THE P40 minimum wage hike in the National Capital Region (NCR) will take effect on 16 July 2023, the National Wages and Productivity Commission (NWPC) clarified today.
Employers in NCR are expected to implement the new daily minimum wage on said date despite an appeal filed by a coalition of labor organizations.
Wage Order No. NCR-24, which was published on 30 June 2023 to take effect 15 days thereafter, provides an increase of Php40, bringing the daily minimum wage in NCR from Php570 to Php610 for the non-agriculture sector and from Php533 to Php573 for the agriculture sector, service, and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers.
The appeal on Wage Order No. NCR-24 was jointly filed on 03 July 2023 by the Alliance of Nationalist and Genuine Labor Organization, Labor Alliance for National Development, Gabay ng Unyon sa Telekomunikasyon at Serbisyo, Pinagkaisang Lakas ng Manggagawa ng Manila Bay and their allied labor organizations. Citing inflation and the “soaring prices of basic services and commodities,” petitioners argued that the basis of minimum wage determination should be the family living wage, which should amount to P1,161 and not the poverty threshold.
The NWPC said that the appeal is part of the minimum wage determination process and shall be acted upon promptly. Based on existing rules, the NWPC shall resolve the appeal within 60 calendar days from the filing date. Pursuant to NWPC Guidelines No. 03, Series of 2022, or the Omnibus Rules on Minimum Wage Determination, a wage order may be appealed on the “ground of grave abuse of discretion on the part of the Board for committing a serious error in the application of law, and non-compliance with prescribed guidelines and/or procedures.”
The Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) issued the wage order pursuant to Republic Act No. 6727 or the Wage Rationalization Act. RTWPB-NCR is composed of DOLE regional director as chairperson, NEDA and DTI regional directors as vice chairpersons and two representatives each from the labor and employer sectors.
Petitions for minimum wage increases have also been filed in Regions III, IV-A, V, VI, and VII. RTWPBs in Central Luzon, Calabarzon and Western Visayas are currently discussing the merit of the petitions. Meanwhile, the RTWPB in Central Visayas is set to conduct public hearings in July and August 2023.
