Wage board approves pay increase in Central Visayas

STARTING October 2, workers in Central Visayas are set to receive an increase in their wages following a new order from the Regional Tripartite Wages and Productivity Board Central Visayas (RTWPB 7).

The wage hike, ranging from P33 to P43 per day, aims to help workers cope with inflation and the increasing cost of living in the region.

According to the wage order, with implementation of the new rates, workers in different areas of Central Visayas will see their wages adjusted accordingly.

In Class A areas, including major cities such as Cebu, Lapu-Lapu, Mandaue, and Talisay, the new minimum wage will rise to P501 per day. These areas, considered economic hubs, previously had wage rates ranging from P458 to P468.

For Class B areas, which cover cities like Dumaguete, Tagbilaran, Bais, and Toledo, the daily wage will increase to P463 from the previous range of P425 to P430.

Meanwhile, workers in Class C municipalities, which are not classified under the A or B categories, will see their daily wages rise to P453 from the earlier rate of P415 to P420.

The wage order aims to address the growing gap between workers' incomes and the cost of basic necessities.

According to the Philippine Statistics Authority, the poverty threshold for a family of five in Central Visayas now stands at P473 per day, which means the previous minimum wages were insufficient to cover the basic needs of families.

The RTWPB 7's decision followed a series of public hearings across the region that began on August 20, 2024, at the Department of Education Ecotech Center in Cebu City, where labor groups advocated for wage hikes, citing inflation and the rising cost of living.

While business groups raised concerns about the impact on small and medium enterprises (SMEs), the board emphasized the need to find a balance between workers' welfare and business sustainability.

The wage increase is expected to directly benefit around 1.2 million minimum wage earners in Central Visayas. It may also have indirect effects on another 2.7 million full-time wage and salary workers who could see wage adjustments at the enterprise level to correct wage distortions.

This latest wage order builds on previous adjustments, including a P33 increase in October 2023, and reflects the government’s ongoing efforts to ensure wages keep pace with economic realities.(MyTVCebu)

• Tags
• #Wage Board
• #Central Visayas
• #Regional Tripartite Wage and Productivity Board 7
• # Minimum Wage
• #Employment