The Regional Tripartite Wages and Productivity Board in Region XI (Davao) motu proprio issued Wage Order No. RB XI-22 on 13 February 2024, granting a P19 daily increase for minimumwage earners upon effectivity, and an additional P19 as second tranche on 01 September 2024. This brings the daily minimum wages in the region to P481 for the non-agriculture sector and P476.00 for the agriculture sector upon full implementation.

The Regional Board also motu proprio issued Wage Order No. RB XI-DW-03, increasing the monthly minimum wage of kasambahays by a range of P500 to P1,500 depending on the area. The monthly wage rate for chartered cities and first-class municipalities in the region shall now be P6,000, and P5,000 for other municipalities:

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 February 2024. The wage orders will be published on 19 February 2024 and shall take effect after 15 days from publication or on 06 March 2024.

The increases considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act. The Board, comprised of representatives from the government, management and labor sectors, conducted a public hearing last 07 February 2024 in Davao City and a wage deliberation on 13 February 2024.

The new rates for workers in the private sector translate to a 9% increase from the prevailing daily minimum wage rates in the region and result in a comparable 23% 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 132,347 minimum wage earners in Region XI. About 316,558 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 are expected to benefit a total of 64,111 domestic workers – approximately 37% (23,479) 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-XI shall undertake information campaigns to ensure compliance and to 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 rb11@produktiboatsahod.onmicrosoft.com.

The last Wage Orders for workers in private establishments and domestic workers in the region were both issued in May 2022 and became effective in June 2022.