B. Coverage IMPLEMENTING REPUBLIC ACT NO.

6727);
The wage increase prescribed under
e) The Barangay Micro Business
the RA 6727 shall apply to all workers
Enterprise or BMBEs shall be exempt
and employees in the private sector
from the coverage of the Minimum
regardless of their position, designation
Wage Law.
or status, and irrespective of the method
by which their wages are paid, except:
*Provided, That all employees covered
under the Act shall be entitled to the
a) Household or domestic helpers,
same benefits given to any regular
including family drivers and workers in
employee such as social security and
the personal service of another; 
healthcare benefits (Section 8, Republic
b) Workers and employees in Act No. 9178).
retail/service establishments regularly
* The DTI, through the Negosyo Center
employing not more than 10 workers,
in the city or municipality level, shall
when exempted from compliance with
have the sole power to issue the
the Act, for a period fixed by the
Certificate of Authority for BMBEs to
Commission/Boards in accordance with
avail of the benefits provided by R.A.
Section 4 (c) of the Act and Section 15,
No. 9178
Chapter 1 of this Rules; 

C. Payments Due to the Employee

c) Workers and employees in new
business enterprises outside the National
1. Basic Wage
Capital Region and export processing
-includes all remunerations or
zones for a period of not more than two
earnings paid by an employer to an
or three years, as the case may be, from
employee for services rendered
the start of operations when exempted in
* does not include allowances and
accordance with Section 5 of the Act
monetary benefits which are not
and Section 15, Chapter 1 of this Rules; 
considered or integrated as part of the
d) Workers and employees receiving a regular or basic salary such as:
basic wage of more than P100.00 per a) Cash equivalent of unused
day (Section 1, Chapter 1, RULES vacation and sick leave credits
b) Overtime pay
 c) Premium pay Daily-Paid Employees- those who are
d) Night differential pay paid on the days they actually worked
e) Holiday pay and on unworked regular holidays.

Honda Phils., Inc. vs. Samahan ng

* However, these salary-related benefits
Malayang Manggagawa sa Honda,
should be included as part of the basic
460 SCRA 186 , June 15, 2005
salary in the computation of the
Doctrines:
13th month pay if by individual or
a) Where the CBA is clear and
collective agreement, company practice
unambiguous, it becomes the law
or policy, the same are treated as part of
between the parties and compliance
the basic salary of the employees.
therewith is mandated by the express
policy of the law.
* For employees receiving regular wage,
b) In the payment of 13th Month Pay;
we have interpreted "basic salary" to
payments for sick, vacation and
mean, not the amount actually
maternity leaves, night differentials,
received by an employee, but 1/12 of
regular holiday pay and premiums for
their standard monthly wage multiplied
work done on rest days and special
by their length of service within a given
holidays are excluded from the
calendar year. Thus, we exclude from
computation of basic salary.
the computation of "basic salary"
c) 13th month pay is primarily given to
payments for sick, vacation and
alleviate the plight of workers and to
maternity leaves, night differentials,
help them cope with the exorbitant
regular holiday pay and premiums for
increases in the cost of living.
work done on rest days and special
d) Factual findings of labor officials,
holidays (HONDA PHILS.,
who are deemed to have acquired
INC.  v.  SAMAHAN NG MALAYANG
expertise in matters within their
MANGGAGAWA SA HONDA, G.R. NO.
respective jurisdiction, are generally
145561, June 15, 2005).
accorded not only respect but even
Monthly-Paid Employees- those who finality.
are paid every day of the month,
including unworked rest days, special
days, and regular holidays.