DEPdev-7 exec explains approval of pay hike in Central Visayas

Local

A WAGE board executive said the latest pay hike in Central Visayas was set based on a three-year road map aimed at closing the gap between the minimum wage and the poverty threshold.

Jennifer Carisma Bretaña, Regional Director of the Department of Economy, Planning, and Development in Central Visayas (DEPdev 7) and co-vice chair of the Regional Tripartite Wages and Productivity Board (RTWPB 7), said the Board took into account the plight of the “employed poor.”

DEPdev, formerly known as the National Economic and Development Authority or Neda, defines the employed poor as workers who continue to live below the poverty line despite having regular jobs.

“Our objective is that after three years, all minimum wage earners should already be earning at least a bit higher than the poverty threshold,” she said in an interview with MyTV Cebu.

Bretaña said the Board had to balance two goals: protecting workers’ ability to cover basic needs and ensuring employers could sustain the adjustments.

“If we set something na hindi naman kaya ng business sector, mas madaming mawawala ng work. On the other hand, we need to make sure workers can at least cover their basic needs,” she said.

The Board also reviewed regional data such as the Consumer Price Index, which rose from 120.7 in October 2024 to 123.9 in August 2025, the peso’s reduced purchasing power from P0.83 to P0.78, and the 2023 poverty threshold of P473 per day for a family of five.

These figures showed that two of the region’s wage rates were still below the poverty line.

Under Wage Order No. ROVII-26, the Board approved a daily increase of P37 to P47 effective October 4, 2025.

Minimum pay in Class A areas, including Cebu, Mandaue, and Lapu-Lapu cities, as well as Carcar, Danao, Naga, Talisay, and several Metro Cebu municipalities, will go up from P501 to P540.

In Class B areas, which cover Bohol and other localities outside Metro Cebu, the minimum wage will increase to P500 from P463 or P453.

Bretaña noted that the wage order also supports the government’s “Ambisyon Natin 2040” vision of a stable, comfortable, and secure life for all Filipinos.

She added that the increase was feasible because of a 13 percent rise in labor productivity from 2022 to 2023.

The RTWPB held public hearings in Cebu, Dumaguete, and Tagbilaran before finalizing the wage hike.

While labor groups had pushed for rates of P1,200 to P1,500 per day, the Board opted for smaller adjustments to reduce poverty without endangering jobs.

The wage order was approved on September 11, published on September 18, and will take effect 15 days later.

Employers who fail to comply face penalties under Republic Act 6727, as amended by Republic Act 8188.(MyTVCebu)