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Formula

The document outlines several formulas used to calculate wage distortion adjustments in the Philippines. The Pineda Formula calculates adjustment as existing minimum wage times mandated increase divided by employee wage. The Pineda-Cruz-So Formula is similar but uses an exponent. The Bagtas Formula calculates adjustment as mandated increase times present employee wage divided by existing minimum wage. The Carian Formula uses percentile pay group times mandated increase. The document further describes formulas from Philippine Construction Supply, Jimenez-Ofreneo-De Las Alas, and WireRope.

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647 views11 pages

Formula

The document outlines several formulas used to calculate wage distortion adjustments in the Philippines. The Pineda Formula calculates adjustment as existing minimum wage times mandated increase divided by employee wage. The Pineda-Cruz-So Formula is similar but uses an exponent. The Bagtas Formula calculates adjustment as mandated increase times present employee wage divided by existing minimum wage. The Carian Formula uses percentile pay group times mandated increase. The document further describes formulas from Philippine Construction Supply, Jimenez-Ofreneo-De Las Alas, and WireRope.

Uploaded by

AB
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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DEPARTMENT OF LABOR AND EMPLOYMENT

WAGE DISTORTION FORMULA


PINEDA FORMULA
WDA =
WDA
EMW
WE
MWI
NDMW

Existing Minimum Wage


x Mandated Wage Increase
Wage of Employee
= Wage Distortion Adjustment
= Existing Minimum Wage
= Wage of Employee
= Mandated Wage Increase
= New Daily Minimum Wage

PINEDA-CRUZ-SO FORMULA
WDA =

Existing Minimum Wage


Wage of Employee

x Mandated Wage Increase

where exponent is represented by n


WDA
= Wage Distortion Adjustment
EMW
= Existing Minimum Wage
WE
= Wage of Employee
MWI
= Mandated Wage Increase
NDMW
= New Daily Minimum Wage

BAGTAS FORMULA
WDA =
WDA
EMW
PWE
MWI
NDMW

Mandated Wage Increase


x Present Wage of Employee
Existing Minimum Wage
= Wage Distortion Adjustment
= Existing Minimum Wage
= Present Wage of Employee
= Mandated Wage Increase
= New Daily Minimum Wage

CARIAN FORMULA
WDA = Percentile Weight of Pay Group x Mandated Wage Increase
WDA
%
MWI
WE

= Wage Distortion Adjustment


= Percentile Pay Group
= Mandated Wage Increase
= Wage of Employee

DEPARTMENT OF LABOR AND EMPLOYMENT


WAGE DISTORTION FORMULA
NDMW = New Daily Minimum Wage

PHILIPPINE CONSTRUCTION SUPPLY (PCS) FORMULA


WDA =

Existing Minimum Wage


x Mandated Wage Increase
Formula Base Rate (FBR)

* FBR= Actual wage rate + agreed amount of adjustment


Assume: Agreed adjustment amount for the FBR is P5.00
WDA
= Wage Distortion Adjustment
EMW
= Existing Minimum Wage
WE
= Wage of Employee
MWI
= Mandated Wage Increase
NDMW
= New Daily Minimum Wage

JIMENEZ, OFRENEO, DE LAS ALAS (JODA) FORMULA


Wb-Wa
2
Wa
= Old Minimum Wage
Wb
= Daily Wage of Employee (where
Wc
= New Minimum Wage (Wa + mandated wage
MWI
= Mandated Wage Increase
WDA
= Wage Distortion Adjustment
NDMW = New Daily Minimum Wage
WDA =

WIREROPE FORMULA
WDA =

Existing Minimum Wage x Mandated Wage Increase


(Creditable Increase)
Wage of Employee

Assume: Creditable CBA Increase is P5.00/day


WDA
= Wage Distortion Adjustment
EMW
= Existing Minimum Wage
WE
= Wage of Employee
MWI
= Mandated Wage Increase
NDMW
= New Daily Minimum Wage

PINEDA FORMULA

WDA
EMW
WE
MWI
NDMW

Existing Minimum Wage


Wage of Employee

x Mandated Wage Increase

= Wage Distortion Adjustment


= Existing Minimum Wage
= Wage of Employee
= Mandated Wage Increase
= New Daily Minimum Wage

