
DAVAO CITY – A progressive organization said the P16 minimum wage hike effective Jan. 1 in the Davao region is worthless due to inflation that affects the purchasing power of families.
John Paul Dizon, Kilusang Mayo Uno-Southern Mindanao Region (KMU-SMR) secretary general, said on Friday, Jan. 6, that it is not enough to help workers cope with the impact of increasing prices of basic commodities and services in Davao.
Dizon added that the region’s current minimum wage only addresses the basic food necessities of families but not for education and health.
He said the KMU-SMR is pushing for a legislation that would set the family living wage at P1,100 to enable workers to have the capacity to purchase basic needs, which, in turn, would revitalize the economy and benefit business establishments.
Dizon urged the Department of Labor and Employment to beef up their monitoring of businesess in the region because there are companies that do not implement minimum wage.
The P16 increase is the second of a three-step wage hike in Davao.
The first tranche which added P31 took effect upon the issuance of Wage Order No. RB-XI-21 on June 19, 2022.
Under the second tranche, workers in the non-agricultural sector, comprising firms classified as industrial/commercial and retail/service employing more than 10 workers, would receive a new daily minimum wage of P443 from P427. On the other hand, workers in agricultural sectors will be paid P438 from P422.
For retail/service establishments employing not more than 10 workers, the new minimum wage is P428 from P412.
The third and final tranche with an additional P15 will take effect on April 1.