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NCR Wage Hike to Take Effect Despite Appeal
Photo credit: DOLE
Despite an appeal filed by a coalition of labor organizations, the National Wages and Productivity Commission (NWPC) has confirmed that the Php40 minimum wage hike in the National Capital Region (NCR) will take effect on 16 July 2023. The NWPC clarified that employers in NCR are expected to implement the new daily minimum wage on the specified date.

The wage increase is outlined in Wage Order No. NCR-24, which was published on 30 June 2023 and is set to take effect 15 days thereafter. The order raises the daily minimum wage in NCR from Php570 to Php610 for the non-agriculture sector, and from Php533 to Php573 for the agriculture sector, service, and retail establishments employing 15 or fewer workers, as well as manufacturing establishments regularly employing less than 10 workers.

However, a joint appeal was filed on 03 July 2023 by the Alliance of Nationalist and Genuine Labor Organization, Labor Alliance for National Development, Gabay ng Unyon sa Telekomunikasyon at Serbisyo, Pinagkaisang Lakas ng Manggagawa ng Manila Bay, and their allied labor organizations. The appeal argues that the minimum wage determination should be based on the family living wage, amounting to Php1,161, rather than the poverty threshold. The petitioners cited inflation and the rising prices of basic services and commodities as reasons for their appeal.

The NWPC stated that the appeal is part of the minimum wage determination process and will be promptly addressed. According to the existing rules, the NWPC has 60 calendar days from the filing date to resolve the appeal. The appeal can be made based on the grounds of grave abuse of discretion, serious errors in the application of law, and non-compliance with prescribed guidelines and procedures, as specified in NWPC Guidelines No. 03, Series of 2022, also known as the Omnibus Rules on Minimum Wage Determination.

The wage order was issued by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) in accordance with the provisions of Republic Act No. 6727, or the Wage Rationalization Act. The RTWPB-NCR consists of the Department of Labor and Employment (DOLE) regional director as the chairperson, National Economic and Development Authority (NEDA) and Department of Trade and Industry (DTI) regional directors as vice chairpersons, and two representatives each from the labor and employer sectors.

In addition to the NCR, petitions for minimum wage increases have also been filed in Regions III, IV-A, V, VI, and VII. The respective RTWPBs in Central Luzon, Calabarzon, and Western Visayas are currently evaluating the merit of these petitions. The RTWPB in Central Visayas is scheduled to conduct public hearings in July and August 2023.
Jul 11, 2023
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