Publishing the Daily Minimum Wage Rates in Central Visayas (Region VII) under Wage Order No. ROVII-23

July 6, 2022 REVENUE MEMORANDUM CIRCULAR NO. 95-2022 SUBJECT : Publishing the Daily Minimum Wage Rates in Central Visayas (Region VII) under Wage Order No. ROVII-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. ROVII-23 which was issued on May 24, 2022 and published at The Freeman Newspaper on May 29, 2022: Republic of the Philippines Department of Labor and Employment National Wages and Productivity Commission REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD VII WAGE ORDER NO. ROVII-23 PROVIDING FOR A MINIMUM WAGE INCREASE IN REGION-VII WHEREAS , the Regional Tripartite Wages and Productivity Board-VII 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. ROVII-22 took effect on January 5, 2020 ; WHEREAS , the Board received the following petitions for minimum wage increase for all workers in the private sector in the region, as follows: Date Received Petitioner Wage Adjustment Sought March 11, 2022 Solidarity of Unions in the Philippines for Empowerment and Reforms (SUPER) Increases ranging from Php346.00-Php399.00 in the existing wage classification to effect a uniform Php750.00 minimum wage rate in Central Visayas March 21, 2022 Cebu Labor Coalition (CELAC), Lonbisco Employees Organization (LEO), Metaphil Workers Union (MWU), and Unionbank Employees Association (UBEA) Php308.00 minimum wage adjustment March 21, 2022 Trade Union Congress of the Philippines (TUCP) Php430.00 minimum wage adjustment March 21, 2022 Alyansa sa mga Mamumu-ong Kontraktwal sa Sugbo (ALSA Kontraktwal-Cebu) Increases ranging from Php346.00-Php399.00 in the existing wage classification to effect a uniform Php750.00 minimum wage rate in Central Visayas WHEREAS , after due notice to all stakeholders, the Board conducted the following: Consultation Date Location March 22, 2022 DepEd EcoTech Center, Sudlon, Lahug, Cebu City Public Hearings Date Stakeholder Location April 12, 2022 Northern Cebu Capitancillo Caf and Restaurant, 2nd Flr., R&F Pension House, M. H. Del Pilar, Pelaez St., Bogo City April 25, 2022 Bohol The MetroCentre Hotel and Convention Center, C.P. Garcia North Ave., Tagbilaran, Bohol April 29, 2022 Negros Oriental and Siquijor Bethel Guest House, Rizal Blvd., Dumaguete City May 6, 2022 Metro Cebu and Southern Cebu DepEd EcoTech Center, Sudlon, Lahug, Cebu City WHEREAS , in setting the minimum wage, the Board has to consider the various 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 the region, the following findings were established: a. The Consumer Price Index in the region was 102.9 in January 2020 and rose to 110.0 in April 2022; b. The poverty threshold based on the data provided by the Philippine Statistics Authority (PSA) for an average family size of 5 in 2018 is in the amount of Php353.00 per day; c. The Purchasing Power of the Peso at the time of the effectivity of the wage order was at .97; in April 2022 it has gone down to .91; d. Region 7's Gross Regional Domestic Product (GRDP) has bounced back from a -9.5% growth in 2020 at constant 2018 prices to 5.4% in 2021; e. At the time of its effectivity, the region's highest minimum wage rate of Php404.00 is equivalent to Php393.00 in real wages. As of April 2022, the same amount of Php404.00 only amounts to Php367.27 in real wages; f. Since the effectivity of the wage order in January 2020 until April 2022, prices of unleaded gasoline have risen by around 45%; diesel 89%; LPG by 34%; and g. As of April 2022, inflation rate in the region is at 5.4%. WHEREAS , after due consideration of the results of the consultations and public hearing, and a thorough review and evaluation of the existing socio-economic conditions in the region, the Board agrees to adjust the prevailing daily wage rates of workers/employees in the Region to enable them to cope with the rising cost of living without impairing the viability of business and industry; NOW THEREFORE , by virtue of the power and authority vested under RA No. 6727, RTWPB-VII 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 a PhP31.00 increase in daily wage. The new minimum wage rates in Region VII will range from PhP382.00 to PhP435.00. Section 2. New Minimum Wage Rates. The new daily minimum wage rates in Region-VII shall be as follows: GEOGRAPHICAL AREA NON-AGRICULTURE AGRICULTURE & NON-AGRICULTURE WITH LESS THAN 10 WORKERS PER WOVII-22 WAGE INCREASE NEW MINIMUM WAGE PER WOVII-22 WAGE INCREASE NEW MINIMUM WAGE CLASS A Cities of Carcar, Cebu, Danao, Lapulapu, Mandaue, Naga, Talisay & Municipalities of Compostela, Consolacion, Cordova Liloan, Minglanilla, San Fernando or Expanded Metro Cebu 404.00 31.00 435.00 394.00 31.00 425.00 CLASS B Other Cities Not Covered under Class A Bais, Bayawan, Bogo, Canlaon, Dumaguete, Guihulngan, Tagbilaran, Tanjay, Toledo 366.00 31.00 397.00 361.00 31.00 392.00 CLASS C Other Municipalities Not Covered under Class A and Class B 356.00 31.00 387.00 351.00 31.00 382.00 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 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 24th day of May , 2022. Done in Cebu City, Cebu, Philippines. (SGD.) JOSE P. TOMONGHA Workers' Sector (SGD.) DR. PHILIP N. TAN Employers' Sector (SGD.) ATTY. NORA ANALYN DEMETERIO-DIEGO Workers' Sector-with reservation -VACANT- Employers' Sector (SGD.) DIR. EFREN B. CARREON Vice-Chairperson National Economic & Development Authority (SGD.) DIR. MARIA ELENA C. ARBON Vice-Chairperson Department of Trade & Industry (SGD.) USEC. VICTOR A. DEL ROSARIO Chairperson Department of Labor & Employment 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. ROVII-23 May 24, 2022