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MANILA, Philippines — A P35 daily wage hike was approved for private sector workers in Metro Manila by the Regional Tripartite Wages and Productivity Board (RTWPB).
The Department of Labor and Employment (DOLE) said the RTWPB’s order will take effect 15 days from its publication or on July 17.
The increase will bring the the daily minimum wage in the region from P610 to P645 for the non-agriculture sector; and from P573 to P608 for the agriculture sector, service, and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers.
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According to the DOLE, the new pay rates, which translate to roughly a 5.7 percent increase from the prevailing daily minimum salary rates in the region, “remain above the latest regional poverty threshold for a family of five.”
It added that the wage hike results in a comparable 5 percent 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 wage order is expected to directly benefit around 988,243 minimum wage earners in NCR (National Capital Region),” the DOLE said.
“About 1.7 million full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion,” it added.
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Meanwhile, under the National Wages and Productivity Commission Omnibus Rules on Minimum Wage Determination, retail or service establishments with less than 10 workers and enterprises affected by natural calamities or human-induced disasters may apply to get exempted from the RTWPB wage hike order.
Barangay Micro Business Enterprises, on the other hand, are not covered by the minimum wage law pursuant to Republic Act No. 9178.