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P12 wage hike takes effect July 3 in Northern Mindanao

Cagayan de Oro (CNN Philippines) — Workers in the private sector will have an additional P12.00 hike in their daily wages effective Friday (July 3), after the Regional Tripartite Wages and Productivity Board (RTWPB) approved the new wage order.

Mandated under the Wage Rationalization Act, also known as RA 6727, the RTWPB is mandated to periodically assess the wage rates and conduct continuing studies in the determination of the minimum wage applicable in the region.

Thus, a series of consultations were conducted in Gingoog City, Municipality of Maramag, Iligan City and Ozamiz City in August and September last year, and a region-wide public hearing last April at Cagayan de Oro City.

After considering the series of consultations and public hearing, and the position submitted by labor and management groups, including assessment of the socio-economic conditions vis-a-vis the competitiveness and development of the region, the RTWPB found it imperative to provide the additional P12.00 adjustment in the minimum wage to augment the income of workers without significantly affecting business’ viability and sustainability.

The wage increase, however, is a far cry from the P89.00 per day across the board wage increase sought by the Associated Labor Union – Trade Union Congress of the Philippines, which filed a petition with the Board on July 18, 2014.

In 2013, the RTWPB-10 issued Wage Order No. RX-17, which provided for a P20.00 increase per day — P10.00 into the basic wage and P10.00 as cost of living allowance (COLA). It took effect on January 1, 2014.

Effective July 3, the new minimum wage for non-agriculture sector will be P318.00 and P306.00 for agriculture sector — that is for Wage Category 1, where the cities of Cagayan de Oro and Iligan and the municipalities of Tagoloan, Villanueva and Jasaan fall under.

For those in Category 2, which include cities of Malaybalay, Valencia, Gingoog, El Salvador and Ozamiz, and the municipalities of Maramag, Quezon and Manolo Fortitch, will have P313.00 for non-agriculture and P301.00 for the agriculture sector.

Category 3, where the cities of Oroqueta and Tangub and the municipalities of Lugait, Opol and Mambajao in Camiguin fall under, and all establishments employing 10 workers or less, will have P308.00 for non-agriculture and P296 for the agriculture sector.

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