The recent approval of a minimum wage increase in the National Capital Region (NCR) is set to benefit minimum wage earners. The wage order, issued on June 27, 2024, and approved by the National Wages and Productivity Commission on June 28, 2024. We will see daily minimum wages in the NCR rise by P35 starting July 17, 2024, from P610 to P645 for the non-agriculture sector and from P573 to P608 for the agriculture sector, service and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers. It is essential to understand the implications of this wage increase and the exemptions that certain small establishments and businesses may apply for.
For employees, this increase means a higher standard of living and better financial stability. It also reflects efforts to provide fair compensation for the work they do. On the other hand, employers will need to adjust their budgets and financial planning to accommodate the wage increase.
Employers in private establishments will need to comply with the new wage rates and adjust their payroll systems accordingly. It is important for businesses to understand the implications of the wage increase on their operations and make necessary changes to ensure compliance with the regulations.
We provide payroll services that are customized to meet your needs with regard to the adjustments necessary as a result of this change in wages for private establishments. For help and to ensure seamless transitions that comply with the new regulations, please get in touch with us.
