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Wage hikes expected for more than 132,000 minimum wage workers in the Philippines in 2024

Wage hikes expected for more than 132,000 minimum wage workers in the Philippines in 2024

A ₱19 daily increase for minimum wage earners has been granted upon effectivity, with an additional ₱19 as second tranche on 1 September 2024.

A total of 132,347 minimum wage earners in the Davao Region of the Philippines are expected to directly benefit from salary hikes, according to an update by the Department of Labor and Employment.

The Regional Tripartite Wages and Productivity Board recently issued motu proprio the Wage Order No. RB XI-22 on 13 February 2024. Under this order, a ₱19 daily increase for minimum wage earners has been granted, with an additional ₱19 as second tranche on 1 September 2024.

This brings the daily minimum wages in the region to ₱481 for the non-agriculture sector and ₱476 for the agriculture sector upon full implementation.

Further, around 316,558 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.

For clarity, the table below summarises the increase:

In the same vein, the Regional Board also motu proprio issued Wage Order No. RB XI-DW-03, which increases the monthly minimum wage for kasambahays (domestic helpers) by a range of ₱500 to ₱1,500, depending on the area.

With this, the monthly wage rate for chartered cities and first-class municipalities in the region will be increased to ₱6,000, and ₱5,000 for other municipalities. This is expected to benefit a total of 64,111 domestic workers – approximately 37% (or equivalent to 23,479) of whom are on live-in arrangements.

Following existing laws and procedures, the wage orders were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on 16 Februar, 2024. The wage orders were published on 19 February 2024, and will take effect 15 days after publication, or on 6 March 2024.

The decision took into account various wage determination criteria provided under Republic Act No. 6727, or the Wage Rationalisation Act. 

The new rates for workers in the private sector translate to a 9% increase from the prevailing daily minimum wage rates in the region and results in a comparable 23% increase in wage-related benefits covering 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth, and Pag-IBIG.

To note, the following groups may apply for exemption from the wage increase:

  • retail/service establishments regularly employing not more than ten workers,
  • enterprises affected by natural calamities and/or human-induced disasters.

Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law.

The last wage orders for workers in private establishments and domestic workers in the region were both issued in May 2022 and took effect in June 2022.

Lead image / 123RF
Screenshot / Department of Labor and Employment

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