SAN FERNANDO, La Union, Philippines – Minimum wage workers in the private sector in the Ilocos region will receive an increase of P5 or P8 in their daily basic wage.
Henry John Jalbuena, chairman of the Regional Tripartite Wages and Productivity Board and regional director of the Department of Labor and Employment, said the increase will cover all workers and employees in the private sector receiving the minimum wage regardless of their position, designation or status of employment and irrespective of the method their wages are paid.
Jalbuena said the new wage order was issued to restore the lost purchasing power of the peso, enabling the region’s workers to cope with the rising cost of living.
Aside from the P5 or P8 increase in the daily minimum pay, the regional wage board also integrated into the basic wage the existing P10 cost of living allowance granted under the previous wage order.
In deciding the wage adjustment, Jalbuena said the wage board also considered “the economic performance or contribution of the various industry sectors in the economic development of the region in order not to impair their viability, particularly the micro and small establishments and those that were adversely affected by natural calamities and the effect of the continuing global financial crisis.”
After careful deliberations, the wage board decided that a P5 adjustment would be economically feasible among micro establishments with low growth rate, while businesses with moderate to fast growth rate could provide their workers with an additional P8 in their daily basic wage.
Not covered by the new wage order are household or domestic helpers; persons employed in the personal service of another, including family drivers; and workers and employees of registered Barangay Micro Business Enterprises with certificates of authority pursuant to Republic Act 9178.
Exempted from coverage of the new wage order are distressed establishments and firms adversely affected by natural calamities upon approval by the regional wage board of their application for exemption.
The new wage order will take effect on Jan. 20 following its publication in a newspaper of general circulation in the region.
Jalbuena said stakeholders would be oriented on the provisions of the new wage order upon the approval of the implementing rules.