QUEZON CITY, (PIA) – The National Capital Region (NCR) Wage Board on Thursday (June 29, 2023) announced the approval of a PHP40 hike in the daily minimum wage for private sector workers in the region.
The wage hike was embodied in Wage Order No. NCR-24 on 26 June 2023, stating that there will be an increase of PhP40.00, bringing the daily minimum wage in the region from P570.00 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 less workers, and manufacturing establishments regularly employing less than 10 workers.
In accordance with existing laws and procedures, the wage order was submitted for affirmation to the National Wages and Productivity Commission (NWPC) on 26 June 2023. The NWPC affirmed the wage order on 27 June 2023 and authorized its publication on 30 June 2023.
The wage order is to take effect after 15 days from its publication, or on 16 July 2023.
The increase, which considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act, resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities. The Board, comprised of representatives from the government, management and labor sectors, conducted a public hearing on 2t June 2023 in Pasay City and a wage deliberation on 26 June 2023 in Manila.
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.
These likewise result in a comparable 7% increase in wage-related benefits covering 13th-month pay, service incentive leave (SlL), and social security benefits such as SSS, PhilHealth and Pag-lBlG.
The wage order is expected to directly benefit 1.1 million minimum wage earners in NCR. 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.
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 ten (10) workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPB for exemption from the wage increase. Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].
RTWPB-NCR shall undertake information campaigns to ensure compliance and to provide assistance to enterprises in correcting possible wage distortions. For exemption applications and further clarifications on the wage order, the RTWPB may also be reached through its email address wage_ncr@yahoo.com.ph.
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. (nwpc/pia-ncr)
