NWPC approves P50 daily wage hike for Caraga workers starting January

By Chloe Mari A. Hufana, Reporter

WORKERS in Region XIII (Caraga) will see a P50 boost in their entry daily wages following the National Wages and Productivity Commission’s (NWPC) approval of new wage orders issued by the Regional Tripartite Wages and Productivity Board (RTWPB)-XIII.

Wage Order No. RXIII-19, approved on Dec. 13, grants a P50 daily wage increase for private sector workers in two phases.

The first tranche raises the daily minimum wage to P415 from P385 upon its effectivity on Jan. 2, 2025, while the second tranche will further increase it to P435 starting May 1, 2025.

It is expected to directly benefit 65,681 minimum wage earners and about 132,217 full-time wage and salary workers earning above the minimum wage due to wage distortion.

Meanwhile, Wage Order No. RXIII-DW-05 granted a P1,000 increase for domestic workers in the region, bringing their monthly entry wage to P6,000 from P5,000.

It is expected to benefit 32,866 domestic workers in the region, with almost 8,000 in live-in arrangements.

Both wage orders will be published on Dec. 17 and take effect after 15 days of publication, or on Jan. 2, 2025.

“In affirming the wage order, the NWPC found that RTWPB-XIII complied with the criteria for determining a wage increase under Republic Act No. 6727 or the Wage Rationalization Act, which includes the needs of workers and their families, the capacity of employers/industry to pay, and the requirements of economic and social development in the region,” the Department of Labor and Employment said in a statement on Monday.

Thirteen regions have already issued wage orders (Regions NCR, CAR, I, II, III, IVA, MIMAROPA, VI, VII, VIII, IX, XII and XIII).

Seven wage orders (Regions CAR, I, II, MIMAROPA, VI, VIII and XIII) have been issued for domestic workers.

After completing its public hearing, Region X (Northern Mindanao) is in the final stages of the minimum wage determination process.

While Region XI (Davao Region) is scheduled to start in January 2025. Region V (Bicol Region) is still assessing its conditions and recovery after the devastating effects of typhoons on communities and businesses.

NWPC urged Caraga’s regional board to do information campaigns to ensure compliance and assist firms in correcting possible wage distortions.

It also ordered the board to improve programs to support wage growth.

It reminded that under the NWPC Omnibus Rules on Minimum Wage Determination, firms regularly employing not more than ten workers and firms affected by natural calamities and/or human-induced disasters may appeal to the RTWPB for an exemption of the wage hike.

Registered Barangay Micro Business Enterprises are not covered by the hike under Republic Act No. 9178.

“The P30 increase though small is a welcome development and provides some relief,” Federation of Free Workers (FFW) President Jose Sonny G. Matula told BusinessWorld in a Viber chat, referring to the first tranche of the wage hike.

The second tranche, which will further increase daily pay by P20, is “smaller than expected,” he said in mixed English and Filipino.

The labor leader further noted the P415 minimum wage in Caraga is only 64% of the P645 rate in Metro Manila.

“There remains a significant gap that must be addressed, highlighting the need for a P150 nationwide increase to ensure equitable and adequate wages for all.”