In 2023, the Regional Tripartite Wages and Productivity Boards (RTWPBs) announced salary increases for 4.1 million minimum wage laborers in specific regions of the Philippines.
According to a social media post earlier this week by the National Wages and Productivity Commission (NWPC), nine of the wage hike orders that affected the employees—all of whom were employed in the private sector—were initiated motu proprio, or formally implemented without a formal request from the various governments in these sectors. The employees were located in 15 regions throughout the Philippines.
In June, the first wage hike order was issued by the RTWPB-National Capital Region (NCR), providing for a P40 (US$40) salary increase. As a result, Metro Manila’s minimum wage increased from P570 to P610 (US$10.24 to US$10.96) for non-agricultural industries and from P533 to P573 (US$9.58 to US$10.30) for agricultural sectors. The Northern Mindanao pay Board was the last to announce a pay increase in December. In the non-agricultural sectors, their rates would increase from P423 to P438 (US$7.60 to US$7.87), while in the agricultural sectors, from P411 to P426 (US$7.38 to US$7.65).
The Department of Trade and Industry, the Department of Agriculture, the Philippine Statistics Authority, and the National Economic and Development Authority are just a few of the organizations that the Davao Region pay Board has consulted with prior to issuing a new pay order. In the first quarter of 2024, public hearings are planned.
According to the NWPC, the correction of wage distortions will benefit around 8.1 million “full-time wage and salary employees” who earn more than the minimum salary. This happens when legislated salary increases result in a major reduction or elimination of variances in wage structures or rates among employee categories, according to the Manila Times.
