Updated October 3, 2024 by Sharlyn Lao
The Regional Tripartite Wages and Productivity Boards (RTWPBs) in Regions II (Cagayan Valley), III (Central Luzon), and XII (SOCCSKSARGEN) have issued wage orders increasing the daily minimum wage rates for workers in private establishments. This move follows President Ferdinand R. Marcos, Jr.'s directive for a timely review of minimum wages during Labor Day. The adjustments, varying by region, were reached through a collaborative consensus and approved unanimously by each RTWPB.
These wage orders will be published on 01 October 2024 and shall take effect on 17 October 2024.
Understanding the Basics: What is Minimum Wage
Minimum wage is the lowest legal hourly or monthly wage that an employer is required to pay to their employees. It serves as a protective measure, intended to establish a base level of income that enables workers to meet their basic needs. Minimum wage laws are generally enforced by the government and, in some cases, adjusted periodically to account for inflation and changing economic conditions.
To know more about Minimum Wage, you may read it in our other blog Minimum Wages in Metro Manila 2024
Cagayan Valley
The RTWPB-II approved a ₱30 daily wage increase across all sectors. This raises the minimum wage for non-agricultural workers from ₱450 to ₱480 and for agricultural workers from ₱430 to ₱460. Additionally, a ₱500 monthly wage increase was approved for domestic workers (kasambahays), bringing their minimum wage to ₱6,000 in all cities and municipalities.
Below is a table to help enhance your understanding:
| Sector/Industry | Current Minimum Wage Rates | New Wage Increase | New Minimum Wage Rates |
|---|---|---|---|
| Non-Agriculture | PHP 450.00 | PHP 30.00 | PHP 480.00 |
| Agriculture (Plantation and Non -Plantation) | PHP 430.00 | PHP 30.00 | PHP 460.00 |
| Local Domestic Workers | PHP 5,500.00 | PHP 500.00 | PHP 6,000.00 |
Note
This table only shows rates for the year 2024Central Luzon
RTWPB-III simplified its wage structure, categorizing it into non-agriculture, agriculture, and retail/service sectors. The wage increase, ranging from ₱50 to ₱66, brings the minimum wage in the region to between ₱500 and ₱550 for non-agricultural workers, ₱485 to ₱520 for agricultural workers, and ₱435 to ₱540 for retail/service workers. These changes will be implemented in tranches, with the final increases taking effect in April 2025.
Below is a table to help enhance your understanding:
Provinces of Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales
| Sector/Industry | Current Minimum Wage Rates | New Wage Increase (Upon October 17, 2024) | New Minimum Wage Rates | New Wage Increase (2nd Tranche: April 16, 2025) | New Minimum Wage Rates |
|---|---|---|---|---|---|
| Non-Agriculture (Establishments with 10 or more workers) | PHP 500.00 | PHP 25.00 | PHP 525.00 | PHP 25.00 | PHP 550.00 |
| Non-Agriculture (Establishments with less than 10 workers) | PHP 493.00 | PHP 32.00 | |||
| Agriculture (Plantation) | PHP 470.00 | PHP 25.00 | PHP 495.00 | PHP 25.00 | PHP 520.00 |
| Agriculture (Non-Plantation) | PHP 454.00 | PHP 41.00 | |||
| Retail / Service (Establishments with 10 or more workers) | PHP 489.00 | PHP 26.00 | PHP 515.00 | PHP 25.00 | PHP 540.00 |
| Retail / Service (Establishments with less than 10 workers) | PHP 475.00 | PHP 40.00 |
Provinces of Aurora
| Sector/Industry | Current Minimum Wage Rates | New Wage Increase (Upon October 17, 2024) | New Minimum Wage Rates | New Wage Increase (2nd Tranche: April 16, 2025) | New Minimum Wage Rates |
|---|---|---|---|---|---|
| Non-Agriculture | PHP 449.00 | PHP 26.00 | PHP 475.00 | PHP 25.00 | PHP 500.00 |
| Agriculture (Plantation) | PHP 434.00 | PHP 26.00 | PHP 460.00 | PHP 25.00 | PHP 485.00 |
| Agriculture (Non-Plantation) | PHP 422.00 | PHP 38.00 | |||
| Retail / Service | PHP 384.00 | PHP 26.00 | PHP 410.00 | PHP 25.00 | PHP 435.00 |
Note
This table only shows rates for the year 2024SOCCSKSARGEN
In Region XII, the RTWPB granted a wage increase of ₱27 to ₱48. Upon full implementation, the minimum wage will be ₱430 for non-agricultural and retail/service workers and ₱410 for agricultural workers.
Below is a table to help enhance your understanding:
| Sector/Industry | Current Minimum Wage Rates | New Wage Increase | New Minimum Wage Rates | New Wage Increase (2nd Tranche: January 1, 2025) | New Minimum Wage Rates | New Wage Increase (3rd Tranche: April 1, 2025) | New Minimum Wage Rates | New Wage Increase (4th Tranche: June 1, 2025) | New Minimum Wage Rates |
|---|---|---|---|---|---|---|---|---|---|
| Non-Agriculture | PHP 403.00 | PHP 14.00 | PHP 417.00 | PHP 13.00 | – | PHP 430.00 | |||
| Service/Retail Establishments | PHP 382.00 | PHP 14.00 | PHP 396.00 | PHP 14.00 | PHP 410.00 | PHP 10.00 | PHP 420.00 | PHP 10.00 | |
| Agriculture | PHP 382.00 | PHP 14.00 | PHP 396.00 | PHP 14.00 | – | PHP 410.00 | |||
Note
This table only shows rates for the year 2024Implementation and Impact
The wage orders have been submitted to the National Wages and Productivity Commission (NWPC) and were affirmed on 25 September 2024. The new rates will take effect on 17 October 2024, following publication on 01 October 2024.
The increases were determined using criteria from Republic Act No. 6727 (Wage Rationalization Act) and involved consultations and public hearings. The new rates translate to a 7%-15% increase in daily wages and a corresponding rise in wage-related benefits, such as 13th-month pay, service leave, and social security contributions.
The wage hikes are expected to directly benefit 905,000 minimum wage earners and may indirectly impact 1.7 million workers earning above the minimum wage, due to adjustments at the enterprise level to correct wage distortions.
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