Justification on the Exemptible Category of Establishments with Total Assets of P3m or Less Under Wage Order No. RB XII-18

June 4, 2014JUSTIFICATION ON THE EXEMPTIBLE CATEGORY OF ESTABLISHMENTS WITH TOTAL ASSETS OF P3M OR LESS UNDER WAGE ORDER NO. RB XII-18I. BackgroundThe intent of the Regional Tripartite Wages and Productivity Board (Regional Board) XII in the issuance of Wage Order No. RB XII-18, among others, is to provide a safety net protection to the low-income workers while striking a balance between the needs of workers, capacity of employers to pay, and the requirements of economic growth and development of the region. Recognizing the need of private sector workers in Region XII and in order to help them cope with the rising cost of living and without impairing the productivity and viability of business and industry therein, the Board granted in the abovementioned Wage Order, an increase in their minimum wage.Moreover, in the determination of the wage increase, the Board considered not only the needs of workers and other criteria but also the capacity of employers to pay. Hence,Section 11 (a) of Wage Order RB XII-18 reads:"Exemptible Category. The establishments with total assets, including those...