan, mag-file ng reklamo sa pinakamalapit na DOLE Regional Office.
  3. I-document ang lahat — payslips, employment contract, at pasulat na tugon ng employer.

What the Law Actually Says

Republic Act No. 6640 ay isang batas na ipinasa ng Kongreso noong December 10, 1987. Eto ang mga pangunahing probisyon:

Section 1 — Government Daily-Wage Workers

Lahat ng government employees na binabayaran sa araw-araw ay nakatanggap ng ₱10/day na dagdag. Ang Department of Budget and Management ang nag-promulgate ng rules para sa implementation.

Section 2 — Private Sector Workers

Under Section 2 of RA 6640, ang statutory minimum wage increase ay:

  • ₱10/day — para sa lahat ng agricultural at non-agricultural workers sa buong bansa, kasama na ang mga nasa Metro Manila
  • ₱11/day — para sa non-agricultural workers sa labas ng Metro Manila
  • Ang mga tumatanggap na ng higit sa minimum wage hanggang ₱100/day ay may karapatang makatanggap din ng ₱10/day increase
  • Hindi sakop: domestic helpers at mga nagtatrabaho sa personal service ng isang tao

Section 3 — Wage Distortion

Ito ang isa sa pinaka-importanteng bahagi ng batas. Kung ang mandated increase ay nagdudulot ng wage distortion — ibig sabihin, nag-level out o nawala ang pagkakaiba ng sahod sa pagitan ng mga manggagawa na may iba't ibang kasanayan o tenure — dapat itong resolbahin.

Una, dapat subukang ayusin ng employer at empleyado nang boluntaryo. Kung walang kasunduan, ang NLRC (National Labor Relations Commission) ang mag-aayos ng dispute sa loob ng 30 araw mula nang formal na maisubmit ang kaso.

Section 4 — Pakyaw at Piecework Workers

Kung ikaw ay bayad per piece, per task, o per output — hindi ka exempted. Under Section 4 of RA 6640, dapat kang makatanggap ng hindi bababa sa applicable minimum wage para sa bawat walong (8) oras ng trabaho, o pro-rated kung mas maikli ang iyong araw ng trabaho.

Section 5 — Learners, Apprentices, at Handicapped Workers

Under Section 5 of RA 6640, sila ay may karapatang makatanggap ng hindi bababa sa 75% ng adjusted minimum wage. Ang lahat ng apprenticeship at learnership agreements bago ang batas ay awtomatikong na-modify para i-reflect ang bagong rates.

Section 6 — Security Guards, Janitors, at Construction Workers

Ang increase ay borne ng employer ng contractor — yung security agency o janitorial firm mismo. Pero ang principal client ay subsidiarily liable, ibig sabihin, kung hindi makabayad ang contractor, maaaring harapin ng client ang responsibilidad.

Section 8 — Small Retail Business Exemption

Mga retail na negosyo na may 10 o mas kaunting workers ay maaaring mag-apply para sa exemption sa DOLE. Habang hinihintay ang desisyon, hindi muna maaaring mag-file ng reklamo laban sa kanila. Pero kung hindi approved ang exemption, dapat silang magbayad retroactively plus 1% interest per month.

Section 10 — Penalties

Ang sinumang lalabag sa batas ay maaaring harapin ng:

  • Fine na hindi hihigit sa ₱25,000, at/o
  • Imprisonment mula 1 hanggang 2 taon

Para sa mga korporasyon, ang criminal liability ay nakapatong sa responsible officers — president, CEO, general manager, at iba pa.

What This Means for You

Kung manggagawa ka sa pribadong sektor noong 1987, ibig sabihin nito:

Hindi ka pwedeng i-"skip" ng iyong employer kahit na ang iyong kasalukuyang sahod ay higit sa dati nilang minimum. Basta nasa ₱100/day ka pababa, sakop ka.

Kung ikaw ay bayad sa pakyaw o piecework — tulad ng mga mananahi, mangaahit, o mga nagtatrabaho sa kusina per dish — hindi ibig sabihin nito na pwedeng ibaba ng employer ang iyong effective daily rate sa ibaba ng minimum. Kinakalkula pa rin ang iyong output rate batay sa eight-hour equivalent.

Kung ikaw ay kasambahay o nagtatrabaho sa isang personal na capacity para sa isang tao (tulad ng personal driver o personal secretary sa isang private household), ikaw ay hindi sakop ng Section 2 ng batas na ito. May ibang batas para sa inyo.

Real Filipino Scenario: Ang Manicurista na Bayad sa Komisyon

Maria, 35, ay nagtatrabaho bilang manicurista sa isang nail salon sa Roxas City. Hindi siya binabayaran ng fixed daily rate — ang setup nila ay komisyon basis: siya ay nakakakuha ng 40% ng bawat serbisyong nagagawa niya. Sa isang normal na araw, nakakatanggap siya ng halos ₱60-₱75.

