The Regional Tripartite Wages and Productivity Board (RTWPB) in Region X (Northern Mindanao) motu proprio issued Wage Order No. RX-22 on 21 December 2023, granting a P23 daily minimum wage increase across all categories upon effectivity, and an additional P10 as second tranche on 01 July 2024. Upon full implementation of the two tranches, the daily minimum wage rates in the region shall be ₱423-₱438 for the non-agriculture sector; and ₱411-₱426 for the agriculture sector.

Wage Category 1:

• Cities of Cagayan de Oro and Iligan, and the Municipalities of Tagoloan, Villanueva, and Jasaan
• Cities of Malaybalay, Valencia, Gingoog, El Salvador and Ozamiz, and the Municipalities of Opol, Maramag, Quezon, Manolo Fortich, and Lugait

Wage Category 2:

• Cities of Oroquieta and Tangub and the Municipalities of Laguindingan, Mambajao, and Balingasag
• All other areas not covered under the above categories; All Retail and Service Establishments employing not more than ten (10) workers

The RTWPB also motu proprio issued Wage Order No. RX-DW-04, increasing the monthly minimum wage of kasambahays by P500 for chartered cities and first-class municipalities and P1,500 for other municipalities. The monthly wage rate for all areas in the region will now be P5,000:

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 20 December 2023. The wage orders will be published on 26 December 2023 and shall take effect after 15 days from their publication, or on 11 January 2024.

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 wage consultations last October 16 in Misamis Oriental and Camiguin, October 17 in Lanao del Norte, November 6 in Misamis Occidental, and November 28 in Bukidnon, and a region-wide public hearing on 15 December 2023 in Cagayan de Oro City and wage deliberation on 19 December 2023.

The new rates for workers in the private sector translate to an 8% 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.

Wage Order No. RX-22 is expected to directly benefit 144,133 minimum wage earners in the region. About 267,305 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 54,851 domestic workers – approximately 20% (11,059) of whom are on live-in arrangement.

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-X 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 rb10@www.aliflora.vip.

The last wage orders for workers in private establishments and domestic workers in the region were both issued on 27 May 2022 and became effective on 18 June 2022.