One million employees in Metro Manila to receive pay hike

The daily minimum wage is set to increase from P570 to P610, benefitting non-agricultural employees who will earn the new rate starting 16 July 2023.
By: | July 3, 2023
Topics: Compensation and Benefits | News | Philippines

The Regional Tripartite Wage Productivity Board (RTWPB) in the National Capital Region of the Philippines has granted a P40 (US$0.72) pay hike for over one million employees currently earning minimum wage. Sarah Mirasol, the Department of Labour and Employment (DOLE) NCR Director, confirmed the approval of the wage adjustment, raising the daily minimum wage rate in Metro Manila from P570 (US$10.32) to P610 (US$11.05).

The wage increase is expected to benefit approximately 1.1 million employees in the NCR, or Metro Manila. Under the newly approved wage order, employees in the non-agriculture sector will receive a daily minimum pay of P610, while those in the agricultural sector will receive P533 (US$9.65) per day. The DOLE plans to implement the wage increase on 16 July 2023.

The decision to grant the wage adjustment was based on consideration of the average inflation rate. Five out of six members of the RTWPB, excluding the labour sector representative, supported the wage increase. “Only the representative of the labour sector dissented because the employee wanted a higher wage adjustment,” she explained.

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Labour groups expressed disappointment with what they considered a modest pay hike. Previously, they had petitioned for a P100 (US$1.81) increase in the daily minimum wage rate. However, the RTWPB chose the approved P40 increase, considering the delicate balance between employees’ needs and the recovery of the micro-industries from the pandemic, reported Philstar.