NWPC Affirms New Wage Orders for CARAGA

The National Wages and Productivity Commission (NWPC) has affirmed new wage orders for private and domestic workers in the CARAGA region. This decision, made on December 13, 2024, by the Regional Tripartite Wages and Productivity Board (RTWPB) XIII, aims to promote sustainable wage growth through continuous productivity initiatives.

Wage Order RXIII-19:

Wage Order No. RXIII-19 introduces a P50 daily wage increase for private sector workers in CARAGA, implemented in two tranches. The first tranche raises the daily minimum wage from P385 to P415 upon effectivity, and the second tranche increases it from P415 to P435 on May 1, 2025.

Wage Order RXIII-DW-05:

Similarly, Wage Order No. RXIII-DW-05 grants a P1,000 monthly increase for domestic workers, raising the sector's minimum wage to P6,000.

Detailed Breakdown:

Private Sector Workers:

• Non-Agriculture, Agriculture, Service/Retail, Manufacturing:

  • Minimum Wage under Wage Order No. RXIII-18: Php 385.00

  • Amount of Increase (Upon effectivity): Php 30.00

  • New Minimum Wage: Php 415.00

  • Amount of Increase (2nd Tranche: May 01, 2025): Php 20.00

  • New Minimum Wage: Php 435.00

Domestic Workers:

• Chartered Cities and First Class Municipalities:

  • Monthly Minimum Wage under Wage Order RXIII-DW-04: Php 5,000.00

  • Amount of Monthly Increase: Php 1,000.00

  • New Monthly Minimum Wage Rate: Php 6,000.00

• Other Municipalities:

  • Monthly Minimum Wage under Wage Order RXIII-DW-04: Php 5,000.00

  • Amount of Monthly Increase: Php 1,000.00

  • New Monthly Minimum Wage Rate: Php 6,000.00

Implementation and Compliance:

The new wage orders will be published on December 17, 2024, and will take effect on January 2, 2025. The NWPC confirmed that RTWPB XIII complied with the criteria for determining a wage increase under Republic Act No. 6727 or the Wage Rationalization Act. This act considers the needs of workers and their families, the capacity of employers to pay, and the requirements of economic and social development.

Impact and Benefits:

The wage increase is expected to benefit 65,681 minimum wage earners in CARAGA. Additionally, 132,217 full-time wage and salary workers earning above the minimum wage may also benefit from upward adjustments at the enterprise level. The wage increase for domestic workers (kasambahays) is expected to benefit 1,401 out of 32,866 domestic workers, with approximately 24% living in live-in arrangements.

Future Initiatives:

The NWPC has reiterated its directive to other RTWPBs to undertake information campaigns to ensure compliance and provide assistance to enterprises in correcting possible wage distortions. RTWPB-CARAGA was likewise ordered to implement productivity improvement programs and gather mechanisms to support wage growth, especially in areas that may have low productivity.

Conclusion:

The NWPC's new wage orders for CARAGA represent a significant step towards ensuring fair wages and promoting economic development in the region. By addressing the needs of both private and domestic workers, these initiatives aim to foster sustainable wage growth and improve the overall quality of life for workers in CARAGA.

Reference: NWPC Affirms new wage orders for CARAGA, targets sustainable wage growth through continuous productivity initiatives