DAVAO CITY – An additional Php16.00 on the minimum wage rate in the region has taken effect on January 1, 2023, for both non-agriculture and agriculture sector. Said increase is the second tranche of the minimum wage increase from the issuance of the order on June 19, 2022.

According to the Department of Labor and Employment Region XI, this is pursuant to Wage Order No. RB-XI-21 that granted an increase in minimum wage for workers in various sectors in Davao Region as issued by the Regional Tripartite Wage and Productivity Board (RTWPB) XI.

From Php427.00 rate since the effectivity of Wage Order No. RB-XI-21, the second tranche has brought the new minimum wage rate to Php 443.00 for the non-agriculture and Php 438.00 for the agriculture sector from Php 422.00.

For retail/service establishments employing not more than 10 workers, the new minimum wage rate has raised to Php428.00 from Php412.00.

A third and final tranche shall be granted to the said sector with Php15.00 increase effective April 1, 2023.

To recall, the board has simplified the classification of workers in the new wage order: (a.) non-agriculture (industrial, commercial, retail, and service regardless of the number of employees), and (b.) agriculture, in comparison to the previous wage order that took effect on 16 August 2018 which had three (3) classifications, setting apart establishments in retail and service employing not more than 10 workers.

One of the bases of the increase was the April 2022 data on existing socio-economic conditions in the region considering the Consumer Price Index in Region XI and the poverty threshold provided by the Philippine Statistics Authority.

DOLE-XI Regional Director Atty. Randolf C. Pensoy, who acts as the Chairman of the board, set in context that the new wage increase shall apply to minimum wage earners in the private sector within Davao Region, regardless of their position and the method by which they are paid.

RD Pensoy emphasized that DOLE-XI will make sure that any entity who refuses or fails to pay the prescribed rates shall be dealt with pursuant to Section 12 of RA No. 6727.

In 2022, DOLE-XI has inspected a total of 3,660 private establishments across the region covering a total of 159,060 workers. Of the establishments inspected, 99.62% were found compliant with the existing minimum wage. (PR/DOLE-XI)