P40 wage hike in NCR takes effect despite pending appeals

This, as Wage Order No. NCR-24 providing for the measure was published on June 30 and would take effect 15 days thereafter. (Pexels Photo)

MANILA – The PHP40 minimum wage hike in Metro Manila will take effect on Sunday, the National Wages and Productivity Commission (NWPC) of the Department of Labor and Employment (DOLE) said on Tuesday.

In a statement, the NWPC said employers in National Capital Region (NCR) are expected to implement the new daily minimum wage on July 16 despite an appeal filed by a coalition of labor organizations.

This, as Wage Order No. NCR-24 providing for the measure was published on June 30 and would take effect 15 days thereafter.

This brings the daily minimum wage in NCR from PHP570 to PHP610 for the non-agriculture sector.

Also, from PHP533 to PHP573 for the agriculture sector, service and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers.

On July 3, the wage appeal was filed by the Alliance of Nationalist and Genuine Labor Organization, Labor Alliance for National Development, Gabay ng Unyon sa Telekomunikasyon at Serbisyo, Pinagkaisang Lakas ng Manggagawa ng Manila Bay and their allied labor organizations.

Citing inflation and the “soaring prices of basic services and commodities,” the petitioners argued that the basis of minimum wage determination should be the family living wage, which should amount to PHP1,161 and not the poverty threshold.

The NWPC said that the appeal is part of the minimum wage determination process and shall be acted upon promptly.

Based on existing rules, the NWPC shall resolve the appeal within 60 calendar days from the filing date.

Pursuant to NWPC Guidelines No. 03, series of 2022, or the Omnibus Rules on Minimum Wage Determination, a wage order may be appealed on the “ground of grave abuse of discretion on the part of the Board for committing a serious error in the application of law, and non-compliance with prescribed guidelines and/or procedures.”

The Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) issued the wage order pursuant to Republic Act 6727 or the Wage Rationalization Act. RTWPB-NCR is composed of DOLE regional director as chairperson, National Economic and Development Authority and Department of Trade and Industry regional directors as vice chairpersons and two representatives each from the labor and employer sectors.

Petitions for minimum wage increases have also been filed in Central Luzon, Calabarzon, Bicol, Western Visayas and Central Visayas.

Meanwhile, wage boards in Central Luzon, Calabarzon and Western Visayas are currently discussing the merit of the petitions.

Meanwhile, the RTWPB in Central Visayas is set to conduct public hearings this month and in August.