Wage Increases for Cagayan, Central Luzon, SOCCSKSARGEN

On October 2, 2024, the Regional Tripartite Wages and Productivity Boards (RTWPBs) in Cagayan Valley (Region II), Central Luzon (Region III), and SOCCSKSARGEN (Region XII) approved new wage orders that increase the daily minimum wage rates for workers in private establishments. This decision follows President Ferdinand R. Marcos, Jr.'s Labor Day directive for a timely review of minimum wages. The adjustments, which vary per region, were reached through a collaborative consensus and unanimously approved by the members of the respective RTWPBs.

Cagayan Valley Wage Increase: In Cagayan Valley, the RTWPB-II granted a PHP 30 daily minimum wage increase across all sectors upon the effective date of the wage order. This adjustment brings the daily minimum wage rates from PHP 430 to PHP 460 for the non-agriculture sector and from PHP 430 to PHP 460 for the agriculture sector.

Central Luzon Wage Increase: In Central Luzon, RTWPB III simplified the wage structure into three main sectors: non-agriculture, agriculture, and retail/service. The increases range from PHP 25 to PHP 41, bringing the daily minimum wages in the region to a range of PHP 500 to PHP 550 in the non-agriculture sector, PHP 485 to PHP 520 in the agriculture sector, and PHP 515 to PHP 540 in retail and service establishments upon full implementation of all tranches.

SOCCSKSARGEN Wage Increase: In SOCCSKSARGEN, the increase granted by RTWPB-XII in the amount of PHP 27 to PHP 48 brings the daily minimum wages in the region to PHP 430 in the non-agriculture sector, including retail and service establishments, and PHP 410 in the agriculture sector upon implementation of all tranches.

Detailed Wage Adjustments:

Cagayan Valley:

• Non-Agriculture: From PHP 430.00 to PHP 460.00

• Agriculture: From PHP 430.00 to PHP 460.00

Central Luzon:

• Non-Agriculture: PHP 500.00 to PHP 550.00

• Agriculture: PHP 485.00 to PHP 520.00

• Retail/Service: PHP 515.00 to PHP 540.00

SOCCSKSARGEN:

• Non-Agriculture: PHP 430.00

• Service/Retail Establishments: PHP 430.00

• Agriculture: PHP 410.00

These wage increases are in accordance with existing laws and procedures and were submitted to the National Wages and Productivity Commission (NWPC) for review and were affirmed on September 25, 2024. The new wage orders will be published on October 1, 2024, and shall take effect on October 17, 2024.

The increases considered various wage determination criteria provided under Republic Act No. 6727 or the Wage Rationalization Act. The Regional Boards, composed of representatives from the government, management, and labor sectors, conducted consultations and public hearings in their respective regions as part of the minimum wage determination process.

The new minimum wage rates for private establishments translate to about 7% to 15% increases from the prevailing daily minimum wages in these three regions and include approximately 7% to 12% increases in wage-related benefits covering the 13th-month pay, service incentive leave, and social security benefits such as SSS, PhilHealth, and Pag-IBIG.

The wage increases are expected to directly benefit around 1.7 million minimum wage earners in these regions and indirectly benefit an additional 1.7 million full-time wage and salary workers earning above the minimum wage as they may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.

The three regions in Region II, Region III, and Region XII have a combined labor force of 4,196,065 workers, with approximately 1.5% (73,394) of workers on live-in arrangements, and 65% (1,717,000) who are on live-out arrangements.

The wage orders are in compliance with the NWPC Omnibus Rules on Minimum Wage Determination, as amended, relative to establishments regularly employing less than ten workers. Micro Business Enterprises are exempted from the minimum wage increases.

Reference: Wage increases for minimum wage earners in Cagayan Valley, Central Luzon, and SOCCSKSARGEN approved