P33 to P43 wage hike

CEBU, Philippines —   The Regional Tripartite Wages and Productivity Board (RTWPB)-7 has approved a P33 to P43 basic increase per day for minimum wage earners in the private sector in Central Visayas.

Under Wage Order No. ROVII-25, the new minimum wage rate/rates in Region VII for Class A locations (the cities of Carcar, Cebu, Danao, Lapu-Lapu, Naga, Talisay; and municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, San Fernando; or the expanded Metro Cebu area), shall be P501 a day (from P468 a day).

For agriculture and non-agriculture establishments with less than 10 workers, the minimum wage should be from P458 to P501 or an increase of P43 per day.

For Class B, which comprises other cities not covered under Class A (Bais, Bayawan, Bogo, Canlaon, Dumaguete, Guihulngan, Tagbilaran, Tanjay, and Toledo), the minimum wage is now P463, on P33 more than the previous P463.

For agriculture and non-agriculture establishments with less than 10 workers, it should be P425 to P463 or an increase of P38.00 per day.

For Class C locations, or other municipalities not covered under Class A and B, the minimum wage should be P420 to P453 or an increase of P33 per day.

For agriculture and non-agriculture establishments with less than 10 workers, the minimum wage should be from P415 to P455. or an increase of P38 per day.

The new wage order will take effect on October 2, or 15 days after its publication in a newspaper of general circulation. This order is published in The Freeman newspaper today, September 16.

Section 3 of the order states that the minimum wage rates shall be for the normal working hours which shall not exceed eight hours of work a day.

“The wage increase prescribed shall apply to all minimum wage earners in the private sector within the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid,” the Board said.

Section 5 of the order also stated that establishments may apply for exemption from compliance with the wage order, as provided under Rule VII of the Omnibus Rules, as amended.

In particular, those who can apply are retail or service establishments employing less than 10 workers and those “adversely affected by natural calamities and/or human-induced disasters”.

The Board warned that “(a)ny person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay the prescribed increase shall be dealt with pursuant to the provisions of Section 12 of Republic Act No. 6727, as amended by RA No. 8188.”

The new minimum wage came after a series of consultations in the region on August 20, 28, and 30; and on September 3 and 4, in five different areas in the region.

The Board cited as reasons “existing socio-economic conditions in the Region”, including a Consumer Price Index (CPI) that was P118 in October 2023 and rose to 121.9 in July this year.

Other reasons include the fact that the average inflation rate from the last wage increase on October 1, 2023 until August 2024 was already 3.65 percent; the purchasing power of the that time was still at P0.847, which has gone down to P0.83 in August 2024; and the latest data on poverty threshold for a family of five in the region is at 473.00.

The new wage order was approved on Sept. 6, by the Board, whose members are Atty. Nora Analyn Demetrio-Diego and Antonio Cuizon from the workers’ sector; Atty. Joseph Tanco and Philip Tan from the employers’ sector; Jennifer Bretaña (National Economic Development Authority-7 director) and Maria Elana Arbon (Department of Trade and Industry-7 director) as vice chairpersons; and Lilia Estillore (Department of Labor and Employment-7 regional director), as chairperson. (CEBU NEWS)