Minimum Wage Per Region

ARTICLE

By: Samantha Caparas

The regional minimum wages to be established by the Regional Board are to be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general wellbeing of the employees within the framework of the national economic and social development program. The Regional Board weighs a number of pertinent factors when determining the minimum wage rates, including the needs of employees and their families, the cost of living and any changes or increases therein, the prevailing wage rates, the equitable distribution of income and wealth in accordance with the requirements of economic and social development, the impact on employment creation, the ability of employers to pay, the wage adjustment relative to the consumer price index, and the need to incentivize employers to pay more, the wage adjustment vis-à-vis the consumer price index and the need to induce industries to invest in the countryside and improvements in standards of living.

In the Philippines, employers are in charge of deducting taxes from their employees' paychecks. As such, the company must compute its employees' taxable income before distributing their salaries. During the pandemic, prices of the basic necessities, food in particular, became more expensive. Many people have had difficulty maintaining their budgets with their salaries, since the majority of Filipinos make less than the minimum wage. As of this month, below are the minimum wage rates per region of workers in the Philippines:

Low-income individuals will be able to purchase more of the necessities they require to survive if their spending power is increased. Both their ability to start future investments and their purchasing power can be increased.

Based on FastJobs verification*, we found numerous inconsistencies in the figures stated between the DOLE article against NWPC.

https://www.dole.gov.ph/news/wage-hikes-in-14-regions-take-effect-this-month/

For National Capital Region (NCR)

Wage Order No. 1 was released by the Regional Tripartite Wages and Productivity Board - NCR on May 13, 2022. NCR-23, which approved a Php 33 rise to the minimum wage, making the new rates for employees Php 533 for agricultural and Php 570 for non-agricultural sectors, respectively.

This new rule is likely to benefit the region's approximately one million minimum wage workers who work in private firms. The rise in the cost of necessities, commodities, and petroleum products, which served as the foundation for the hike, allowed workers earning the minimum wage to regain some of their purchasing power. You may recall that the most recent wage order for employees in the private sector in the NCR took effect on November 22, 2018.

For Cordillera Administrative Region (CAR)

For Ilocos Region (Region I)

Workers in the Ilocos region would now earn between Php 372 - Php 400 as a result of pay board approval of increases ranging from Php 60-Php 90. Domestic workers in cities and first-class towns, as well as smaller municipalities in Ilocos, received raises of Php 500 and Php 1, 500 each month, bringing the new monthly salary rate to Php 5, 000, according to an order from the province's wage board.

For Cagayan Valley (Region II)

The new minimum wage rate in Cagayan Valley includes an increase of Php 20-25 which gives the area under the non-agricultural sector with Php 420 and Php 400 for agriculture sectors. Wage Order No. 02-DW-04, released on May 17, 2022, awarded the domestic workers in the region a monthly wage rise of Php 1, 000. The monthly minimum pay rate has been raised to Php 5, 000 from the previous Wage Order of Php 4, 000.

For Central Luzon (Region III)

A Php 40 pay increase that will be implemented in two tranches across several sectors will benefit workers in Central Luzon. As a result, the new minimum wage in the region will range from Php 414 for agriculture and to Php 460 for non-agriculture, while it will be Php 344 to Php 409 in Aurora Province.

For Calabarzon (Region IV-A)

In Calabarzon, the new minimum wage, which will be implemented in two tranches will range from Php 350 to Php 470 in the non-agriculture sector; from P350 to P429 in the agriculture sector; and P350 in retail and service establishments employing not more than 10 workers.

For Region IV-B (MIMAROPA)

As a result of Wage Order No. RB-Mimaropa-10, the new minimum wage rate for enterprises employing fewer than 10 employees is now Php 329 and for establishments employing more than 10 workers is now Php 355. A Php 1, 000 monthly salary increase was also granted by the Board, making the new monthly wage rate for domestic workers in the area Php 4, 500.

