Laws For Piece Rate Workers

“PIECEWORK or PIECE RATE WORKERS”
I. MINIMUM WAGE RATES (LABOR CODE OF THE PHILIPPINES)
Art. 99. Regional minimum wages.
The minimum wage rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No. 6727,
June 9, 1989)
Art. 100. Prohibition against elimination or diminution of benefits.
Nothing in this Book shall be construed to eliminate or in any way diminish

supplements, or other employee benefits being enjoyed at the time of promulgation of this
Code.
Art. 101. Payment by results.
a. The Secretary of Labor and Employment shall regulate the payment of

wages by results, including pakyao, piecework, and other non-time work, in
order to ensure the payment of fair and reasonable wage rates, preferably
through time and motion studies or in consultation with representatives of
workers’ and employers’ organizations.
Re: Workers Paid by Results
Your workers who are paid by results, including homeworkers and those who are
paid on piecework, takay, pakyaw, or task basis, shall receive not less than the applicable
statutory minimum wage rates prescribed under the Regional Wage Orders for normal
working hours, or a portion thereof.
Adjustments in the AMW (applicable minimum wage rate) are computed as follows:
is:
1. Amount of increase in AMW ÷ Previous AMW x 100 = % increase

2. Existing rate/piece x % increase = Increase in rate/piece;
3. Existing rate/piece + increase in rate/piece = Adjusted rate/piece;
II. LEARNERS- FOR TRAINING PERIOD (LABOR CODE OF THE PHILIPPINES)
Art. 73. Learners defined.
Learners are persons hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable and which may be learned through practical training on the
job in a relatively short period of time which shall not exceed three (3) months.
Art. 74. When learners may be hired.
Learners may be employed when no experienced workers are available, the

employment of learners is necessary to prevent curtailment of employment opportunities,
and the employment does not create unfair competition in terms of labor costs or impair or
lower working standards.
Art. 75. Learnership agreement.
Any employer desiring to employ learners shall enter into a learnership agreement
with them, which agreement shall include:
a. The names and addresses of the learners;
b. The duration of the learnership period, which shall not exceed three (3)
months;
c. The wages or salary rates of the learners which shall begin at not less than
seventy-five percent (75%) of the applicable minimum wage; and
d. A commitment to employ the learners if they so desire, as regular

employees upon completion of the learnership. All learners who have been allowed
or suffered to work during the first two (2) months shall be deemed regular
employees if training is terminated by the employer before the end of the stipulated
period through no fault of the learners.
The learnership agreement shall be subject to inspection by the Secretary of Labor

and Employment or his duly authorized representative.
Art. 76. Learners in piecework.
Learners employed in piece or incentive-rate jobs during the training period shall be
paid in full for the work done.
Art. 77. Penalty clause.
Any violation of this Chapter or its implementing rules and regulations shall be
subject to the general penalty clause provided for in this Code.
Re: All workers paid by result, including those who are paid on piecework, takay, pakyaw or
task basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a
day, or a proportion thereof for working less than eight (8) hours. All recognized learnership
and apprenticeship agreements shall be considered automatically modified insofar as their
wage clauses are concerned to reflect the prescribed wage rates. (As amended by Republic
Act No. 6727, June 9, 1989)
III. 13TH MONTH PAY LAW
Employers of those who are paid on purely commission, boundary, or task basis, and those
who are paid a fixed amount for performing specific work, irrespective of the time consumed
in the performance thereof, except where the workers are paid on piece-rate basis in which
case the employer shall grant the required 13th month pay to such workers.
As used herein, workers paid on piece-rate basis shall refer to those who are paid a standard
amount for every piece or unit of work produced that is more or less regularly replicated,
without regard to the time spent in producing the same.
The term "its equivalent" as used on paragraph (b) hereof shall include Christmas bonus,
mid-year bonus, cash bonuses and other payments amounting to not less than 1/12 of the
basic salary but shall not include cash and stock dividends, cost of living allowances and all
other allowances regularly enjoyed by the employee, as well as non-monetary benefits.
Where an employer pays less than required 1/12th of the employee’s basic salary, the
employer shall pay the difference.
IV. APPLICABLE/RELATED CASES
1. PIECE RATE WORKERS ALSO KNOWN AS “PIECEWORK” AS REGULAR EMPLOYEES

AND CONTROL TEST FOR THE EXISTENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP
G.R. No. 193493 June 13, 2013
JAIME N. GAPAYAO, Petitioner,

vs.
ROSARIO FULO, SOCIAL SECURITY SYSTEM and SOCIAL SECURITY COMMISSION,
Respondents.
And
G.R. No. 153511
LEGEND HOTEL (MANILA), owned by TITANIUM CORPORATION, and/or, NELSON

