The Department of Labor and Employment (DOLE) announced on Monday a P35 increase in the daily minimum wage for workers in the National Capital Region (NCR). This adjustment raises the minimum wage from P610 to P645 for the non-agriculture sector and from P573 to P608 for the agriculture sector. The increase will take effect on July 17, 2024, 15 days after its official publication.
The Regional Tripartite Wages and Productivity Board (RTWPB) in the NCR issued Wage Order No. NCR-25 on June 27, 2024. This wage order specifies the increase and applies to the non-agriculture sector, service, and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers. The order was promptly transmitted to the National Wages and Productivity Commission (NWPC) for review on the same day.
The NWPC, after ensuring that Wage Order No. NCR-25 complied with existing laws and procedures and affirmed the order on June 28, 2024. It then authorized its publication on July 1, 2024. The wage increase’s implementation on July 17, 2024, marks exactly one day after the anniversary of the preceding wage order.
This wage adjustment comes as a response to the rising cost of living and aims to support the purchasing power of workers in the NCR. The decision reflects the government’s commitment to ensuring fair wages for its workforce amidst economic challenges. The DOLE has been actively engaging with various stakeholders to address labor concerns and improve the overall welfare of workers in the region.
DOLE Secretary Bienvenido Laguesma emphasized the importance of this wage increase in providing relief to workers. He acknowledged the challenges faced by the labor sector, particularly in light of the ongoing economic recovery efforts. Laguesma noted that the wage hike is a crucial step towards improving the living standards of workers and their families.
Employers in the NCR are expected to comply with the new wage order and make the necessary adjustments in their payroll systems. The DOLE has set up mechanisms to monitor compliance and address any issues that may arise during the implementation phase. The department will also assist small businesses to help them manage the impact of the wage increase.
Labor groups have welcomed the wage hike but continue to call for more substantial increases to match the rising cost of living. They argue that while the P35 increase is a positive development, it still falls short of providing a living wage for many workers in the region. These groups urge the government to consider more frequent and significant wage adjustments to keep pace with inflation and other economic factors.
Overall, the P35 daily minimum wage increase in the NCR represents a significant development in the ongoing efforts to improve labor conditions in the Philippines. As the new wage order takes effect, it is expected to bring some financial relief to workers while highlighting the need for continued dialogue and action to address the broader issues facing the labor sector.