Are piece-rate workers entitled to minimum wage Philippines?

Article 124 of the Labor Code of the Philippines provides that 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.

What is a piece-rate employee?

The American Heritage Dictionary defines the term piece-rate as: “Work paid for according to the number of units turned out.” Consequently, a piece-rate must be based upon an ascertainable figure paid for completing a particular task or making a particular piece of goods. 2.5.

What is workers paid on per piece-rate basis?

“Piece-Rate” means the mode of payment whereby an employee is paid on the basis of his production, i.e. on the amount or quantity of work done rather than time employed. 12.

How is piecework wages calculated?

The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total earnings by the total number of hours worked. The employee is entitled to an additional one-half times this regular rate for each hour of overtime, plus the full piecework earnings.

Are piece-rate workers entitled to holiday pay?

A piece-rate employee is entitled to holiday pay. Article. 94 says: “Right to holiday pay. (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than (10) workers.”

What are the benefits of piece-rate?

The piece rate system has the following advantages:

  • Wages linked to efforts: ADVERTISEMENTS:
  • Increase in production:
  • Better utilization of equipment/machines:
  • Distinction between Efficient and Inefficient:
  • Less supervision required:
  • Effective cost control:
  • Better planning and control:

What is normal piece-rate?

Standard Time per piece = 20 minute; Normal Rate per hour = 0.90; In a 9 hour day, X produces 25 units and Y produces 30 units. Lower rate is 80% of normal rate and higher rate is 120% of normal rate.

Is piece-rate entitled to 13th month pay?

— Employees who are paid on piece work basis are by law entitled to the 13th month pay. Employees who are paid a fixed or guaranteed wage plus commission are also entitled to the mandated 13th month pay, based on their total earnings during the calendar year, i.e., on both their fixed or guaranteed wage and commission.

What are the benefits of piece rate?

How does piecework benefit the worker and the employer?

The big advantage for employers is that they pay only for what is produced. When it comes to repetitive tasks like drywall, for example, this can be advantageous if work is paid on a per-sheet-installed basis. It can also be a great motivator for the employees. If they work harder and faster, they will earn more.