The Regional Tripartite Wages and Productivity Board (RTWPB) in CARAGA motu proprio issued Wage Order No. RXIII-18 on 05 December 2023, granting a P20 daily minimum wage increase across all sectors upon effectivity, and an additional P15 as second tranche on 01 May 2024. This will bring the daily minimum wages in the region to PhP385 upon implementation of the two tranches.

Wage Order No. RXIII-DW-04 was also motu proprio issued by RTWPB CARAGA increasing the monthly minimum wage of kasambahays by P1,000. The monthly wage rate in the region will now be P5,000.

Likewise, RTWPB NCR motu proprio issued Wage Order No. NCR-DW-04 on 12 December 2023, increasing the monthly minimum wage of kasambahays by P500. The new monthly wage rate will be P6,500.

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 13 December 2023. The wage orders of CARAGA will be published on 16 December 2023 and shall take effect after 15 days from their publication, or on 01 January 2024. On the other hand, the wage order for kasambahays of NCR will be published on 18 December 2023 and shall take effect on 03 January 2024.

The increase provided in Wage Order No. RXIII-18 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, conducted a series of public hearings in Surigao del Norte, Siargao Islands and Dinagat Islands, Agusan del Sur, Surigao del Sur, and Agusan del Norte in November 2023, and a wage deliberation on 05 December 2023. While RTWPB NCR conducted a public hearing on 22 November 2023 in Pasay City and wage deliberation on 12 December 2023.

The new rate for workers in the private sector translates to a 10% increase from the prevailing daily minimum wage rate in CARAGA Region and results in a comparable 23% increase in wage-related benefits covering the 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth, and Pag-IBIG.

Wage Order No. RXIII-18 is expected to directly benefit 65,681 minimum wage earners in CARAGA Region.  About 132,217 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 increases for kasambahays in CARAGA and NCR are expected to benefit a total of 256,476 domestic workers – approximately 57% (146,202) of whom are on live-in arrangement.

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. Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].

RTWPB-CARAGA shall undertake information campaigns to ensure compliance and provide assistance to enterprises in correcting possible wage distortions from the implementation of Wage Order No. RXIII-18. For exemption applications and further clarifications on the wage order, the RTWPB may also be reached through its email address rb13@www.aliflora.vip.

The last wage orders for workers in private establishments and domestic workers in CARAGA were both issued on 17 May 2022 and became effective on 06 June 2022. While the last wage order for domestic workers in NCR was issued on 21 June 2022 and became effective on 13 July 2022.