Calabarzon gets wage increase

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Wednesday, April 4, 2012

MANILA -- Workers from Calabarzon are set to receive their much anticipated salary adjustment under the new two-tiered wage system.
Labor and Employment Secretary Rosalinda Baldoz said the Regional Tripartite Wage and Productivity Board (RTWPB) – Calabarzon has already approved increase in daily income as well as productivity pay.
“The wage board in Calabarzon has issued a two-tiered wage order granting salary staggered salary increases for the next five years,” Baldoz related.
Under the wage order, she explained that the RTWPB has set the daily floor wage at Php255, an amount based on current poverty threshold and economic condition in the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon.
“This means that workers from the non-agriculture sector, who are already getting P253, will already received Php255 and those employed in the agricultural area would also get the same amount from the previous P231 minimum daily pay,” Baldoz said.
As for other workers that are getting P165 daily minimum wage, they are set to initially receive P232 and then get gradual increases for the next five years.
For those already getting P255, on the other hand, Baldoz said the wage board approved the second-tier of pay hike, which particularly provides for a conditional productivity allowance of P12.50 per day.
“The second tier of the wage system is just temporary in nature because it would really depend on the contribution of labor and the economic condition of the company,” the labor chief noted.
The labor chief further noted that companies would also be required to create a Productivity Incentive Committee that will be in-charge in the implementation of the second tier or productivity allowance.
It can be recalled that the labor department, under Baldoz, has been pushing for the adoption of a two-tiered wage system in a bid to protect vulnerable workers and provide incentives to those highly performing workers.
According to Baldoz, Calabarzon would become the first region to adopt a two-tiered wage system as soon as the new wage order is confirmed by the National Wages and Productivity Commission (NWPC).
“The two-tiered wage system would be pilot-tested in Calabarzon, which has been chosen because it’s a hub of foreign investments for having 34 export processing zones,” Baldoz pointed. (HDT)

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