New Minimum Wage Rates Take Effect in Metro Manila

June 7, 2012

In order to address the recent increases in the prices of oil products and basic goods, commodities, and services, the Regional Tripartite Wages and Productivity Board - National Capital Region (RTWPB-NCR) issued Wage Order No. NCR-17 on 17 May 2012, setting the new minimum wage rates applicable to minimum wage earners in the National Capital Region, effective 3 June 2012.

Under Wage Order No. 17, the daily Cost of Living Allowance (COLA) of Twenty Two Pesos (PHP 22.00) previously required under Wage Order No. 16 was integrated into the basic wage rate. An additional increase of Thirty Pesos (PHP 30.00) per day was granted in the form of COLA, payable in the following tranches: on date of effectivity, Twenty Pesos (PHP 20.00) per day; and beginning 1 November 2012, the balance of Ten Pesos (PHP 10.00) will be further added to the COLA.

In summary, the new minimum wage rates as of 3 June 2012 applicable within the National Capital Region are PHP 446.00 per day for the non-agriculture sector, and PHP 409.00 for other sectors and industries. Both these rates will be further increased by PHP 10.00 each beginning 1 November 2012.

Wage Order No. 17 also provides that, in the case of contracts for construction projects and for security, janitorial, and similar services, the Thirty Peso (PHP 30.00)-COLA will be borne by the principals or clients of the contractors. Affected contracts are deemed amended for this purpose.

Finally, all persons and entities engaged in business are required to submit a verified report on their wage structures to the RTWPB-NCR by 31 January 2013 and every year thereafter.