The Regional Wage and Productivity Board of Region 10 has approved a P12 daily wage increase for all private sector minimum workers in the Northern Mindanao effective July 3, according to Labor Secretary Rosalinda Baldoz.
“This is the 18th wage increase in Region 10 since R.A. 6727, or The Wage Rationalization Act, became a law on 9 June 1989,” Baldoz said.
Board chairman Raymundo Agravante said the minimum wage in the region was raised to P318 for workers in the non-agriculture sector and to P306 for workers in the agricultural sector under Category I, which covers the cities of Cagayan de Oro and Iligan and the municipalities of Tagoloan, Villanueva, and Jasaan, Misamis Oriental.
It also raises the minimum wage rate to P313 for workers in the non-agriculture sector and P301 for workers in the agricultural sector under Category II, which covers the cities of Malaybalay, Valencia, Gingoog, El Salvador, and Ozamiz and the municipalities of Maramag, Quezon, and Manolo Fortich.
In Category III, the new minimum wage rate of P308 applies to workers in the non-agricultural sector and P296 for the agricultural sector in the cities of Oroquieta and Tangub and the municipalities of Lugait, Opol, and Mambajao.
Included in this category are all the establishments employing ten workers or less. For other areas not covered by the three categories, hence falling under Category IV, establishments shall now pay a new minimum wage rate of P303 to workers in the non-agricultural sector and P291 to workers in the agricultural sector.
Baldoz said that all the minimum wage rates in region 10 were already above the poverty threshold, a key goal of the DOLE this 2015.
“Under the second-tier of the two-tier minimum wage system reform, the RTWPB has already issued an Advisory on the Implementation of Productivity-Based Incentive Scheme for the Bus Transport Industry which shall serve as guidelines for private establishments to set the range of productivity bonuses and incentives that an enterprise or industry may provide based on the agreement between workers and management,” Agravante said.
Under the reform, the minimum wage is viewed as a social safety net, as it is, to protect the most vulnerable sectors, while the productivity-based pay is regarded as the more appropriate mechanism of rewarding workers’ productivity as their progressive contribution to enterprise growth and competitiveness.