Wage boards in 11 regions grant 2-tiered pay adjustments

Minimum wage earners in 11 regions are now benefiting from a two-tier wage hike following the issuance of new wage orders by the Regional Tripartite Wage and Productivity Boards concerned, the Department of Labor and Employment said Friday.

 

DOLE Secretary Rosalinda Baldoz said the two-tiered wage system provides a minimum wage and a negotiable “extra” amount based on the worker’s productivity.

 

“As of today, 11 RTWPBs issued new wage orders granting increases to minimum wage earners either in the form of basic pay or cost of living allowance (COLA),” said Baldoz, citing an update of the National Wages and Productivity Commission.

 

The DOLE said wage hikes are now in effect in:

 

- Metro Manila

- Cordillera Administrative Region (CAR)

- Region 1 (Ilocos)

- Region 2 (Cagayan Valley)

- Region 3 (Central Luzon)

- Region 4-A (Calabarzon)

- Region 5 (Bicol)

- Region 6 (Western Visayas)

- Region 8 (Eastern Visayas)

- Region 12 (Soccsksargen)

- Autonomous Region of Muslim Mindanao (ARMM).

 

Under the two-tiered wage system, an entry–level wage is provided for new entrants and low-skilled workers.

 

The higher tier is a flexible wage above the floor based on workers productivity and industry, or enterprise performance, which may be negotiated between the employer and the workers.

 

Baldoz said the wage boards will determine the new floor wage, factoring in the current poverty threshold, average wage, and socioeconomic conditions in the region, such as erosion in minimum wage; increase in the prices of petroleum products and basic commodities; and increase in public transport fare and toll fees.

 

On the other hand, the second tier is a productivity based pay (PBP) above the floor wage to recognize and pay the monetary value of workers’ productivity/performance contribution in the overall business profitability and growth.

 

Two tiers

 

Baldoz said the new wage orders already contain the features of the two-tier wage system, including:

 

1. Upward adjustments in the minimum wage rates in the regions whose minimum wage are below the poverty threshold featured in the wage order of Regions 3 and 4-A

2. Prudent adjustments (wage orders of CAR, Regions 1, 3, and 5)

3. Simplification of minimum wage structure (wage orders of CAR, Regions 4-A and 5)

4. Inclusion of provision for issuance of productivity-based pay advisories (wage orders NCR, CAR, Regions 1, 3, 4-A, and 8)

5. No exemption (wage order of CAR and Region 4-A).

 

Baldoz also said the two-tiered system will be fully implemented in 2012, adding it is being implemented in the public bus transport sector and in Region 4-A.

 

Region 8 and 3, in their wage orders, are set to issue wage advisories on the performance-based tier, which shall serve as guidelines for private establishments on the range of productivity bonuses and incentives.

 

The DOLE also noted that upon effectivity of the wage orders, there were upward adjustments in the minimum wage rate in the regions where the minimum wage were below poverty threshold. These regions were Central Luzon and CALABARZON.

 

It added the latest to issue a new wage order was the Regional Wage Board in Region in Region 3, 8, and the ARMM.

 

Regional wage orders

 

Regional Board 8 issued Wage Order RB 8 No. 17 on September 4, providing a P7 COLA and integrated the P10 COLA under Wage Order No. 16 to the basic pay of minimum wage earners in the private sector in their region.

 

The wage order is yet to be confirmed by the NWPC. Upon effectivity the daily wage rate of the workers in the said area will range from P220.50 to P260.

 

RB 3 approved Wage Order RB 3 No. 17 on August 30. The wage order provided a daily wage increase of P6 to P8 to minimum wage workers in the region but is still pending confirmation of the NWPC.

 

Upon effectivity, the minimum wage rate in the region shall range from P302 to P236.

 

RB ARMM approved Wage Order No. ARMM-14, which integrated the P10 COLA from the previous Wage Order No. 13 into the basic pay. The new minimum wage in ARMM will be effective on September 21.

 

In Metro Manila, the new wage order provided a P30 daily cost of living allowance (COLA) and the integration of the P22 COLA under the previous Wage Order NCR-16 into the basic pay of all minimum wage earners in the private sector in Metro Manila. It took effect on June 3.

 

Region Wage Board in Region 2 granted a P10 basic pay increase and integrated the old COLA of P15 into the basic pay. New minimum wage rates in the region in non-agriculture range from P247 to P255. This became effective May 16.

 

RTWPB 4-A granted a P2-P90 basic wage increase for workers receiving minimum wage below P255 and a productivity allowance of P12.50 for workers receiving minimum wage above P255.

 

The increase will be given in tranches over a period of five years. The new minimum wage rates in the region in non-agriculture now range from P267.50 to P349.50. This became effective May 15.

 

RB 5 provided a P3 to P23 basic wage increase, bringing new minimum wage rate in non-agriculture to P252. The wage order became effective April 7.

 

RB12 issued RTWPB Wage Order No. RXII-17 which granted a daily increase in the cost of living allowance (COLA) ranging from P10 to P14.00 per day.

 

Minimum wage earners in the private sector in Region 12 received pay adjustments effective April 18.

 

RB 6 approved a P6 to P12 basic wage increase, bringing new minimum wage rates in non-agriculture to a range of P235 to P277. The wage increase became effective on May 31.

 

RB CAR granted an P8 a day hike in basic pay, bringing up minimum wage levels in the region from P231-P272 to P239-P280.

 

The new wage hike, which became effective on June 18, was initiated by the Wage Board on its own without any petition for wage increase having been filed by concerned parties.

 

RB 1 provided a P5 or P8 increase on salary per day increase which became effective on July 25. The minimum wage rate of minimum wage earners in the private sector in the said region ranged from P205 to P253. — ELR, GMA News