Philippine wage-compliance tool
Minimum-Wage and Underpayment Calculator
Compare the applicable regional daily minimum wage with the basic wage actually paid. Estimate the basic-wage deficiency, related 13th-month effect, and potential RA 8188 double-indemnity exposure.
Enter the payroll facts
The region is recorded in the result but does not automatically select a rate.
Exclude overtime, holiday premiums, night differential, 13th-month pay, reimbursements, and non-integrated allowances.
Enter ordinary hours only. Do not place overtime hours here.
Your preliminary estimate
Verify the exact wage order and applicable rate, complete the payroll fields, then select Calculate underpayment.
What this calculator includes—and excludes
| Item | Treatment |
|---|---|
| Ordinary basic wage | Compares the verified daily minimum with actual basic pay for equivalent eight-hour days. |
| Partial ordinary workday | Uses one-eighth of the daily minimum per ordinary hour entered. |
| 13th-month-pay effect | Optional estimate equal to one-twelfth of the basic-wage deficiency. |
| RA 8188 double indemnity | Displays twice the unpaid prescribed wage benefit as potential statutory exposure. An enforceable recovery depends on the proper proceeding and findings. |
| Overtime, rest day, holiday and night work | Excluded because each uses separate multipliers and overlapping rules. Compute them independently. |
| Deductions, benefits and damages | Excluded unless they are independently established. An allowance cannot automatically cure a basic-wage deficiency. |
Records to collect
- Applicable wage order, implementing rules, and effectivity date
- Workplace address, industry, establishment size, and employee classification
- Daily time records, schedules, payslips, payroll sheets, and bank deposits
- Employment contract and proof of piece-rate, task-rate, or monthly-pay arrangement
- Records of allowances and whether any item was lawfully integrated into basic wage
- DOLE inspection findings, notices of results, compliance orders, or exemption approval
Related guides and tools
Paid below minimum wage: what can you do? · Minimum Wage Philippines · Payslip requirements · Labor claim filing deadline · Where should I file?
Direct answer and calculation logic
Wage underpayment is the difference between the verified applicable minimum-wage rate and the basic wage actually paid, multiplied by the covered compensable days or hours. There is no single national rate: the correct wage order depends on region, locality, sector, establishment category, date and any lawful exemption.
| Component | Formula |
|---|---|
| Daily deficiency | Applicable daily minimum − actual daily basic wage |
| Basic underpayment | Daily deficiency × covered days |
| 13th-month effect | Covered basic-wage deficiency ÷ 12 |
| Possible double indemnity | Shown separately and only as a potential RA 8188 exposure |
Official rate verification
Confirm the applicable wage order and current rate through the National Wages and Productivity Commission or the relevant regional wage board. Review Republic Act No. 6727, Republic Act No. 8188, and the current minimum-wage guide. Do not use an unverified rate from another region or effective period.
Minimum-wage and underpayment FAQs
Is there one national minimum wage?
No. Regional Tripartite Wages and Productivity Boards issue wage orders, and rates may vary within a region by sector, locality, establishment size, or other lawful category.
How do I find the correct daily minimum wage?
Identify the workplace region, sector, locality, headcount or establishment category, and the date the work was performed. Then check the wage order and implementing rules effective on that date.
Why can’t the calculator choose a rate from the region alone?
A single region may have multiple lawful rates. Selecting one number without the worker’s category and wage-order date could overstate or understate the claim.
Can allowances be counted toward minimum wage?
Not automatically. The legal character of the payment and whether it forms part of basic wage must be established. Reimbursements, premiums, and many benefits are not substitutes for required basic wage.
What about monthly-paid employees?
Convert the pay using the lawful equivalent applicable to the employee’s work and pay arrangement, or use actual payroll totals. Do not assume every monthly salary uses the same divisor.
What about piece-rate, pakyaw, takay, or task workers?
Workers paid by results must still receive not less than the applicable prescribed wage for eight hours, or the proportionate amount for shorter work, subject to the governing rules and approved rates.
Does the tool calculate overtime?
No. Overtime, rest-day, special-day, regular-holiday, and night-shift calculations have separate multipliers and can overlap. They should be computed separately to avoid double counting.
What is double indemnity under RA 8188?
RA 8188 states that an employer violating prescribed wage increases or adjustments may be ordered to pay an amount equivalent to double the unpaid benefits owing, without removing possible criminal liability.
Is double indemnity automatically paid?
No. The tool displays potential statutory exposure. Liability, coverage, the unpaid base, and the enforceable amount require findings through the proper process.
Can an employer deduct shortages or damage from minimum wage?
Wage deductions are separately regulated. A claimed shortage, loss, or damage does not automatically authorize an employer to reduce pay below the lawful wage.
What if the wage rate changed during the claim period?
Split the calculation into separate periods using the rate effective during each period, then add the deficiencies. Do not apply the newest rate retroactively unless the order provides otherwise.
How far back can wage underpayment be claimed?
Employment money claims generally have a three-year prescriptive period from accrual, but each payroll deficiency may accrue separately and interruption can be fact-sensitive.
Where can an employee report minimum-wage underpayment?
SEnA, the appropriate DOLE office, or the NLRC may be relevant depending on the employment status, relief, inspection context, and jurisdiction. Use the filing decision tool as a preliminary guide.
Featured photo: Jakub Żerdzicki / Unsplash.