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Department of Labor and Employment Wage Distortion Formula: Where Exponent Is Represented by N

The document describes several formulas used to calculate wage distortion adjustment (WDA) when minimum wages are mandated to increase. It defines the variables used in each formula such as existing minimum wage (EMW), wage of employee (WE), and mandated wage increase (MWI). It then shows examples of calculations using each formula with the same input values to determine the resulting WDA and new daily minimum wage (NDMW).

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Jonnalyn Oba
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© © All Rights Reserved
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Download as XLS, PDF, TXT or read online on Scribd
230 views

Department of Labor and Employment Wage Distortion Formula: Where Exponent Is Represented by N

The document describes several formulas used to calculate wage distortion adjustment (WDA) when minimum wages are mandated to increase. It defines the variables used in each formula such as existing minimum wage (EMW), wage of employee (WE), and mandated wage increase (MWI). It then shows examples of calculations using each formula with the same input values to determine the resulting WDA and new daily minimum wage (NDMW).

Uploaded by

Jonnalyn Oba
Copyright
© © All Rights Reserved
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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DEPARTMENT OF LABOR AND EMPLOYMENT

WAGE DISTORTION FORMULA


PINEDA FORMULA

Existing Minimum Wage


WDA = x Mandated Wage Increase
Wage of Employee

WDA = Wage Distortion Adjustment


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

PINEDA-CRUZ-SO FORMULA

n
Existing Minimum Wage
WDA = x Mandated Wage Increase
Wage of Employee

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

Mandated Wage Increase


WDA = x Present Wage of Employee
Existing Minimum Wage

WDA = Wage Distortion Adjustment


EMW = Existing Minimum Wage
PWE = Present Wage of Employee
MWI = Mandated Wage Increase
NDMW = New Daily Minimum Wage

CARIAN FORMULA

WDA = Percentile Weight of Pay Group x Mandated Wage Increase


WDA = Wage Distortion Adjustment
% = Percentile Pay Group
MWI = Mandated Wage Increase
WE = Wage of Employee
DEPARTMENT OF LABOR AND EMPLOYMENT
WAGE DISTORTION FORMULA
NDMW = New Daily Minimum Wage

PHILIPPINE CONSTRUCTION SUPPLY (PCS) FORMULA

Existing Minimum Wage


WDA = 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
WDA =
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

WIREROPE FORMULA

Existing Minimum Wage x Mandated Wage Increase


WDA =
Wage of Employee (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
PINEDA FORMULA

Existing Minimum Wage


WDA = x Mandated Wage Increase
Wage of Employee

WDA = Wage Distortion Adjustment


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

MWI EMW WE WDA NDMW


25 300 325 23.08 348.08
25 300 330 22.73 352.73
25 300 335 22.39 357.39
25 300 340 22.06 362.06
25 300 345 21.74 366.74
25 300 350 21.43 371.43
25 300 355 21.13 376.13
25 300 360 20.83 380.83
25 300 365 20.55 385.55
25 300 370 20.27 390.27
25 300 375 20.00 395.00
25 300 380 19.74 399.74
25 300 385 19.48 404.48
25 300 390 19.23 409.23
25 300 395 18.99 413.99
25 300 400 18.75 418.75
25 300 405 18.52 423.52
25 300 410 18.29 428.29
25 300 415 18.07 433.07
25 300 420 17.86 437.86
25 300 425 17.65 442.65
25 300 430 17.44 447.44
25 300 435 17.24 452.24
25 300 440 17.05 457.05
25 300 445 16.85 461.85
25 300 450 16.67 466.67
25 300 455 16.48 471.48
25 300 460 16.30 476.30
25 300 465 16.13 481.13
25 300 470 15.96 485.96
25 300 475 15.79 490.79
25 300 480 15.63 495.63
25 300 485 15.46 500.46
25 300 490 15.31 505.31
25 300 495 15.15 510.15
henryk05

25 300 500 15.00 515.00


PINEDA-CRUZ-SO FORMULA
Existing Minimum Wage n
WDA = x Mandated Wage Increase
Wage of Employee

