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NEWS AND ANNOUNCEMENTS

Minimum wage increase for private sector and domestic workers in Eastern Visayas region approved

November 18, 2024

The Regional Tripartite Wages and Productivity Board (RTWPB)-VIII (Eastern Visayas Region) motu proprio issued Wage Order No. RB VIII-24 on 05 November 2024, granting a P30 daily minimum wage increase across all sectors. This brings the daily minimum wage rates to P405 to P435 in different sectors/industries upon full implementation of all tranches.

Sector/Industry

Minimum

Wage

under

WO No.

RB VIII-23

Wage

Increase

(Upon effectivity)

New

Minimum

Wage Rates

Wage

Increase

(2nd Tranche:

June 1, 2025)

New

Minimum

Wage Rates

(Upon effectivity)

Non-Agriculture

Php 405.00

Php 15.00

Php 420.00

Php 15.00

Php 435.00

Service/Retail Establishment employing 11 workers and above

Service/Retail Establishment employing 10 workers and below

Php 375.00

Php 390.00

Php 405.00

Cottage and Handicraft

Agriculture

The Regional Board also approved a P500 monthly increase for kasambahays across all areas in the region bringing the sector’s monthly minimum wage to a range of P5,500 to P6,000:

Area/Location

Monthly Minimum

Wage Rates

under WO No.

RB VIII-DW-04

Amount of

Monthly Increase

New Monthly

Minimum

Wage Rates

Chartered Cities and First-Class Municipalities

Php 5,500.00

Php 500.00

Php 6,000.00

Other Municipalities

Php 5,000.00

Php 500.00

Php 5,500.00

Both wage orders were affirmed by the National Wages and Productivity Commission (NWPC) on 13 November 2024. They will be published on 16 November 2024 and shall take effect on 02 December 2024.

The increases considered the needs of workers and their families, capacity of employers/industry to pay, and the requirements of economic and social development in the region 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 a public hearing in the region as part of the minimum wage determination process.

The new rates for workers in the private sector translate to a 7% increase from the prevailing daily minimum wage rates in the region and result in a comparable 10% 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 126,095 minimum wage earners. About 175,639 full-time wage and salary workers earning above the minimum wage may also indirectly benefit because 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 57,080 domestic workers – approximately 18% (10,302) 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].

The last wage orders for workers in the private establishments and domestic workers in the region were both issued on 06 November 2023 and became effective on 30 November 2023. RTWPB VIII 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 rb8@produktiboatsahod.onmicrosoft.com.

For other regions, RTWPBs CAR, IVB, and IX are currently in various stages of the minimum wage determination process. RTWPBs X and XIII will commence minimum wage determination this November 2024 and RTWPB XI in January 2025. Meanwhile, RTWPB-V has decided to defer the wage determination process in the region due to the destructive impact of Super Typhoon Kristine, following a commendable recommendation from the labor representatives to the RTWPB. This course of action from the Board underscores the need to sustain both employment and business viability during the recovery period. The deferment will remain in effect until an appropriate recovery period has concluded. The Board, for the next three months, shall closely monitor the socioeconomic conditions in the region.

National Wages and Productivity Commission
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