THE Department of Labor and Employment (Dole) issued a new wage order approving the P56 wage increase in Davao region.
This was signed and approved by the members of the Regional Tripartite Wages and Productivity Board in Davao Region last June 27, 2018.
The P56 wage increase is composed of two tranches. The first tranche gives a P30 increase, effective August 16, 2018 while the second tranche adds a P26 increase which will be effective on February 16, 2019.
Through the new Wage Order No. RB XI-20 the non-agriculture, industrial, commercial and retail sector, and service employing more than 10 workers which rates a wage amount of P340 will have a total wage amount of P370 on August 16, 2018 upon the effectivity of the P30 additional wage amount. An additional P26 will be added to the P370 total by February 16, 2019 as part of the implementation of the second tranche of the new wage order.
In the agriculture sector, the current wage amount of P335 will become P365 pesos on August 16, 2018 and will then reach P391 by February 16, 2019.
While for the retail service sector which employs not more than 10 workers, the current P325 wage value will be P355 by August 16, 2018 and a P26 additional will be effective by February 16, 2019, amounting for a total of P381.
In a statement by Davao City Chamber of Commerce and Industry Inc. (DCCCII) Arturo Milan, he said "I don't know how the micro and small business which comprise about 99 percent of all registered business in Davao can cope with these increases 16 percent in minimum wage, 10 percent in local business tax and not to mention of the impact of Train 1. I hope this will not result to closure of business or retrenchment of employees."
According to Dole-Davao, no exemption from compliance under the wage order shall be allowed. Only in case of a natural or human-induced disasters, then the Board may accept applications for exemption.
