How to determine wage of workers paid by results?

On petition of any interested party, or upon its initiative, the Department of Labor shall use all available devises, including the use of time and motion studies and consultation with representatives of employers’ and workers’ organizations, to determine whether the employees in any industry or enterprise are being compensated in accordance with the minimum wage requirements of this Rule.

The basis for the establishment of rates for piece, output or contract work shall be the performance of an ordinary worker of minimum skill or ability.

An ordinary worker of minimum skill or ability is the average worker of the lowest producing group representing 50% of the total number of employees engaged in similar employment in a particular establishment, excluding learners, apprentices and handicapped workers employed therein.

Where the output rates established by the employer do not conform with the standards prescribed herein, or with the rates prescribed by the Department of Labor in an appropriate order, the employees shall be entitled to the difference between the amount to which they are entitled to receive under such prescribed standards or rates and that actually paid them by the employer.

In government projects, payment of wages by results, such as payment on pakiaw, task, or piece-work basis, may be used by employers: Provided, however, That the output rates shall be in accordance with the standards prescribed in the immediately preceding Section, whenever applicable, or with such rates as may be established by the Department of Labor. (Sections 5 and 6 of Implementing Rules of the Labor Code of the Philippines, Rule VII-A: WAGES, Memorandum Circular No. 2, November 4, 1992)