The Latest in the World of Accounting

Minimum Wage Increases in Metro Manila

Workers in Metro Manila have been granted a much awaited salary increase. June 2, 2016 marks the date when the minimum wage for Metro Manila workers is increased by P10. Minimum wage is now P454 for workers in the agriculture sector and P491 for workers in the non-agriculture sector.

This will apply to all workers in the private sector regardless of position, employment status, designation and method of receiving payment.

Source: Philstar.com

Source: Philstar.com

This ruling will increase minimum wage from P481 to P491 for workers in the non-agricultural sectors. Workers in the agricultural sectors who previously received minimum of P444 will now received a minimum wage of P454.

The new ruling also reclassifies workers in private hospitals with bed capacity of 100 or less into the non-agricultural sector. This is good news for some hospital employees so that they can enjoy a higher minimum wage.

The ruling does not cover domestic workers; persons in the service of another such as family drivers; and workers of duly-registered Barangay Micro Business Enterprises. Distressed establishments; retail/service establishments employing not more than 10 workers; and establishments adversely affected by natural calamities can also seek exemption from the new ruling.

The ruling applies to the cities of Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig, Navotas, and Valenzuela, and the municipality of Pateros.

According to Nelson Hornilla, Regional Tripartite Wages and Productivity Board – National Capital Region (RTWPB-NCR) chairman, the board has approved Wage Order No. NCR-20 so that workers can cope with the rising costs of living in the Metro.

“After thorough evaluation of the existing socio-economic condition, the board has determined that the existing minimum wage rate of P481 has been eroded by the amount of P1.82 a day and the poverty threshold has increased to P295.”

– Nelson Hornilla, RTWPB-NCR Chairman

 

What do you think of the new wage order? Is it fair? How will this impact your business? Share with us in the comment section below.

In summary, the new minimum wage for Metro Manila, effective June 2, 2016 is now:

  • P491 for non-agriculture workers
  • P454 for agriculture workers, workers in retail/service establishments with 15 employees of less, and manufacturing establishments with less than 10 workers

Sources: