Economics Wages - Way back in the year 1989, minimum wage...

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Way back in the year 1989, minimum wage fixing is done on a regional basis. Though previously, it was on a national degree through the acts of Congress or by presidential decrees or executive orders. The Regional Boards, stationed in each of the 16 regions around the country, are determined to be the wage setting bodies via Republic Act RA 6727 , which was also known as the Wage Rationalization Act. These boards are responsible for setting minimum wages for workers in the private sector. Criteria for Minimum Wage Fixing adopted by the boards There are actually several criteria set for the minimum wage fixing under the Republic Act 6727 and an additional one under the Rules and Procedures for Minimum Wage Fixing . They are categorized into four major groups, namely: (1) Needs of workers and their families o demand for living wage o wage adjustment vis-à-vis CPI o cost of living and changes therein o needs of workers and their families o improvements in standards of living (2) Capacity to pay of employers/industry o fair return on capital invested and to pay of employers o productivity (3) Comparable wages o prevailing wage levels (4) Requirements for national development o need to induce industries to invest in the countryside o effects on employment generation and family income o equitable distribution of income and wealth along the imperatives of economic social development For monthly-paid employees The factor 365 days in a year is used in determining the equivalent annual salary of monthly-paid
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This note was uploaded on 02/20/2012 for the course ACCOUNTING 102 taught by Professor Calamba during the Summer '11 term at Universität St. Gallen (HSG).

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Economics Wages - Way back in the year 1989, minimum wage...

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