A new wage increase was issued under Wage Order No. NCR-20 which applies to all workers and employees receiving the daily minimum wage in the National Capital Region (NCR). From ₱481.00 per day in 2015, minimum wage earners (MWE’s) now receive ₱491.00 per day.
MWE’s in NCR will start receiving additional ₱10 cost of living allowance (COLA). The old ₱15 COLA is now integrated to the basic wage aside from the new additional ₱10 COLA. This increase was implemented with an aim that all minimum wages shall always be above the poverty threshold to help workers and their families meet basic needs.
The Wage Rationalization Act No. 6727, mandates the minimum wages in the Philippines and authorizes the Regional Tripartite Wages and Productivity Board (RTWPB) to determine the daily minimum wage rates. The daily minimum wage rate is computed based on industry per locality and in some cases depending on the number of workers and capitalization of enterprises.
The new daily minimum wage rates of covered workers in the private sector in NCR are as follows:
After a thorough evaluation of the existing socioeconomic conditions of NCR, it was determined that based on Consumer Price Index, the average inflation rate from the effectivity of the last wage increase on April 4, 2015 up to April 2016 is 0.6%; that the minimum wage rate of ₱481.00 per day has been eroded by the amount of ₱1.82 per day; and that the poverty threshold based on the latest data for an average family size of 4.3 in NCR had increased to ₱295.00 as of April 2016.