1st tranche of P85 wage hike in NCR takes effect

INQUIRER FILES The first tranche of the P85 daily wage hike in the National Capital Region (NCR) took effect on July 25. Under Wage Order No. NCR-27 approved on June 23 by the Regional Tripartite Wages and Productivity Board-NCR, minimum wage earners in Metro Manila will get the first increase of P60 in their daily salary upon the order’s effectivity 15 days after its publication in a newspaper of general circulation. The second-tranche increase of P25 wage will take effect on Jan. 20, 2027. Article continues after this advertisement The first-tranche increase adjusts the income of workers in the non-agricultural sector from P695 to P755, while those in the agriculture sector, service and retail shops with 15 or fewer employees, and manufacturing firms with fewer than 10 employees will have a daily wage of P718 from the previous P658. The second-tranche increase will bring the daily minimum salary to P780 for the non-agriculture sector and P743 for the other employees. The Department of Labor and Employment (Dole) earlier called the wage increase the “largest in Metro Manila to date.” An estimated 1.1 million workers in the capital region are expected to benefit from the wage hike. “In line with [that] implementation, the Labor Chief (Acting Labor Secretary Francis Tolentino) continues to remind employers to follow the wage adjustment, as non-compliance will result in penalties set by law. He also urged resolving wage distortion, or the adjustment of salaries above the minimum wage, through collective bargaining agreements between labor and management,” the department said in a press release. Inflation, Mideast war The order cited “The need to adjust the current minimum wage rate to address the decline in the value of real wages, recovering purchasing power lost through inflation.” Article continues after this advertisement It noted that the increase “is also adjusted to align it with the inflation-adjusted poverty threshold.” “Given elevated inflationary pressure on account of the Middle East conflict, the Board also considered it appropriate to provide the increase in two tranches,” the order also said. Article continues after this advertisement Consultations, public hearing Consultations were conducted each with the workers and employers in May, and a public hearing was held in June. Among the various labor organizations which had submitted wage petitions in April and May were the Manila Doctors Hospital Employees’ Association, the Atrium of Makati Condominium Labor Union, the Pambato Cargo Forwarders Labor Union, and the Samahang Manggagawa ng Jardine Schindler Elevator Corporation and other groups under the Association of Democratic Labor Organization. Your subscription could not be saved. Please try again. Your subscription has been successful. Non-governmental organization Foundation for Economic Freedom had called for the suspension of the wage order, “until the spirit of tripartism is upheld and a consensus among employers, labor, and government is reached.” But Malacañang said it will not defer the wage increase. INQ