The Department of Labor and Employment has issued a wage order increasing the minimum wage across all sectors in Zamboanga Peninsula.
The Regional Tripartite Wages and Productivity Board issued Wage Order No. RIX-22 on 16 October granting a P30 increase in minimum wage across all sectors, while a second tranche of P13 was also granted to retail/service establishments employing 10-30 workers, to take effect on 1 February 2024.
This will bring the daily minimum wage to P381 for the non-agriculture sector and retail or service establishments with about 31 workers; P368 for retail or service establishments with 10-30 workers, which will further increase to P381 upon effectivity of the second tranche; and P368 for the agricultural sector.
The board also issued Wage Order No. RIX-DW-04 increasing the monthly minimum wage of kasambahay by P600. The monthly minimum wage rate for chartered cities and first-class municipalities will increase from P4,000 to P4,600 while other municipalities will increase from P3,500 to P4,100.
In accordance with existing laws and procedures, the wage orders were submitted to the National Wages and Productivity Commission for review and were affirmed on 24 October 2023. The wage orders were published on 27 October 2023 and shall take effect after 15 days from their publication, or on 12 November 2023.
The new rates for private sector employees represents a 9- to 13-percent increase over the current minimum wage rates in the area. The wage related benefits like service incentive leave, 13th month pay and social security benefits such as SSS, PhilHealth and Pag-IBIG will increase to 23 percent.
About 56,848 minimum wage workers in Region IX are expected to directly benefit from the wage order. The upward adjustments at the enterprise level resulting from the correction of wage distortion may also indirectly benefit about 121,490 salary workers earning above the minimum wage.
Meanwhile, the wage increases for kasambahay are expected to benefit a total of 18,984 domestic workers, approximately 13 percent (2,491) of whom are on live-in arrangements, and 87 percent (16,493) are live-out.
The NWPC Omnibus Rules on Minimum Wage Determination specify that retail and service businesses with below 10 employees as well as businesses impacted by natural or human-induced disasters may apply to RTWPB for exemption from wage increase. Barangay Micro Business Enterprises are not covered by the minimum wage law pursuant to Republic Act No. 9178 2002.