THE approved P38 increase to the daily minimum wage in the Davao Region is expected to directly benefit 132,347 minimum wage earners. The wage increase will be given in two tranches following the approval of the Regional Tripartite Wages and Productivity Board-Davao Region (RTWPB-Davao).
RTWPB-Davao said the first tranche of wage increase is under Wage Order No. RBXI-22 in the amount of P19 per day effective March 6, 2024.
The new minimum wage rate for workers in the Non-Agriculture sector shall be P462 per day and for the Agriculture sector workers, it shall be P457 per day.
The second tranche, still P19, will take effect on September 1, 2024. The new minimum wage rate for workers in the Non-Agriculture sector by that time shall be P481 per day and for the Agriculture sector workers, it shall be P476 per day.
The Department of Labor and Employment (Dole) also said that 316,558 full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.
The Regional Board also issued Wage Order No. RBXI-DW-03, increasing the monthly minimum wage of kasambahays by a range of P500 to P1,500 depending on the area.
The wage increase for kasambahays is expected to benefit a total of 64,111 domestic workers – approximately 37 percent (23,479) of whom are on live-in arrangements.
Moreover, the RTWPB-Davao also granted a wage increase for domestic workers in Region 11 under Wage Order No. RBXI-DW-03, to take effect on March 6, 2024. The new minimum wage rates shall be P6,000 per month for domestic workers in chartered cities and first-class municipalities and P5,000 per month for domestic workers in other municipalities.
Dole said the wage orders were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on February 16, 2024.
The wage orders were published on Monday, February 19, 2024, and will take effect 15 days after publication, or on March 6, 2024.
RTWPB–Davao recently conducted a public hearing on February 7, and a wage deliberation on February 13, 2024.
“The increases considered the various wage determination criteria provided under Republic Act No. 6727, or the Wage Rationalization Act,” Dole said.
The agency said the new rates for workers in the private sector translate to a nine percent increase from the prevailing daily minimum wage rates in the region and result in a comparable 23 percent increase in wage-related benefits covering 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth, and Pag-Ibig.
Retail or service establishments employing not more than 10 regular workers, and enterprises affected by natural calamities and/or human-induced disasters may apply to the RTWPB for exemption from the wage increase. Barangay Micro Business Enterprises (BMBEs), however, are not covered by the minimum wage law under Republic Act No. 9178 of 2002.
The last wage orders for workers in private establishments and domestic workers in the region were both issued in May 2022 and became effective in June 2022. RGL
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