The Regional Tripartite Wages and Productivity Boards (RTWPBs) of Region IV-A (CALABARZON) and Region VII (Central Visayas) have issued wage orders granting increases in the daily minimum wage rates of workers in private establishments. The adjustments range from P21 to P75 per day for Region IV-A and P33 to P43 per day for Region VII. Both adjustments were reached through consensus and unanimously approved by the government, labor and employer representatives in both RTWPBS, and have likewise been unanimously affirmed by the National Wages and Productivity Commission (NWPC).

The wage orders were issued following President Ferdinand R. Marcos, Jr.’s Labor Day directive to the RTWPBs to review regional minimum wage rates prior to the anniversary dates of previous wage increases. The last wage orders for workers in private establishments in Region IV-A and Region VII became effective on 24 September 2023 and 01 October 2023, respectively. The new wage increase in Region IV-A will take effect on 30 September 2024, or after five days from the anniversary date of the previous regional wage increase. In Region VII, the new wage order will take effect on 02 October 2024, the day immediately following the anniversary date of the previous regional wage order.

RTWPB IV-A re-categorized the grouping of areas on the basis of the income classification of local government units and simplified the wage structure into the agriculture and non-agriculture sectors and retail establishments employing not more than ten workers. The increase brings the daily minimum wages to P450-P560 in the non-agriculture sector; P425-P500 in the agriculture sector; and P425 in retail and service establishments employing not more than 10 workers upon full implementation of all tranches.

Note: For the Municipality of Rosario, Cavite, which is under the 1^st Class Municipalities, the increase for the non-agriculture sector is P41 (first tranche) and P20 (second tranche).

 On the other hand, RTWPB-VII kept its area-based classifications of Classes A, B, and C, but each class now has a single wage rate for both agriculture and non-agriculture sectors. The increase brings the daily minimum wages from P458-P468 to P501 for Class A; P425-P430 to P463 for Class B; and P415-P420 to P453 for Class C.

The new rates for workers in private establishments translate to about 7%-8% increase from the prevailing daily minimum wage rates in the two regions and result in a comparable 11% increase in wage-related benefits covering 13th-month pay, service incentive leave, and social security benefits such as SSS, PhilHealth, and Pag-IBIG.

The wage orders are expected to directly benefit a total of 1.2 million minimum wage earners in these regions and about 2.7 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 provided for in the NWPC Omnibus Rules on Minimum Wage Determination, as amended, retail/service establishments regularly employing not more than ten workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPBs for exemption from the wage increase. On the other hand, Barangay Micro Business Enterprises are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].

The RTWPBs in the two regions 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 concerned RTWPBs may also be reached through these email addresses rb4a@produktiboatsahod.onmicrosoft.com and rb7@produktiboatsahod.onmicrosoft.com.