AN OFFICIAL from the Department of Labor and Employment-Davao Region (Dole-Davao) said that the determination of wages should be region-specific, taking into consideration socio-economic conditions, purchasing power, and poverty thresholds.
In a media interview at the SM City Davao on Monday morning, March 11, 2024, lawyer Randolph Pensoy, Dole-Davao regional director, said that if Congress passes a wage hike into law, it must account for the distinct lifestyles and economic disparities across regions.
“The determination of wages must be determined by region because we know what is the purchasing power, the economic, the poverty threshold. Iba-iba, yung lifestyle mo dito sa Davao is different sa lifestyle mo sa Manila, so iba yung minimum wage nila (The determination of wages must be determined by region because we know the purchasing power, the economic, and the poverty threshold. Your lifestyle here in Davao is different from the lifestyle you will have in Manila, so their minimum wage is different),” he said.
He clarified that Congress is responsible for researching and studying the implications of a wage hike, while Dole-Davao's role is to implement wage determinations made by legislative bodies, including Congress and the Senate.
The wage adjustment, he explained, is the result of the Regional Tripartite Wages and Productivity Board (RTWPB), representing management, labor, and government sectors.
Recently, the Senate approved Senate Bill 2534, proposing a P100 daily minimum wage increase for private sector employees and workers. The last legally mandated wage increase in the Philippines was Republic Act 6727, known as the Wage Rationalization Act, passed in 1989, mandating regional wage boards to establish increases.
Notably, Davao Region was the last to adopt the minimum wage adjustment, with RTWPB-Davao approving a P38 increase for minimum wage earners and domestic workers. The first tranche became effective on March 6, 2024, and the second tranche is scheduled for September 1. RGP with reports from EHP and TPM
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