988K NCR workers expected to benefit from wage hike

The Department of Labor and Employment (DOLE) said Monday that at least 988,000 workers in the National Capital Region (NCR) are expected to benefit from the wage hike.

Last June, the Regional Wages Tripartite Wages and Productivity Board (RTWPB)-NCR approved a P35 increase in the daily minimum wage in the private sector.

Minimum earners from the non-agriculture sector now earn P645, while for those working in agriculture, service, or retail establishments or less and in manufacturing regularly employing less than 10 workers now earn P608.

In a televised briefing, DOLE-NCR Regional Director, Atty. Jude Trayvilla, said workers who are earning above minimum wage could also be affected by wage distortion.

"Ang wage distortion ito ay nangyayari pag nagkakaroon ng severe contraction ng wage differences nila at nawawala o nae-eliminate ang pagkakaiba nila (Wage distortion occurs when there's a severe contraction of their wage differences and their differences disappear or are eliminated)," Trayvilla explained.

"Dapat ang mga employer, they endeavor to fix this phenomenon. Kung hindi naman, pwede silang humingi ng tulong sa amin [DOLE] or sa National Wage and Productivity Commission (NWPC) (Employer must endeavor to fix this phenomenon. If not, they can ask for help from us or the NWPC)," he added.

Wage distortion occurs when the variations in wage structures or rates among employee groups within an enterprise are significantly eliminated or substantially diminished due to mandated wage increases.

According to the NWPC, addressing wage distortions is crucial for maintaining equity, boosting employee morale, and fostering a productive and harmonious workplace.