NEWS AND ANNOUNCEMENTS
Minimum wage increase for domestic and private sector workers in the Ilocos Region
The Regional Tripartite Wages and Productivity Board (RTWPB) – I (Ilocos Region) motu proprio issued Wage Order No. RB 1-23 on 9 October 2024, granting a P33 daily minimum wage increase across all sectors upon effectivity. This brings the daily minimum wages to P468 for the non-agriculture sector employing 10 or more employees and P435.00 for the non-agriculture sector employing less than 10 employees and agriculture sector.
CLASSIFICATION | MINIMUM WAGE | AMOUNT OF | NEW MINIMUM (Upon effectivity) |
Non-Agriculture employing 10 or more employees | Php 435.00 | Php 33.00 | Php 468.00 |
Non-Agriculture employing less than 10 employees; and Agriculture | Php 402.00 | Php 435.00 |
Likewise, RTWPB I motu proprio issued Wage Order No. RB 1-DW-05, increasing the monthly minimum wage of kasambahay by P500. The monthly wage rate of domestic workers in the region will now be P6,000:
MONTHLY MINIMUM WAGE | AMOUNT OF INCREASE | NEW MINIMUM WAGE RATE |
Php 5,500.00 | Php 500.00 | 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 16 October 2024. The wage orders will be published on 22 October 2024 and shall take effect on 07 November 2024 or 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 a public hearing in their region as part of the minimum wage determination process.
The new rates for workers in the private sector translate to an 8% increase from the prevailing daily minimum wage rates in the region and result in a comparable 12% 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 170,143 minimum wage earners and about 349,112 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 99,024 domestic workers – approximately 9% (9,104) 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 I 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 rb1@produktiboatsahod.onmicrosoft.com.
The last wage orders for workers in the private establishments and domestic workers in the region were both issued on 10 October 2023 and became effective on 06 November 2023.