Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region XII (SOCCSKSARGEN) as Prescribed by Wage Order No. RB XII-23

September 29, 2023 REVENUE MEMORANDUM CIRCULAR NO. 106-2023 SUBJECT : Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region XII (SOCCSKSARGEN) as Prescribed by Wage Order No. RB XII-23 TO : All Internal Revenue Officials, Employees and Others Concerned For the information and guidelines of all internal revenue officers, employees and others concerned, this Circular is hereby issued to circularize Wage Order No. RB XII-23 approved on September 21, 2023 and published at Brigada News Philippines on September 30, 2023: DETACa Republic of the Philippines Department of Labor and Employment National Wages and Productivity Commission REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD XII WAGE ORDER NO. RB XII-23 PROVIDING FOR A MINIMUM WAGE INCREASE IN REGION-XII WHEREAS , the Regional Tripartite Wages and Productivity Board-XII (RTWPBXII) is mandated under Republic Act No. 6727, otherwise known as The Wage Rationalization Act , to periodically assess wage rates and conduct continuing studies in the determination of the minimum wage applicable in the region or industry; WHEREAS , the current Wage Order No. RB XII-22 took effect on 09 June 2022 ; WHEREAS , pursuant to Section 3(A), Rule II of the NWPC Guidelines No. 03, Series of 2020 or the Omnibus Rules in Minimum Wage Determination , in the absence of any petition for a minimum wage adjustment filed, the Board may motu proprio initiate wage review; WHEREAS , the Board, upon deliberation during its meeting on 5 July 2023, motu proprio , decided to commence the minimum wage determination process and review the current minimum wage rates; WHEREAS , the Board conducted public consultations on 8 August 2023 in Kidapawan City to gather public sentiments, views, and opinions from both the labor and the management sectors, as well as from other stakeholders, on the necessity and propriety of having a minimum wage adjustment in the region; WHEREAS , the Board caused the publication of the Notice of Public Hearing on 8 August 2023 in a newspaper of general circulation in the region, and the posting of the said Notice in at least three (3) public places in the region; HEITAD WHEREAS , after due notice to all stakeholders, the Board conducted a public hearing on 24 August 2023 General Santos City, to assess and determine the propriety of issuing a new wage order; WHEREAS , in setting the minimum wage, the Board has to consider the various criteria under Republic Act No. 6727 , as well as the procedures laid down in the Omnibus Rules on Minimum Wage Determination ; WHEREAS , after a thorough review and evaluation of the existing socio-economic conditions in the region, the following were established: a. The Consumer Price Index (CPI) in the region was 117.4 in June 2022 and rose to 124.5 in August 2023; b. The region's inflation rate, however, descended from 5.7 to 4.6 in June 2022 to August 2023, respectively; and c. The poverty threshold based on the latest available data provided by the Philippine Statistics Authority (PSA) for an average family size of five in 2021 is in the amount of P362.00. WHEREAS , as a result of the review made on the prevailing socio-economic conditions of the Region, as well as the results of the public hearing/consultations and deliberations conducted, the Board has determined the need to increase the prevailing minimum wage rates for workers in private establishments without impairing the viability of business and industry; WHEREAS , the increase is consistent with the government's policy of achieving higher levels of productivity to promote economic growth, generate employment and to augment the income of workers; NOW THEREFORE , by virtue of the power and authority vested under RA No. 6727, RTWPB-XII hereby issues this Wage Order. Section 1. Amount of increase. The minimum wage earners in the private sector in the Region shall receive a THIRTY-FIVE PESOS (P35.00) increase per day, to be given in two tranches. Section 2. New Daily Minimum Wage Rates. The new daily minimum wage rates in Region-XII shall be as follows: Sectors/Industry Current Minimum Wage Rates Basic Wage Increase Upon Effectivity New Minimum Wage Rates 2nd Tranche of Basic Wage Increase Effective January 1, 2024 New Minimum Wage Rates Non-Agriculture P368.00 P22.00 P390.00 P13.00 P403.00 Agriculture/Service/ Retail Establishment P347.00 P22.00 P369.00 P13.00 P382.00 Section 3. Basis of Minimum Wage Rates. The minimum wage rates prescribed under this Order shall be for the normal working hours which shall not exceed eight (8) hours of work a day. aDSIHc Section 4. Covered. The wage increase prescribed herein shall apply to all minimum wage earners in the private sector within the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid. This Wage Order shall not cover the following: (a) household or domestic helpers under Republic Act No. 10361 or the Batas Kasambahay; and (b) workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificate of Authority pursuant to Republic Act No. 9178. Section 5. Penal Provision. Any person, corporation, trust, firm, partnership, association, or entity which refuses or fails to pay the prescribed increase shall be dealt with pursuant to the provisions of Section 12 of RA No. 6727, as amended by RA No. 8188 . Section 6. Effectivity. This Wage Order shall take effect after fifteen (15) days from its publication in a newspaper of general circulation. APPROVED. This 21st day of September, 2023. Done in the City of Koronadal, Province of South Cotabato, Philippines. (SGD.) ALICE B. DUMA Workers' Sector (SGD.) WARREN GREGORIO A. MANILAY Employers' Sector (SGD.) ALFE H. SALDO Workers' Sector (SGD.) ATTY. ROMEO A. SUSTIGUER, JR. Employers' Sector (SGD.) TERESITA SOCORRO C. RAMOS Vice-Chairperson National Economic & Development Authority (SGD.) FLORA POLITUD-GABUNALES Vice-Chairperson Department of Trade & Industry (SGD.) JOEL M. GONZALES Chairperson All concerned are hereby enjoined to be guided accordingly and to give this Circular as wide a publicity as possible. ROMEO D. LUMAGUI, JR. Commissioner of Internal Revenue By: (SGD.) MARIDUR V. ROSARIO OIC-Deputy Commissioner Operations Group Officer-in-Charge (Per RDAO No. 27-2023)