MWI

EMW

WE

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300

325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500

WDA
23.08
22.73
22.39
22.06
21.74
21.43
21.13
20.83
20.55
20.27
20.00
19.74
19.48
19.23
18.99
18.75
18.52
18.29
18.07
17.86
17.65
17.44
17.24
17.05
16.85
16.67
16.48
16.30
16.13
15.96
15.79
15.63
15.46
15.31
15.15
15.00

NDMW
348.08
352.73
357.39
362.06
366.74
371.43
376.13
380.83
385.55
390.27
395.00
399.74
404.48
409.23
413.99
418.75
423.52
428.29
433.07
437.86
442.65
447.44
452.24
457.05
461.85
466.67
471.48
476.30
481.13
485.96
490.79
495.63
500.46
505.31
510.15
515.00

henryk05

WDA =

PINEDA-CRUZ-SO FORMULA
WDA =

Existing Minimum Wage


Wage of Employee

x Mandated Wage Increase

where exponent is represented by n


WDA
= Wage Distortion Adjustment
EMW
= Existing Minimum Wage
WE
= Wage of Employee
MWI
= Mandated Wage Increase
NDMW
= New Daily Minimum Wage

EMW

WE

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300

325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500

WDA
21.30
20.66
20.05
19.46
18.90
18.37
17.85
17.36
16.89
16.44
16.00
15.58
15.18
14.79
14.42
14.06
13.72
13.38
13.06
12.76
12.46
12.17
11.89
11.62
11.36
11.11
10.87
10.63
10.41
10.19
9.97
9.77
9.57
9.37
9.18
9.00

NDMW
346.30
350.66
355.05
359.46
363.90
368.37
372.85
377.36
381.89
386.44
391.00
395.58
400.18
404.79
409.42
414.06
418.72
423.38
428.06
432.76
437.46
442.17
446.89
451.62
456.36
461.11
465.87
470.63
475.41
480.19
484.97
489.77
494.57
499.37
504.18
509.00

henryk05

MWI

x Mandated Wage Increase

WIREROPE FORMULA
WDA =

Existing Minimum Wage


Wage of Employee

x Mandated Wage Increase


(Creditable Increase)

Assume: Creditable CBA Increase is P5.00/day


WDA
= Wage Distortion Adjustment
EMW
= Existing Minimum Wage
WE
= Wage of Employee
MWI
= Mandated Wage Increase
NDMW
= New Daily Minimum Wage

EMW

WE

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300

325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500

WDA
18.46
18.18
17.91
17.65
17.39
17.14
16.90
16.67
16.44
16.22
16.00
15.79
15.58
15.38
15.19
15.00
14.81
14.63
14.46
14.29
14.12
13.95
13.79
13.64
13.48
13.33
13.19
13.04
12.90
12.77
12.63
12.50
12.37
12.24
12.12
12.00

NDMW
343.46
348.18
352.91
357.65
362.39
367.14
371.90
376.67
381.44
386.22
391.00
395.79
400.58
405.38
410.19
415.00
419.81
424.63
429.46
434.29
439.12
443.95
448.79
453.64
458.48
463.33
468.19
473.04
477.90
482.77
487.63
492.50
497.37
502.24
507.12
512.00

henryk05

MWI

CARIAN FORMULA
WDA = Percentile Weight of Pay Group x Mandated Wage Increase
= Wage Distortion Adjustment
= Percentile Pay Group
= Mandated Wage Increase
= Wage of Employee
= New Daily Minimum Wage

MWI

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

1.00
0.99
0.98
0.97
0.96
0.95
0.94
0.93
0.92
0.91
0.90
0.89
0.88
0.87
0.86
0.85
0.84
0.83
0.82
0.81
0.80
0.79
0.78
0.77
0.76
0.75
0.74
0.73
0.72
0.71
0.70
0.69
0.68
0.67
0.66
0.65

WDA
25.00
24.75
24.50
24.25
24.00
23.75
23.50
23.25
23.00
22.75
22.50
22.25
22.00
21.75
21.50
21.25
21.00
20.75
20.50
20.25
20.00
19.75
19.50
19.25
19.00
18.75
18.50
18.25
18.00
17.75
17.50
17.25
17.00
16.75
16.50
16.25

