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

September 14, 2023 REVENUE MEMORANDUM CIRCULAR NO. 96-2023 SUBJECT : Circularizing the New Daily Minimum Wage Rates in Certain Sectors/Industries under Region VII (Central Visayas) as Prescribed by Wage Order No. ROVII-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. ROVII-24 approved on September 5, 2023 and published at The Freeman Newspaper on September 15, 2023: CAIHTE 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-24 PROVIDING FOR A MINIMUM WAGE INCREASE IN REGION VII WHEREAS , the Regional Tripartite Wages and Productivity Board (RTWPB)-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-23 took effect on June 14, 2022; WHEREAS , the Board received petitions for minimum wage increase for all workers in the private sector in the region, as follows: DATE RECEIVED PETITIONER/S WAGE ADJUSTMENT SOUGHT 1. February 14, 2023 Cebu Labor Coalition (CELAC), Lonbisco Employees Organization (LEO), Metaphil Workers Union (MWU), Unionbank Employees Association (UBEA) and United Domestic Workers of the Philippines PhP292.50 Minimum Wage Adjustment in Daily Wages 2. April 27, 2023 Partido Manggagawa (PM), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), Globalwear Employees Union-Piglas (GEU-PIGLAS), Association of Globalwear Supervisory Employees Union-Piglas (AGSEU-PIGLAS), MEPZ Workers Alliance (MWA), Workers Organization of Lami Foods (WOLF), Prince Warehouse Club Mandaue Employees Union-Law (PWCMEU-LAW), Ilaw-Buklod ng Manggagawa-United Miners of Carmen Copper (IBM-UMCC-WSN), KEPCO Cebu Employees Union-Workers Solidarity Network (KCEA-WSN), Ilaw at Buklod ng Manggagawa sa General Milling Corporation (IBM-GMC) and Bohol Alliance of Labor Organizations (BALO) PhP100.00 Minimum Wage Increase 3. April 27, 2023 Alyansa sa mga Mamumu-ong Kontraktwal sa Sugbo (ALSA KONTRAKTWAL-CEBU) PhP100.00 Minimum Wage Increase for Workers in Central Visayas WHEREAS , after due notice to all stakeholders, the Board conducted five (5) Public Hearings on the following dates: aScITE DATE STAKEHOLDERS LOCATION July 10, 2023 Northern Cebu Captain Hall 1, 2nd Floor, Capitancillo Caf and Restaurant, Bogo City, Cebu July 26, 2023 Metro Cebu Executive Hall, DepEd Ecotech Center, Lahug, Cebu City, Cebu August 01, 2023 Southern Cebu 2nd Floor, Hotel Dulcee, City of Naga, Cebu August 10, 2023 Bohol Mezzanine A & B, Kew Hotel, Tagbilaran City, Bohol August 11, 2023 Negros Oriental and Siquijor Function Room 3, Royal Suite Inn, Dumaguete City, Negros Oriental 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 (CPI) in the region was at 110.9 in June 2022 and rose to 116.6 in July 2023; b. The average inflation rate from the effectivity of the last wage increase on June 14, 2022 up to July 2023 is 6.71%. In the same period, the region experienced the highest inflation rate in December 2022 at 8.5%. The beginning of 2023 saw the inflation rates easing up. July 2023 Philippine Statistics Authority (PSA) data registered Region VII's inflation rate at 4.1%; c. The poverty threshold based on the latest available data provided by the PSA for an average family size of five (5) in 2021 is in the amount of PhP13,008.00 or PhP428.00 per day; DETACa d. The Purchasing Power of the Peso at the time of the effectivity of the wage order was at 0.90, in July 2023 it has gone down to 0.86; and e. Region VII's Gross Regional Domestic Product (GRDP) has increased from 5.4% growth in 2021 to 7.6% in 2022. WHEREAS , after due consideration of the results of the 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 Republic Act 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 PhP33.00 increase in daily wage. The new minimum wage rates will range from PhP415.00 to PhP468.00. Section 2. New Minimum Wage Rates. The new daily minimum wage rates in Region VII shall be as follows: GEOGRAPHICAL AREA NON-AGRICULTURE AGRICULTURE AND NON-AGRICULTURE WITH LESS THAN 10 WORKERS PER WOVII-23 WAGE INCREASE NEW MINIMUM WAGE PER WOVII-23 WAGE INCREASE NEW MINIMUM WAGE CLASS A Cities of Carcar, Cebu, Danao, Lapu-Lapu, Mandaue, Naga, Talisay and Municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, San Fernando or Expanded Metro Cebu 435 33 468 425 33 458 CLASS B Other Cities Not Covered under Class A Bais, Bayawan, Bogo, Canlaon, Dumaguete, Guihulngan, Tagbilaran, Tanjay, Toledo 397 33 430 392 33 425 CLASS C Other Municipalities Not Covered under Class A and Class B 387 33 420 382 33 415 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. HEITAD 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 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 5th day of September, 2023. Done in Cebu City, Philippines. (SGD.) MR. ANTONIO T. CUIZON Workers' Sector (SGD.) DR. PHILIP N. TAN Employers' Sector (SGD.) ATTY. NORA ANALYN DEMETERIO-DIEGO Workers' Sector (SGD.) ATTY. JOSEPH S. TANCO Employers' Sector (SGD.) DIR. JENNIFER C. BRETAA Vice Chairperson National Economic and Development Authority (SGD.) DIR. MARIA ELENA C. ARBON Vice Chairperson Department of Trade and Industry (SGD.) DIR. LILIA A. ESTILLORE 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. 21-2023)