Minimum wage hiked by P40 in Metro Manila

The National Wages and Productivity Commission approved the wage order on June 27.

The wage order will take effect on July 16, or 15 days from publication scheduled on June 30.

However, retail and service establishments that regularly employ less than 10 workers, and enterprises affected by natural calamities and disasters may apply for exemption from the minimum wage increase.

Barangay micro business enterprises are also not covered by the minimum wage law.

“The increase… resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities,” the Department of Labor and Employment (DOLE) said in a statement.

The new daily minimum wage rates in Metro Manila “remain above the regional poverty threshold of P452 per day for a family of five,” it added.

DOLE said the wage order is expected to directly benefit 1.1 million minimum wage earners in Metro Manila.

Around 1.5 million full-time wage and salary workers earning above the minimum wage may also “indirectly benefit” in case of “correction of wage distortion,” said DOLE.

The last minimum wage increase in Metro Manila took effect in 2022.

READ: Legislated wage hike bucked 

On Tuesday, President Marcos himself hinted at the minimum wage hike during a meeting International Labor Organization (ILO) director general Gilbert F. Houngbo at Malacanang.

“I think our negotiations with workers, with the unions, with the different negotiations, we will be able to come to a good working number, a good compromise,” the President told the visiting ILO official.

The current minimum wage in the Philippines ranges between Php372 and Php470, depending on the region where the business is located.

For his part, Labor Secretary Bienvenido Laguesma, who was also present during the meeting with the ILO chief, said they might be able to resolve the issue within the week.

Laguesma added they will be presenting to the President and the Cabinet the Philippine Development Plan 2020-2023, which have been both endorsed by the labor sector and DOLE, before holding a national tripartite conference.

The DOLE chief also said they will be meeting with the workers and employers by next month regarding Executive Order (EO) No. 23, which directs the administration to form an inter-agency committee to strengthen the coordination and expedite the investigation, prosecution and resolution of cases of extrajudicial killings and harassment of workers and union leaders and members.