MANILA, Philippines—Minimum wage earners from the private sector in Metro Manila can look forward to a P10 wage hike by the end of the month.
Labor Secretary Rosalinda Baldoz said on Friday that the Regional Tripartite Wage and Productivity Board of the National Capita Region (RTWPB-NCR) decided to increase the minimum wage by P10 per day upon the effectivity of the wage order.
The wage order, which was issued Friday, is expected to take effect 15 days after its publication in a newspaper of general circulation.
With its effectivity, the minimum wage will go up to P466.
“The RTWPB-NCR also decided to integrate P15 of the existing P30 Cost of Living Allowance (COLA) under RTWPB-NCR Wage Order No. 17 into the basic wage effective 1 January 2014. This will bring the new basic wage to P451 and the new minimum wage to P466,” added Baldoz.
The minimum wage consists of a basic wage and COLA.
DOLE-NCR Regional Director Alex Avila, chair of the RTWBP-NCR, said the new minimum wage applies to all minimum wage workers in the private sector in the NCR regardless of their position, designation, or status of employment, and irrespective of the method by which they are paid.
“Household or domestic helpers; persons in the personal service of another, including family drivers; and workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority pursuant to RA 9178 are not covered by the new wage order,” he said.
It can be recalled that the Trade Union Congress of the Philippines filed on April 3, 2013 and June 7, 2013 petitions for an P85 and P83 for an across-the-board daily wage increase.
The RTWPB-NCR, however, denied on April 22 the petitions for premature filing within the period of prohibition, which was a year within the last wage order took effect.
The TUCP re-filed its petition on July 1, 2013.
After due notice to all concerned sectors, the RTWPB-NCR conducted wage consultations and public hearing to determine the propriety of issuing a new wage order.
“After a thorough evaluation of the existing sosio-economic conditions of the region, the RTWPB-NCR has determined the need to provide workers with immediate relief measures to enable them to cope with the rising cost of living without impairing the viability of business and industry,” according to the wage order.
Baldoz has instructed Avila to use the issuance of the new wage order as an opportunity to inform and educate workers and the general public on the wage reforms the DOLE has been pushing, particularly on the two-tier wage system.
Under the new wage order, the RTWPB-NCR shall issue a corresponding advisories on the 2nd tier, or the performance-based pay which shall serve as guidelines for private establishments on the range of productivity bonuses and incentives that an enterprise may provide based on agreements between workers and employers.
“Our workers’ take home pay is increased to P11,240 per month, or by 2.1 percent, compared to the current P11,005 per month. Our workers will get a bigger 13th month pay of P11,651 or an increase of about 5.9 as a result of the COLA integration,” she added.
Originally posted at 7:59 p.m.