THE Labor department on Friday announced the P500 wage increase of domestic workers or kasambahay in Metro Manila and minimum wage earners in Region XIII or Caraga Region should expect higher pay at the beginning of next year after the regions’ respective wage boards approved wage increases.
In a statement, the DOLE announced that the National Wages and Productivity Commission (NWPC) affirmed on December 13, 2023 the wage orders submitted by the Regional Tripartite Wages and Productivity Board (RTWPB) in Caraga and National Capital Region (NCR).
In particular, Caraga’s RTWPB issued motu propio Wage Order No. RXIII-18 on December 5, 2023, granting a P20 daily minimum wage increase across all sectors upon effectivity, and an additional P15 as second tranche on May 1, 2024.
“This will bring the daily minimum wages in the region to P385 upon implementation of the two tranches,” the DOLE said.
Caraga’s RTWPB also motu propio issued Wage Order No. RXIII-DW-04 which will increase the monthly minimum wage of kasambahays by P1,000, bringing the monthly wage rate for domestic workers in the region to P5,000.
Meanwhile, the RTWPB NCR likewise motu propio issued Wage Order No. NCR-DW-04 on December 12, 2023 increasing the monthly minimum wage of kasambahays by P500, bringing the new monthly wage rate to P6,500.
The DOLE said the wage orders of Caraga’s RTWPB will be published on December 16, 2023 and shall take effect after 15 days from their publication, or on January 1, 2024.
The wage order for kasambahays of NCR will be published on December 18, 2023 and shall take effect on January 3, 2024.
“The new rate for workers in the private sector translates to a 10% increase from the prevailing daily minimum wage rate in Caraga Region and results in a comparable 23% increase in wage-related benefits covering the 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth, and Pag-IBIG,” the DOLE said.
It said the Wage Order No. RXIII-18 is expected to directly benefit 65,681 minimum wage earners in the Caraga Region.
About 132,217 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.
On the other hand, the wage increases for kasambahays in CARAGA and NCR are expected to benefit a total of 256,476 domestic workers – approximately 57% (146,202) of whom are on a live-in arrangement, the DOLE added.
The last wage orders for workers in private establishments and domestic workers in Caraga were both issued on May 17, 2022 and became effective on June 6, 2022.
While the last wage order for domestic workers in NCR was issued on June 21, 2022 and became effective on July 13, 2022.
