THE first tranch of the minimum wage hike for the private sector in Davao Region will start on June 19, 2022, based on the new wage order of the Department of Labor and Employment in Davao Region (DOLE-Davao).
A P47 increase has recently been granted to workers in the non-agriculture sector including industrial/commercial and retail/service with more than ten workers; retail/service employing not more than ten workers, and the agriculture sector.
Through Wage Order No. RB XI-21 by the Regional Tripartite Wages and Productivity Board of DOLE-Davao, the first tranch on June 19 will increase the minimum wage by P31.
The second tranch will increase P16 effective January 1, 2023, but retail/service employing less than ten workers will have a third and final tranch of P15 in April 2023.
The final minimum wage rate, once all tranches are completed, is P443 for non-agriculture and P438 for agriculture.
During the Kapehan sa Dabaw press conference on June 15, DOLE-Davao Regional Director Randolf Pensoy said the third tranch is to give the same wage adjustment to both categories under the non-agriculture sector.
“Kay gamay ra man ang minimum wage sa retail, P381 man (The retail sector has a low minimum wage of P381). To make it simple and to have the same wage order and wage adjustment, we give three tranches for that particular sector in non-agriculture,” Pensoy said.
The regional director also said employers who will not comply with the new wage orders will face appropriate penalties pursuant to the provisions of Republic Act 8188 or “An act increasing the penalty and increasing the double indemnity for violation of the prescribed increases or adjustment in the wage rates.”
Violators may face a fine of P25,000 to P100,000 or imprisonment of two to four years.
“We are always conducting labor inspection and monitoring activities,” Pensoy warned.
Under the existing Wage Order RB XI-20, workers in the non-agriculture sector with more than ten employees receive a P396 minimum wage, P381 for retail/service employing not more than ten workers, and P391 for the agriculture sector.