SAN FRANCISCO, Agusan del Sur (MindaNews / 17 December) – Minimum wage earners in the private sector in the Caraga (Region 13) will receive a P50 daily salary increase in two tranches in 2025, the Department of Labor and Employment (DOLE) said Tuesday.
The announcement came after the unanimous affirmation by the National Wages and Productivity Commission (NWPC) on December 13 of the new wage orders issued by the Regional Tripartite Wages and Productivity Board (RTWPB)-13.
The wage order grants a P50 daily wage increase for workers in the agriculture, non-agriculture, service/retail, and manufacturing sectors in the region.
The increase will be implemented in two phases with the first tranche, effective January 2, raising the minimum wage from P385 to P415, or an initial P30 adjustment.
The second tranche, effective May 1, will add another P20, bringing the minimum wage to P435.
Another wage order was also approved, which provides a P1,000 increase for kasambahays or domestic workers in Caraga.
Effective January 2, this adjustment raises their monthly minimum wage from P5,000 to P6,000 and applies to all domestic workers, including those in chartered cities and municipalities.
“In affirming the wage order, the NWPC found that RTWPB-13 complied with the criteria for determining a wage increase under Republic Act No. 6727 or the Wage Rationalization Act, which includes the needs of workers and their families, the capacity of employers/industry to pay, and the requirements of economic and social development in the region,” the DOLE stated.
The DOLE pointed out that while the wage order is expected to directly benefit 65,681 minimum wage earners in the region, it may also indirectly benefit 132,217 full-time salary workers earning above the minimum wage as a result of upward adjustments.
The wage increase for domestic workers is expected to benefit a total of 32,866 individuals, approximately 24% of whom are on live-in arrangements, it added.
The NWPC noted that it ordered the RTWPB-Caraga to implement productivity improvement programs and gainsharing schemes to support wage growth, especially in areas that may have low productivity.
As with previous wage orders, the DOLE said that exemptions are available for retail and service establishments with no more than 10 regular employees, and enterprises affected by natural or human-induced calamities.
Micro and small businesses registered in the barangays are not covered by the minimum wage law under Republic Act No. 9178 or the Barangay Micro Business Enterprises Act of 2002.
Prior to the approval of the wage order increase, the RTWPB – Caraga held three public hearings across the region – in Butuan CIty, Surigao City and Agusan del Sur last November where they invited private sector representatives, government agencies and the media.
The RTWPB-13 stated that they have based the increase on the review and evaluation of the consultations and public hearings, and the existing socio-economic conditions in the region.
Louie Acero, 23, a minimum wage earner in Butuan City, told MindaNews via Messenger chat that while the wage hike is welcome, it remains insufficient given the rising costs of goods and services.
Based on the current Consumer Price Index in the region, the year-on-year inflation rate for all income households as of October 2024 is 2.8%, while the annual per capita poverty threshold per family in Caraga, as provided by Philippine Statistics Authority in 2023, is P29,565.
The monthly poverty threshold per family in Caraga for the year 2023 is P12,319 with 14.9% of families in Caraga living below the property threshold.
The last wage order issued in the Caraga for private sector and domestic workers took effect in January 2024. (Ivy Marie Mangadlao / MindaNews)
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