Sabi ng kanyang salon owner: "Hindi mo applicable ang minimum wage. Commission worker ka, hindi daily wage."

Mali ito. Under Section 4 of RA 6640, kahit ang isang manggagawa ay bayad "by result" — kasama ang komisyon at piecework setups — ang kanyang effective daily earnings para sa isang standard eight-hour workday ay hindi dapat bumaba sa applicable statutory minimum wage.

Kung ang minimum wage sa kanyang lugar ay, halimbawa, ₱91/day pagkatapos ng RA 6640 increase, dapat makatanggap si Maria ng hindi bababa sa ₱91 para sa isang buong araw ng trabaho, anuman ang kanyang komisyon setup.

Ano ang dapat gawin ni Maria:

  1. I-compute ang average daily earnings niya sa nakaraang buwan.
  2. Kung consistently bumababa sa minimum, makipag-usap sa employer.
  3. Mag-file ng reklamo sa DOLE Regional Office sa Capiz kung walang aksyon.
  4. Magtago ng records ng bawat serbisyo at komisyon.

What Most Filipinos Get Wrong

Mali #1: "Wala akong karapatan kasi higit na ako sa minimum wage."

Maling-mali ito kung ang iyong daily rate ay ₱100 pababa. Ang batas ay malinaw: lahat ng nasa ganitong range ay sakop ng ₱10/day increase. Hindi lang ang mga kumikita ng pinaka-mababang minimum.

Mali #2: "Ang pakyaw workers ay hindi covered ng minimum wage."

Hindi totoo. Ang "paid by result" setup ay isang paraan ng pagkalkula ng bayad — hindi isang paraan para iwasan ang minimum wage. Section 4 ng RA 6640 ay partikular na tinukoy ito para hindi gamitin ng mga employer ang pakyaw bilang loophole.

Mali #3: "Ang wage distortion ay problema ng employer, hindi ko problema."

Oo, responsibilidad ng employer ang mag-adjust — pero ikaw ang dapat mag-complain kung hindi nila ito ginagawa. Kung ang bagong hire na walang experience ay kumikita na pareho sa iyo na may 5 taong serbisyo dahil sa mandated increase, may karapatan kang humingi ng adjustment sa NLRC.

Mali #4: "Ang security agency ay siyang magbabayad, hindi ang principal client."

Technically tama — ang primary responsibility ay sa agency. Pero under Section 6, ang principal client ay subsidiarily liable. Kung ang agency ay hindi makapagbayad, maaaring harapin ng kliyente ang responsibilidad. Ito ay importante para sa mga security guards at janitors na ang agency ay nagfa-fail na.

Mali #5: "Kahit anong negosyo ay maaaring mag-claim ng exemption."

Hindi. Ang exemption provision sa Section 8 ay para lamang sa retail businesses na may 10 o mas kaunting empleyado. Hindi ito applicable sa mga manufacturing plant, service companies, o malalaking negosyo.

Real Filipino Scenario: Ang Wage Distortion sa Isang Bodega

Sa isang bodega sa Cagayan de Oro, mayroong dalawang grupo ng workers. Ang mga rank-and-file loaders ay kumikita ng ₱80/day, habang ang mga senior loaders na may 3 taong karanasan ay kumikita ng ₱90/day.

Pagkatapos ng RA 6640, ang lahat ay nakatanggap ng ₱10 increase. Ngayon, ang mga rank-and-file ay kumikita ng ₱90/day — at ang mga senior loaders ay kumikita rin ng ₱90/day.

Ito ay isang classic na wage distortion: nawala na ang ₱10 na pagkakaiba na nagre-reflect ng mas mataas na kasanayan at serbisyo ng mga senior workers.

Under Section 3 of RA 6640, ang employer at mga empleyado ay dapat muna subukang resolbahin ito nang boluntaryo. Kung walang kasunduan, maaaring i-bring ang dispute sa NLRC para sa compulsory arbitration — na dapat tapusin sa loob ng 30 araw.

Ano ang dapat gawin ng mga senior loaders:

  1. Makipag-usap sa management para humingi ng salary adjustment na nagre-restore ng differentiation.
  2. Isulat ang request at i-document ang tugon ng employer.
  3. Kung walang aksyon sa loob ng makatwirang panahon, mag-file ng wage distortion dispute sa NLRC.
  4. Humingi ng tulong sa DOLE o sa kanilang union kung mayroon.

What to Do if Your Rights Are Violated / Ano ang Gagawin

  1. I-document ang lahat. Kunin ang kopya ng iyong payslips, employment contract, at anumang nakasulat na komunikasyon sa employer. Ito ang iyong ebidensya.

