THE National Wage and Productivity Commission (NWPC) said retail and service businesses with 10 workers or less as well as micro enterprises that have not recovered from the pandemic may apply for exemption from paying the new minimum wage rate in Metro Manila and Western Visayas.
NWPC executive director Maria Criselda Sy, executive director said applications for exemption from the minimum wage were allowed under the Wage Rationalization Act of 1989, or Republic Act No. 6727.
The regional wage boards, however, are not allowed by law to grant blanket exemption to certain categories of employers, she explained.
“Under the omnibus rules on minimum wage determination, micro businesses in the retail and business sector that are employing not more than 10 workers can apply for exemption,” Sy said on Monday.
“The same goes for establishments affected by natural calamities and in our case right now, affected by the pandemic. They can apply for exemption,” she added.
Other micro businesses that have been certified by the Department of Trade and Industry as barangay micro enterprise businesses (BMEBs) are automatically exempt from paying the minimum wage set by the regional wage boards, according to Sy.
There are currently 4,650 BMEBs in Metro Manila and 1,075 in Western Visayas.
Sy pointed out that regardless of applications for exemption, the new daily minimum wage rates in Metro Manila and Western Visayas will take effect 15 days after their publication.
