Daily Minimum Wage Increases to P614 in NCR Starting July 16

PHOTO BY Department of Labor and Employment

(SPOT.ph)Minimum wage earners in Metro Manila are set to receive a P35 increase in their daily salaries starting July 16, following the approval of Wage Order No. NCR-25 by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR).

With this increase, daily pay will rise from P610 to P645 for non-agricultural workers.

Meanwhile, workers in agriculture, retail, and service establishments with 15 or fewer employees, as well as manufacturing firms with fewer than 10 workers, will see their daily wage increase from P573 to P608.

The decision to raise wages follows petitions from several labor groups, including Unity for Wage Increase Now and various hospital employees’ associations, who argued that current wages were insufficient to meet basic living expenses given that inflation hit a 14-year high in January.

In response to this, the RTWPB-NCR held several public consultations in May and June to gather input from both labor and management before finalizing the increase​.

"The new rates, which translate to about 5.7% increase from the prevailing daily minimum wage rates in the region, remain above the latest regional poverty threshold for a family of five. These likewise result in a comparable 5% increase in wage-related benefits covering 13th month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth and Pag-IBIG," the Department of Labor and Employment (DOLE) said in a press release.

Also read:What Can Minimum Wage Earners Buy With The P40 Pay Hike?

How are minimum wage hikes set?

The RTWPB holds wage discussions whenever significant economic changes occur that impact the cost of living. However, in his recent Labor Day address, President Ferdinand "Bongbong" Marcos Jr. ordered the RTWPB to review minimum wages within 60 days before the anniversary of the last wage order, which was on July 2023.

According to the DOLE, the wage board considers a variety of factors when determining wage adjustments based on Republic Act No. 6727 or the Wage Rationalization Act, which includes the following:

• The demand for living wages
• Wage adjustment vis-a-vis the consumer price index
• The cost of living and changes or increases therein
• The needs of workers and their families
• The need to induce industries to invest in the countryside
• Improvements in standards of living
• The prevailing wage levels
• Fair return of the capital invested and capacity to pay of employers
• Effects on employment generation and family income
• The equitable distribution of income and wealth along the imperatives of economic and social development

Is the hike enough for minimum wage earners?

Labor representatives have pointed out that even with the increase, the net income for minimum wage earners remains below the poverty threshold. July 2023's wage adjustment was similarly criticized as inadequate with its P40 increase.

Because of this, the Senate approved in February the third reading of Senate Bill 2534 or "An Act Providing for a 100 Pesos Daily Minimum Wage Increase for Employees and Workers in the Private Sector." Senator Juan Miguel Zubiri emphasized its historic significance, noting it as the largest wage hike put forth in legislation in 35 years.

The bill now awaits consideration in the House of Representatives for three readings. If signed into law by the President Marcos, the wage increase will be implemented nationwide.

However, it remains pending in the House of Representatives as of February 19.

Also read:How to Budget P1,000, P500, P100 for Food as Inflation Soars