Minimum wage hike in Cagayan Valley, C. Luzon, Soccsksargen OK'd

MANILA – The regional wage boards of Cagayan Valley, Central Luzon and Soccsksargen have issued orders granting increases in the daily minimum wage of workers in private establishments, the Department of Labor and Employment (DOLE) reported on Wednesday.

In a statement, the DOLE said the salary adjustments, ranging from P30 up to P60, were approved in response to the Labor Day directive of President Ferdinand R. Marcos Jr. for the timely review of minimum wages.

It added the wage orders were reached through a collaborative consensus and unanimously approved by the members of the respective Regional Tripartite Wages and Productivity Board (RTWPBs) and would take effect on Oct. 17.

In Cagayan Valley, the RTWPB-2 granted a P30 daily minimum wage increase across all sectors upon effectivity of the wage order.

The daily minimum wages in the region will be from P450 to P480 for the non-agriculture sector, and from P430 to P460 for the agriculture sector.

On the other hand, the RTWPB-3 (Central Luzon) approved the increase in the amount of P50 to P66.

This hikes the daily minimum wage rates in the region to a range of P500 to P550 in the non-agriculture sector; P485 to P520 in the agriculture sector; and P435 to P540 in retail and service establishments. It will be given in two tranches.

Meanwhile, the pay increase ranging from P27 to P48 granted by the RTWPB-12 (Soccsksargen) will bring the daily minimum wages in the region to P430 in the non-agriculture sector including retail and service establishments, and P410 in the agriculture sector upon implementation. The increase will be given in four tranches.

According to the DOLE, the wage orders were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on Sept. 25.

These wage orders were published on Oct. 1, 2024, in accordance with existing laws and procedures.

It added the new rates for workers in private establishments translate to about 7 percent to 15 percent increase from the prevailing daily minimum wage rates in these three regions, and result in a comparable 7 percent to 12 percent increase in wage-related benefits covering 13th-month pay, service incentive leave, and social security benefits such as Social Security System (SSS), Philippine Health Insurance Corp. (PhilHealth) and Pag-IBIG.

The wage orders are expected to benefit a total of 905,000 minimum wage earners in the three regions.

The last wage orders for workers in private establishments and domestic workers in Cagayan Valley, Central Luzon and Soccsksargen became effective on Oct. 16, 2023.

The DOLE added the wages of kasambahays in Cagayan Valley were also adjusted, as the RTWPB-2 approved a P500 increase in their monthly pay in all cities and municipalities in the region.

This brought the sector's monthly minimum wage to P6,000.

The salary increase is also expected to benefit a total of 49,165 domestic workers – around 15 percent (7,394) of whom are on live-in arrangements, and 85 percent (41,771) are on live-out arrangements. (PNA)