Cost of Doing Business in the Philippines

B. Manpower / Labor Cost

Cost of Doing Business

       A. Business Licensing
       B. Manpower/Labor Cost
       C. Transportation Costs
       D. Utility Costs
       E. Freight Rates
       F. Standard of living

Manpower Resources (Labor): The laws on labor standards and employment relations are consolidated in the Labor Code of the Philippines. The salient points of employment conditions and employee benefits under the Philippine labor laws are as follows:
Hours of Work	Eight (8) hours per day or 48 hours per week. Rest periods of short duration during work hours shall be counted as hours worked.
Work Day	A day is the 24-hour period which commences from the time the employee regularly starts to work.
Minimum Wage (Manufacturing Sector)	The minimum wage rate for agricultural and non-agricultural workers in every region are determined by the Regional Tripartite Wages and Productivity Board.

Regions	Daily Minimum Wage Rates Non-Agriculture Industries* (in Pesos/day) - As of June 2005
Metro Manila Wage Order # NCR 12b (July 11, 2006) private sector workers and employees	P 350.00
CAR (Cordillera Autonomous Region)	P 235.00 - ( Baguio City , La Trinidad, Tuba, Itogon, and Sablan) P 229.00 - ( Mt. Province , Abra and other municipalities Benguet, Ifugao, Kalinga and Apayao)
Region I	P 225.00
Region II	P 218.00 - (Isabela & Cities of Santiago & Cauayan) P 215.00 - (Cagayan & Tuguegarao Cities) P 211.00 - (Nueva Vizcaya) P 200.00 - (Quirino & Batanes)
Region III	P 278.00 - (Bulacan) P 278 - (Bataan, Nueva Ecija, Pampanga, Tarlac, Zambales) P 227.00 - ( Aurora Province )
Region IV CALABARZON MIMAROPA	P 287.00 - (Effective Aug. 7, 2006) P 230.00 - (Cities of Puerto Princesa & Calapan) P 223.00 - (Rest of the Region including San Jose, Occ. Mindoro, Sta. Cruz & Marinduque)
Region V	P 220.00 - (Cities of Naga & Legaspi) P 213.00 - (Municipalities of Tabaco, Daraga, Pili & City of Iriga) P208.00 - (All other areas)
Region VI	P 222.00
Region VII	P 241.00 - Class A P 225.00 - Class B P 215.00 - Class C P 200.00 - Class D
Region VIII	P 220.00
Region IX	P 215.00
Region X	P 234.00 (Cities of Cagayan de Oro & Iligan & the Municipalities of Tacloban, Villanueva & Jasaan) P 229.00 - (Cities of Malaybay, Valencia, Gingoong & Ozamis & the Municipalities of Maramag, Quezon, Manolo, Fortich & El Salvador) P 224.00 - Cities of Oroquieta & Tangub, & the Municipalities of Lugait, Opol & Mambajao) P 219.00 - (All other Areas not covered under the above categories)
Region XI	P 240.00 - ( Davao , Tagum, Island Garden of Samal , Digos & Panabo) P 222.00 - ( Davao del Sur, Davao del Norte, Davao Oriental & Compostela Valley )
Region XII	P 224.50
CARAGA	P 214.00
ARMM	P 200.00
Source : National Wages & Productivity Commission Department of Labor and Employment ( http://www.nwpc.dole.gov.ph )

Table A - Average Monthly Wage Rates Of Selected Occupations in Selected Non-Agricultural Industries, Metro Manila

(Non-agricultural establishments employing 50 and over. Wage rates are defined as including basic pay and regular/guaranteed cash allowances)

Benchmark Occupations

Accounting and Bookkeeping Clerks except in Non-Metallic Mining and Quarrying

Unskilled Workers (except janitors, messengers and freight handlers) except in Metallic Ore Mining and Manufacture of Office, Accounting and Computing Machinery

10,955

7,751

Emerging Occupations

Customer Service Representatives
Telemarketers

12,841
10,764

Supervisory

Production Supervisors and Foreman
Sales Supervisors
Transport and Communications Service Supervisors

13,242
15,148
19,324

Professional Workers

Accountants and Auditors
Engineers
Doctors
Professional Nurses
Teaching Professionals in Private Education Services
Computer Programmers

17,113
19,595
12,971
9,869
18,255
23,146

Technicians and Associate Professionals

Engineering Technicians
Quality Inspectors
Ship's Engineers (Water Transport)
Ship's Deck Officers and Pilot
Aircraft Pilots, Navigators and Flight Engineers
Clearing and Forwarding Agents
Travel Consultants and Organizers
Bookkeepers
Securities and Finance Dealers and Brokers Insurance Representatives
Appraisers and Valuers
Computer Assistants
Computer Equipment Operator
Draftsman
Medical Equipment Operators

13,295
8,435
20,688
21,019
72,070
8,793
12,153
10,213
16,096
14,480
11,972
11,007
11,516
12,691
10,001

Clerical Workers

Production Clerks
Debt Collectors and Related Workers
Stock Clerks
Receptionists and Information Clerks
Transport Clerks (Dispatchers)
Travel Agency Clerks and Related Workers Telefax/Teleprinters/Telex Clerks
Telephone Switchboard Operators
Statistical and Finance Clerks
Tellers
Data Entry Operators

8,736
15,479
8,643
10,839
11,896
10,457
8,262
18,641
11, 545
10,148
8,346

Service Workers

Shop Salesperson and Demonstrators
Service Crew
Housekeepers and Related Workers
Cooks

8,379
7,982
11,808
11,752

Fringe Benefits

This refers to goods, services, or other benefits furnished by an employer in cash or kind, in adddition to basic salaries; to managerial or supervisory employees such as but not limited to the following:

· Housing
· Expense Account
· Vehicle of Any Kind
· Household personnel, such as maid, driver and others
· Interest on loans at less than market rate to the extent of the difference between the market rate and actual rate granted;
· Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations;
· Holiday and vacation expenses
· Educational assistance to the employee or his dependents; and

· Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows

Managerial employees refer to those who are given powers or prerogatives to lay down and execute managerial policies and or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.

Supervisory employees are those who effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requirres the use of independent judgment.

Contribution to Home Development and Mutual Fund

Companies/employers are also required to contribute at least P100 per month to HDMF for employee benefits. Ccompanies/employers remit this contribution plus that of hte employees' which will be deducted from their payroll, in accordance with the periodic remittance schedule provided by HDMF.

Contribution to National Health Insurance Program (NHIP)

As mandated by R.A. 7835 on Medicare Program which is administered by the Philippine Health Insurance Corporation (Philhealth), both employers and employees are to contribute for the medical insurance/benefits of hte employees in accordance with the following schedule effective January 1, 2004:

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