NEWS AND ANNOUNCEMENTS
Wage hikes in Davao Region, CALABARZON to benefit almost 300,000 minimum wage earners, kasambahays
Around 63,451 minimum wage earners in Davao Region will receive a daily wage increase of P29 while a total of 233,909 kasambahays (domestic workers) in CALABARZON will receive a monthly wage increase ranging from P750 to P1,750 after the National Wages and Productivity Commission (NWPC) affirmed the wage orders approved by their respective Regional Tripartite Wages and Productivity Boards (RTWPBs) on 17 February 2025.
Wage Order Nos. RB XI-23 and RB-IVA-DW-05 issued by RTWPBs XI (Davao Region) and IV-A (CALABARZON) were published on 19 February 2025 and will take effect after 15 days from publication, or on 07 March 2025.
The issuance of these new wage orders is in line with the directive of President Ferdinand R. Marcos, Jr. to initiate a timely review of regional minimum wage rates to reduce uncertainty, enhance fairness for all stakeholders, and foster a stronger link between productivity and wages. In May 2024, the Department of Labor and Employment, through the NWPC, issued a resolution directing the RTWPBs to commence the review of minimum wages within 60 days from the anniversary date of their most recent wage orders.
Wage Hike in Davao Region
Wage Order No. RB XI-23 brings the daily minimum wage rate in Davao Region from P481 to P510 for the non-agriculture sector and from P476 to P505 for the agriculture sector.
About 432,018 full-time wage and salary workers earning above the minimum wage are also expected to indirectly benefit from wage adjustments at the enterprise level arising from the correction of wage distortion.
RTWPB XI will assist enterprises in correcting possible wage distortions pursuant to NWPC Advisory No. 01, Series of 2023, and to implement productivity improvement programs and gainsharing schemes to support wage growth, especially in areas with low productivity.
Retail and service establishments regularly employing not more than ten (10) workers, and enterprises affected by natural calamities and/or human-induced disasters may apply for exemption from the wage increase as provided for in the Omnibus Rules on Minimum Wage Determination, as amended. Registered Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 or the BMBEs Act of 2002.
Kasambahay Wage Hike in CALABARZON
The monthly increases from Wage Order No. RB-IVA-DW-05 will lead to a single monthly minimum wage of P6,750 for kasambahays in the region, from the previous rate of P5,000 to P6,000. Approximately 65,408 or 28% of the kasambahay population in CALABARZON who will benefit from the said wage order are on live-in arrangement.
RTWPBs XI and IV-A shall undertake information campaigns to ensure compliance of employers and enterprises to the new wage orders. For further clarifications, RTWPB-XI can be contacted at rb11@produktiboatsahod.onmicrosoft.com, and RTWPB-CALABARZON at rb4a@produktiboatsahod.onmicrosoft.com.
RTWPB-V Resumes Wage Review
Meanwhile, RTWPB-V resumed its minimum wage determination process this 20 February 2025 after the November 2024 deferment to allow economic recovery in the region following the impact of Tropical Cyclone Kristine. Public hearings are scheduled for March 2025.
Minimum Wage Increases
As of date, a total of 15 wage orders (Regions NCR, CAR, I, II, III, IVA, MIMAROPA, VI, VII, VIII, IX, X, XI, XII and XIII) have been issued for workers in the private sector while 10 have been issued for kasambahays in Regions NCR, CAR, I, II, IVA, MIMAROPA, VI, VIII, X and XIII for the 2024-2025 minimum wage round.
All these wage orders were initiated motu proprio and issued before the anniversary dates of the previous wage orders.