For Bicol Region (Region V)

In Bicol, the new minimum wage will be P365 across all sectors. The P55-pay hike will be implemented in two tranches–on June 18 and on December 1. Kasambahay will also benefit from the wage increase of P1,000 to P1,500, which brings their

For Western Visayas (Region VI)

The entry into effect of Wage Order No. The daily minimum wage in Region VI has increased to Php 450 for enterprises with more than ten employees and to Php 420 for businesses with fewer than ten employees under Regional Tripartite Wages and Productivity Board Resolution No. RBVI-26. This raise is for workers in non-agriculture sector, industrial and commercial companies. The Board also authorized an additional Php 95 increase for agricultural laborers, bringing the daily minimum wage to Php 410.

For Central Visayas (Region VII)

In Region 7 the new minimum wage will range from P382 to P435. To specify, non-agriculture ranges from Php 387 to Php 435, while Php 382 to Php 425 for agriculture sectors. Kasambahay will also get a P500-pay hike, which brings their monthly minimum wage to P5,500 for those in chartered cities and first-class municipalities and P4,500 for those in other municipalities. The pay hikes will take effect on June 14.

For Eastern Visayas (Region VIII)

Under Wage Order No. RBVIII-22, the wage increase in Eastern Visayas will be implemented in two tranches–P25 upon effectivity of the wage order and another P25 on January 2, 2023. After full implementation of wage tranches, workers in the non-agriculture sector and in retail and service establishments employing 11 or more workers will receive a daily wage of P375. Meanwhile, workers in the agriculture sector, cottage and handicraft, and retail and service establishments employing 10 workers or less will receive a daily wage of P345.

For Zamboanga Peninsula (Region IX)

Minimum wage earners in Zamboanga Peninsula will receive an increase in their daily take-home pay after the Regional Tripartite Wages and Productivity Board IX (RTWPB IX) approved a wage order granting them additional daily pay of Php 35.00 last June 1, 2022. W.O. No. RIX-21 will now entitle minimum wage earners a daily rate of Php 351.00 for those working in the non-agricultural category and retail/service establishments with 31 workers or more. Retail and service workers in establishments with 10-30 workers will also have their pay increased to Php 338.00.

For Northern Mindanao (Region X)

In Mindanao, the new minimum wage will range from Php 378 to P405 for workers. The pay hikes will be implemented in two tranches, with the first tranche of P25 taking effect on June 18 and the second tranche of P15-P22 taking effect on December 16. The regional wage board also granted a monthly wage increase of P500 for domestic workers bringing the new monthly minimum wage rate in the region to P4,500 for cities and first-class municipalities and P3,500 for other municipalities.

For Davao Region (Region XI)

In the Davao Region, meanwhile, a P47-pay hike for workers across all sectors will be implemented in two to three tranches, starting June 19. After full implementation of the wage tranches, the daily minimum wage rates in the Davao region will be P438 in the agriculture sector, P443 in the non-agriculture sector, and P443 for retail/service establishments employing not more than 10 workers. Meanwhile, the new monthly wage rate for domestic workers in the Davao region is P4,500.

For Soccsksargen (Region XII)

Order RBXII-22 gives a pay rise of Php 32 in two tranches: Php 16 upon effectivity and another Php 16 on September 1, 2022. After the pay change, the new minimum wage for non-agriculture workers in Region XII will be Php 368. Meanwhile, employees in agricultural, service, and retail companies have a minimum daily salary of Php 347.

For Caraga (Region XIII)

A Php 30 pay boost has been awarded to workers in Caraga Region in the southern Philippines after DOLE said that it has integrated the Php 15 cost of living allowance having Php 350 for both agricultural and non-agricultural sectors. Private companies and their employees in Butuan City and the provinces of Agusan del Norte, Agusan del Sur, and Surigao del Sur would be subject to a new daily minimum pay of Php 350 when the wage order comes into effect.

For Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)

The Bangsamoro Tripartite Wages and Productivity Board granted on May 31 a Php 16 increase in daily minimum wage in all sectors within the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). With the increase, the provinces of Maguindanao, Lanao Del Sur, Basilan, Sulu, Tawi-Tawi and the cities of Marawi and Lamitan will have a daily minimum pay rate of Php 316 for non-agricultural workers and Php 306 for workers in the agriculture sector. In Cotabato City and the 43 barangays in North Cotabato that are clustered as Special Geographic Area (SGA), the pay hike would bring the new daily minimum rate to Php 341 for the non-agriculture sector and Php 316 for the agriculture sector.

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