Salary hike for minimum wage earners approved in 3 regions in Luzon, Mindanao

The National Wages and Productivity Commission (NWPC) has approved the salary adjustment for minimum wage earners in Cagayan Valley, Central Luzon, and in Central Mindanao, the Department of Labor and Employment (DOLE) announced on Thursday, Sept. 28.

In a statement, DOLE said the decision of the NWPC to grant the wage increase will benefit a total of 682,117 minimum wage earners and will also have positive impact on around 1.5 million full-time wage and salary workers earning above the minimum wage as a result of upward adjustments at the enterprise level arising from wage distortion corrections. 

In Cagayan Valley Region, the NWPC affirmed the decision of the Regional Tripartite Wages and Productivity Boards (RTWPB) to grant P30 increase that will be given in two equal tranches—the first is this year upon effectivity of the order and the second tranche will be on April 2024.

“After full implementation of the tranches, the minimum wage rates in the region will be P450 for non-agriculture and P430 for agriculture establishments,” the DOLE statement read.

The RTWPB in the region also granted a P500 increase in the monthly salary of household workers, which means that their minimum salary should now be P5,500.

In Central Luzon, the RTWPB has approved the granting of P40 increase for workers in non-agriculture, agriculture, and retail/service establishments

For non-agriculture workers, the adjustment will be from P493 to P500 in all region except in the province with Aurora which is at P449. For agriculture workers, the adjustment will be from P454 to P470, except in Aurora which is from P422 to P434.

For retail and service workers, the adjustment would be from P475 to P489 except in Aurora which is P384.

For Soccsksargen (South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City), the increase is P35 for workers in the non-agriculture, agriculture, and service/retail establishments to be given in two tranches—P22 upon effectivity and P13 on Jan. 1 next year.

With the order, the minimum wage in the region will be P403 for non-agriculture, and P382 for agriculture, and service/retail.

The RTWPB also granted a monthly wage increase of P500 and brought the monthly wage rate of kasambahays in the region to P5,000 in the cities and first-class municipalities, and P4,500 to other municipalities in the region.

“All wage orders will be published on 30 September 2023, and shall take effect after 15 days or on 16 October 2023,” the DOLE statement read.

DOLE explained that the increases, which considered the various wage determination criteria provided under Republic Act No. 6727, or the Wage Rationalization Act, either resulted from the motu proprio act of the Board or petitions filed by labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities. 

Each Board, composed of representatives from the government, management, and labor sectors, conducted public hearings and wage deliberations.

“As in any wage order and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, retail/service establishments regularly employing not more than 10 workers and enterprises affected by natural calamities and/or human-induced disasters may apply to their respective RTWPB for wage increase exemption,” the DOLE statement read.

“Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178,” it added. (With Trixee Rosel)