Say goodbye to the 'boundary' system for bus drivers and conductors. The Department of Labor and Employment (DOLE) recently released revised operational guidelines regarding the payment schemes of public utility bus drivers and conductors. With the new payment scheme, bus companies and operators are mandated to pay drivers and conductors a fixed minimum salary, effectively ending the previous 'boundary' system payment method.
Based on the revised guidelines issued by DOLE, the new payment scheme will be part-fixed and part-performance based. Under the new compensation scheme, bus drivers and conductors will be entitled to a salary not lower than the minimum wage in their respective regions. They will also get to enjoy benefits such as night-shift differential, incentive leaves, 13th-month pay, holiday pay, and even overtime pay.
Aside from the fixed salary, bus drivers will still have a performance-based wage component which is dependent on revenue, ridership, safety as well as other relevant parameters. According to DOLE, the compensated salary is computed by deducting their average daily earnings from their fixed wage. This way, bus drivers and conductors have the opportunity to earn more on top of their fixed daily salary.
DOLE has warned bus companies and operators their franchises would be revoked or canceled if they do not comply with the new wage order.
By abolishing the 'boundary' system of payment for bus drivers and conductors, the government hopes that bus-related accidents would go down as drivers will no longer have to race against each other to pick up passengers.
You may read the full DOLE guidelines here.