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RTWPB-NCR grants minimum wage increase for workers in private establishments

June 27, 2023

RTWPB-NCR on June 26, 2023 issued Wage Order No. NCR-24 providing a Php40.00 increase in minimum wage in the National Capital Region (NCR).

This brings the daily minimum wage in the region from Php570.00 to Php610.00 for the non-agriculture sector and from Php533.00 to Php573.00 for the agriculture sector, service and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers.

The new rates translate to a 7% increase from the prevailing daily minimum wage rates in NCR and remain above the regional poverty threshold of PhP452 per day for a family of five.

The new rates likewise result in a comparable 7% increase in wage-related benefits covering 13th-month pay, service incentive leave (SlL), and social security benefits such as SSS, PhilHealth and Pag-lBlG.

The Wage Order was published on June 30, 2023 and took effect on July 16, 2023 or 15 days from its publication.

The increase resulted from several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities.

The wage order is expected to directly benefit 1.1 million minimum wage earners in NCR.

About 1.5 million full-time wage and salary workers earning above the minimum wage in NCR may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.

Retail/service establishments regularly employing not more than 10 workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to RTWPB-NCR for exemption from the wage increase as provided for in the NWPC Omnibus Rules on Minimum Wage Determination.

Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 or the BMBE’s Act of 2002.

Qualified establishments have from June 30, 2023 to September 13, 2023 to file wage exemptions.

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.

National Wages and Productivity Commission
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