NAPUD, in his capacity as the President of Petitioner Corporation, Petitioner,
vs.
HERNANI S. REALUYO, also known as JOEY ROA, Respondent.
Re: Pakyaw workers are regular employees, provided they are subject to the control of
petitioner.
Pakyaw workers are considered employees for as long as their employers exercise control
over them. In Legend Hotel Manila v. Realuyo, the Court held that "the power of the
employer to control the work of the employee is considered the most significant determinant
of the existence of an employer-employee relationship. This is the so-called control test and
is premised on whether the person for whom the services are performed reserves the right to
control both the end achieved and the manner and means used to achieve that end." It
should be remembered that the control test merely calls for the existence of the right to
control, and not necessarily the exercise thereof. It is not essential that the employer actually
supervises the performance of duties by the employee. It is enough that the former has a
right to wield the power.
https://www.lawphil.net/judjuris/juri2013/jun2013/gr_193493_2013.html
http://www.chanrobles.com/cralaw/2012julydecisions.php?id=815
2. ENTITLEMENT OF PIECE RATE WORKERS TO SERVICE INCENTIVE LEAVE OR SIL

AND 13TH MONTH PAY
G.R. No. 195466 July 2, 2014
ARIEL L. DAVID, doing business under the name and style "YIELS HOG DEALER,"
Petitioner,
vs.
JOHN G. MACASIO, Respondent.
And
G.R. No. 192282 October 05, 2016
A. NATE CASKET MAKER AND/OR ARMANDO AND ANELY NATE, Petitioners,

vs.
ELIAS V. ARANGO, EDWIN M. MAPUSAO, JORGE C. CARIÑO, JERMIE MAPUSAO,
WILSON A. NATE, EDGAR A. NATE, MICHAEL A. MONTALES, CELSO A. NATE, BENJES
A. LLONA AND ALLAN A. MONTALES, Respondents
In short, in determining whether workers engaged on "pakyaw" or task basis" is entitled to

holiday and SIL pay, the presence (or absence) of employer supervision as regards the
worker’s time and performance is the key: if the worker is simply engaged on pakyaw or task
basis, then the general rule is that he is entitled to a holiday pay and SIL pay unless exempted
from the exceptions specifically provided under Article 94 (holiday pay) and Article 95 (SIL
pay) of the Labor Code.
The governing law on 13th month pay is PD No. 851.53
As with holiday and SIL pay, 13th month pay benefits generally cover all employees; an
employee must be one of those expressly enumerated to be exempted. Section 3 of the Rules
and Regulations Implementing P.D. No. 851 enumerates the exemptions from the coverage
of 13th month pay benefits. Under Section 3(e), "employers of those who are paid on xxx task
basis, and those who are paid a fixed amount for performing a specific work, irrespective of
the time consumed in the performance thereof" are exempted.
https://www.lawphil.net/judjuris/juri2014/jul2014/gr_195466_2014.html
http://www.chanrobles.com/cralaw/2016octoberdecisions.php?id=895

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“PIECEWORK or PIECE RATE WORKERS”

I. MINIMUM WAGE RATES (LABOR CODE OF THE PHILIPPINES)

Art. 99. Regional minimum wages.

Art. 100. Prohibition against elimination or diminution of benefits.

Nothing in this Book shall be construed to eliminate or in any way diminish

Art. 101. Payment by results.

a. The Secretary of Labor and Employment shall regulate the payment of

Re: Workers Paid by Results

1. Amount of increase in AMW ÷ Previous AMW x 100 = % increase

II. LEARNERS- FOR TRAINING PERIOD (LABOR CODE OF THE PHILIPPINES)

Art. 73. Learners defined.

Learners may be employed when no experienced workers are available, the

Art. 75. Learnership agreement.

a. The names and addresses of the learners;

d. A commitment to employ the learners if they so desire, as regular

The learnership agreement shall be subject to inspection by the Secretary of Labor

Art. 76. Learners in piecework.

Art. 77. Penalty clause.

IV. APPLICABLE/RELATED CASES

1. PIECE RATE WORKERS ALSO KNOWN AS “PIECEWORK” AS REGULAR EMPLOYEES

G.R. No. 193493 June 13, 2013

JAIME N. GAPAYAO, Petitioner,

G.R. No. 153511

LEGEND HOTEL (MANILA), owned by TITANIUM CORPORATION, and/or, NELSON

2. ENTITLEMENT OF PIECE RATE WORKERS TO SERVICE INCENTIVE LEAVE OR SIL

G.R. No. 195466 July 2, 2014

G.R. No. 192282 October 05, 2016

A. NATE CASKET MAKER AND/OR ARMANDO AND ANELY NATE, Petitioners,

In short, in determining whether workers engaged on "pakyaw" or task basis" is entitled to

The governing law on 13th month pay is PD No. 851.53

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