  2. Kausapin muna ang employer. Minsan, hindi alam ng maliit na employer ang batas. Mag-set ng meeting, at isulat ang iyong concern. Bigyan sila ng pagkakataon na ayusin ito.

  3. Makipag-ugnayan sa DOLE. Ang Department of Labor and Employment ay may Regional Offices sa bawat probinsya. Maaari kang mag-file ng reklamo doon. Libre ito.

  4. Para sa wage distortion disputes, pumunta sa NLRC. Ang National Labor Relations Commission ang may jurisdiction sa mga ganitong kaso. Under Section 3, obligado silang mag-decide sa loob ng 30 araw.

  5. Humingi ng legal na tulong. Ang Public Attorney's Office (PAO) ay nagbibigay ng libreng legal na tulong para sa mga manggagawa. Maaari ka ring makipag-ugnayan sa DOLE's Bureau of Working Conditions.

  6. Kung maliit na negosyo ang employer mo, alamin muna kung nag-apply sila ng exemption. Kung hindi, at hindi ka binibigyan ng tamang sahod, maaari kang mag-file ng reklamo.

Related Laws

FAQs / Mga Madalas na Tanong

T: Kung kumikita na ako ng higit sa minimum wage, sakop pa rin ba ako ng RA 6640?

A: Oo — kung ang iyong daily rate ay hindi hihigit sa ₱100. Ang batas ay malinaw: lahat ng nagtatrabaho sa pribadong sektor na kumikita ng ₱100/day pababa ay may karapatang makatanggap ng ₱10/day increase. Hindi lang ang mga kumikita ng pinakamababang minimum. Kung higit ka sa ₱100/day, hindi ka na covered ng RA 6640 para sa increase.

T: Ano ang wage distortion at paano ko malalaman kung nangyayari ito sa aming kumpanya?

A: Ang wage distortion ay nangyayari kapag ang mandated wage increase ay nag-level out ng pagkakaiba ng sahod sa pagitan ng mga manggagawa na may iba't ibang kasanayan o serbisyo. Halimbawa: kung ang bagong hire ay kumikita na ng pareho sa iyo na may 5 taon nang karanasan dahil sa mandated increase, iyon ay wage distortion. Kung naranasan mo ito, unang subukan ang boluntaryong resolution sa employer. Kung walang kasunduan, maaari kang mag-file ng wage distortion dispute sa NLRC — na dapat mag-decide sa loob ng 30 araw.

T: Pakyaw worker ako — sakop ba ako ng RA 6640?

A: Oo. Ayon sa Section 4 ng RA 6640, kahit na ikaw ay bayad "by result" — kasama ang komisyon, pakyaw, at piecework setups — ang iyong effective daily earnings para sa isang standard eight-hour workday ay hindi dapat bumaba sa applicable statutory minimum wage. Ang pakyaw setup ay isang paraan ng pagkalkula ng bayad, hindi isang paraan para iwasan ang minimum wage.

T: Maliit na negosyo ang employer ko — pwede ba silang humingi ng exemption?

A: Oo, pero may kondisyon. Ang Section 8 ng RA 6640 ay nagbibigay ng posibilidad ng exemption para sa retail businesses na may 10 o mas kaunting empleyado — ang ibang uri ng negosyo ay hindi pwedeng mag-apply. Habang hinihintay ang desisyon ng DOLE sa exemption application, hindi muna maaaring mag-file ng reklamo laban sa kanila. Pero kung hindi approved ang exemption, dapat silang magbayad retroactively plus 1% interest per month.

T: Bilang security guard, sino ang responsable sa aking wage increase — ang agency o ang principal client?

A: Ang primary responsibility ay sa security agency o janitorial firm — sila ang iyong direct employer. Pero ayon sa Section 6 ng RA 6640, ang principal client ay subsidiarily liable. Ibig sabihin, kung hindi makapagbayad ang agency, maaaring harapin ng kliyente ang responsibilidad. Kung ang iyong agency ay hindi nagbibigay ng tamang sahod, mag-file ng reklamo sa DOLE Regional Office at i-document ang lahat ng kliyente ng iyong agency sa iyong deployment.

Sources / Mga Pinagkunan

  • Republic Act No. 6640 (December 10, 1987). An Act Providing for an Increase in the Wage of Public or Government Sector Employees on a Daily Wage Basis and in the Statutory Minimum Wage and Salary Rates of Employees and Workers in the Private Sector. The Lawphil Project — Arellano Law Foundation. (archived at)

  • Department of Labor and Employment (DOLE). Worker's Rights, Wage Complaints, and Regional Offices. https://www.dole.gov.ph

  • National Labor Relations Commission (NLRC). Wage Distortion Disputes. https://www.nlrc.dole.gov.ph

  • National Wages and Productivity Commission (NWPC). Wage Orders and Minimum Wage History. https://www.nwpc.dole.gov.ph

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