ILOILO City – A new minimum wage order for the private sector in Western Visayas is expected to take effect by late November or early December this year, following a recent approval by the Regional Tripartite Wages and Productivity Board (RTWPB).
The decision, made on Tuesday, October 22, will see a daily wage increase across multiple employment categories, impacting both agricultural and non-agricultural sectors.
According to Atty. Sixto Rodriguez, regional director of the Department of Labor and Employment (DOLE), the wage increase was sanctioned after conducting two public hearings on October 10 in Iloilo City and October 21 in Bacolod City.
The board’s decision aims to address the significant pay disparity between Western Visayas and other regions, particularly the National Capital Region, which Rodriguez described as having a “wide gap.”
“Region 6 has a considerably lower minimum wage compared to other regions, so this increase will help reduce that gap,” Rodriguez told Panay News.
Under the new wage structure, employers with more than 10 employees will now offer a minimum daily wage of P513, up from P480 (P33 increase).
For smaller establishments with fewer than 10 employees, the minimum wage will rise from P450 to P485 (P35 increase).
The agricultural sector will see an increase from P440 to P480 per day (P40 increase).
Rodriguez said the larger increase for the agricultural sector and smaller businesses is due to their previously wider wage gaps compared to larger establishments.
Additionally, the RTWPB-6 has approved a salary increase for domestic workers (kasambahay), raising their monthly wage from P5,000 to P6,000 – a P1,000 increase.
The wage adjustments are currently under review by the National Wages and Productivity Commission (NWPC).
Upon approval, the new wage order will be published in a newspaper with general circulation and will automatically take effect 15 days after publication.
Rodriguez expressed optimism about the timing of the wage order’s implementation, suggesting it could serve as a “Christmas gift” to the workforce.
“It might be before December. So, most probably it will publish after November 16 or might be before November 16. But the effectivity of the new wage order for sure will be after November 16 or might be December,” Rodriguez said.
All employers in the region will be required to comply with the new wage order, with exceptions only for those who can justify an exemption.
Retail and service establishments employing no more than 10 workers and enterprises affected by natural or human-induced disasters can apply for an exemption from the wage increase.
Furthermore, Barangay Micro Business Enterprises (BMBEs) are not subject to the minimum wage law as per Republic Act No. 9178.
The RTWPB will undertake information campaigns to ensure compliance and assist enterprises in addressing potential wage distortions.
For exemption applications and further clarifications, employers are advised to contact the RTWPB via email at rb6@nwpc.dole.gov.ph./PN