The Regional Tripartite Wages and Productivity Board in National Capital Region (RTWPB-NCR) has approved a resolution granting a P15 increase in the daily basic minimum wage and continuing a P15 Cost of Living Allowance in effect since January 2014.
The new minimum wage in the National Capital Region has been raised to P481 for workers in the non-agriculture sector and P444 for workers in the agricultural sector. The minimum wage hike is expected to be affirmed by the National Wages and Productivity Commission chaired by DOLE Secretary Rosalinda Baldoz this week. The RTWPB will publish it, after which it will take effect 15 days after its publication.
DOLE-NCR Regional Director Alex Avila is the chairperson of the RTWPB-NCR.
The P15 increase in the minimum wage will directly benefit 587,000 minimum wage earners who also would continue to be exempted from paying income tax on their wage and on their hazard pay, holiday pay, night shift differential, and overtime pay.
On the part of the employers, the effective labor cost per employee working six day a week will also increase by 3.2 percent, or P565.54 per day, compared to the current P547.87 per day.
The Department of Labor has instructed Avila to mobilize the DOLE-NCR’s corps of labor laws compliance officers and the Labor Communications Office to disseminate information on the new wage order, raise public awareness and understanding, and educate workers and employers to encourage voluntary compliance. (PNA)