A total of 287,683 minimum wage earners in private establishments in Ilocos and Western Visayas Regions are expected to directly benefit from the wage increases after the National Wages and Productivity Commission (NWPC) affirmed on 19 October 2023 the wage orders submitted by the Regional Tripartite Wages and Productivity Boards (RTWPBs) I and VI.

About 677,626 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 wage distortion corrections.

RTWPBs I and VI have also issued wage orders for kasambahays. The wage increases are expected to benefit a total of 259,820 domestic workers – approximately 23% (58,517) of whom are on live-in arrangements, and 77% (201,303) are live-out.

As of date, eight (8) RTWPBs have issued their respective wage orders, out of which, three (3) were initiated motu proprio.

RTWPB – I Wage Orders

RTWPB I (Ilocos Region) motu proprio issued Wage Order No. RB 1-22 on 10 October 2023, providing a P30-P35 increase in the daily minimum wage in the region. Upon effectivity, minimum wage rates will be set at P435 for non-agricultural establishments with 10 or more workers and P402 for non-agricultural establishments with less than 10 workers, and agricultural workers.

In a parallel effort to improve the wages of domestic workers, RTWPB I also issued Wage Order No. RB 1-DW-04 granting a monthly increase of P500 bringing the monthly wage rate of domestic workers in the region to P5,500.

RTWPB I’s wage orders were published on 21 October 2023, and shall take effect after 15 days or on 06 November 2023.

RTWPB – VI Wage Orders

RTWPB VI (Western Visayas), by virtue of a petition, issued Wage Order No. RBVI-27 on 16 October 2023, granting a P30 minimum wage increase across all sectors. Upon effectivity, the daily minimum wage rates in the region will be P480 for non-agriculture establishments with more than 10 workers, P450 for non-agriculture establishments with 10 workers or less, and P440 for workers in agriculture.

The Regional Board also issued Wage Order No. RB VI-DW-05, granting a monthly increase of P500 and bringing the monthly wage rate of kasambahays in the region to P5,000.

RTWPB VI’s wage orders will be published on 31 October 2023, and shall take effect after 15 days or on 16 November 2023.

The increases, which considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act, either resulted from the motu proprio act of the Board or petitions filed by labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities. Each Board, comprised of representatives from the government, management, and labor sectors, conducted public hearings and wage deliberations.

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].

The RTWPBs 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 RTWPBs may also be reached through the following email addresses:

• Region I – rb1@www.aliflora.vip
• Region VI – rb6@www.aliflora.vip

All previous wage orders in these two regions became effective in June 2022