DOLE Warns Employers Over Below-Minimum Piece-Rate Pay
The Department of Labor and Employment (DOLE) has addressed the controversial ₱1-per-parcel payment scheme offered by entrepreneur and internet personality Rosmar Tan after the job post went viral and received criticism online.
The issue started in August when Rosmar posted a job opening for stay-out packers in Tagaytay. Under the original arrangement, workers would receive ₱1 for every parcel they successfully packed and prepared for delivery. She promoted the opportunity as a way for people without regular jobs to earn extra income.
The post quickly drew attention from netizens, who questioned whether the payment scheme followed Philippine labor laws. Law professor Josiah David Quising then contacted DOLE to ask whether the arrangement was allowed and whether workers would still be protected by minimum wage rules.
In its response, DOLE clarified that workers who are paid based on their output, or the number of tasks they complete, are still covered by minimum wage protections. The agency cited Article 101 of the Labor Code of the Philippines, which provides rules for employees paid by results.
DOLE explained that employers cannot simply set a payment rate without following labor regulations. Even when workers are paid per parcel, per task, or through a piece-rate system, their earnings for a standard eight-hour workday must not fall below the applicable minimum wage in their region.
This means that if a worker spends the entire day packing parcels but earns less than the required minimum wage based on their output, the employer must ensure that the worker receives at least the legal minimum.
Following the controversy, Rosmar updated the employment terms. She said all packers would receive at least the applicable minimum wage, even if their parcel-based earnings were lower. Workers who exceed the minimum would keep the additional amount, while those who pack the most parcels could also receive bonuses.
