201. Household or domestic helpers, and persons employed in the personal! service of another, including family drivers, are exempted from the provisions of RA 6727. The law also exempts retail and service establishments regularly employing not more than 10 workers from the provisions of the law, 202. There are 11 criteria for minimum wage Minimum Wage Fixing as determined compensation system took effect in 1989 salaries in government were increased in 1994, 1995, 1996 and 1997 (comprising a four-tranche increase’ and in 2000. Budget legislations, likewise, carrie provisions for periodic increases in allowances (cost os living, representation and transportation allowanc a for position levels from division chiefs and higher), fixing under RA 7627 and one under the Rules of Procedures for unified by the 206. Actual salary rates for LGUs not classified as urbanized may differ from the national benchmark, National Wages and Productivity Commission (NWPC). These criteria may be categorized into four groups, based on their classification and financial capacity, namely - (1) Needs of workers and their families - (a) demand for living wage, (b) wage adjustment vis-a-vis CPI, (c) cost of living and changes therein, up to second class are determined as per centages of the salary schedule (between 75 per cent and 95 per (d) needs government agencies and first class LGUs). of workers and their families, and, (e) Pay rates of LGUs classified as sixth class (the lowest) cent of the corresponding rates applied to national improvements in standards of living; (2) Capacity to pay of employers/industry - (a) fair return on capital invested and to pay of employers and (b) productivity; (3) Comparable wages - (a) prevailing wage levels; and (4) Requirements for national development - (a) need to induce industries to invest in the countryside, (b) effects income, on (c) wealth along development, employment equitable the generation distribution imperatives of and family of income economic and social 203, Minimum wages have the force of law for all covered enterprises. Its enforcement is monitored and ensured through the inspectorate system established by the DOLE, Inspection may be done upon complaint by an interested party or through routine inspection. To ensure effectiveness of the inspectorate system, an employer is under the obligation to provide the Government with “access to the employer's premises at any time of the day or night, whenever work is being undertaken therein, and the right to copy therefrom, to question any employee, or to investigate any fact, condition or matter which may be necessary to determine violations ... of any wage order” (Art. 128.a, Labor Code). 204. If a violation of a wage order is established, the DOLE has the power to issue compliance or restitution orders. An indemnity equal to the amount of underpayment shall be imposed on an enterprise found in violation of a wage order. 205. As has been allowances stated for above, public salary emoluments sector employees are determined through legislation. Thus, any salary increases are applied across-the-board. Since the 84 207. Article 124 of the Labor Code provides for ten benchmarks or indicators in fixing wages, namely; (a) the demand for living wages and wage adjustment vis-a-vis the consumer of living and changes needs of workers 2.b.i, Weight of minimum wages and measures undertaken to secure against erosion and 2.0.li. Needs of workers vis-a-vis economic factors CHRP ECONOMIC, SOCIAL AND CULTURAL RIGHTS HANDBOOK price index; or increases and (b) the cost thereon; their families; (c) the (d) the need. to induce industries to invest in the countryside; (e) improvements in standards of living; (f) the prevailing wage levels; (g) fair return on investments and capacity to pay of employers; (h) effects on employment generation and family income; and (i) equitable distribution of income and wealth along the. imperatives of national development. 208. The objective of providing workers and their dependents with a minimum standard of living is) weighed against the goals of creating employment, encouraging investments and promoting global competitiveness. The erosion in purchasing power is also considered in the estimation of possible minimum wage adjustment. In turn, the impact of such an adjustment on inflation is estimated to determine whether or not the resulting inflation would be well within targets. Econometric models are used to determine or assess the possible any wage increase. impact of 209, Since 1989, minimum wages have been adjusted each year, generally to maintain real wages. In 2001-2003, however, minimum wages were not adjusted to minimize job losses brought about by the economic downturn. Also, it was only in 2005 that new minimum wage orders were issued in less than a year of effectivity of the previous wage orders due to abrupt and unusually high prices of commodities.