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Metro Manila minimum wage increased by P22 |
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METRO MANILA minimum wage earners can look forward to higher take-home pay after the government yesterday announced adjustments to help workers cope with soaring prices. A P22 cost of living allowance (COLA) will be added to the metropolis’ current floor wage of P367-404, bringing the range to P389-426. Labor department officials described it as a "win-win" solution for workers who petitioned for a P75 increase, employers worried about their capacity to pay and monetary authorities concerned about inflation.
The adjustment, which could take effect before the end of the month, is expected to set the pace by which minimum wages in other regions will be increased this year. A COLA would limit employers’ expenses as the stipend is not included in computing benefits such as overtime and 13th-month pay. The adjustment also falls below the P25 the central bank said was the limit daily minimum wages could be increased without adding to inflationary pressures. "We could publish [the wage order] by Wednesday (May 11) at the earliest and it could take effect by May 26," said Raymundo G. Agravante, chairman of the Regional Tripartite Wages and Productivity Board (RTWPB) and director of the Labor department’s Metro Manila office.
Labor Secretary Rosalinda D. Baldoz said the P22 COLA would benefit some three million minimum wage earners. Another 3.7 million workers could also receive pay adjustments as companies move to address wage distortions, she added. "[T]he board considered the needs of workers to cope with high commodity prices, on the one hand, and the employers’ capacity to pay given high fuel-related production costs and the [fact that the] great majority of enterprises in the region ... are micro and small enterprises," Ms. Baldoz said. (bworldonline.com)
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