New wage rate takes effect

New wage rate takes effect
PNA/File Photo
Published on

WORKERS in the private sector across the Davao Region began to get their salary increase after the first tranche of the newly approved minimum wage adjustment took effect on Friday, March 13, 2026. Labor authorities reminded employers to strictly comply with the new pay rates.

The Department of Labor and Employment-Davao Region (Dole-Davao) announced that the initial phase of the wage increase, mandated under Wage Order No. RB XI-24, is now being implemented across the region’s private establishments. The order was approved on February 25 by the Regional Tripartite Wages and Productivity Board-Davao Region (RTWPB-Davao) following consultations with representatives from labor, employers, and the government.

The wage order provides for a staggered increase in the daily minimum wage for workers in both the agriculture and non-agriculture sectors, reflecting the board’s effort to balance worker welfare and business sustainability in the region.

Under the first tranche, the minimum daily wage for agricultural workers has increased from P505 to P510. Meanwhile, employees in the non-agriculture sector now receive a minimum wage of P525 per day, up from the previous P510 rate.

The wage adjustment grants a total increase of P20 for workers in the agriculture sector and P30 for those in the non-agriculture sector. These increases will be implemented in two stages, with the second tranche scheduled to take effect on September 1.

Labor authorities emphasized that compliance with the new wage rates is mandatory for covered establishments and will be monitored through the agency’s routine inspections.

“Compliance with the prescribed minimum wage forms part of the regular labor inspection agenda of the,” Dole said.

According to the agency, labor inspectors will conduct periodic inspections across business establishments to ensure adherence to the wage order. The agency noted that minimum wage violations have consistently ranked among the most common forms of labor standards non-compliance in recent years, based on previous inspection records.

Beyond private sector employees, domestic workers in the region are also set to benefit from a wage adjustment under Wage Order No. RB XI-DW-04, which establishes a uniform monthly minimum wage for household workers.

Previously, domestic workers received varying wage rates depending on the classification of their locality. 

Household workers in chartered cities and first-class municipalities will now be receiving a minimum of P6,000 per month, while those in other municipalities are now paid at least P5,000.

With the new order, domestic workers across the region are now receiving a standardized monthly minimum wage of P6,500. This represents a P500 increase for those working in chartered cities and first-class municipalities and a P1,500 increase for domestic workers in other municipalities.

Dole Regional Director and RTWPB-Davao Chairperson Randolf C. Pensoy urged employers to observe the mandated adjustments and view compliance as part of responsible business practice.

“Employers are encouraged to comply with the mandated wage adjustments as a concrete expression of respect for workers’ rights and recognition of their valuable contributions to the enterprise,” Pensoy said.

Pensoy stressed that observing fair labor standards helps promote workers’ welfare while also contributing to industrial peace and improved productivity in the workplace.

The Labor department, however, clarified that certain businesses may still apply for a temporary exemption from the wage increase. Retail and service establishments that regularly employ no more than ten workers, as well as enterprises that have been adversely affected by natural calamities or human-induced disasters, may submit applications for exemption to the RTWPB-Davao.

Applications must be filed on or before May 11, 2026.

Meanwhile, enterprises registered as Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law under Republic Act No. 9178. Businesses operating under this program and holding valid Certificates of Authority issued by the Department of Trade and Industry are exempt from paying the statutory minimum wage. DEF

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.

Videos

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph