Skip to main content

NEWS AND ANNOUNCEMENTS

New minimum wage orders issued in the Zamboanga Peninsula region

November 6, 2023

The Regional Tripartite Wages and Productivity Board in Region IX (Zamboanga Peninsula) motu proprio issued Wage Order No. RIX-22 on 16 October 2023, granting a P30 daily minimum wage increase across all sectors upon effectivity. A second tranche of P13 was also granted to retail/service establishments employing 10-30 workers to take effect on 01 February 2024. This brings the daily minimum wages to P381 for the non-agriculture sector and retail/ service establishment with 31 or more workers; P368.00 for retail/ service establishments which will further increase to PhP381 upon effectivity of the second tranche; and P368 for the agriculture sector.

 

New Wage Categories

Minimum Wage under Wage Order No. RIX-21

Amount of Increase

New MInimum Wage Rates

Non-Agricultural Establishments

Php 351.00

Php 30.00

Php 381.00

Retail/Service

- establishments employing 31 workers or more

- establishments employing 10 - 30 workers

Php 338.00

Php 30.00
(Upon effectivity)


Php 368.00

Php 13.00
February 1, 2024
(2nd tranche)

Php 381.00

- establishments employing 1 - 9 workers 

Php 338.00

Php 30.00

Php 368.00

Agricultural Establishments

 

The Regional Board also motu proprio issued Wage Order No. RIX-DW-04, increasing the monthly minimum wage of kasambahays by P600. The monthly wage rate for chartered cities and first-class municipalities in the region will now be P4,600, and P4,100 for other municipalities:

AREA/LOCATION

Current Minimum Wage Rate

Amount of Increase

New Minimum Wage Rate

Chartered Cities and First Class Municipalities

₱4,600.00

₱900.00

₱5,500.00

Other Municipalities

₱4,100.00

₱900.00

₱5,000.00

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 24 October 2023. The wage orders were published on 27 October 2023 and shall take effect after 15 days from their publication, or on 12 November 2023.

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 series of public hearings last September 19 in Zamboanga Sibugay, September 20 in Zamboanga del Sur, September 21 in Zamboanga del Norte, and September 25 in Zamboanga City and wage deliberation on 16 October 2023.

The new rates for workers in the private sector translate to a 9%-13% 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 56,848 minimum wage earners in Region IX.  About 121,490 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 18,984 domestic workers – approximately 13% (2,491) of whom are on live-in arrangements, and 87% (16,493) are live-out.

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-IX 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 rb9@produktiboatsahod.onmicrosoft.com.

The last Wage Orders for workers in private establishments and domestic workers in the region were both issued on 01 June 2022 and became effective on 25 June 2022.

National Wages and Productivity Commission
Skip to content