Ilocos Region's New Wage Increase Effective Nov 2024

The Regional Tripartite Wages and Productivity Board (RTWPB) – I (Ilocos Region) has issued Wage Order No. RB 1-23 on October 9, 2024, granting a Php 33 daily minimum wage increase across all sectors upon effectivity. This adjustment brings the daily minimum wages to Php 468 for the non-agriculture sector employing 10 or more employees and Php 435 for the non-agriculture sector employing less than 10 employees and the agriculture sector.

New Minimum Wage Rates:

Additionally, RTWPB I motu proprio issued Wage Order No. RB 1-DW-05, increasing the monthly minimum wage of domestic workers (kasambahays) by Php 500. The new monthly wage rate for domestic workers in the region will now be Php 6,000.

New Monthly Minimum Wage Rates for Domestic Workers:

The wage orders were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on October 16, 2024. The wage orders will be published on October 22, 2024, and shall take effect on November 7, 2024, or a day after their anniversary.

The increases considered various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act. The Regional Board, comprised of representatives from the government, management, and labor sectors, also conducted consultations and a public hearing in their region as part of the minimum wage determination process.

The new rates for workers in the private sector translate to an 8% increase from the prevailing daily minimum wage rates in the region and result in a comparable 12% increase in wage-related benefits covering 13th-month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth, and Pag-IBIG.

The wage order is expected to directly benefit 170,143 minimum wage earners and about 349,112 full-time and salary workers earning above the minimum wage whose wages will be affected as a result of upward adjustments at the enterprise level arising from the correction of wage distortion. On the other hand, the wage increase for kasambahays is also expected to benefit a total of 99,024 domestic workers – approximately 9% (9,104) of whom are in live-in arrangements.

As in any wage order, and as provided for in the NWPC Omnibus Rules on Minimum Wage Determination, retail/service establishments regularly employing not more than ten (10) workers, and enterprises affected by natural calamities and human-induced disasters may apply to the RTWPB for exemption from the wage increase. Registered Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law pursuant to Republic Act No. 9178 (2002).

RTWPB I shall undertake information campaigns to ensure compliance and provide assistance to enterprises in correcting possible wage distortions. For further clarifications on the wage order, the RTWPB may also be reached through its email address [email protected].

The last wage orders for workers in the private establishments and domestic workers in the region were both issued on October 10, 2023, and became effective on November 6, 2023.

Reference: Minimum wage increase for domestic and private sector workers in the Ilocos Region