Sat, 06 Jun 2020

New minimum wage rates in CAR to take effect Nov. 18

Philippine Information Agency
07 Nov 2019, 13:38 GMT+10

BAGUIO CITY, Nov. 6 (PIA) - - The Regional Tripartite Wages and Productivity Board (RTWPB) -Cordillera announced that the new wage order increasing the daily minimum wage of private sector workers in the region will take effect on November 18.

RTWPB - CAR Wage Order No. 20 prescribed the daily minimum wage for all industry sectors in Baguio City, La Trinidad Benguet and Tabuk City in Kalinga at P350 comprising of P340 basic pay plus P10 Cost of Living Allowance (COLA).

Other areas in the region will have new daily minimum wage of P340 (P330 basic pay plus P10 COLA).

RTWPB - CAR Chairperson and Department of Labor and Employment Regional Director Exequiel Ronie Guzman, Vice Chairperson Dept. of Trade and Industry Regional Director Myrna Pablo, RTWPB Workers' representatives Milton Balagtey and Renerio Lardizabal Jr.; and Employer representative Johnny Dela Cruz held a press conference at the DOLE Regional Office on Tuesday to announce and explain the new wage order.

The new wage order was already published in newspapers and will take effect on November 18.

As provided in the wage order, the P10 COLA will be integrated in the basic pay of workers by May 1, 2020, which will also provide an incremental increase in the overtime pay of workers.

The new wage order covers all minimum wage earners in the private sector except those employed in the personal service of another, domestic workers by virtue of RA 10361 or the Batas Kasambahay and workers in the registered Barangay Micro Business Enterprises pursuant to RA 9178 or the BMBE Act of 2002.

In consonance with the implementing guidelines of Republic Act 6727 or the Wage Rationalization Act, the new wage order adheres to policy requirements of Two - Tiered Wage System, wherein aside from the prescribed minimum daily wage, employers are encouraged to provide productivity - based pay or incentives to their workers.

It also simplifies the wage classification to all industry workers regardless of the number of employed worker of each industry or company.

Guzman outlined that RTWPB, in deciding on the wage rates, carefully weighed the financial situation of the workers and their families and the capacity of employers to pay.

The order is set benefit more than 120,000 industry workers in the region and will also improve the competitiveness of Cordillera workers, he added.

RTWPB Wage Order No. 20 repeals the P300 - P320 minimum daily wage under Wage Order 19. (JDP/CCD-PIA CAR)

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