PHILIPPINES – Cordillera Administrative Region (CAR) – Effective January 1, 2023, minimum wage earners in the private sector in the region will receive twenty pesos (Php 20.00) increase in the basic wage per day bringing the prevailing minimum wage in the cordillera region to Four Hundred Pesos (Php 400.00).
Under Republic Act 6727, or the Wage Rationalization Act, the Regional Tripartite Wage Board (RTPWB) public hearings were conducted across the CAR to assess the appropriate wage rates for minimum wage earners in the region. The wage order No. RB-CAR-21 is illustrated in the infograph above which was also posted in the facebook page of RTWPB Cordillera.
The wage order stated that the new minimum wage rate shall be for the normal working hours which shall not exceed 8 hours of work daily.
Further, the wage increase shall apply to all minimum wage earners in the private sector in the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid by their employers.
EXEMPTION RULE
Among the establishments that may apply for exemption from the implementation of the said wage order include retail/service establishments regularly employing not more than 10 workers and establishments adversely affected by natural calamities and/or human-induced disasters.
PENALTY PROVISION
The wage order provided that any person, corporation, trust, firm, partnership, association or entity who refuses or fails to pay the prescribed increase shall be dealt with pursuant to the provisions of Section 12 of Republic Act (RA) 6727 as amended by RA 8188.
RATIONALE
The Cordillera office of the Regional Tripartite Wages and Productivity Board (RTWPB-CAR) stated in the said wage order that upon prudent consideration of the positions of labor and management, as well as the prevailing minimum wage levels in neighboring regions, the principle of wage simplification, and after thorough review and evaluation of the existing socio-economic conditions in the region, several findings were established such as the gross regional domestic product (GRDP) of the Cordillera improved in 2021 with a growth rate of 7.5 percent; the consumer price index (CPI) in the region was at 103.3 in November 2019 and rose to 113.6 in April 2022; the poverty threshold based on the latest available data provided by the Philippine Statistics Authority (PSA) for an average family size of 5 in the first semester of 2021 in the amount of P384 per day and other relevant data available to the board.
