Employers should take note that the newly approved minimum wage rates in certain sectors and industries under Region IV-A (Calabarzon) and Region VII (Central Visayas) are effective starting September 24 and October 1, respectively.

Wage Order IVA-20, issued on 1 September 2023 by the Regional Tripartite Wages and Productivity Board in Region IV-A, provides a wage increase ranging from P35 to P50.

The new minimum wage rates in the region will now range from P385 to P520 in the non-agriculture sector; P385 to P479 in the agriculture sector; and P385 for retail and service establishments employing not more than 10 workers.

Workers in the agriculture sector in the cities of Calaca and Carmona will, however, receive an increase of P89 due to their reclassification from first-class municipalities to component cities.

Wage Order IVA-20 was submitted last 4 September to the NWPC, which affirmed the decision on 5 September. The wage order published on 8 September will take effect after 15 days from its publication, or on 24 September 2023.

New rates

The new rates translate to a 9 percent to 11 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, and social security benefits such as SSS, PhilHealth and Pag-IBIG, said the NWPC.