Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
Department Order No. 45-03 Series of 2003
Guidelines for the Implementation
of Section 8 of R.A. No. 9178
RA No. 9178, otherwise known as the Barangay Micro Business
Enterprises (BMBEs) Act of 2002, aims to hasten the country's economic
development by encouraging the formation and growth of BMBEs through the
rationalization of bureaucratic requirements, the active support and assistance
of government specially in the local level, and the granting of incentives and
benefits to generate much-needed employment and alleviate poverty.
As defined in Section 31 of the Act, a BMBE shall refer to any business
entity or enterprise engaged in the production, processing or manufacturing of
products or commodities, including agro-processing, trading and services, whose
total assets including those arising from loans but exclusive of the land on
which the particular business entity's office, plant and equipment are situated,
shall not be more than Three Million Pesos, subject to review and upward
adjustment by the SMED Council.
To operate as a BMBE and avail of the benefits provided by the Act, a
business enterprise must have a Certificate of Authority issued by the Office of
the Treasurer of the City or Municipality where the enterprise is located.
One of the incentives granted to registered BMBE is exemption from the
coverage of the Minimum Wage Law as provided under Section 8 of the Act.
This incentive, however, should be in harmony with the Constitution and the
Labor Code which mandate the State to regulate relations between workers
and employers and to protect workers from possible exploitation.
In order to ensure uniformity in the interpretation and implementation of
Section 8 of the Act, this Department Order is hereby issued for the proper
guidance and information of all concerned.
Section 1. Pursuant to Section 8 of RA No. 9178, BMBEs shall be exempt
from the coverage of the Minimum Wage Law: Provided, that all employees
covered under this Act shall be entitled to the same benefits given to any
regular employees such as social security and healthcare benefits.
Section 2. The Regional Tripartite Wages and Productivity Boards shall
issue a Wage Advisory for BMBEs based on guidelines to be issued by the
National Wages and Productivity Commission. The range of wage levels