WE
325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500

NDMW
350.00
354.75
359.50
364.25
369.00
373.75
378.50
383.25
388.00
392.75
397.50
402.25
407.00
411.75
416.50
421.25
426.00
430.75
435.50
440.25
445.00
449.75
454.50
459.25
464.00
468.75
473.50
478.25
483.00
487.75
492.50
497.25
502.00
506.75
511.50
516.25

henryk05

WDA
%
MWI
WE
NDMW

PHILIPPINE CONSTRUCTION SUPPLY (PCS) FORMULA


WDA =

Existing Minimum Wage


Formula Base Rate (FBR)

x Mandated Wage Increase

* FBR= Actual wage rate + agreed amount of adjustment


Assume: Agreed adjustment amount for the FBR is P5.00
WDA
= Wage Distortion Adjustment
EMW
= Existing Minimum Wage
WE
= Wage of Employee
MWI
= Mandated Wage Increase
NDMW
= New Daily Minimum Wage

EMW

WE

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300

325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500

WDA
22.73
22.39
22.06
21.74
21.43
21.13
20.83
20.55
20.27
20.00
19.74
19.48
19.23
18.99
18.75
18.52
18.29
18.07
17.86
17.65
17.44
17.24
17.05
16.85
16.67
16.48
16.30
16.13
15.96
15.79
15.63
15.46
15.31
15.15
15.00
14.85

NDMW
347.73
352.39
357.06
361.74
366.43
371.13
375.83
380.55
385.27
390.00
394.74
399.48
404.23
408.99
413.75
418.52
423.29
428.07
432.86
437.65
442.44
447.24
452.05
456.85
461.67
466.48
471.30
476.13
480.96
485.79
490.63
495.46
500.31
505.15
510.00
514.85

henryk05

MWI

JIMENEZ, OFRENEO, DE LAS ALAS (JODA) FORMULA

Wa
Wb
Wc
MWI

Wb-Wa
2
= Old Minimum Wage
= Daily Wage of Employee (where Wb>Wa)
= New Minimum Wage (Wa + mandated wage increase)
= Mandated Wage Increase

WDA

= Wage Distortion Adjustment

NDMW

= New Daily Minimum Wage

MWI

Wa

Wb

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300

325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495

Wc
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00
325.00

WDA
12.50
15.00
17.50
20.00
22.50
25.00
27.50
30.00
32.50
35.00
37.50
40.00
42.50
45.00
47.50
50.00
52.50
55.00
57.50
60.00
62.50
65.00
67.50
70.00
72.50
75.00
77.50
80.00
82.50
85.00
87.50
90.00
92.50
95.00
97.50

NDMW
337.50
345.00
352.50
360.00
367.50
375.00
382.50
390.00
397.50
405.00
412.50
420.00
427.50
435.00
442.50
450.00
457.50
465.00
472.50
480.00
487.50
495.00
502.50
510.00
517.50
525.00
532.50
540.00
547.50
555.00
562.50
570.00
577.50
585.00
592.50

henryk05

WDA =

300

500

325.00

100.00

600.00

henryk05

25

BAGTAS FORMULA

WDA
EMW
PWE
MWI
NDMW

Mandated Wage Increase


Existing Minimum Wage

x Present Wage of Employee

= Wage Distortion Adjustment


= Existing Minimum Wage
= Present Wage of Employee
= Mandated Wage Increase
= New Daily Minimum Wage

MWI

EMW

PWE

25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25
25

300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300
300

325
330
335
340
345
350
355
360
365
370
375
380
385
390
395
400
405
410
415
420
425
430
435
440
445
450
455
460
465
470
475
480
485
490
495
500

WDA
27.08
27.50
27.92
28.33
28.75
29.17
29.58
30.00
30.42
30.83
31.25
31.67
32.08
32.50
32.92
33.33
33.75
34.17
34.58
35.00
35.42
35.83
36.25
36.67
37.08
37.50
37.92
38.33
38.75
39.17
39.58
40.00
40.42
40.83
41.25
41.67

NDMW
352.08
357.50
362.92
368.33
373.75
379.17
384.58
390.00
395.42
400.83
406.25
411.67
417.08
422.50
427.92
433.33
438.75
444.17
449.58
455.00
460.42
465.83
471.25
476.67
482.08
487.50
492.92
498.33
503.75
509.17
514.58
520.00
525.42
530.83
536.25
541.67

henryk05

WDA =

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