New wage order in Metro Manila available in 2 months

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Sunday, May 20, 2012

GUIDELINES for the issuance of additional daily allowance for minimum wage earners in Metro Manila will be released in 60 days, the National Wages and Productivity Commission (NWPC) said Sunday.

“Within 60 days from issuance by the NWPC of guidelines on the implementation of the two-tiered wage system, the Regional Tripartite Wages and Productivity Board – National Capital Region (RTWPB-NCR) shall issue an advisory on the second tier of the performance-based pay, which shall serve as guidelines for establishments on the range of productivity bonus,” the NWPC said.

The productivity bonus, according to Labor Secretary Rosalinda Baldoz, refers to the wage rate adjustment attributed to workers’ and employees’ productivity or performance, value of the job, cost of living, business growth, financial capacity, and competitiveness of the enterprise.


The criteria of the PBP will be determined and agreed upon by both labor and management at the establishment level.

Last week, the RTWPB-NCR had issued Wage Order no. NCR-17, which provides for an additional P30 daily cost of living allowance for minimum wage earners in the private sector.

It shall be payable in two tranches with the first tranche of P20 to be given upon effectivity of the wage order, while the second tranche of P10 shall be paid on November 1.

This means the basic wage rate for workers in the capital region will soon increase to P446 and then to P456 on November 1.

Meantime, business organizations including foreign chambers of commerce maintained their opposition to any wage hike.

Led by Employers Confederation of the Philippines, the Philippine Chamber of Commerce and Industry, the Joint Foreign Chambers of Commerce and Industry and the Makati Business Club, the groups said the Philippines is losing out to neighbors like China and Vietnam owing to relatively high basic pay.

They also said that increases in fuel and other commodities so far do not warrant any wage adjustment.

Moreover, wage hikes do not benefit everyone since only one out of every 10 workers will get the privilege. The rest of the 38.89 million Filipinos of working age will not get anything from this, the groups said.

Excluded from the wage hike coverage will be micro, small and medium enterprises with less than 10 workers which constitute the country's biggest employers with 27.34 million in their payroll.

Also not covered are over three million government workers and 2.85 million unemployed simply because they have no employers.

Among the 5.6 million employed in the formal sector or firms with 10 to thousands of employees, only about three million are minimum wage earners, the only beneficiaries of the wage hike. (HDT/Virgil Lopez/Sunnex)

Local news

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