The Regional Tripartite Wages and Productivity Board in Region IV-A (CALABARZON) issued Wage Order No. IVA-20 on 01 September 2023. It provides a wage increase ranging from P35-P50.
The new minimum wage rates in the region will now range from P385-P520 in the non-agriculture sector; P385-P479 in the agriculture sector; and P385 for retail and service establishments employing not more than 10 workers.
Workers in the agriculture sector in the Cities of Calaca and Carmona shall, however, receive an increase of PhP89.00 due to their reclassification from first class municipalities to component cities by virtue of Republic Act Nos. 11544 and 11938, respectively.
In accordance with existing laws and procedures, the wage order was submitted for affirmation to the National Wages and Productivity Commission (NWPC) on 04 September 2023. The NWPC affirmed the wage order on 05 September 2023. The wage order will be published on 08 September 2023 and shall take effect after 15 days from its publication, or on 24 September 2023.
The increase, which considered the various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act, resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities.
The Board, comprised of representatives from the government, management and labor sectors, conducted a series of public hearings last August 7 in Batangas, August 9 in Cavite and August 11 in Laguna, and wage deliberations on August 16, 18, 23 and September 1, 2023.
The new rates translate to a 9%-11% increase from the prevailing daily minimum wage rates in the region and result 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.
The wage order is expected to directly benefit 719,704 minimum wage earners in Region IV-A. About 1.6 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.
As in any wage order, and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, retail/service establishments regularly employing not more than ten (10) workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPB for exemption from the wage increase. Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 [2002].
RTWPB-IV-A shall undertake information campaigns to ensure compliance and to provide assistance to enterprises in correcting possible wage distortions. For exemption applications and further clarifications on the wage order, the RTWPB may also be reached through its email address rb4a@produktiboatsahod.onmicrosoft.com.
The last Wage Order for workers in private establishments in the region was issued on 30 May 2022 and became effective on 30 June 2022.
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