The National Wages and Productivity Commission (NWPC), in its 18 December 2024 meeting, affirmed Wage Order No. RX-23 issued by RTWPB X for private sector workers in Northern Mindanao which grants an increase of P23 for the non-agriculture sector; and P35 for the agriculture sector to be given in two (2) tranches. These increases will bring the minimum wage rates in the region to a range of P446 to P461 upon full implementation and will effectively eliminate the sectoral rate differentiation between the non-agriculture and agriculture sectors reflecting the Board’s ongoing efforts to streamline its wage classification structure.

Wage Order RX-DW-04 which grants a P1,000 monthly increase for kasambahays across Northern Mindanao was also affirmed.

Similarly, NWPC approved Wage Order No. NCR-DW-05 issued by RTWPB National Capital Region (NCR) granting a P500 monthly increase for kasambahays across the region. This will bring the sector’s monthly minimum wage to P7,000:

The wage orders of RTWPB X will be published on 27 December 2024 and will take effect on 12 January 2025, while NCR’s wage order for domestic workers was published on 19 December 2024 and will be effective on 04 January 2025.

Minimum Wage Increases

For the 2024 round, 14 RTWPBs issued new wage orders for workers in the private sector in regions NCR, CAR, I, II, III, IVA, MIMAROPA, VI, VII, VIII, IX, X, XII, and XIII, with daily wage increases ranging from P21 to P75. Further, 9 new wage orders were issued for domestic workers in regions NCR, CAR, I, II, MIMAROPA, VI, VIII, X, and XIII, with monthly wage increases ranging from P500-P1,100. All were initiated motu proprio and issued unanimously by the concerned RTWPBs.

A total of 4,907,584 minimum wage earners in the private sector will directly benefit from the wage increases approved by the 14 RTWPBs this year, along with 717,508 domestic workers across nine (9) regions. In addition, about 7,528,968 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.

NWPC Resolution No. 05, Series of 2024 issued by the NWPC in May 2024 amended Rule IV of NWPC Guidelines No. 03, Series of 2020 or the Omnibus Rules on Minimum Wage Determination, and allowed the RTWPBs to not only initiate review within the 60-day period prior to their wage order anniversary but also to issue a new one, if necessary, provided the same will not take effect within the twelve-month period from their last wage order’s effectivity.

Wage Determination Process in Two (2) Remaining Regions

RTWPB V has resolved to defer the minimum wage determination process in the Bicol Region due to the impact of Tropical Cyclone Kristine which left the region in a State of Calamity. It will resume the process as soon as circumstance permits or after three months from 07 November 2024 (or February 2025).

Meanwhile, RTWPB XI is currently conducting consultations with various stakeholders in the region, the outcomes of which will be factored in their minimum wage determination process scheduled for January 2025.

Simplified wage structures and roll-out of productivity initiatives

Four (4) RTWPBs (III, IV-A, VII, and X) assisted by the NWPC simplified their wage structures and successfully implemented streamlining in accordance with the Omnibus Rules, as amended, and NWPC Resolution No. 04, Series of 2024 which encourages the RTWPBs to regularly review their wage classifications to ensure consistency with socioeconomic demographics. Said initiative aims to ensure clarity and enhance minimum wage compliance, ultimately supporting a more efficient and transparent wage system for both employers and workers.

Additionally, the RTWPBs have been instructed to roll out productivity improvement programs and gainsharing schemes designed to foster sustainable and long-term wage growth. These programs particularly target areas within the regions with lower productivity levels, where their implementation can significantly enhance overall efficiency.

Implementation of Minimum Wage Increases and Relief Mechanisms in Calamity-Stricken Areas

The Department of Labor and Employment (DOLE), through the NWPC, also reiterated the guidelines that provide for an exemption mechanism for calamity-affected enterprises following the several typhoons that hit the country and caused significant challenges to businesses in affected areas. Enterprises may inquire and apply through the RTWPB with jurisdiction over their business areas whether they may be eligible for a full exemption or for a specific minimum wage tranche, if any. Businesses and workers are encouraged to visit the NWPC website at https://www.aliflora.vip/ or follow the NWPC Facebook page at https://www.facebook.com/dole.nwpc/ for more details on the exemption process.

Likewise, the Department urged businesses and workers to avail of existing DOLE programs, such as the Adjustment Measures Program (AMP), and take full advantage of the opportunities available. The objective of AMP is to reduce and mitigate the vulnerability of workers and enterprises from economic disruptions, including those resulting from natural calamities.

As 2024 ends, the NWPC remains committed to supporting the Marcos Administration in maintaining a regular and predictable schedule for wage review, with a continued focus on fair and transparent wage determination process; simplifying wage structures, and promoting productivity improvement programs to foster long-term wage and productivity growth.