Minimum wage up in 14 regions, benefits 5M workers

Minimum wage workers in Central Visayas are in for a happy 2025 as the Department of Labor and Employment has granted a wage adjustment,  (CDN PHOTO/JUNJIE MENDOZA)

MANILA – Close to five million private sector workers who are minimum wage earners will directly benefit from wage increases approved by 14 Regional Tripartite Wage Productivity Boards (RTWPBs) in 2024.

Data from the Department of Labor and Employment (DOLE) revealed that 4,907,584 minimum wage earners in the private sector have been granted daily wage increases.

The wage hikes range from P21 to P75.

The RTWPBs issued wage orders in the National Capital Region (NCR), Cordillera Administrative Region (CAR), and Regions 1 (Ilocos), 2 (Cagayan Valley), 3 (Central Luzon), 4-A (Calabarzon), 4-B (Mimaropa).

The other areas that were granted wage adjustments were Regions 6 (Western Visayas), 7 (Central Visayas), 8 (Eastern Visayas), 9 (Zamboanga Peninsula), 10 (Northern Mindanao), 12 (Soccsksargen and 13 (Caraga).

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NCR workers

On June 27, RTWPB-NCR issued Wage Order NCR-25, granting a PHP35 increase. It will benefit some four million workers.

The order raised the minimum wage in Metro Manila to P645 from P610.

Meanwhile, Northern Mindanao was the latest region to grant an increase in the minimum wage.

Wage Order No. RX-23 issued by RTWPB-10 for private sector workers granted an increase of P23 for the non-agriculture sector and P35.00 for the agriculture sector to be given in two tranches.

The wage adjustment will bring the minimum wage rates in the region from P446 to P461 upon full implementation. The increase will be effective on Jan. 12, 2025 while the second tranche will start July 1, 2025.

Domestic workers

On the other hand, domestic workers or household helps in nine regions were similarly granted increases in their salaries ranging from P500 to P1,100.

There are a total of 717,508 domestic workers in the regions of Metro Manila, Cordillera, 1, 2, Mimaropa, 6, 8, 10 and Caraga.

Recently, the Metro Manila wage board issued Wage Order No. NCR-DW-05 granting a P500 monthly increase for household helps across the region.

The monthly minimum wage in the sector is now P7,000.

Amended guidelines

The National Wages and Productivity Commission (NWPC) Resolution No. 05 issued in May 2024 amended Rule IV of Guidelines No. 03, Series of 2020, or the Omnibus Rules on Minimum Wage Determination.

This allowed the RTWPBs to not only initiate review within the 60-day period prior to their wage order anniversary but also to issue a new one, if necessary, provided the same will not take effect within the 12-month period from their last wage order’s effectivity.

Four RTWPBs (3, 4-A, 7, and 10) assisted by the NWPC simplified their wage structures and successfully implemented streamlining in accordance with the Omnibus Rules, as amended, and NWPC Resolution No. 04, Series of 2024 which encourages the RTWPBs to regularly review their wage classifications to ensure consistency with socioeconomic demographics.

According to the DOLE, the initiative aims to ensure clarity and enhance minimum wage compliance, ultimately supporting a more efficient and transparent wage system for both employers and workers.

Additionally, the RTWPBs have been instructed to roll out productivity improvement programs and gainsharing schemes designed to foster sustainable and long-term wage growth.

These programs particularly target areas within the regions with lower productivity levels, where their implementation can significantly enhance overall efficiency.

2 regions yet to issue wage hikes

Two RTWPBs (5 or Bicol and 11 or Davao) have yet to issue wage orders.

Region 5 has resolved to defer the minimum wage determination process due to the impact of Severe Tropical Storm Kristine in October that left Bicol in a state of calamity.

It will resume the process as soon as circumstance permits or after three months from Nov. 7, 2024 or in February 2025.

On the other hand, RTWPB-XI is still conducting consultations with various stakeholders in the region, the outcomes of which will be factored into their minimum wage determination process scheduled for January 2025.

Relief mechanism

The DOLE, through the NWPC, reiterated the guidelines that provide for an exemption mechanism for calamity-affected enterprises following the several typhoons that hit the country and caused significant challenges to businesses in affected areas.

It noted that enterprises may inquire and apply through the RTWPB with jurisdiction over their business areas whether they may be eligible for a full exemption or a specific minimum wage tranche, if any.

Businesses and workers are encouraged to visit the NWPC website at https://nwpc.dole.gov.ph/ or follow the NWPC Facebook page at https://www.facebook.com/dole.nwpc/ for more details on the exemption process.

Likewise, the Department urged businesses and workers to avail of its existing programs, such as the Adjustment Measures Program (AMP), and take full advantage of the opportunities available.

The AMP aims to reduce and mitigate the vulnerability of workers and enterprises to economic disruptions, including those resulting from natural calamities.

“As 2024 ends, the NWPC remains committed to supporting the Marcos administration in maintaining a regular and predictable schedule for wage review, with a continued focus on a fair and transparent wage determination process; simplifying wage structures, and promoting productivity improvement programs to foster long-term wage and productivity growth,” it said. (PNA)