The Southern Mindanao Regional Tripartite Wages and Productivity Board signed the new wage order last Dec. 15 following a series of consultations on the merits of integrating the COLA into the minimum wage.
Although this had long been the clamor of the labor sector, the government representatives in the wage board agreed to it only during the latest deliberations.
Representatives of the management sector protested the move but they were outnumbered in the wage board by the representatives of the labor and government sectors.
The wage order, which shall take effect on Jan. 1, incorporates into the minimum wage the P10 COLA provided under Wage Order No. 6 and the P15 COLA under Wage Order No. 9.
Under Wage Order No. 10, retail and service enterprises in urban centers that employ more than 10 people, will have to pay a daily basic wage of P195, and those employing less than 10, P164.
Micro and small businesses, particularly the so-called barangay micro-business enterprises (BMBEs), which have a capital of only P3 million and below, are exempted from the new wage order.
"BMBEs are exempted from the minimum wage law provided that all employees covered... shall be entitled to the same benefits given to any regular employees such as security and health benefits," the order stated.
Wage Order No. 10 also provides that plantation workers in the region’s urban centers will get a daily minimum wage of P185, and those in rural areas, P183.
Non-plantation agricultural workers in urban areas will receive P164, and those in rural areas, P162.
Department of Trade and Industry-Region 11 director Merly Cruz and National Economic and Development Authority (NEDA) regional director Aurora Pelayo reportedly voted for the immediate implementation of the new wage order instead of a staggered basis as sought by the management sector.
Although the COLA integration would bring little benefit to the workers’ daily wages, the board said it would have a greater impact on the computation of the 13th month pay, overtime pay and separation and retirement benefits.