Minimum wage earners get P5 hike in Cola
Subscribe Now November 18, 2014 at 08:54am
"This will raise the minimum wage in the non-agricultural and retail and service establishments employing more than ten workers to P317 per day. The new daily minimum wage for the agriculture sector is P307 and P286 for retail/service establishments employing not more than ten workers," the Regional Tripartite Wage and Productivity Board (RTWPB) Davao Region said in a statement.
The current minimum wage in the non-agricultural and retail and service establishments employing more than 10 workers is P312 per day while the daily minimum wage for the agriculture sector is P302 and P281 for retail/service establishments employing not more than 10 workers, said Department of Labor and Employment (Dole) Regional Director Joffrey M. Suyao.
He said this will be the second tranche of Wage Order RB-XI-18, which was issued in June.
Suyao said the added Cola was supposed to have been incorporated when the wage order was implemented but they saw that this will be too heavy on the part of the employers.
He said the Cola was added because the RTWPB-Davao anticipated that there might be increases in the prices of goods in the coming months once wage order was implemented. The Cola will also address inflationary rates from June to November.
"Cola is given to workers for loss in purchasing power due to inflation at a rate normally pegged at the consumer price index (CPI) and cushion the effects of the rapid price increase of basic commodities," RTWPB-Davao said in a statement.
The wage order covers Davao City, Digos, Island Garden City of Samal, Tagum, Panabo, Mati and the Provinces of Davao del Sur, Davao del Norte, Davao Oriental, and Compostela Valley.
While Cola is part of the minimum wage, it is excluded from the computation of wage-related benefits such as overtime pay, night shift differential and 13th month pay.
However, Cola will be included in computing mandatory contributions to the Social Security System (SSS), PhilHealth, and Pag-ibig.
Through regional wage orders, the Cola may be integrated in the basic minimum wage. When the new wage order took effect on June 1, 2014, the amount of the wage-related benefits enjoyed by the workers also increased since the increment in the basic minimum wage in the amount of Php11.00 already subsumed the Cola.
All workers and employees in the private sector receiving the minimum wage in Davao Region are entitled to receive the new Cola of P5 for the second tranche of the new wage order to coincide with the holiday season.
However, domestic workers covered by Batas Kasambahay (Republic Act 10361), family drivers, persons employed in the personal service of another, and workers of establishments registered under the Barangay Micro Business Enterprises Law are not covered.
No exemption from compliance under this wage order is allowed except those automatically exempted by law.
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