Explain The Circumstances Regarding Payment of Wages: A. As To Form of Wages

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6.

Explain the circumstances regarding payment of wages:


a. As to Form of wages.
It is capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece or commission basis, or other method of
calculating the same.
b. As to mode or time of payment.
Under Art. 103, generally time of payment is at least once every 2 weeks;
or twice a month at intervals not exceeding 16 days.
Except:
1. In case of force majeure or other circumstances beyond the
employer’s control, payment must be made immediately after such
occurrence has ceased; and
2. In case of payment of wages by result of involving work, which
cannot be completed in 2 weeks and in the absence of CBA or
arbitration award;
3. Payment shall be made at intervals not exceeding 16 days, in
proportion to the amount of work completed; and
4. That final settlement is made upon completion of the work (IRR of
Labor Code, Book III, Rule VIII, Sec. 3).
c. As to place or Venue of payment.
Under Art. 104, generally the place of payment must be at or near the
place of undertaking.
Except:
1. When payment cannot be affected at or near the place of work by
reason of deterioration of peace and order conditions, by reasons of
actual or impending emergencies caused by fire, flood or other
calamity rendering payment thereat impossible;
2. When the employer provides for free transportation to the employees
back and forth; and
3. Under any other analogous circumstances (IRR of Labor Code, Book
III, Rule VIII, Sec. 4).
However, no employer shall pay his/her employees in any bar, night
or day club, drinking establishment, massage clinic, dance hall, or
other similar places or in places where games are played with stakes
of money or things representing money except in the case of persons
employed in said places (IRR of Labor Code, Book III, Rule VIII,
Sec. 4 (d)).
d. As to whom payment of wages is undertaken.
Under Art. 105, generally wages are paid directly to the workers to
whom they are due.
Except:
1. Payment through Another Person
a. In case of force majeure rendering such payment impossible
provided said person is under a written authority given by the
worker for the purpose; or
b. When authorized under existing law, including payments for
insurance premiums of the employee and union dues where the
right to check-off has been recognized by the employer in
accordance with a CBA or authorized in writing by the individual
employees concerned.
2. Payment through the Heirs of the Worker
In case the worker has died, the employer may pay wages of the
deceased worker to the heirs of the latter without the necessity of
intestate proceedings.
3. Payment through a family member of the worker’s family
Where the employer is authorized in writing by the employee to pay
his/her wages to a member of his/her family.
7. Define and Explain the difference if any, between Minimum
Wage and Living Wage.
The minimum wage rates prescribed by law shall be the basic cash wages
without deduction therefore of whatever benefits, supplements or allowances which
the employees enjoy free of charge aside from the basic pay. Living wage is not in
the nature of an allowance intended to reimburse expenses incurred by employees
in the performance of their official functions. It is not payment in consideration of
the fulfillment of official duty. As defined, “cost of living” refers to “the level of
prices relating to a range of everyday items” or “the cost of purchasing the goods
and services which are included in an accepted standard level of consumption.”
Based on this premise, cost of living allowance (COLA) is a benefit intended to
cover increases in the cost of living.
8. Who determines the minimum wage?
The minimum wage rates prescribed by law shall be the basic cash wages
without deduction therefore of whatever benefits, supplements or allowances
which the employees enjoy free of charge aside from the basic pay. The term
“statutory minimum wage” refers simply to the lowest basic wage rate fixed by
law that an employer can pay his workers. The term “regional minimum wage
rates” refers to the lowest basic wage rates that an employer can pay his workers,
as fixed by the Regional Tripartite Wages and Productivity Boards (RTWPBs),
and which shall not be lower than the applicable statutory minimum wage rates.

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