Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region III (Central Luzon) as Prescribed by Wage Order No. RBIII-24

September 29, 2023 REVENUE MEMORANDUM CIRCULAR NO. 108-2023 SUBJECT : Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region III (Central Luzon) as Prescribed by Wage Order No. RBIII-24 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. RBIII-24 approved on September 19, 2023 and published at the Manila Bulletin on September 30, 2023: ETHIDa Republic of the Philippines Department of Labor and Employment NATIONAL WAGES AND PRODUCTIVITY COMMISSION REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD REGION III WAGE ORDER NO. RBIII-24 PROVIDING FOR A MINIMUM WAGE INCREASE IN REGION III WHEREAS , the Regional Tripartite Wages and Productivity Board III ("Board") 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. RBIII-23 took effect on 20 June 2022; WHEREAS , the Board received on 13 June 2023 a petition filed by Mr. Mardwin L. Cabais and Ms. Analyn Almadin Marantal ("Petitioners") seeking a One Thousand One Hundred Pesos (Php1,100.00) per day minimum wage increase for all workers in the private sector in the region; WHEREAS , after due notice to all stakeholders, the Board conducted the following series of consultations and a public hearing to assess and determine the propriety of issuing a new wage order: Public Consultations Date Venue 18 July 2023 Clark Freeport Zone, Pampanga 21 July 2023 City of Malolos, Bulacan 25 July 2023 Balanga City, Bataan 08 August 2023 Olongapo City, Zambales 22 August 2023 Tarlac City, Tarlac 30 August 2023 Cabanatuan City, Nueva Ecija 31 August 2023 Baler, Aurora Public Hearing 04 September 2023 City of San Fernando, Pampanga WHEREAS , the Petitioners were called and given the opportunity, during the public hearing, to present their views and evidence, as well as their witnesses, if any, in support of their petition; TIADCc WHEREAS , all the attendees, organizations concerned, stakeholders, and interested groups who stand to be directly affected by the Board's action, were given the widest opportunity to be heard during the consultations and public hearing conducted in Region III; 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 Region III, the following were established: a. The Consumer Price Index ("CPI") in Region III increased to 126.7 in August 2023 from 117.1 in June 2022; b. The 2021 poverty threshold in Region III, based on the latest available data provided by the Philippine Statistics Authority ("PSA") , for an average family size of five (5) is in the amount of Four Hundred Thirty-Three Pesos (Php433.00); and c. Based on the latest available data provided by the PSA, Region III is among the nine (9) regions with economic growth rate above the national level. The Gross Regional Domestic Product ("GRDP") of Region III is at 8.1% for 2021-2022 period using constant 2018 prices. WHEREAS , during the deliberation process, aside from the prevailing socio-economic conditions in Region III and its provinces, the Board also considered the positions and views of all interested parties, results of the survey given during the consultations and public hearing, capacity of the employers to pay, needs of the workers and their families, and productivity of business enterprises; WHEREAS , the Board deemed it just and equitable to increase the daily minimum wage, considering the amount needed to restore the purchasing power of the worker's wages, the economic growth, and the poverty threshold in Region III; cSEDTC NOW THEREFORE , by virtue of the power and authority vested under Republic Act No. 6727 , the Regional Tripartite Wages and Productivity Board III hereby issues this Wage Order. Section 1. Amount of Increase. Upon effectivity of this Wage Order, minimum wage earners in the private sector in Region III shall receive the amount of FORTY PESOS (Php40.00) increase in the basic wage per day. Section 2. New Minimum Wage Rates. The new daily minimum wage rates in Region III shall be as follows: Sector/Industry Provinces of BATAAN, BULACAN, NUEVA ECIJA, PAMPANGA, TARLAC, ZAMBALES Province of AURORA MW under W.O. No. RBIII-23 Wage Increase New Minimum Wage MW under W.O. No. RBIII-23 Wage Increase New Minimum Wage upon effectivity upon effectivity Non-Agriculture Establishments with 10 or more workers P460.00 P40.00 P500.00 P409.00 P40.00 P449.00 Establishments with less than 10 workers P453.00 P40.00 P493.00 Agriculture Plantation P430.00 P40.00 P470.00 P394.00 P40.00 P434.00 Non-Plantation P414.00 P40.00 P454.00 P382.00 P40.00 P422.00 Retail/Service Establishments with 10 or more workers P449.00 P40.00 P489.00 P344.00 P40.00 P384.00 Establishments with less than 10 workers P435.00 P40.00 P475.00 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. 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. 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 Republic Act No. 6727, as amended by Republic Act 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 19th day of September, 2023 at the City of San Fernando, Pampanga, Philippines. AIDSTE (SGD.) FLORDELIZA MARIA C. REYES-RAYEL Board Member Employers' Sector (SGD.) MARCO D. NEPOMUCENO Board Member Employers' Sector (SGD.) RAUL C. REMODO Board Member Workers' Sector (SGD.) EDGAR C. VENTURA Board Member Workers' Sector (SGD.) NERRISA T. ESGUERRA NEDA Regional Director/ Vice-Chairperson (SGD.) BRIGIDA T. PILI DTI OIC-Regional Director/ Vice-Chairperson (SGD.) GERALDINE M. PANLILIO DOLE Regional Director/ 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)