DoLE plans 2-tier wage system next year

MANILA, Philippines – The Department of Labor and Employment (DoLE) said the minimum wage of workers will still have to pass through the regional wage boards in line with the two-tier wage system, which it plans to implement by next year.

National Wage and Productivity Commission (NWPC) Executive Director Ciriaco Lagunzad, III said in a media forum that under the two-tier wage system, workers will receive a mandatory basic minimum wage, which will be determined by their respective Regional Tripartite Wages and Productivity Boards.

“The proposal is to continue working within the framework of Republic Act 6727 or the Wage Rationalization Act. Therefore, we will still entertain wage petitions,” Lagunzad said.

Lagunzad said the tripartite council commission organized by the DoLE to study the new wage system has already approved the project and has been conducting a nationwide consultation of workers for its implementation.

“The commission went to the regions and consulted various sectors and the general recommendation is that we maintain the regional set-up. In essence you can’t have one shoe which fits everyone. Each region will have different conditions and differentiations,” he added.

Lagunzad also said the two-tier wage system may also include an additional pay based from the productivity of the worker, which is not mandatory and will depend on their negotiation with their management guided by procedures set by DoLE.

He said DoLE is preparing to launch the new program on or before Labor Day next May.

Meanwhile, Labor and Employment Secretary Rosalinda Baldoz said the DoLE is also planning to slowly remove the basic wage exemptions of some establishments by coming up with a more comprehensive minimum wage based from the key statistics of the poverty threshold income of workers. –SAMUEL P. MEDENILLA, Manila Bulletin