Davao Region Raises Minimum Daily Wage For Workers

Davao Oriental and Davao del Sur.

The regional wage board said its public hearings and consultations corroborated the study it conducted on the wage profile of workers in the region, which necessitated a new round of wage increase “to restore lost purchasing power of minimum-wage earners in Davao region for them to cope with the rising cost of living.”

The RTWPB added, however, that its prescribed wage hike would not affect or impair the productivity and viability of businesses and industries in the Davao region. 

The Wage Board further said that “Consistent with the government’s policy of achieving a higher level of productivity to preserve and generate jobs, and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement and gain sharing programs.”

The wage board is persuading businesses “to adopt productivity improvement schemes such as time and motion studies, good housekeeping, quality circles, labor-management cooperation as well as implement gain sharing programs.”

The new wage rates would not cover domestic helpers, house helpers, or kasambahay, whose minimum-wage requirement has been set by the Batas Kasambahay or Republic Act 10361. 

Workers of establishments registered under the Barangay Micro Business Enterprises (BMBE) law and the Go Negosyo Act of 2013 are also not covered by the wage hikes.

Davao region workers will be receiving an additional PHP 56 to their daily wage after the Regional Tripartite Wages and Productivity Board (RTWPB) implements two tranches of a wage hike this month.

The first tranche of PHP 30 is expected to be reflected in the workers’ August 16th payroll. 

This should mean an increase in daily wage to P370 for workers in the industrial, commercial and retail services sectors. 
Agriculture workers should be receiving a daily wage of P365.
Employees in businesses in the retail services should be paid P355 each after the wage increase.

The succeeding tranche of P26 will be applied to the workers' payroll by February of next year.

The new Wage Order RB XI-20 was issued on June 26, or about 20 days after the regional wage board conducted public hearings and consultations in Davao City, Digos City, Mati City, Panabo City, Island Garden City of Samal, Tagum City, Compostela Valley, Davao del Norte, Davao Occidental, Davao Oriental and Davao del Sur.

The regional wage board said its public hearings and consultations corroborated the study it conducted on the wage profile of workers in the region, which necessitated a new round of wage increase “to restore lost purchasing power of minimum-wage earners in Davao region for them to cope with the rising cost of living.”

The RTWPB added, however, that its prescribed wage hike would not affect or impair the productivity and viability of businesses and industries in the Davao region. 

The Wage Board further said that “Consistent with the government’s policy of achieving a higher level of productivity to preserve and generate jobs, and to augment the income of workers, there is a need to build the capacity of business enterprises to be competitive through productivity improvement and gain sharing programs.”

The wage board is persuading businesses “to adopt productivity improvement schemes such as time and motion studies, good housekeeping, quality circles, labor-management cooperation as well as implement gain sharing programs.”

The new wage rates would not cover domestic helpers, house helpers, or kasambahay, whose minimum-wage requirement has been set by the Batas Kasambahay or Republic Act 10361. 

Workers of establishments registered under the Barangay Micro Business Enterprises (BMBE) law and the Go Negosyo Act of 2013 are also not covered by the wage hikes. PIONAIRE FINANCE LIMITED