The Department of Labor and Employment (DOLE) in Davao City is prepared to handle potential non-compliance complaints from employers and employees if the proposed P200 national wage hike is signed into law. This comes after the House of Representatives approved House Bill 11376, which aims to increase the daily minimum wage for private sector workers by 200 pesos. The Senate had previously passed Senate Bill 2534, proposing a 100-peso daily minimum wage hike. Representatives from both houses of Congress will convene during the bicameral conference committee hearing to resolve any differences in the bill.
If enacted, this wage hike would be the first nationwide increase since the Wage Rationalization Act of 1989. The legislation also empowers regional wage boards to provide additional raises, incentives, or exemptions for small businesses.
Randolf Pensoy, the regional director of DOLE-Region XI, emphasized the importance of balancing the interests of the government, management, and labor when considering wage adjustments. Despite a recent P29 wage hike approved by the RTWPB last March, Pensoy highlighted that the authority of RTWPBs is subject to congressional oversight.
Established by Republic Act 6727, RTWPBs are responsible for setting regional, provincial, or industry-specific minimum wages and issuing relevant wage orders. Pensoy noted that regional wage determinations take into account the cost of living and economic conditions specific to each area, recognizing that the lifestyle in Davao City differs from that of Metro Manila.
Since the minimum wage increase to P89 in 1989, RTWPBs in various regions have issued wage orders to adjust minimum wages based on factors agreed upon by the labor department, employers, and employee representatives.
Source: MindaNews