P16 wage hike now in effect in Davao region
DAVAO CITY — Workers in Davao region received an additional P16 in their daily minimum wage since the start of January, the first tranche of the P31 salary increase approved by the Regional Tripartite Wages and Productivity Board on June 19, 2022.
The second part of the adjustment will be implemented on April 1 this year, according to the wage order.
Based on the overall new wage levels for this year, those working in a non-agriculture enterprise that employs more than 10 workers would receive P443 a day, up from P427 a day; and those working for agriculture companies would receive P438 in daily wage, up from P422.
Retail and service employees who work for companies with not more than 10 workers are to receive P428 a day, up from P412 a day.
The Department of Labor and Employment (Dole) in Davao region said the minimum wage order was based on relevant socioeconomic indicators provided by the Philippine Statistics Authority, such as the consumer price index and poverty threshold.
But when it was firmed up six months ago, representatives of both the labor and management sectors have opposed the wake hike for different reasons. Labor groups found the increase too small while the management sector said it was not timely, given that most businesses were still reeling from the impact of COVID-19 pandemic.
However, the Dole regional office was confident that compliance to the new wage order would be high because the inspection it did last year showed that 99.62 percent of the 3,660 establishments in the region implemented the previous wage orders. The inspected establishments covered 159,060 workers.