Navigating the complexities of minimum wages in the Philippines can be quite a task. With rates varying across different regions and monitored by the Regional Tripartite Wages and Productivity Board (RTWPB), it’s essential to stay informed.
In Region 1, the dynamics of economic activities, the unemployment rate, and other factors play a crucial role in determining the minimum wage.
The RTWPB doesn’t just randomly set these rates. They’re adjusted based on the region’s growth rate and other economic indicators.
Recommended: Minimum Wage All Region
Minimum Wage in Region 1
Wage Order No. RB 1-23
The Regional Tripartite Wages and Productivity Board (RTWPB) released Wage Order No. RB 1-23 effective on 07 November 2024, mandating a daily minimum wage increase of ₱33 across the region.
As a result, the new minimum wage is set at ₱Php 468.00 for non-agricultural establishments with 10 or more employees and ₱Php 435.00 for agricultural and non-agricultural establishments with fewer than 10 employees.
It covers the Cities of Alaminos, Batac, Candon, Dagupan, Laoag, San Carlos, San Fernando, and the Provinces of Ilocos Norte, Ilocos Sur, La Union, and Pangasinan.
| CLASSIFICATION | MINIMUM WAGE UNDER WO. NO. RB 1-22 | AMOUNT OF INCREASE | NEW MINIMUM WAGE RATES(Upon effectivity) |
| Non-Agriculture employing 10 or more employees | Php 435.00 | Php 33.00 | Php 468.00 |
| Non-Agriculture employing less than 10 employees; and Agriculture | Php 402.00 | Php 435.00 |
MINIMUM WAGE RATES FOR DOMESTIC WORKERS
REGION I (Ilocos) a/
Wage Order No. RB 1-DW-05
(Effective: 07 November 2024)
| MONTHLY MINIMUM WAGE UNDER WO. NO. RB 1-DW-04 | AMOUNT OF INCREASE | NEW MINIMUM WAGE RATE |
| Php 5,500.00 | Php 500.00 | Php 6,000.00 |
Previous Minimum Wage
Wage Order No. RB 1-22
The Regional Tripartite Wages and Productivity Board (RTWPB) issued the Wage Order No. RB 1-22 on October 10, 2023, which mandated a P30-P35 increase in daily minimum wages for the region.
This increase translates to P435 for non-agricultural establishments with 10 or more employees and P402 for agricultural and non-agricultural workplaces with less than 10 employees.
To support and uplift domestic workers or kasambahays, the RTWPB 1 also issued Wage Order No. RB 1-DW-04. This order proposed a P500 monthly wage increase for these workers, raising it to P5500 per month.
See the Table Below for the complete details:
CURRENT DAILY MINIMUM WAGE RATES
REGION I (Ilocos) a/
Per Wage Order No. RB 1-22 b/
(Effective: 06 November 2023)
| Previous Wage Order RB 1-21 | NEW WAGE ORDER RB 1-22 | ||
| Classifications | Wage Rates | Amount of Increase | New Minimum Wage Rates under W.O. No. RB 1-22 |
| A. Non-Agriculture employing 10 or more employees | ₱400.00 | ₱35.00 | ₱435.00 |
| B. Non-Agriculture employing less than 10 employees; and Agriculture | ₱372.00 | ₱30.00 | ₱402.00 |
- a/ Covers the Cities of Alaminos, Batac, Candon, Dagupan, Laoag, San Carlos, San Fernando, Urdaneta, Vigan, and the Provinces of Ilocos Norte, Ilocos Sur, La Union, and Pangasinan.
b/ Grants the following upon effectivity: ₱35.00/day for Non-Agriculture employing 10 or more employees; ₱30.00/day for Non-Agriculture employing less than 10 employees and Agriculture
Issued on 10 October 2023; published on 21 October 2023 at the Ilocos Herald.
Updated on: 21 October 2023
MINIMUM WAGE RATES FOR DOMESTIC WORKERS
REGION I (Ilocos) a/
Wage Order No. RB 1-DW-04
(Effective: 06 November 2023)
| Previous Wage Order RB 1-DW-03 | NEW WAGE ORDER RB 1-DW-04 | |
| Monthly Minimum Wage | Amount of Increase | New Monthly Minimum Wage Rate |
| ₱5,000.00 | ₱500.00 | ₱5,500.00 |
- a/ Covers the Cities of Alaminos, Batac, Candon, Dagupan, Laoag, San Carlos, San Fernando, Urdaneta, Vigan, and the Provinces of Ilocos Norte, Ilocos Sur, La Union, and Pangasinan.
Issued on 10 October 2023, published on 21 October 2023 at Ilocos Herald.
Download the PDF of the Wage Order No. RB 1-22 below:
Factors Affecting Minimum Wage in Region 1
When exploring the complexities of minimum wages in the Philippines, especially in Region 1, you’ll often find yourself entangled in a web of socio-economic factors. These very factors, both big and small, play a vital role in how the Regional Tripartite Wages and Productivity Board (RTWPB) oversees and adjusts the minimum wage rates.
Among these factors, the notable ones resulted in a hike in the minimum wage limit of Calabarzon.
Let’s delve into some of these factors:
Periodic Assessment
Primarily, the RTWPB periodically assesses the minimum regional wages to ensure they align with in-region economic conditions. In other words, they make sure the current wages are responsive and fair.
Public Opinion
Public sentiment carries significant weight. Should there be a general discontent with unexpected hikes in prices of essential goods and services, it’s taken into account. Understandably, this discontent often correlates with price inflation of oil products and other basics.
Unionization Efforts
Additionally, the RTWPB receives petitions from multiple unions and associations. Examples include the Federation of Free Workers, the Metal Workers Alliance of the Philippines, and the Association of Minimum Wage Earners and Advocates. Often, these petitions highlight recent price hikes and how wage increases to compensate for them are warranted.
Mutual Economic and Social Factors
Lastly, overarching socio-economic factors aren’t ignored, such as public discontent, the declining purchasing power of the Philippines peso, increased poverty rates, and the impact of events like COVID-19.
As part of proper compensation practices, the RTWPB also recognizes that there are different formulas for calculating employees’ earnings. For instance, the RTWPB released an updated summary of regional daily minimum wage rates in October 2022. This report guides employers on the legally required minimum daily amount for their employees. As a result, it shows wage rates vary depending on several factors, such as whether employees work overtime, during holidays, or on rest days.
Ultimately, the objective is to ensure that wage adjustments align with the poverty threshold, thereby ensuring all workers receive fair compensation.
Frequently Asked Questions
What is the latest update on minimum wages in Region 1 of the Philippines?
As per the Wage Order No. RB 1-22, there has been a recent increase in the wage structure in Region 1 of the Philippines. The Department of Labor and Employment (DOLE) and the National Wages and Productivity Commission (NWPC) ensure compliance with this update.
How does the wage structure vary in the Philippines?
The wage structure can vary depending on the region, sector (agriculture, non-agriculture, industrial/commercial, retail/service), and the size of the establishment. As per the 2023 update, the set minimum wage for the non-agricultural sector, industrial/commercial, and retail/service employing more than 10 workers in Region 1 is ₱443.
What is the average salary in the Philippines?
According to the Philippine Statistics Authority (PSA)’s 2022 Occupational Wages Survey (OWS), the average monthly salary in the Philippines is PHP 18,423 (US$328.99).
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