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

MWI EMW WE WDA NDMW


25 300 325 21.30 346.30
25 300 330 20.66 350.66
25 300 335 20.05 355.05
25 300 340 19.46 359.46
25 300 345 18.90 363.90
25 300 350 18.37 368.37
25 300 355 17.85 372.85
25 300 360 17.36 377.36
25 300 365 16.89 381.89
25 300 370 16.44 386.44
25 300 375 16.00 391.00
25 300 380 15.58 395.58
25 300 385 15.18 400.18
25 300 390 14.79 404.79
25 300 395 14.42 409.42
25 300 400 14.06 414.06
25 300 405 13.72 418.72
25 300 410 13.38 423.38
25 300 415 13.06 428.06
25 300 420 12.76 432.76
25 300 425 12.46 437.46
25 300 430 12.17 442.17
25 300 435 11.89 446.89
25 300 440 11.62 451.62
25 300 445 11.36 456.36
25 300 450 11.11 461.11
25 300 455 10.87 465.87
25 300 460 10.63 470.63
25 300 465 10.41 475.41
25 300 470 10.19 480.19
25 300 475 9.97 484.97
25 300 480 9.77 489.77
25 300 485 9.57 494.57
25 300 490 9.37 499.37
25 300 495 9.18 504.18
henryk05

25 300 500 9.00 509.00


WIREROPE FORMULA
Existing Minimum Wage x Mandated Wage Increase
WDA =
Wage of Employee (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

MWI EMW WE WDA NDMW


25 300 325 18.46 343.46
25 300 330 18.18 348.18
25 300 335 17.91 352.91
25 300 340 17.65 357.65
25 300 345 17.39 362.39
25 300 350 17.14 367.14
25 300 355 16.90 371.90
25 300 360 16.67 376.67
25 300 365 16.44 381.44
25 300 370 16.22 386.22
25 300 375 16.00 391.00
25 300 380 15.79 395.79
25 300 385 15.58 400.58
25 300 390 15.38 405.38
25 300 395 15.19 410.19
25 300 400 15.00 415.00
25 300 405 14.81 419.81
25 300 410 14.63 424.63
25 300 415 14.46 429.46
25 300 420 14.29 434.29
25 300 425 14.12 439.12
25 300 430 13.95 443.95
25 300 435 13.79 448.79
25 300 440 13.64 453.64
25 300 445 13.48 458.48
25 300 450 13.33 463.33
25 300 455 13.19 468.19
25 300 460 13.04 473.04
25 300 465 12.90 477.90
25 300 470 12.77 482.77
25 300 475 12.63 487.63
25 300 480 12.50 492.50
25 300 485 12.37 497.37
25 300 490 12.24 502.24
25 300 495 12.12 507.12
henryk05

25 300 500 12.00 512.00


CARIAN FORMULA

WDA = Percentile Weight of Pay Group x Mandated Wage Increase


WDA = Wage Distortion Adjustment
% = Percentile Pay Group
MWI = Mandated Wage Increase
WE = Wage of Employee
NDMW = New Daily Minimum Wage

MWI % WDA WE NDMW


25 1.00 25.00 325 350.00
25 0.99 24.75 330 354.75
25 0.98 24.50 335 359.50
25 0.97 24.25 340 364.25
25 0.96 24.00 345 369.00
25 0.95 23.75 350 373.75
25 0.94 23.50 355 378.50
25 0.93 23.25 360 383.25
25 0.92 23.00 365 388.00
25 0.91 22.75 370 392.75
25 0.90 22.50 375 397.50
25 0.89 22.25 380 402.25
25 0.88 22.00 385 407.00
25 0.87 21.75 390 411.75
25 0.86 21.50 395 416.50
25 0.85 21.25 400 421.25
25 0.84 21.00 405 426.00
25 0.83 20.75 410 430.75
25 0.82 20.50 415 435.50
25 0.81 20.25 420 440.25
25 0.80 20.00 425 445.00
25 0.79 19.75 430 449.75
25 0.78 19.50 435 454.50
25 0.77 19.25 440 459.25
25 0.76 19.00 445 464.00
25 0.75 18.75 450 468.75
25 0.74 18.50 455 473.50
25 0.73 18.25 460 478.25
25 0.72 18.00 465 483.00
25 0.71 17.75 470 487.75
25 0.70 17.50 475 492.50
25 0.69 17.25 480 497.25
25 0.68 17.00 485 502.00
25 0.67 16.75 490 506.75
25 0.66 16.50 495 511.50
henryk05

25 0.65 16.25 500 516.25


PHILIPPINE CONSTRUCTION SUPPLY (PCS) FORMULA
Existing Minimum Wage
WDA = 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

