Wage distortion: when a raise erases the gap
Labor Code, Art. 124: wage distortion is when an increase in prescribed wage rates results in the elimination or severe contraction of intentional differences in pay between employee groups, based on skills, length of service or other logical bases.
Example
Illustrative example only.
| Before | After a ₱60 order | |
|---|---|---|
| New hire | ₱695 | ₱755 |
| Senior, 5 years | ₱770 | ₱770 |
| Gap | ₱75 | ₱15 |
Paano ito inaayos
- With a CBA or union: employer and union negotiate; dispute goes through the grievance procedure, then voluntary arbitration (decided within 10 calendar days unless agreed otherwise)
- Without a union: employers and workers try to correct it; dispute goes to the NCMB; if unresolved after 10 calendar days of conciliation, it goes to the NLRC, which decides within 20 calendar days
⚠️ Tandaan
A pending wage distortion dispute does not delay the wage increase itself. Art. 124 doesn't say how many pesos the fix must be. That is for the parties to work out.
Kung apektado ka
- ☐ Write your pay before and after the order
- ☐ Compute the old gap and the new gap
- ☐ Note your length of service and skills
- ☐ Raise it with HR in writing
Salary increase request letter, handa na, may table ng achievements 👇
Basis: P.D. 442 (Labor Code), Art. 124, as amended by R.A. 6727.