P8 wage hike takes effect Feb. 5
PRIVATE SECTOR workers in in Region 1 will get an additional pay of P8.00 per day from P205 to P213 starting February 5 this year, according to Department of Labor and Employment (DOLE).
DOLE Director Grace Ursua, chairperson of the Regional Tripartite Wages and Productivity Board (RTWPB-1), said the wage increase, contained in Wage Order No. RB1-16, provides for a mandatory floor wage (Tier One) and a voluntary incentive scheme (Tier Two) based on labor productivity and business performance.
“Our new wage fixing tool operates to protect the right of our workers to decent pay and remuneration while encouraging productivity which could redound to the benefit of both the business and the employees,” Ursua said.
She said the new wage order simplifies the wage structure from industry classification to asset size as basis in the classification of establishments, benefiting mainly those who were previously receiving a daily minimum wage of P205 in micro establishments and non-plantation agriculture.
Based on latest data, micro establishments employ around 55.1% of the total workforce in the region, or about 118,847 workers.
She said the increase was based on the present P227 poverty threshold level.
Meanwhile, other workers in the non-agriculture sector will receive a P20 increase in their daily wages depending on the company’s asset size.
EXEMPTIONS
Excluded from the coverage of the new wage order are household or domestic workers; persons employed in the personal service of another, including family drivers; and workers and employees of registered Barangay Micro Business Enterprises with Certificate of Authority pursuant to Republic Act 9178.
The wage order also provides exemption to distressed establishments, retail/service establishments employing not more than ten workers and establishments which have been adversely affected by natural calamities.
Establishments falling under any of these conditions are required to file an application for exemption with the RTWPB-1or any of the DOLE field offices.
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