Minimum Wage Increase for 2010

The talk of the town this morning is the much-awaited minimum wage increase mandate by the government.

News has now come out that the Regional Tripartite Wages and Productivity Board has decided on a Php22.00 increase on the minimum wage for Metro Manila, citing that they have considered both the need of the citizens and the capacity of employers to pay wages. This is a far cry from the proposed Php75.00 increase by various labor organizations, but after 2 years of no minimum wage increases, any wage increase would be a welcome sight.

Negotiations for the minimum wages in other regions, as well as other groups, are still in the works. The minimum wage increase will not take effect until 15 days after they release the proclamation, which in turn will only be released once all negotiations for all regions have been finished. This means all minimum wage earners will have to hold on to their horses for a bit more before shouting for joy at the increase in their salary.

For Metro Manila minimum wage earners, here's a short summary of the monthly equivalent of the upcoming wage hike:

1. For those whose rest day is on Sundays only (approx. 26days/month) - Php 10,571.00


2. For those whose rest day is both on Saturdays and Sundays (approx. 22 days/ month) - Php 8,888.00


3. For those who are paid even during their rest days and holidays (approx. 30-31 days/month) - Php 12,288.33

Minimum wage earners can highly maximize this increase particularly because they are not charged witholding income tax. As such, the most that is removed from their salaries on a monthly basis amounts to a maximum of Php500.00. Those who are earning above the minimum wage, however, are not entitled to receive a salary increase from their employers just because of this mandate. It is highly recommended, though, that these employers take alternate measures to ensure that their employees are still receiving the correct salary that is commensurate to their cost of living.