The BIR issued the Revenue Memorandum Circular No. 76-2023 to circularize Wage Order No. NCR-24 was approved on June 26, 2023.
Wage Order No. NCR –24
PROVIDING FOR A MINIMUM WAGE INCREASE IN THE NATIONAL CAPITAL REGION
The Regional Tripartite Wages and Productivity Board – National Capital Region is mandated under Republic Act No. 6727, otherwise known as “The Wage Rationalization Act”, to periodically assess wage rates and conduct continuing studies in the determination of the minimum wage applicable in the region or industry;
The current Wage Order No. NCR 23 took effect on June 4, 2022;
The Board received several petitions filed by various labor groups seeking for minimum wage increase for all workers in the private sector in the region to wit:
Petitioners | Date of Filing & Receipt | Proposed Amount of Increase | Proposed New Minimum Wage |
|
Dec. 5, 2022 | P100.00 | P670.00 |
|
March 21, 2023 | P571.00 | P1,141.00 |
|
June 15, 2023 |
P591.00 (Workers receiving P570.00 Minimum Wage Order NCR –23) P628.00 (Workers receiving P533.00 Minimum Wage under Wage Order NCR-23) |
P1,161.00 |
After due to all concerned stakeholders, the Board conducted consultations and a public hearing, to wit:
Consultations/Public Hearing | Date | Venue |
Labor Consultation | May 30, 2023 | Online Consultation via Zoom |
Management Consultation | June 8, 2023 | Online Consultation via Zoom |
Public Hearing | June 21, 2023 | Philippine Trade Training Center, Sen. Gil Puyat Avenue, Pasay City |
In setting the minimum wage, the Board has to consider the various criteria under Republic Act No. 6727, as well as compliance with the procedures laid down in the Omnibus Rules on Minimum Wage Determination;
After a thorough review and evaluation of the existing socio-economic conditions in the region as well as the positions of labor and management, the following findings were established:
- The Consumer Price Index (CPI) in the region was at 112.2 in June 2022 and 118 in May 2023;
- Based on the abovementioned CPI figures in the region the average inflation rate from the effectivity of the last wage increase to present is 7.03%;
- The poverty threshold based on the preliminary data for 2021 provided by the Philippine Statistics Authority is at Php 452.00; and
- Other relevant findings of the Board.
By virtue of the power and authority vested under RA NO. 6727, RTWPB-NCR hereby issues this Wage Order.
Section 1. Amount of Increase. Upon effectivity of this Wage Order, minimum wage earners in the private sector in the Region shall receive the amount of FORTY PESOS (40) increase in the basic wage per day.
Section 2. New Minimum Wage Rates. The new daily minimum wage rates in NCR shall be as follows:
Sectors/Industry |
Current Minimum Wage Rates | New Wage Increase | New Minimum Wage Rates |
Non-Agriculture |
P570.00 |
P40.00 |
P610.00 |
Agriculture (Plantation and Non-Plantation) |
P533.00 |
P40.00 |
P573.00 |
Service/Retail Establishments employing 15 workers or less |
|||
Manufacturing Establishments regularly employing less than 10 workers |
Section 3. Basis of Minimum Wage Rates. The Minimum wage rates prescribes under this Order shall be for the normal working hours which shall not exceed eight (8) hours of work a day.
Section 4. Covered. The wage increase prescribed herein shall apply to all minimum wage earners in the private sector within the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid.
Section 5. Penal Provision. 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 RA No. 6727, as amended by RA No. 8188.
Section 6. Effectivity. This Wage Order shall take effect after fifteen (15) days from its publication in a newspaper of general circulation.