WAGE ORDER NO. NCR - 20 (Providing for a Wage Increase in the National Capital Region)

WHEREAS, the Regional Tripartite Wages and Productivity Board- National Capital Region (RTWPB-NCR) is mandated under R.A. No. 6727 (The Wage Rationalization Act), to periodically assess wage and conduct continuing studies in the determination of the minimum wage applicable in the region or industry;

WHEREAS, Wage Order No. NCR-19 took effect on 04 April 2015 and under Section 3, Rule IV of the Amended Rules of Procedures on Minimum Wage Fixing issued by the National Wages and Productivity Commission (NWPC), the Wage Order may not be disturbed for a period of twelve (12) months from its effectivity unless there is a supervening condition, such as extraordinary increase in prices of petroleum products and basic goods/services, as determined by RTWPB-NCR and confirmed by the NWPC;

WHEREAS, the Association of Minimum Wage Earns and Advocates Philippine Trade and General Workers Organization (AMWEA-PTGWO) filed on April 12, 2016 a petition for One Hundred Fifty Pesos (₱ 150.00) wage increase per day. The Trade Union Congress of the Philippines filed on April 14, 2016 a petition for One Hundred Fifty Four Pesos (₱ 154.00) across-the-board wage increase per day;

WHEREAS, after due notice to all concerned sectors, the RTWPB-NCR conducted consultation in the government sector on May 4, 2016, and a public hearing on May 11, 2016, to determine the propriety of issuing a new wage order;

WHEREAS, in setting the Minimum Wage, the Board has to consider the various criteria under RA 6727 and the Guidelines of the Commission particularly on First (1st) Tier that the Minimum Wage should be higher than the Poverty Threshold but lower than the prevailing Average Wage;

WHEREAS, after a thorough evaluation of the existing socio-economic conditions of the region, the following facts were established:

a) Based on Consumer Price Index, the average inflation rate from the effectivity of the last wage increase on April 04, 2015 up to April 2016 is 0.6%;

b) The minimum wage rate of ₱ 481.00/day has been eroded by the amount of ₱1.82/day; and

c) That the poverty threshold based on the latest data for an average family siza of 4.3 in NCR had increased to ₱295.00 as of April 2016

SECTION 1. NEW MINIMUM WAGE RATE

a) Upon effectivity of this Wage Order, the FIFTEEN PESOS (₱ 15.00) COLA perday under Wage Order No. NCR-19 shall be integrated into the Basic Wage and a COLA of TEN PESOS (₱ 10.00) per day shall be added.

b) Workers in Private Hospitals with bed capacity of 100 or less shall be reclassified into the Non-Agriculture sector.

c) The new daily minimum wage rates of covered workers in the private sector in National Capital Region shall be as follows:


Reference:

 
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