MANILA — The Regional Tripartite Wages and Productivity Boards (RTWPBs) in II (Cagayan Valley), III (Central Luzon), and XII (SOCCSKSARGEN) issued motu proprio wage orders granting increases in the daily minimum wage rates of workers in private establishments following President Ferdinand R. Marcos, Jr.’s Labor Day directive for the timely review of minimum wages.
The adjustments, which vary per region, were reached through a collaborative consensus and unanimously approved by the members of the respective RTWPBs.
In Cagayan Valley, the RTWPB-II granted a P30 daily minimum wage increase across all sectors upon effectivity of the wage order. This brings the daily minimum wages from P450 to P480 for the non-agriculture sector, and from P430 to P460.00 for the agriculture sector.
RTWPB-II likewise approved a P500 monthly increase for kasambahays in all cities and municipalities in the region bringing the sector’s monthly minimum wage to P6,000.
In Central Luzon, RTWPB-III simplified its wage structure to the main sector/industry classifications of non-agriculture, agriculture, and retail and service. The increase in the amount of P50-P66 brings the daily minimum wage rates in the region to a range of P500-P550 in the non-agriculture sector; P485-P520 in the agriculture sector; and P435-540 in retail and service establishments upon full implementation of all tranches.
In accordance with existing laws and procedures, the wage orders were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on 25 September 2024. These wage orders will be published on 01 October 2024 and shall take effect on 17 October 2024.
The increases considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act. The Regional Boards, comprised of representatives from the government, management, and labor sectors, likewise conducted consultations and public hearings in their respective regions as part of the minimum wage determination process.
The new rates for workers in private establishments translate to about 7%-15% increase from the prevailing daily minimum wage rates in these three regions, and result in a comparable 7%-12% increase in wage-related benefits covering 13th-month pay, service incentive leave, and social security benefits such as SSS, PhilHealth, and Pag-IBIG.
The wage orders are expected to directly benefit a total of 905,000 minimum wage earners in these regions and about 1.7 million full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.
The wage increase in Region II for kasambahays is also expected to benefit a total of 49,165 domestic workers – approximately 15% (7,394) of whom are on live-in arrangements, and 85% (41,771) who are on live-out arrangements.
As in any wage order, and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, as amended, retail/service establishments regularly employing not more than ten (10) workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPBs for exemption from the wage increases. Barangay Micro Business Enterprises are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].
RTWPBs II, III and XII shall undertake information campaigns to ensure compliance and provide assistance to enterprises in correcting possible wage distortions. For exemption applications and further clarifications on the wage order, the concerned RTWPBs may also be reached through these email addresses: [email protected], [email protected] and [email protected].
The last wage orders for workers in private establishments and domestic workers in Cagayan Valley, Central Luzon and SOCCSKSARGEN became effective on 16 October 2023. (DOLE-NWPC)
