The Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region (NCR) issued Wage Order No. NCR-25 on 27 June 2024 providing an increase of P35 bringing the daily minimum wage in the region from P610 to P645 for the non-agriculture sector and from P573 to P608 for the agriculture sector, service and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers. The said wage order was transmitted to the National Wages and Productivity Commission (NWPC) on the same date for review.

After finding that Wage Order No. NCR-25 is in accordance with existing laws and procedures, the NWPC affirmed the same on 28 June 2024 and authorized its publication on 01 July 2024. The wage order is to take effect after 15 days from its publication, or on 17 July 2024 which is exactly a day after the anniversary of the preceding wage order.

The increase, which was based on the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act, also considered the three 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 two (2) consultations for workers and employers on 23 May 2024 and 04 June 2024, respectively and a public hearing on 20 June 2024 in Quezon City as well as a wage deliberation on 27 June 2024 in Manila City.

The new rates, which translate to about 5.7% increase from the prevailing daily minimum wage rates in the region, remain above the latest regional poverty threshold for a family of five. These likewise result in a comparable 5% 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 around 988,243 minimum wage earners in NCR. About 1.7 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, as amended, 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 Enterprise (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 with the new wage order. For further clarifications on the matter, the RTWPB may also be reached through its email address rbncr@produktiboatsahod.onmicrosoft.com.

The last wage order for private establishments in the region was issued on 26 June 2023 and became effective on 16 July 2023.