July 01, 2024 - The Department of Labor and Employment (DOLE) announced today that the National Capital Region Wage Board (NCRWB) has approved a PHP35 increase in the daily minimum wage for Metro Manila. This brings the new minimum wage to PHP645, up from the current PHP610.
This decision comes after months of deliberations by the NCRWB, which considered factors such as inflation, cost of living, and productivity in the region. The wage hike is expected to benefit over two million minimum wage earners in Metro Manila, including workers in construction, retail, and services sectors.
“This increase aims to provide some relief to our minimum wage earners who are grappling with the rising cost of basic necessities,” said Labor Secretary Benedicto Lagsado in a statement. “We believe this adjustment will help improve their purchasing power and contribute to a better quality of life.”
The wage order will be officially published within the next few days and will take effect 15 days after publication. This means that minimum wage earners can expect to receive the new rate by mid-July.
However, the decision is not without its critics. Employers’ groups have expressed concerns that the wage hike could lead to job losses, particularly for small businesses already struggling with rising operational costs.
The DOLE has assured businesses that they will be providing assistance and technical support to help them adjust to the new wage order. This may include helping them explore productivity improvements and skills development programs for their employees.
The wage increase in Metro Manila follows similar hikes in other regions across the country. The government has directed regional wage boards to review minimum wages to ensure they are reflective of current economic conditions.
Analysts believe that the trend of increasing minimum wages is likely to continue as the Philippines grapples with rising inflation. However, they caution that balancing the needs of workers with the sustainability of businesses will be crucial.