WAGE HIKE. Minimum wage earners in Central Luzon will receive the new daily wage increase starting Oct. 16, 2023. This is pursuant to Wage Order No. RBIII-24 that mandates a PHP40 increase in the daily minimum wage of workers in private establishments in the region. (Infographic courtesy of RTWPB Region 3)
CITY OF SAN FERNANDO, Pampanga – The Department of Labor and Employment (DOLE) has warned employers in Central Luzon that they will face sanctions if they do not comply with the new wage order.
The Regional Tripartite Wages and Productivity Board (RTWPB) has approved a PHP40 per day increase for minimum wage earners in the private sector in the region that will take effect on Oct. 16, 2023.
In an interview on Friday, RTWPB Chairperson and DOLE Regional Director Geraldine Panlilio said measures have already been put in place to ensure that employers in the region follow the wage increase.
“DOLE regularly conducts its labor inspection program wherein compliance with labor laws, including the minimum wage is monitored and verified,” she said.
Panlilio cited the importance for both the employers and the workers to become fully aware of their rights and responsibilities in relation to the new wage order.
“We are enjoining all employers to abide by the labor laws, particularly on the new wage rates applicable in Central Luzon. If violated, they will face a fine of up to PHP100,000 or imprisonment of not less than two years,” she added.
The DOLE official also noted the increased criminal penalty for violators of the minimum wage law and imposed double indemnity for violators vis-a-vis employees as stated under the Republic Act 8188, a law that has been in effect since June 11, 1996.
Under the double indemnity rule, employers who refuse or fail to pay the minimum wage prescribed by law shall be required to pay an amount equal to “double the unpaid benefits owing to the employees.”
Panlilio, however, said establishments could file for an exemption under certain conditions.
As provided for under the Omnibus Rules on Minimum Wage Determination, retail/service establishments employing not more than 10 workers and establishments adversely affected by natural calamities and/or human-induced disasters may apply for exemption from the wage increase.
“RTWPB shall undertake information campaigns to ensure compliance and to provide assistance to enterprises in correcting possible wage distortions,” Panlilio said.
Wage distortion occurs when the variations in wage structures or rates among employee groups within an enterprise are significantly eliminated or substantially diminished due to mandated wage increases.
With the new order, minimum earners in Central Luzon in the non-agriculture category and establishments with more than 10 workers will receive a PHP500 basic pay per day.
Employees working in the non-agriculture category and establishments with less than 10 workers will have a PHP493 basic pay per day.
Under the agriculture category, the new wage hike for plantation and non-plantation workers will be PHP470 and PHP454, respectively.
For the retail or service category, the daily minimum wage in establishments with 10 or more workers will be PHP489 and PHP475 in establishments with less than 10 workers.
This new wage hike adjustment applies for minimum wage earners in the provinces of Pampanga, Tarlac, Bulacan, Zambales, Bataan and Nueva Ecija.
For Aurora province, the daily minimum wage rate for the non-agriculture category will be PHP449.
The daily minimum wage of plantation workers in agriculture establishments will be PHP434 and PHP422 for non-plantation workers.
Meanwhile, workers in retail and service establishments will receive a daily minimum wage of PHP384. (PNA)
