DOLE calls on employers to correct wage distortion

The Department of Labor and Employment (DOLE) on Friday called on employers to correct wage distortions among their workers.

In a statement, the DOLE said the National Wages and Productivity Commission (NWPC) issued Wage Advisory No. 1, series of 2023 on August 14, 2023.

The advisory would “guide enterprises in correcting wage distortion stemming from the implementation of minimum wage orders.”

“The newly released advisory reiterates relevant provisions of the Labor Code and jurisprudence on the matter, outlines how instances of wage distortion may be recognized and provides suggested formulas with sample computations for addressing and correcting these distortions,” the DOLE said.

The Labor Department explained that 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.

It added that restoring the substantial distinction or gap is permissible under Article 124 of the Labor Code.

“Addressing wage distortions is crucial for maintaining equity, boosting employee morale, and fostering a productive and harmonious workplace,” the DOLE said.

“By rectifying such, enterprises demonstrate their commitment to fair compensation and employee well-being,” it said.

When facing wage distortion concerns, the NWPC encouraged enterprises to seek guidance and technical assistance from the Regional Tripartite Wages and Productivity Boards .

“To date, the minimum wage rates in the National Capital Region have been adjusted by P40.00 effective July 16, 2023,” the DOLE said. — DVM, GMA Integrted News