Has the PHP 30 to PHP 50 Wage Hike in Calabarzon Been Approved?

A proposed PHP 150 minimum wage increase across the board is still waiting to be passed in the Senate.

According to the Department of Labor and Employment (DOLE), there are over 719,000 minimum wage earners in Region IV-A—otherwise known as Calabarzon. Good news awaits them, however, as a PHP 30 to PHP 50 increase in their daily minimum wage has been approved.

Per a report by ABS-CBN News, the wage increase is set to take effect on September 24.

The wage increase does not affect only minimum wage workers, since according to the labor department, “About 1.6 million full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.”

The approval of the wage hike in Calabarzon follows a similar approval in the National Capital Region (NCR) last June. Due to the approval, the minimum wage in NCR increased by PHP 40. 

ABS-CBN News notes that Senate President Juan Miguel Zubiri said in August that the Senate will pass its proposed PHP 150 across-the-board minimum wage increase by December. 

New Wage Rates in Calabarzon

Due to the wage hike, which translates to a 9% to 11% increase, non-agricultural workers employed in the extended metropolitan area will earn PHP 520 per day beginning September 24. 

On the other hand, workers of service and retail establishments that employ less than ten workers will experience a wage increase of PHP 385. This likewise applies to workers of manufacturing establishments that regularly employ less than ten workers. 

DOLE adds that agricultural workers in the cities of Calaca and Carmona will see an increase of PHP 89 because of their reclassification as component cities. 

What the Wage Hike Means for Employers in Calabarzon

While the wage increase will undoubtedly be an additional cost to employers in the region, one should look at the benefits of the wage hike. Given the rising inflation, which has affected the prices of basic goods and services, many Filipinos struggle to make ends meet with their meager salaries. 

The wage increase can serve as motivation for workers to keep working and do better at work as they will feel that they are better compensated. Earning more will also ease the financial burden workers feel due to expenses at home, which can affect their attitude at work as well.