January 22, 2016


COTABATO CITY -- Private sector workers in the Autonomous Region in Muslim Mindanao (ARMM) are assured of a wage hike in an enabling order issued wednesday by the ARMM's Regional Tripartite Wages and Productivity Board (RTWPB).


Muslimin Jakilan, ARMM’s Department of Labor and Employment secretary, said the RTWPB, which he chairs, is set to issue the order based on Republic Act 6727, known as the Wage Rationalization Act, that institutionalizes reforms in minimum wage fixing, specifically the Two-Tiered Wage System.


Jakilan said since 2003, ARMM has been adopting a “one-wage, or uniform wage” rate system for minimum wage earners involved in non-agriculture and agriculture employment.


The ARMM’s Bureau of Public Information defined the non-agriculture sector workers as those in manufacturing, commercial, and academe, while those in the agriculture sector cover plantation and non-plantation farm workers.


“It is about time to issue another order so that workers in ARMM could cope with current socio-economic condition in the region,” Jakilan said.


He said the RTWPB issued Wednesday a new wage adjustment order applying the First Tier on the minimum mandatory wage rate in ARMM, after a series of consultations.


Currently, minimum wage earners in ARMM are receiving R250 daily.


“Using the regional poverty threshold as a major reference data for the region, the ARMM’s RTWPB adopted means to address the prevailing minimum wage gap,” he said.


On top of the mandatory wage adjustments, workers will also receive productivity bonuses and incentives subject to an agreement with their employers as advocated in the Second Tier adjustment scheme, Jakilan added.


As of April, 2015, there are some 566,945 private workers in the region awaiting a wage adjustment decision from the Board.



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