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Manila Bulletin devider Philippines devider National devider NCR minimum earners to get P40-increase in daily wage starting July 16

NCR minimum earners to get P40-increase in daily wage starting July 16

Published Jun 29, 2023 01:18 pm
Starting July 16, the minimum wage for workers in Metro Manila will be P610 following the P40 wage increase approval of the Regional Tripartite Wages and Productivity Board in the National Capital Region, the Department of Labor and Employment (DOLE) announced on Thursday, June 29. In a statement, DOLE said the Board’s Wage Order No. NCR-24 was already affirmed by the National Wages and Productivity Commission (NWPC) which favored the arguments raised by various labor groups, especially on the aspect of the escalating prices of basic goods and commodities. The same P40 increase in minimum wage applies for those working in the agriculture sector based on the NCR Board wage order.  The current minimum wage for those in the agriculture sector is P533 and with the wage order, it would increase to P573. The same increase— P533 to P573—also covers service and retail establishments employing 15 or less workers and manufacturing establishments regularly employing less than 10 workers. “The new rates, which translate to a 7% increase from the prevailing daily minimum wage rates in the region, remain above the regional poverty threshold of PhP452 per day for a family of five,” the statement read. “These likewise result in a comparable 7% increase in wage-related benefits covering 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth and Pag-BIG,” it added. Citing existing laws and procedures, DOLE said the wage order is to take effect after 15 days from its publication—or on July 16 this year.  The last Wage Order for workers in private establishments in the region was issued on 13 May 2022 and became effective on 04 June 2022.  Over a million beneficiaries  Based on the DOLE data, there are around 1.1 million minimum wage earners in Metro Manila which will directly benefit from the wage hike. “About 1.5 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 statement read.  Exemptions  Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178.  Retail and service establishments regularly employing not more than 10 workers, and enterprises affected by natural calamities and human-induced disasters may apply for exemption from the wage increase.
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