THE first tranche of the P85 daily minimum wage increase for workers in the National Capital Region (NCR) took effect Saturday, July 25, raising the daily minimum wage by P60.
The remaining P25 increase will take effect next year on Jan. 20.
Under Wage Order NCR-27, the daily minimum wage for workers in the non-agriculture sector increases from P695 to P755, while workers in the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing firms with fewer than 10 regular employees will receive P718 a day, an increase from P658.
The Department of Labor and Employment (DOLE) said more than 1.1 million minimum wage earners in Metro Manila are expected to benefit from the wage adjustment, which it described as the largest single daily wage increase in the region to date.
In a statement, Labor Secretary Francis Tolentino said the wage increase aims to help workers cope with rising living costs, including inflation and higher electricity prices.
Tolentino reminded employers to comply with the wage order, saying violations are punishable under the law.
He also urged labor and management to address possible wage distortions through collective bargaining agreements.
Support for MSMEs
The labor chief said the agency would provide financial assistance to qualified micro, small and medium enterprises affected by the wage increase through its Adjustment Measures Program (AMP).
Through AMP, the department may extend financial support for equipment and other productivity measures to help small businesses offset rising labor costs and direct more of their capital toward wage adjustments.
Tolentino also noted that the AMP will help those MSMEs with only limited capital, helping them avoid the full impact of the wage increase.
Regional wage adjustment on track
Eligible firms may also apply for exemption from the wage order within the prescribed 75-day period.
Tolentino said wage reviews remain ongoing in other regions, with the Regional Tripartite Wages and Productivity Boards (RTWPBs) continuing consultations and deliberations on possible adjustments.
He said the boards continue to evaluate wage levels in their respective areas and are expected to issue new wage orders within the review cycle.
The wage review process of the RTWPBs is primarily governed by Republic Act 6727, or the Wage Rationalization Act, which amended the Labor Code of the Philippines and created the regional wage boards.
