Wage distortion..

Hi Atty,

There's a new wage order #21 for increase of P21 in Basic:

From WO #20:
basic P481.00 + allow P10.00 = P491.00

To WO #21 :
Basic P502.00 + allow P10.00 = P512.00

Formula for wage distortion is:

minimum wage W#20/ existing wage x increase rate WO#21 = add to existing wage

My question is what if I am earning basic P597 per day + allow P50.00 = P647 total per day.

1.Is determining existing wage =Total per day meaning basic + allowance?

2. will this be the right formula (below) to get how much increase I will get?
P491 (481 basic+10 allow)/ P647 (597 basic+50 allow) x 21.00 = P15.94 -will this be my increase?

so my New Rate will be :
basic rate =P612.94 (P597.00 + P15.94 = P612.94)
allowance =P 50.00
Total per date=P662.94

3. what if the existing wage has no allowance only receiving P597.00 basic? will I use P481 or P491 as WO minimum wage to get the wage distortion?

which of the below is the correct way to compute, A or B?

A. 491/597x 21 = P17.27 increase for WO#21
B. 481/597 x 21 =P16.92 increase for WO#21

Hope to hear from you po. thanks very much

1. basic only

2. There are many formula for wage distortion, commonly popular and used are the 7 formulas:

a. pineda
b. pineda-cruz-so
c. percentile approach
d. philippine construction supply
e. jimenez, ofreneo delas alas jr (JODA)
f. wirerope
g. bagtas approach

it will depend on what formula the company will be using so i cannot say how much increase you will be getting

[quote="mikos23"]1. basic only

2. There are many formula for wage distortion, commonly popular and used are the 7 formulas:

a. pineda
b. pineda-cruz-so
c. percentile approach
d. philippine construction supply
e. jimenez, ofreneo delas alas jr (JODA)
f. wirerope
g. bagtas approach


Among the formula you have mentioned above, which one is the popular one?

pineda and pineda cruz so

boomer001 wrote:

mikos23 wrote:1. basic only

2. There are many formula for wage distortion, commonly popular and used are the 7 formulas:

a. pineda
b. pineda-cruz-so
c. percentile approach
d. philippine construction supply
e. jimenez, ofreneo delas alas jr (JODA)
f. wirerope
g. bagtas approach


Among the formula you have mentioned above, which one is the popular one?