FILE PHOTO: Workers’ hands (Rodgie Cruz / Photoville International)
MANILA, Philippines – The Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region has approved the additional P15 to the minimum wage of workers in Metro Manila.
Workers in the non-agricultural sector in the National Capital Region will receive P481, and those in the agriculture sector will receive P444 before the Labor Day on May 1.
According to Department of Labor and Employment (DOLE) Spokesperson Nicon Fameronag, more than half a million workers in Metro Manila will benefit from the wage hike.
Among the considerations before the wage hike was approved were: the inflation rate, increase in fares and prices of commodities, economic condition of the region and sectoral consultations and public hearings.
The DOLE also put into consideration the capacity of employers to pay.
“We think this wage increase will help to maintain business expansion and to create employment opportunities, and encourage additional investment. We want those in the informal sector to join the formal sector because there is protection there,” DOLE NCR Director Alex Avila said.
Although two petitions have been filed for P146 and P136 across the board wage increase by labor groups, the DOLE clarified that the tripartite wage board has no authority over the across the board wage increase but only on minimum wages.
With the announcement of the wage hike, the wage board reduced the qualifications for companies that can apply for exemption.
“Establishments whose total assets are not more than 3 million meaning to say they are no longer allowed to apply for exemption from the wage order,” said DOLE spokesperson Nicon Fameronag.
The DOLE explained that after the tripartite wage board approved the increase, it will be signed by the National Wages and Productivity Commission and will be published 15 days before it takes effect, so it is expected that workers will feel the wage increase in April.
Apart from the P15 wage hike is the P15 cost of living allowance or COLA which took effect in January 04, 2014.
“These workers will continue to be exempted from paying income tax on their wage, including exemption on taxes on their hazard pay, holiday pay, night shift differential and overtime pay. Their take home pay now will increase to P492.57 per day,” Fameronag said. (Victor Cosare / UNTV News)