Publishing the Daily Minimum Wage Rates in Central Luzon (Region III) under Wage Order No. RBIII-23

July 6, 2022 REVENUE MEMORANDUM CIRCULAR NO. 90-2022 SUBJECT : Publishing the Daily Minimum Wage Rates in Central Luzon (Region III) under Wage Order No. RBIII-23 TO : All Internal Revenue Officials, Employees and Others Concerned For the information and guidelines of all internal revenue officers, employees and others concerned, we are publishing Wage Order No. RBIII-23 which was issued on May 30, 2022 and published at Sunstar Pampanga on June 4, 2022: Republic of the Philippines Department of Labor and Employment National Wages and Productivity Commission REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD III WAGE ORDER NO. RBIII-23 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, province, or industry; WHEREAS , the current Wage Order No. RBIII-22 took effect on 01 January 2020; WHEREAS , the Board received on 22 February 2022 a petition filed by the Solidarity of Unions in the Philippines for Empowerment and Reforms ("SUPER") , seeking a Seven Hundred Fifty Pesos (Php750.00) per day minimum wage rate for all minimum wage workers in the private sector in Region III; WHEREAS , the Board received on 16 March 2022 a petition filed by the Central Luzon Workers for Wage Increase ("CLWWI") seeking a minimum wage rate of Seven Hundred Fifty Pesos (Php750.00) per day of work in Region III; WHEREAS , the Board received on 04 April 2022 a petition filed by the Association of Minimum Wage Earners and Advocates-Philippine Trade and General Workers Organization ("AMWEA-PTGWO") , seeking a Nine Hundred Twenty Pesos (Php920.00) per day minimum wage rate, located in the discussion portion of the petition, for all minimum wage earners in the region. It should be noted that AMWEA-PTGWO, in the title of its Petition, asked for an increase in the National Capital Region. Moreover, neither Central Luzon nor Region III were mentioned clearly and expressly in the relief sought for in the said Petition; WHEREAS , the Board received on 19 April 2022 a petition filed by the Trade Union Congress of the Philippines ("TUCP") , seeking an Eight Hundred Twenty Pesos (Php820.00) per day minimum wage rate for all minimum wage earners in Region III; WHEREAS , the petitions filed by CLWWI and AMWEA-PTGWO, were dismissed for failure to submit lacking documents within the period provided for under the Omnibus Rules on Minimum Wage Determination , despite due notice to comply. Moreover, in the case of AMWEA-PTGWO, the Board failed to acquire jurisdiction due to the former failing to make the necessary correction in its Petition despite due notice. The caption of the Petition filed by AMWEA-PTGWO states: , " Petition to Increase the Minimum Wage in the National Capital Region by P500.00 Across-the-Board for All Covered Minimum Wage Earners ." Moreover, Central Luzon or Region III was not even mentioned in the relief sought by AMWEA-PTGWO in its prayer. Nonetheless, CLWWI and AMWEA-PTGWO were still duly invited by the Board to attend and participate in the public hearings in Region III; WHEREAS , the TUCP petition was received by the Board after the latter's publication of the Notice of Public Hearing. Hence, the TUCP petition was not included in the publication. Nonetheless, the TUCP petition was presented for discussion during the public hearings conducted, and the TUCP was invited to the said public hearings; WHEREAS , after due notice to all stakeholders, the Board conducted the following public hearings to assess and determine the propriety of issuing a new Wage Order: Date Stakeholder Venue 20 April 2022 Pampanga San Fernando, Pampanga 22 April 2022 Bulacan Malolos, Bulacan 26 April 2022 Bataan Abucay, Bataan 27 April 2022 Zambales Subic Bay Freeport Zone, Zambales 05 May 2022 Aurora Baler, Aurora 11 May 2022 Tarlac Tarlac City, Tarlac 12 May 2022 Nueva Ecija Cabanatuan City, Nueva Ecija WHEREAS , SUPER and TUCP were called during the public hearings to present their views, evidence, as well as their witnesses, in support of their petition. SUPER and TUCP, in two (2) separate public hearings, presented their petitions; WHEREAS , all the attendees, concerned organizations, 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 public hearings conducted in Region III. WHEREAS , in setting the minimum wage, the Board considered the criteria under Republic Act No. 6727 , as well as the guidelines on the Two-Tiered Wage System ; WHEREAS , after a thorough review and evaluation of the existing socio-economic conditions in Region III, the following findings were established: a. The Consumer Price Index ("CPI") in Region III increased to 115.40 in April 2022 from 105.30 in January 2020; b. The inflation rate in Region III accelerated to 6 percent (6%) percent in April 2022; and c. The 2018 poverty threshold in Region III for an average family size of five (5) is in the amount of Three Hundred Sixty-Nine Pesos (Php369.00). WHEREAS , during the deliberation process, the Board considered the prevailing socio-economic conditions in Region III and its provinces, positions of all interested parties, results of the public hearings, capacity of the employers to pay, needs of 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 workers' wages and the poverty threshold in Region III; 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, to be given in two (2) tranches as follows: a. Php30.00 per day upon effectivity of this Wage Order b. Php10.00 per day effective 01 January 2023 Section 2. New Minimum Wage Rates. The new daily minimum wage rates in Region III shall be as follows: 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 Region III, 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 who 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 30th day of May, 2022 at the City of San Fernando, Pampanga, Philippines. (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 GINA T. GACUSAN NEDA Regional Director RTWPBIII Vice-Chairperson (SGD.) LEONILA T. BALUYUT DTI Regional Director RTWPBIII Vice-Chairperson (SGD.) GERALDINE M. PANLILIO DOLE Regional Director/ RTWPBIII Chairperson All concerned are hereby enjoined to be guided accordingly and to give this Circular as wide a publicity as possible. (SGD.) LILIA CATRIS GUILLERMO Commissioner of Internal Revenue ATTACHMENT Wage Order No. RBIII-23 May 30, 2022