Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region II (Cagayan Valley) as Prescribed by Wage Order No. RTWPB 2-22

September 29, 2023 REVENUE MEMORANDUM CIRCULAR NO. 107-2023 SUBJECT : Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region II (Cagayan Valley) as Prescribed by Wage Order No. RTWPB 2-22 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. RTWPB 2-22 approved on September 13, 2023 and published at Northern Forum on September 30, 2023: HTcADC Republic of the Philippines Department of Labor and Employment NATIONAL WAGES AND PRODUCTIVITY COMMISSION REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD REGION 02 WAGE ORDER NO. RTWPB 2-22 PROVIDING FOR A MINIMUM WAGE INCREASE IN REGION-2 WHEREAS , the Regional Tripartite Wages and Productivity Board-2 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. RTWPB 2-21 took effect on June 8, 2022; WHEREAS , pursuant to Section 3(A), Rule II of the Omnibus Rules on Minimum Wage Determination , and in the absence of any petition for a minimum wage adjustment filed, the Board decided motu proprio to initiate wage review; WHEREAS , after due notice to all stakeholders, the Board conducted two (2) sectoral consultations on July 24-25, 2023, at Diocitas Hotel in Purok 2, Rizal, Santiago City. These consultations were conducted separately for the Labor and Management Sectors with the purpose of assessing the necessity for the initiation of a public hearing; WHEREAS , the board, in unanimous agreement, has resolved to proceed conduct a public hearing on August 24, 2023 at Claude Convention Center, Cagayan State University-Andrews Campus, Caritan Sur, Tuguegarao City, Cagayan, to assess and determine the propriety of issuing a new wage order; CAIHTE WHEREAS , the Notice of Public Hearing was published in the Northern Digest on its August 7, 2023 issue and that the same notice was posted in at least three (3) conspicuous public places; 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, as well as the positions of the affected sectors on the wage issue, the following findings were established: a. The Consumer Price Index (CPI) in the region was 117.10 in June 2022 and 121.9 in July 2023; b. Based on the current (CPI) in the region, the inflation rate as of July 2023 is at 3.4; and c. The poverty threshold based on the latest available data provided by the Philippine Statistics Authority (PSA) for an average family size of 5.0 in 2021 is in the amount of P388.00 per day. NOW, THEREFORE , by virtue of the power and authority vested under RA No. 6727, RTWPB-2 hereby issues this Wage Order. Section 1. Amount of Increase. Upon effectivity of this Wage Order, minimum wage earners in the private sector in the Region shall receive an increase of P30.00/day, to be given in two tranches, namely: P15.00/day upon effectivity of the Wage Order and another P15.00/day on April 1, 2024. Section 2. New Minimum Wage Rates. The new daily minimum wage rates in Region-2 shall be as follows: Sectors/Industry Current Minimum Wage Rates New Wage Increase New Minimum wage Rates Non-Agriculture 420.00 15.00 Upon effectivity of this Wage Order 435.00 15.00 April 1, 2024 (Second tranche) 450.00 Agriculture 400.00 15.00 Upon effectivity of this Wage Order 415.00 15.00 April 1, 2024 (Second tranche) 430.00 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. aScITE Section 4. Covered Workers and Employees. 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. Excluded from the coverage of this Wage Order are domestic workers, persons in the personal service of another and workers of registered Barangay Micro-Business Enterprises (BMBEs) with valid Certificates of Authority pursuant to Republic Act No. 9178. Section 5. Penal Provision. Any person, corporation, trust, firm, partnership, association or entity who 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 Tuguegarao City, Cagayan, Philippines. (SGD.) JESUS B. VILLAMOR Workers' Sector (SGD.) GARY KA HONG U. CHONG Employers' Sector (SGD.) JOHNNY M. ALVARO Workers' Sector (SGD.) GERALD C. TACTAY Employers' Sector (SGD.) DIONISIO C. LEDRES Vice Chairperson National Economic & Development Authority (SGD.) ROMLEAH JULIET P. OCAMPO Vice Chairperson Department of Trade & Industry (SGD.) JESUS ELPIDIO B. ATAL, JR. Chairperson Department of Labor and Employment 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)