BatchLinks

Daily minimum wages in Metro Manila will increase by P20, officials yesterday announced, formally confirming adjustments bared earlier this week.

The increase consists of a P15 adjustment in base pay and a P5 cost of living allowance (COLA), which will be integrated into base pay on August 28, the anniversary of the last minimum wage hike.

Wage Order 14, which takes effect 15 days after publication in a newspaper of general circulation, will raise the daily minimum wage in Metro Manila to P382.

A COLA lowers costs for employers as it is not included in computing wage components such as night differential, 13^th month pay, and retirement/separation benefits.

Taking into account a likely June 1 effectivity date, the P5 COLA will remain in effect for a little under three months before being integrated to base pay.

Wage board chairman Raymundo G. Agravante, in explaining the delay in the official announcement — he had confirmed the P15/P5 adjustment to BusinessWorld on Wednesday, and President Gloria Macapagal Arroyo announced a P20 increase the following day — said it was due to “diverse views.”

Source: BusinessWorld