The Regional Tripartite Wages and Productivity Board in Region MIMAROPA motu proprio issued Wage Order No. RB-MIMAROPA-11 on 24 October 2023, granting a P40 daily minimum wage increase across all sectors upon effectivity. This brings the daily minimum wage rates to P395 for establishments with 10 or more workers; and P369.00 for establishments with less than 10 workers in all sectors.

The Regional Board also motu proprio issued Wage Order No. RB-MIMAROPA-DW-04, increasing the monthly minimum wage of domestic workers by P1,000. The monthly wage rate for areas in the region will now be P5,500:

In accordance with existing laws and procedures, the wage orders were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on 10 November 2023. The wage orders will be published on 21 November 2023 and shall take effect after 15 days from their publication, or on 07 December 2023.

The increases considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act. The Board, comprised of representatives from the government, management and labor sectors, conducted a series of public hearings last September 21 in Occidental Mindoro, September 27 in Marinduque, October 11 in Puerto Princesa City, and October 24 in Oriental Mindoro and wage deliberation on 24 October 2023.

The new rates for workers in the private sector translate to a 11%-12% increase from the prevailing daily minimum wage rates in the region and result in a comparable 23% increase in wage-related benefits covering 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth, and Pag-IBIG.

The wage order is expected to directly benefit 46,861 minimum wage earners in Region MIMAROPA.  About 113,324 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. On the other hand, the wage increases for kasambahays are expected to benefit a total of 28,269 domestic workers – approximately 21% (5,800) of whom are on live-in arrangements.

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-MIMAROPA shall undertake information campaigns to ensure compliance and 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 rb4b@www.aliflora.vip.

The last wage orders for workers in private establishments and domestic workers in the region became effective in June 2022.