NEWS AND ANNOUNCEMENTS
Minimum wage increase for private sector and domestic workers in Western Visayas Region approved
The Regional Tripartite Wages and Productivity Board (RTWPB) VI motu proprio issued Wage Order No. RBVI-28 on 22 October 2024, granting a P33-P40 daily wage increase for private sector workers in Western Visayas. This brings the daily minimum wage rates in the region to a range of P485 – P513 in the non-agriculture sector and P480 in the agriculture sector.
Sector/Industry | Minimum Wage under Wage Order No. RBVI-27 | Amount of Increase | New Minimum Wage Rates (Upon effectivity) |
1. Non-Agriculture/Industrial/Commercial | |||
A. Employing more than ten (10) workers | Php 480.00 | Php 33.00 | Php 513.00 |
B. Employing ten (10) workers or less | Php 450.00 | Php 35.00 | Php 485.00 |
2. Agriculture | Php 440.00 | Php 40.00 | Php 480.00 |
RTWPB VI likewise approved a P1,000 monthly increase for kasambahays in the region bringing the monthly minimum wage to P6,000:
Monthly Minimum Wage under Wage Order No. RB VI-DW-05 | Amount of Increase | New Minimum Wage Rate |
Php 5,000.00 | Php 1,000.00 | Php 6,000.00 |
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 28 October 2024. The wage orders will be published on 01 November 2024 and shall take effect on 17 November 2024, a day after their anniversary.
The increases considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act. The Regional Board, comprised of representatives from the government, management, and labor sectors, likewise conducted consultations and public hearings in the region as part of the minimum wage determination process.
The new rates for workers in the private sector translate to a 7%- 9% increase from the prevailing daily minimum wage rates in the region and result in a comparable 11% 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 193,032 minimum wage earners and about 300,252 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 increase for kasambahays is also expected to benefit a total of 160,795 domestic workers, 31% 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. Registered Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].
RTWPB VI 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 rb6@produktiboatsahod.onmicrosoft.com.
The last wage orders for workers in private establishments and domestic workers in the region were both issued on 16 October 2023 and became effective on 16 November 2023.