Central Luzon workers to get 2 wage hikes

CITY OF SAN FERNANDO, Pampanga — The Department of Labor and Employment (DOLE) in Central Luzon clarified yesterday that minimum wage earners in the region are supposed to receive starting this month two wage increases amounting to P35 daily.

In an interview with The Star, DOLE Regional Director Ernesto Bihis said that the P35 increase would cover the P20 cost of living allowance (COLA) integrated into basic salaries effective last June 16 and the P15 COLA also integrated into the basic pay effective last June 19.

Bihis explained that the integration of the COLA was in accordance with Wage Order No. 11 issued earlier this year and was slated to take effect last June 16.

On the other hand, the P15 increase in the basic pay was the result of Wage Order No. 10 approved for implementation last June 19.

The clarification was made amid confusion among labor leaders on how much increase minimum wage earners are entitled to at the end of this month.

He said that so far, there were no problems reported from the management sector regarding compliance with the wage increases and that "only a few had applied for exemptions to Wage Order No. 10."

The implementing rules for the wage order, however, has yet to be issued by the National Wage and Productivity Council, after the regional DOLE office submitted its proposed rules last week.

Bihis noted that the two wage increases apply to all minimum wage earners whether their employment status is permanent, casual or temporary. Excluded, however, are apprentices or those under a special working arrangement.

Household or domestic helpers, persons employed in the personal service of another including family drivers and workers covered by the Barangay Micro Business Enterprises Act of 2003 are not covered by the wage order.

With the adjustment, the daily minimum wage in the non-agriculture sector will increase from P243.50 to P263.50 in Bulacan; from P239.50 to P259.50 in Bataan, Nueva Ecija, Pampanga, Tarlac and Zambales; and from P197 to P217 in Aurora.

Bihis said the RTWPB in Central Luzon was one of the first regional wage boards to respond to the call for wage increase. The board acted moto propio, which means voluntary issuance of a wage order based on the RTWPB’s regular evaluation of data, consultations and public hearings.

While the law provides that no wage increase can be made within one year after a wage hike, the RTWPB justified the P20 increase by citing escalating prices of fuel products and basic goods, as well as the increase in transport cost, including the higher toll rates along the North Luzon Expressway.

Central Luzon has about 3.2 million private sector workers. An estimated 500,000 adults in the region are unemployed.