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Republic of the Philippines
Department of Labor and Employment
NATIONAL WAGES AND PRODUCTIVITY
COMMISSION
NWPC Guidelines No. 01
Series of 2003
GUIDELINES ON THE ISSUANCE
OF WAGE ADVISORIES FOR
BARANGAY MICRO BUSINESS ENTERPRISES
Pursuant to Section 8 of RA No. 9178 and Section 2 of DOLE Department
Order No. 45-03, Series of 2003, the following guidelines are hereby adopted
for the proper guidance and information of all concerned.
Section 1. Rationale. RA No. 9178, known as the Barangay Micro
Business Enterprises (BMBEs) Act of 2002, aims to hasten the country's
economic development and alleviate poverty by encouraging the formation and
growth of BMBEs through the rationalization of bureaucratic requirements, the
active support and assistance of government, and the granting of incentives
and benefits to generate employment.
One of the incentives granted to registered BMBEs is exemption from the
coverage of the Minimum Wage Law. The Constitution and the Labor Code,
however, mandate the State to regulate relations between workers and
employers, recognizing the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns on investments,
and to expansion and growth. Guided by this Constitutional provision, the
workers and owners of BMBEs are encouraged to set the mutually acceptable
wage rates in their respective enterprises.
This Guidelines is intended to guide the Regional Tripartite Wages and
Productivity Boards (RTWPBs) in the issuance of Wage Advisories for BMBEs
that can assist workers and owners when they set mutually acceptable wage
levels and foster industrial peace and harmony.
Section 2. Definition of Terms. As used in this Guidelines:
(a) Barangay Micro Business Enterprise hereinafter referred to as BMBE,
refers 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 land on which the particular
business entity's office, plant and equipment are situated shall not be
more than Three Million Pesos (P3,000,000.00) subject to review and