HR Online has been down for the past few months due to technical problems, but we are now back up and running with two of the hottest news for us working citizens!
First off is the new holiday. Originally a regional holiday for the city of Calamba, the birthday of national hero, Jose Rizal, has been turned into a nationwide holiday and moved to June 20, 2011. This adds one long weekend the the sparse count of long weekends for the year - with most of the holidays falling on sundays.
June is a great time to catch some last minute summer fun - right before the monsoon season hits the country. A copy of the proclamation can be found at the Official Gazette, the Philippine Government's official website.
The second news is the approved Php22 cost of living allowance (COLA) granted to all minimum wage workers. There are many mixed reactions regarding this announcement, with the trade unions mostly contesting the price and mechanics of the granted allowance. DOLE reasoned out that this adjustment was put under COLA because it is the win-win situation for both employees and employers - granting a monetary increase to the minimum wage without adding extra burden to the financial constraints of employers. Whether or not the Php22 daily increase can help the employed sector deal with rising inflation prices is the point that trade unions are contesting the the moment.
For those who are not aware, increasing the minimum wage adds to the financial burdens of employers because it is not only the salaries that they pay the employees that get changed. With increases in minimum wage, an employee's gross monthly wages also changes and may put them in higher salary brackets for their government benefits (SSS, philhealth and PAG-IBIG). In addition, higher wages also means higher payouts for companies who grant paid or cash-convertible leaves, 13th month pay and retirement benefits.
Only those who are minimum wage earners are entitled to receive the additional Php22 allowance. However, there is no rule restricting companies from granting the same benefit to their above-minimum wage workers. The allowance in non-taxable and amounts to Php478 - 573 additional income per month for employees who work 5-6 days a week.
The new minimum wage table can be found at the National Wage and Productivity Commission (NWPC) website.
Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts
Sunday, May 15, 2011
Tuesday, June 8, 2010
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:
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.
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:
- For those whose rest day is on Sundays only (approx. 26days/month) - Php 10,571.00
- For those whose rest day is both on Saturdays and Sundays (approx. 22 days/ month) - Php 8,888.00
- 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.
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