Minimum wage earners in the Bicol region will get a P55 wage increase this year, with the first tranche of P35 to be implemented upon the effectivity of the wage order on June 18, 2022.
The Department of Labor and Employment (DOLE) Bicol said last week that the second tranche – a P20 increase – will take effect on December 1.
DOLE Regional Director Ma. Zenaida A. Angara-Campita stated that by December 2022, the new daily minimum wage for workers in Bicol will climb to P365 for all sectors and shall apply to all minimum wage earners in the private sector in the Bicol region, regardless of their position, designation, or status and irrespective of the method by which their wages are paid.
She added that the adjustment of the minimum wage rate is one of the measures of the government to provide workers with immediate relief spurred by high prices of basic goods and services brought by the pandemic.
The wage adjustments came as a result of two public hearings conducted last 26 April 2022 in Naga City, Camarines Sur and 28 April 2022 in Legazpi City, Albay wherein over 600 workers and employers participated to give their positions on the said issue, and for the Board to assess and determine the propriety of issuing a new Wage Order.
Campita further said that the socio-economic indicators in the region were considered in the review and evaluation of the wage adjustment.
“Together with the members of the Board, we also looked into the Consumer Prices Index in the Region that rose to 117.6 in April 2022, the Poverty Threshold as well as the purchasing power of the Peso before we came up with the P55.00 increase to be given in two tranches,” said Campita.
RTWPB also issued another order granting a monthly increase of P1,000 for chartered cities and first-class municipalities, and P1,500 for other municipalities, bringing the new monthly wage rate for domestic workers in the region to P4,000.
The new wage order is expected to protect around 94,042 domestic workers, the department added.
RTWPB is composed of DOLE, National Economic Development Authority (NEDA), Department of Trade and Industry (DTI) and representatives from the management, and labor sectors.
In Catanduanes, the wage increase would most likely be enjoyed by those working in the private sector in the capital town of Virac.
According to a source at the DOLE Catanduanes field office, 90 percent of private companies and business establishments in Virac are compliant with general labor standards, including the payment of the existing P310 minimum daily wage and benefits.
It is in the other 10 towns that majority of businesses pay their employees wages below the minimum, the source disclosed.
These establishments, including some fully developed resorts, are said to be committing underpayment of their workers.
Most of the employees, it is claimed, are not aware of the minimum P310 daily wage which took effect in May 2019.
In Pandan town, for example, only 50% of the business establishments are complying with existing minimum wage level, with several of them invited to the DOLE office in Virac after their workers complained.
The business owners eventually agreed to pay the lacking amounts after negotiations with the workers.
On the other hand, only 10 percent of the businesses in Virac are complying with the requirement of a First Aider and Safety Officer at the workplace pursuant to the provisions of the Occupational Safety and Health Standards Act or Republic Act 11058.
Intended to help curb the increasing cases of diseases and injuries in the work environment, RA 11058 mandates employers to comply with occupational safety and health standards including informing workers on all types of hazards in the workplace and having the right to refuse unsafe work, as well as providing facilities and personal protective equipment for the workers, among others.
The law requires one health and safety officer and one First Aider but either an employee or the owner itself can be both as long as he has undergone training with accredited institutions like the Philippine Red Cross, the Bureau of Fire Protection (BFP), the local health offices or the Technical Education and Skills Development Authority (TESDA).
According to the source, business owners are hesitant to comply with the OSHS Act due to the cost of training which can be as high as P3,000 each.
Based on latest data from the Philippine Statistics Authority (PSA), there were an estimated 102,840 Catandunganons gainfully employed as determined by the 2020 Labor Force Survey, for an employment rate of 92.59%.
In 2018, there were a total of 1,670 establishments, with total employment of 20 and over workers.
Of the total, 741 or 44% were engaged in wholesale and retail trade, repair of motor vehicles and motorcycles. Another 306 or 18% were in manufacturing while 214 or 13% were into accommodation and food service activities, the PSA Catanduanes report stated.