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DOLE’s legal opinion noted that results-based pay remains subject to minimum wage requirements.

Workers paid per piece or task are still entitled to at least the applicable minimum wage, the Department of Labor and Employment (DOLE) clarified following questions over influencer-entrepreneur Rosmar Tan’s viral “₱1 per parcel” hiring post.

The clarification came after Josiah David Quising wrote to DOLE on August 21 questioning a Facebook post by Rosemarie Tan Pamulaklakin seeking stay-out parcel packers in Tagaytay City, Cavite.

The hiring post offered workers ₱1 for every parcel wrapped, saying a worker who could finish 2,000 parcels could earn ₱2,000.

In a three-page legal opinion dated September 7, DOLE explained that paying workers based on results—including piecework, “takay,” “pakyao,” or task-based arrangements—is allowed. However, this does not exempt employers from minimum-wage requirements.


“Workers paid by results… shall receive not less than the applicable statutory minimum wage rates,” DOLE said, citing the Omnibus Rules Implementing the Labor Code.

For normal working hours, workers paid by results must receive no less than the prevailing statutory minimum wage in their region. In other words, a ₱1-per-parcel arrangement could violate labor law if it results in a worker earning below the legally required minimum wage.

DOLE explained that Article 101 of the Labor Code authorizes the regulation of wages paid by results to ensure “fair and reasonable wage rates,” preferably through time-and-motion studies or consultation with representatives of workers and employers.

A Time and Motion Study is used to establish work methods and time standards and can serve as the basis for determining appropriate piece rates and production standards. Applications are filed with the appropriate Regional Tripartite Wages and Productivity Board before the rates are implemented.

Quising later shared DOLE’s response online, saying it affirmed his concern about the viral hiring offer. His post drew thousands of reactions.

DOLE, however, stopped short of declaring that Tan herself had violated labor law. The department stressed that its opinion was based solely on the facts presented by Quising, was “strictly advisory,” and could not be invoked in court or before an administrative body.

The agency said affected workers may file a Request for Assistance under the Single Entry Approach or request a workplace inspection. Labor authorities may examine employment records, interview workers and inspect the workplace to determine compliance.

The DOLE opinion ultimately makes one thing clear: employers may legally pay workers by the piece, but they cannot use a piece-rate arrangement to pay workers less than the minimum wage.

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