NATIONAL
Advocates Philippines
NCR Workers To Get P40 Increase In Daily Minimum Wage
Photo by JAY DIRECTO / AFP
Manila City, NCR - The Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region (NCR) has announced an increase in the minimum wage for workers in private establishments.
In an effort to address the rising cost of living and escalating prices of basic goods and commodities, the board issued Wage Order No. NCR-24 on 26 June 2023.
The wage order stipulates a PhP40.00 increase in the daily minimum wage, raising it from PhP570.00 to PhP610.00 for the non-agriculture sector, and from PhP533.00 to PhP573.00 for the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers.
The decision to increase the minimum wage was made after careful consideration of the wage determination criteria outlined in Republic Act No. 6727, also known as the Wage Rationalization Act. Numerous labor groups had filed petitions seeking a higher daily minimum wage due to the economic challenges faced by workers.
Following a public hearing on 21 June 2023 in Pasay City and a wage deliberation on 26 June 2023 in Manila City, representatives from the government, management, and labor sectors on the board reached a consensus on the wage increase. The new rates represent a 7% increase from the previous minimum wage rates in the region.
The wage order was subsequently affirmed by the National Wages and Productivity Commission (NWPC) on 27 June 2023 and is scheduled for publication on 30 June 2023. It will take effect 15 days after publication, starting from 16 July 2023.
The wage increase is expected to directly benefit approximately 1.1 million minimum wage earners in the NCR. Additionally, an estimated 1.5 million full-time wage and salary workers who earn above the minimum wage may indirectly benefit from upward adjustments at the enterprise level, as wage distortions are corrected.
The new minimum wage rates exceed the regional poverty threshold of PhP452 per day for a family of five, ensuring that workers can meet their basic needs. The wage increase will also result in a comparable 7% rise in wage-related benefits, including the 13th-month pay, service incentive leave (SIL), and social security benefits such as the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG).
However, certain exceptions apply to the wage order. Retail and service establishments with ten or fewer workers, as well as enterprises affected by natural calamities and/or human-induced disasters, may apply for exemption from the wage increase. Additionally, Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law, as stated in Republic Act No. 9178 [2002].
To ensure compliance and assist enterprises in addressing any potential wage distortions, the RTWPB-NCR will conduct information campaigns. Enterprises seeking clarification or exemption from the wage increase can contact the board via email at wage_ncr@yahoo.com.ph.
The previous wage order for workers in private establishments in the NCR was issued on 13 May 2022 and took effect on 04 June 2022. The latest wage increase reflects ongoing efforts to balance the needs of workers with economic realities in the region.
In an effort to address the rising cost of living and escalating prices of basic goods and commodities, the board issued Wage Order No. NCR-24 on 26 June 2023.
The wage order stipulates a PhP40.00 increase in the daily minimum wage, raising it from PhP570.00 to PhP610.00 for the non-agriculture sector, and from PhP533.00 to PhP573.00 for the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers.
The decision to increase the minimum wage was made after careful consideration of the wage determination criteria outlined in Republic Act No. 6727, also known as the Wage Rationalization Act. Numerous labor groups had filed petitions seeking a higher daily minimum wage due to the economic challenges faced by workers.
Following a public hearing on 21 June 2023 in Pasay City and a wage deliberation on 26 June 2023 in Manila City, representatives from the government, management, and labor sectors on the board reached a consensus on the wage increase. The new rates represent a 7% increase from the previous minimum wage rates in the region.
The wage order was subsequently affirmed by the National Wages and Productivity Commission (NWPC) on 27 June 2023 and is scheduled for publication on 30 June 2023. It will take effect 15 days after publication, starting from 16 July 2023.
The wage increase is expected to directly benefit approximately 1.1 million minimum wage earners in the NCR. Additionally, an estimated 1.5 million full-time wage and salary workers who earn above the minimum wage may indirectly benefit from upward adjustments at the enterprise level, as wage distortions are corrected.
The new minimum wage rates exceed the regional poverty threshold of PhP452 per day for a family of five, ensuring that workers can meet their basic needs. The wage increase will also result in a comparable 7% rise in wage-related benefits, including the 13th-month pay, service incentive leave (SIL), and social security benefits such as the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG).
However, certain exceptions apply to the wage order. Retail and service establishments with ten or fewer workers, as well as enterprises affected by natural calamities and/or human-induced disasters, may apply for exemption from the wage increase. Additionally, Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law, as stated in Republic Act No. 9178 [2002].
To ensure compliance and assist enterprises in addressing any potential wage distortions, the RTWPB-NCR will conduct information campaigns. Enterprises seeking clarification or exemption from the wage increase can contact the board via email at wage_ncr@yahoo.com.ph.
The previous wage order for workers in private establishments in the NCR was issued on 13 May 2022 and took effect on 04 June 2022. The latest wage increase reflects ongoing efforts to balance the needs of workers with economic realities in the region.
Jun 29, 2023
