Minimum wage increased in region

The Regional Tripartite Wage and Productivity Board in MIMAROPA Region 4-B issues new wage rates

The Regional Tripartite Wage and Productivity Board in MIMAROPA Region 4-B has increased the minimum wage rates in the region.

Under the new classification of the wage hike, establishments with ten workers and above shall be entitled to a basic wage increase of P15 and P47 for establishments having less than ten workers as provided under the previous Wage Order No. IV-B-06 (Wage Rationalization Act).

The Wage Rationalization Act eliminates the minimum wage rates in the region, which are below the poverty threshold.

The P15 wage increase started with an initial of P5, which took effect September 24 (first tranche). The additional P10 increase shall take effect on its second tranche on February 1, 2018.

For establishments with less than 10 workers, it is mandated by the Regional Tripartite Wage and Productivity Board that a P47 per day basic wage increase shall be given in four tranches, a P12 hike for the first tranche, another P12 hike for the second and third tranche and an additional P11 to complete the fourth tranche.

The minimum wage in Puerto Princesa City, classified as the only highly urbanized city in the entire region, shall range from P285 to P300. This shall apply to all private sector minimum wage workers in the entire MIMAROPA, regardless of their position, designation or status of employment. This will cover the normal working hours which shall not exceed eight hours of work a day.

According to the wage order, transfer of personnel from a high rate city/ municipality to a lower rate is not a valid ground for the reduction of wage rates being enjoyed by the workers prior to the transfer. Workers transferred from a lower rate municipality to a higher rate municipality will be entitled to the minimum wage rates applicable.

Businesses and establishments who will fail to comply the issued wage order shall undergo either a 3-day conciliation and mediation process or complaint inspection especially for anonymous complaints facilitated by the Department of Labor and Employment (DOLE) officials. Prescribed penalties shall also be paid by the certain sector or establishment as stated in Sec 12 of the RA 8188, which states:

“Any person, corporation, trust, firm, partnersnip, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a fine not less than Twenty-five thousand pesos (P25.000) nor more than One hundred thousand pesos (P100.000) or imprisonment of not less than two (2) years nor more than four (4) years or both such fine and imprisonment at the discretion of the court.”

The wage order also does not allow exemption, and encourages private businesses to adopt productivity improvement schemes to sustain rising levels of wages and to enhance competitiveness.

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