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Kasambahay Minimum Wage in the Philippines
The Kasambahay Law (Republic Act No. 10361) sets the minimum employment standards for domestic workers in the Philippines, including a mandatory minimum wage. This wage is not uniform across the country; it is determined by the Regional Tripartite Wage and Productivity Boards (RTWPBs). Each region issues Wage Orders that specify the minimum monthly salary for domestic workers working at least 40 hours per week.
How the Minimum Wage is Determined
The legal monthly wage for your kasambahay depends primarily on the region where they will be employed. The RTWPB of each region considers the cost of living and socioeconomic factors when setting the rate. As an employer, you are obligated to pay at least this amount. If you have agreed on a wage higher than the minimum, you must pay the higher amount. The wage must be paid in cash directly to the worker at least once a month.
Calculating the Required Wage
The calculation is straightforward: you must identify the applicable minimum wage for your region and compare it with the wage you have offered. The final wage to pay is simply the higher of the two figures.
- Step 1: Find your regional minimum wage. Use the dropdown in the calculator to select your region.
- Step 2: Compare with your agreed wage. Enter the monthly salary you discussed with your kasambahay.
- Step 3: Determine the legal obligation. The result is the monthly wage you are legally required to pay.
Example Calculation
An employer in the National Capital Region (NCR) plans to hire a kasambahay. The current minimum wage in NCR for domestic workers is PHP 6,500 per month. If the employer and worker agreed on a salary of PHP 6,000, the agreed wage is below the minimum. Therefore, the employer must adjust the pay to PHP 6,500 per month. The required adjustment is PHP 500.
Common Scenarios
- Starting a new contract: Always use the wage order in effect on the contract start date.
- Wage order increases: If a new wage order is issued during an ongoing contract, you must adjust the wage to meet the new minimum, unless your agreed wage is already higher.
- Part-time work: The standard minimum wage applies to full-time workers (at least 40 hours/week). For part-time arrangements, the wage may be prorated, but specific rules should be checked with your regional board.
Next Steps: Preparing a Domestic Work Contract
Once you know the correct wage, it is crucial to formalize the employment terms in a written contract. A Domestic Work Contract protects both employer and employee by clearly outlining duties, wages, working hours, rest days, leave entitlements, and other conditions as required by the Kasambahay Law. This document serves as proof of compliance with labor standards.