MWI EMW WE WDA NDMW


25 300 325 22.73 347.73
25 300 330 22.39 352.39
25 300 335 22.06 357.06
25 300 340 21.74 361.74
25 300 345 21.43 366.43
25 300 350 21.13 371.13
25 300 355 20.83 375.83
25 300 360 20.55 380.55
25 300 365 20.27 385.27
25 300 370 20.00 390.00
25 300 375 19.74 394.74
25 300 380 19.48 399.48
25 300 385 19.23 404.23
25 300 390 18.99 408.99
25 300 395 18.75 413.75
25 300 400 18.52 418.52
25 300 405 18.29 423.29
25 300 410 18.07 428.07
25 300 415 17.86 432.86
25 300 420 17.65 437.65
25 300 425 17.44 442.44
25 300 430 17.24 447.24
25 300 435 17.05 452.05
25 300 440 16.85 456.85
25 300 445 16.67 461.67
25 300 450 16.48 466.48
25 300 455 16.30 471.30
25 300 460 16.13 476.13
25 300 465 15.96 480.96
25 300 470 15.79 485.79
25 300 475 15.63 490.63
25 300 480 15.46 495.46
25 300 485 15.31 500.31
25 300 490 15.15 505.15
25 300 495 15.00 510.00
henryk05

25 300 500 14.85 514.85


JIMENEZ, OFRENEO, DE LAS ALAS (JODA) FORMULA

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

MWI Wa Wb Wc WDA NDMW


25 300 325 325.00 12.50 337.50
25 300 330 325.00 15.00 345.00
25 300 335 325.00 17.50 352.50
25 300 340 325.00 20.00 360.00
25 300 345 325.00 22.50 367.50
25 300 350 325.00 25.00 375.00
25 300 355 325.00 27.50 382.50
25 300 360 325.00 30.00 390.00
25 300 365 325.00 32.50 397.50
25 300 370 325.00 35.00 405.00
25 300 375 325.00 37.50 412.50
25 300 380 325.00 40.00 420.00
25 300 385 325.00 42.50 427.50
25 300 390 325.00 45.00 435.00
25 300 395 325.00 47.50 442.50
25 300 400 325.00 50.00 450.00
25 300 405 325.00 52.50 457.50
25 300 410 325.00 55.00 465.00
25 300 415 325.00 57.50 472.50
25 300 420 325.00 60.00 480.00
25 300 425 325.00 62.50 487.50
25 300 430 325.00 65.00 495.00
25 300 435 325.00 67.50 502.50
25 300 440 325.00 70.00 510.00
25 300 445 325.00 72.50 517.50
25 300 450 325.00 75.00 525.00
25 300 455 325.00 77.50 532.50
25 300 460 325.00 80.00 540.00
25 300 465 325.00 82.50 547.50
25 300 470 325.00 85.00 555.00
25 300 475 325.00 87.50 562.50
25 300 480 325.00 90.00 570.00
25 300 485 325.00 92.50 577.50
25 300 490 325.00 95.00 585.00
25 300 495 325.00 97.50 592.50
henryk05
henryk05
25 300 500 325.00 100.00 600.00
BAGTAS FORMULA
Mandated Wage Increase
WDA = x Present Wage of Employee
Existing Minimum Wage

WDA = Wage Distortion Adjustment


EMW = Existing Minimum Wage
PWE = Present Wage of Employee
MWI = Mandated Wage Increase
NDMW = New Daily Minimum Wage

MWI EMW PWE WDA NDMW


25 300 325 27.08 352.08
25 300 330 27.50 357.50
25 300 335 27.92 362.92
25 300 340 28.33 368.33
25 300 345 28.75 373.75
25 300 350 29.17 379.17
25 300 355 29.58 384.58
25 300 360 30.00 390.00
25 300 365 30.42 395.42
25 300 370 30.83 400.83
25 300 375 31.25 406.25
25 300 380 31.67 411.67
25 300 385 32.08 417.08
25 300 390 32.50 422.50
25 300 395 32.92 427.92
25 300 400 33.33 433.33
25 300 405 33.75 438.75
25 300 410 34.17 444.17
25 300 415 34.58 449.58
25 300 420 35.00 455.00
25 300 425 35.42 460.42
25 300 430 35.83 465.83
25 300 435 36.25 471.25
25 300 440 36.67 476.67
25 300 445 37.08 482.08
25 300 450 37.50 487.50
25 300 455 37.92 492.92
25 300 460 38.33 498.33
25 300 465 38.75 503.75
25 300 470 39.17 509.17
25 300 475 39.58 514.58
25 300 480 40.00 520.00
25 300 485 40.42 525.42
25 300 490 40.83 530.83
25 300 495 41.25 536.25
henryk05

25 300 500 41.67 541.67

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