Pay Hikes in Central Luzon Approved. Pero Kasya Ba?
Workers earning the minimum wage in Regions 3 (Central Luzon), 2 (Cagayan Valley), and 12 (Soccsksargen) are set to experience a boost in their pay following the approval of wage increases by their respective regional wage boards.
The National Wages and Productivity Commission (NWPC) confirmed the wage orders on Tuesday, September 26, after receiving submissions from the Regional Tripartite Wages and Productivity Boards (RTWPBs) of these regions.
A total of 682,117 minimum wage workers in these regions are projected to directly benefit from these wage augmentations.
An additional 1.5 million full-time workers earning above the minimum wage might also see an increase due to corrections in wage distortions at the enterprise level.
In Central Luzon, a P40 daily wage increase has been approved for workers in non-agriculture, agriculture, and retail service sectors.
This adjustment results in new daily earnings ranging from P493 to P500 for non-agricultural workers, P454 to P470 for agricultural workers, and P475 to P489 for retail and service workers, while workers in Aurora will earn different rates.
In Cagayan Valley, a P30 raise has been sanctioned, to be distributed in two phases.
The initial phase will commence with the wage order’s effectivity on October 16, and the second on April 1, 2024, elevating the daily minimum earnings to P450 for non-agricultural workers and P430 for agricultural workers.
Household workers in Region 2 will receive a P500 monthly increase under Wage Order 02-DW-05, raising their monthly earnings to P5,500.
Region 2 encompasses the provinces of Batanes, Cagayan, Isabela, Nueva Vizcaya, and Quirino.
Soccsksargen’s wage board has endorsed a P35 daily wage hike, to be implemented in two stages.
This increment elevates the daily minimum wage to P403 for non-agricultural workers and P382 for agricultural, retail, and service workers in the region.
Household workers in Soccsksargen will also see a P500 increase in their daily wages, except for those in first-class municipalities who will receive P4,500 monthly.
These wage orders are slated for publication on September 30, 2023, and will be effective 15 days later, on October 16, 2023.
These wage hikes, aligned with the criteria under Republic Act 6727 or the “Wage Rationalization Act,” were initiated either by the board’s own accord or through petitions from labor groups responding to the rising costs of basic goods.
Each board, consisting of representatives from the government, management, and labor, facilitated public hearings and wage discussions.
Retail/service establishments with less than 10 regular employees and businesses impacted by natural or human-induced disasters can seek wage increase exemptions from their respective RTWPB, as per the NWPC Omnibus Rules on Minimum Wage Determination.
Barangay Micro Business Enterprises remain exempt from the minimum wage law, as stipulated in Republic Act 9178 (2002).