New wage system rewards careful bus drivers

By Dharel Placido,

Posted at Jun 28 2012 12:21 PM | Updated as of Jun 29 2012 12:52 AM

MANILA, Philippines – A new wage system for bus drivers around Metro Manila was made to avoid road accidents, a perennial problem among buses rushing to get passengers, an official said on Thursday.

Land Transportation, Franchising and Regulatory Board (LTFRB) chairman Jaime Jacob said the new wage system, which will take effect on July 1, will be based on fixed wages and commission.

Jacob said based on the Department of Labor and Employment (DOLE) Order 118-12, the fixed component of a driver’s salary should not be lower than the applicable minimum wage.

The commission component, meanwile, shall be based on the bus company’s net revenue and the bus driver’s safety record.

'"Yung second part, based dun sa net revenue ng company. Mag-uusap sila company officials kung ilang percentage ng net revenue ang mapupunta sa kanila," Jacob told ANC’s Headstart.

"Sa commission basis, ang magiging basehan ng share ng individual drivers dun sa mapupunta sa kanila ay iyung safety record niya: kung wala siyang aksidente, walang traffic violations, walang reklamo 'yung mga pasahero, mga pedestrian sa kanya, mas malaki ang magiging share niya,” he added.

The department order had also required bus companies to submit their proposed compensation scheme that was “mutually agreed upon with their drivers and conductors”.

In a separate interview on dzMM’s Kabayan, DOLE Secretary Rosalinda Baldoz said 35 bus companies have so far formally expressed their compliance with the department order.

"Lahat po sila (bus companies) ay na-orient para sila ay maging compliant. Sa ngayon ay 35 po iyung na-certify na," she said.

Baldoz said there are 158 bus operators plying a total of 64 routes covered by the department order.

"May mga ruta po na abot ng Region IV-A at meron ding ruta na abot ng Region III kaya 'yan po ang sakop nitong originally ay Metro Manila lang ang iniisip,” she said.

Baldoz warned non-complying bus companies of revocation of their franchises.


Under the order, bus drivers will be entitled to a holiday pay equivalent to their daily salary; one rest day a week; overtime pay; night differential pay; and 13th month pay.

They are also entitled to the following benefits:

  • paid leave of 5 days every year
  • paid maternity leave of 60 days for normal delivery and 78 for caesarian delivery
  • paid paternity leave of 7 days
  • paid parental leave of 7 days for solo parents
  • paid leave of 10 days for victims of violence against women and children
  • paid leave for women who underwent surgery caused by gynecological disorders
  • retirement pay upon reaching the age of 60

The order also said the maximum hours of work in a day should be 12 hours. A rest period of at least an hour is also required.

It also outlined the social welfare benefits for bus drivers and conductors. This includes Philhealth, SSS, Pag-IBIG and other wage-related benefits.

Drivers will also have the right to security of tenure and due process as provided by law.