NEWS AND ANNOUNCEMENTS
New wage orders for private sector and domestic workers in Cordillera Administrative Region and MIMAROPA affirmed, continuous implementation of productivity initiatives ordered to support wage growth
Private sector and domestic workers in the Cordillera Administrative Region (CAR) and MIMAROPA Region will receive wage increases after the National Wages and Productivity Commission (NWPC) unanimously affirmed on 05 December 2024 the new wage orders issued by the respective Regional Tripartite Wages and Productivity Boards (RTWPBs).
RTWPB CAR issued Wage Order No. CAR-23 on 13 November 2024, granting a P40 daily minimum wage increase across all provinces in the region. The said increase brings the daily minimum wage from P430 to P470 upon effectivity.
Area | Minimum Wage Rate under Wage Order No. CAR-22 | Amount of Increase | New Minimum Wage Rate |
Cordillera Administrative Region | ₱430.00 | ₱40.00 | ₱470.00 |
RTWPB CAR likewise issued Wage Order No. CAR-DW-06 granting a P1,100 monthly increase for kasambahays in the region bringing the sector’s monthly minimum wage from P4,900 to P6,000.
Area/Location | Monthly Minimum Wage under WO No. CAR-DW-05 | Amount of Increase | New Minimum Wage Rate |
Cordillera Administrative Region | ₱4,900.00 | ₱1,100.00 | ₱6,000.00 |
Wage Order Nos. CAR-23 and CAR-DW-06 will be published on 08 December 2024 and will take effect after fifteen (15) days from publication, or on 24 December 2024.
RTWPB MIMAROPA also issued Wage Order No. RB-MIMAROPA-12 on 27 November 2024, increasing the daily minimum wage for private sector workers in the region by P35. The minimum wage of workers in establishments with 10 workers and above will increase from P395 to P430 while those in establishments with less than 10 workers will increase from P369 to P404.
All Sectors | Minimum Wage under Wage Order No. RB-MIMAROPA-11 | Amount of Increase | New Minimum Wage Rates (Upon effectivity) |
Establishments with 10 workers and above | ₱395.00 | ₱35.00 | ₱430.00 |
Establishments with less than 10 workers | ₱369.00 | ₱404.00 |
RTWPB MIMAROPA, through Wage Order RB-MIMAROPA-DW-05, similarly approved a P1,000 monthly increase for domestic workers in the region bringing the sector’s monthly minimum wage to P6,500:
Area/Location | Monthly Minimum Wage under Wage Order RB-MIMAROPA-DW-04 | Amount of Monthly Increase | New Monthly Minimum Wage Rate |
MIMAROPA Region | ₱5,500.00 | ₱1,000.00 | ₱6,500.00 |
Wage Order Nos. RB-MIMAROPA-12 and RB-MIMAROPA-DW-05 will be published on 07 December 2024 and will take effect after fifteen (15) days from publication, or on 23 December 2024.
In affirming the wage orders, the NWPC found that both regions complied with the criteria for determining wage increases under Republic Act Nos. 6727 and 10361, which include the needs of workers and their families, capacity of employers/industry to pay, and the requirements of economic and social development in the region.
The wage orders are expected to directly benefit a total of 74,961 minimum wage earners in these two (2) regions. About 252,055 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. Additionally, the wage increases for kasambahays are also expected to benefit a total of 40,116 domestic workers – approximately 25% (10,002) of whom are on live-in arrangements.
The Commission has instructed RTWPBs CAR and MIMAROPA to strengthen information campaigns to ensure compliance with the minimum wage and provide assistance to enterprises in correcting possible wage distortions pursuant to NWPC Advisory No. 01, Series of 2023. To further support wage growth, the RTWPBs were likewise ordered to implement productivity improvement programs and gainsharing schemes, especially in areas that may have low productivity.
As in any wage order, and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, as amended, 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]. For exemption applications and further clarifications on the wage orders, the RTWPBs may be reached through their respective email addresses: rb4b@produktiboatsahod.onmicrosoft.com and rbcar@produktiboatsahod.onmicrosoft.com.
As of date, twelve (12) wage orders (Regions NCR, CAR, I, II, III, IVA, MIMAROPA, VI, VII, VIII, IX and XII) have been issued for workers in the private sector. Additionally, six (6) wage orders (Regions CAR, I, II, MIMAROPA, VI and VIII) have been issued for domestic workers. All these were initiated motu proprio.
For the other remaining regions, RTWPBs X and XIII are in the final stages of the minimum wage determination process after completing their November and December 2024 public hearing schedules, while RTWPB XI is scheduled to commence in January 2025. Meanwhile, RTWPB-V continues to closely monitor and assess the conditions and ongoing recovery in the Bicol region, particularly following the recent typhoons’ impact on communities and businesses.