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    Distortion Formula

    Uploaded by

    Windy Awe Malapit
    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.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd

    Distortion Formula

    Uploaded by

    Windy Awe Malapit
    44K views11 pages
    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.

    Original Description:

    Labor Law

    Copyright

    © © All Rights Reserved

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    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.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    44K views11 pages

    Distortion Formula

    Uploaded by

    Windy Awe Malapit
    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.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 11

    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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