New Wage Order NCR-25: Minimum Wage Increase in NCR

The Regional Tripartite Wages and Productivity Board - National Capital Region (RTWPB-NCR) has issued Wage Order No. NCR-25, mandating a minimum wage increase for workers in the private sector within the National Capital Region (NCR). This new wage order is a significant development aimed at improving the economic well-being of workers in the region.

Background and Rationale:

The Wage Rationalization Act, under Republic Act No. 6727, empowers the RTWPB-NCR to periodically assess and adjust wage rates. The current Wage Order No. NCR-24, which took effect on July 16, 2023, is being updated following several wage petitions from various labor groups. These petitions highlighted the need for a wage increase to address the rising cost of living and ensure fair compensation for workers.

Consultations and Public Hearings:

To ensure a comprehensive evaluation, the Board conducted consultations and public hearings with labor and management representatives. These sessions were held at Ichikawa Hall, Occupational Safety and Health Center, Diliman, Quezon City, on the following dates:

• Labor Consultation: May 23, 2024

• Management Consultation: June 4, 2024

• Public Hearing: June 20, 2024

Key Findings:

The Board's decision was based on a thorough review of the socio-economic conditions in the region, including:

• The Consumer Price Index (CPI) in the region, which was 118.1 in May 2023 and is projected to be 121.8 in May 2024, indicating an average inflation rate of 4.42%.

• The poverty threshold, which was ₱452.00 per day in 2021.

• Labor productivity and other relevant findings.

New Minimum Wage Rates:

Effective fifteen (15) days from publication in a newspaper of general circulation, the new daily minimum wage rates in NCR will be as follows:

• Non-Agriculture: From ₱610.00 to ₱645.00

• Agriculture (Plantation and Non-Plantation): From ₱573.00 to ₱608.00

• Service/Retail Establishments employing 15 workers or less: From ₱573.00 to ₱608.00

• Manufacturing Establishments regularly employing less than 10 workers: From ₱573.00 to ₱608.00

Implementation and Compliance:

The wage increase applies to all minimum wage earners in the private sector within the region, regardless of their position, designation, or employment status. Employers are required to comply with this wage order, and any entity failing to do so will face penalties as stipulated under Section 12 of RA No. 6727, as amended by RA No. 8188.

Conclusion:

Wage Order No. NCR-25 represents a crucial step towards ensuring fair wages for workers in the National Capital Region. By addressing the economic realities and the needs of the labor force, this wage increase aims to promote economic growth and improve the quality of life for workers and their families.

Source: Wage Order No. NCR-25