P5 to P8 hike in daily wage for Region 1 workers OK’d

VIGAN CITY, Philippines — Minimum wage workers in the private sector in Region 1 will receive an increase of between P5 and P8 in their daily basic wage after the Regional Tripartite Wages and Productivity Board-I approved Wage Order No. RB1-14.

Henry John S. Jalbuena, Chairman of the Board and Regional Director of the Department of Labor and Employment (DoLE), said Thursday that the increase will cover all workers and employees in the private sector receiving the minimum wage in the region regardless of their position, designation or status of employment and irrespective of the method their wages are paid.

He disclosed that the new wage order will take effect on Jan. 20, 2011 following its complete publication in a newspaper of general circulation in Ilocos region.

Jalbuena said the wage order was issued to restore the lost purchasing power of the peso, enabling the workers to cope with the rising costs of living.

Aside from the P5 to P8 increase in the daily basic wage, the Board also integrated into the basic wage the existing cost of living allowance (COLA) granted under Wage Order No. RB1-13.

“In deciding the amount of wage adjustments, the Board considered also the economic performance or contribution of the various industry sectors in the economic development of the region in order not to impair their viability particularly the micro and small establishments and those that were adversely affected by natural calamities and the effect of the continuing global financial crisis,” Jalbuena said.

After careful deliberations, the Board decided that a P5 adjustment will be economically feasible among micro establishments with low growth rate; while businesses with moderate to fast growth rate can effect an additional P8 in their workers’ daily basic wage.

Not covered by the new wage order are household or domestic helpers; persons employed in the personal service of another, including family drivers; and workers and employees of registered Barangay Micro Business Enterprises (BMBE) with Certificates of Authority pursuant to Republic Act 9178.

Exempted from the coverage of the new wage order are distressed establishments and establishments adversely affected by natural calamities upon approval by the Board of their application for exemption.

Jalbuena said stakeholders will be oriented on the salient provisions of the new wage order upon the approval of its implementing rules. –FREDDIE G. LAZARO, Manila Bulletin