DOLE: P40 NCR minimum wage hike to take effect despite appeal

The Department of Labor and Employment (DOLE) on Tuesday said the recently approved P40 daily minimum wage hike for private sector workers in the National Capital Region (NCR) will take effect as scheduled despite an appeal filed by labor coalitions.

In a statement, the DOLE, citing the National Wages and Productivity Commission (NWPC), said that the approved wage increase by NCR’s Regional Tripartite Wages and Productivity Board will still take effect on July 16, 2023, despite an ongoing appeal against the order.

The appeal was jointly filed on July 3, 2023 by the Alliance of Nationalist and Genuine Labor Organization, Labor Alliance for National Development, Gabay ng Unyon sa Telekomunikasyon at Serbisyo, Pinagkaisang Lakas ng Manggagawa ng Manila Bay and their allied labor organizations.

Citing inflation and the "soaring prices of basic services and commodities," the petitioners argued that the basis of minimum wage determination should be the family living wage, which should amount to P1,161 and not the poverty threshold.

The Wage Order No. NCR-24, issued on June 26, 2023, provides an increase of P40, bringing the daily minimum wage in Metro Manila from P570 to P610 for the non-agriculture sector and from P533 to P573 for the agriculture sector, service, and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers.

The NWPC affirmed the wage order on June 27, 2023, and authorized its publication on June 30, 2023. It shall take effect 15 days after official publication which would be on July 16, 2023.

The DOLE said that the appeal filed by the labor groups is part of the minimum wage determination process and shall be acted upon promptly.

Based on existing rules, the Labor Department said the NWPC shall resolve the appeal within 60 calendar days from the filing date.

Pursuant to NWPC Guidelines No. 03, Series of 2022, or the Omnibus Rules on Minimum Wage Determination, a wage order may be appealed on the “ground of grave abuse of discretion on the part of the Board for committing a serious error in the application of law, and non-compliance with prescribed guidelines and/or procedures."

The DOLE said petitions for minimum wage increases have also been filed in Regions III, IV-A, V, VI, and VII.

The RTWPBs in Central Luzon, Calabarzon and Western Visayas are currently discussing the merit of the petitions, it said.

Meanwhile, the RTWPB in Central Visayas is set to conduct public hearings in July and August 2023, according to the DOLE. — RSJ, GMA Integrated News