STARTING January 11, the daily minimum wage in Northern Mindanao will increase by P33.
This was announced by the Regional Tripartite Wages and Productivity Board (RTWPB-10) in a Press Conference held at the Office of the Department of Labor and Employment-10 yesterday.
The wage adjustment comes as a result of Wage Order No.RX 22, focusing on enhancing the minimum wage rate for the private sector in Region X. Atty. Ma Vergel B. Walag, the Board Secretary of RTWPB-X, revealed that the decision to initiate the minimum wage determination process was made during their meeting on May 24, 2023.
The current minimum wage rate, set at P405, underwent thorough deliberations and consultations with various sectors and government agencies, including the National Economic Development Authority, as highlighted by Engr. Milbert Macarambon, the Labor Representative of RTWPB-10.
Macarambon emphasized the necessity for the increase, citing the expensive cost of living in the region.
The wage adjustment will be implemented in two tranches. The first tranche, effective January 11, 2024, will see an initial increase of P23, bringing the minimum wage to P428. The second tranche, set for July 1, 2024, will add P10, summing up the total minimum wage rate to P428.
Walag, the board secretary, clarified that the increase covers all minimum wage earners in the private sector in Region 10, irrespective of their position, designation, or employment status, and regardless of the method by which their wages are paid.
However, the recent P33 increase in the minimum wage is causing apprehension among business leaders, with the chairman of the Cagayan de Oro Chamber of Commerce and Industry Foundation (Oro Chamber) expressing worries about its impact on local businesses.
Raymundo Talimio, the past president and current chairman of Oro Chamber, said yesterday that the P33 hike could lead to a reduction in the workforce, describing it as an “idea of magbawas ug trabahante” (reducing employees).
Talimio explained that businesses with a payroll budget of, for example, one million pesos might face challenges with a P500,000 increase. As a result, business owners may consider reducing one to three employees.
Talimio mentioned that Oro Chamber proposed a P25 wage increase, based on their projections. However, the announced increase by the Regional Tripartite Wages and Productivity Board-10 exceeded their proposal by P8. He urged the government not to solely burden business owners and encouraged a dialogue on the matter.
In light of the set increase, Talimio called for incentives such as “business incentives and tax deductions” for those businesses complying with the new wage structure.
Conversely, minimum wage earners expressed a mix of sentiments.
Revie Jalinon, a 40-year-old sales lady at a local establishment, expressed happiness about the increase but hoped for a slightly higher adjustment due to the current expensive cost of living.
“Nalipay ko pero taasan sad unta gamay kay mahal kaayo palaliton karon,” said Jalinon.
Rosegie Cañete, a 20-year-old water refiller, considered the increase insignificant, emphasizing that it wouldn’t make a substantial difference.
However, she, like Jalinon, expressed concern over potential price hikes on basic commodities.
Daylin Pagtalunan, a 37-year-old Sari-Sari store owner, welcomed the increase as a significant help, especially considering that most of her family members earn the minimum wage.
“Dako na kaayo nga tabang,” said Pagtalunan.
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