A significant boost is coming for private sector workers in the Cordillera Administrative Region. A newly approved minimum wage increase of P35 will take effect on December 30th, offering a tangible improvement to daily earnings.
This adjustment elevates the region’s daily minimum wage to P505, a welcome change from the previous P470. The decision, formalized under Wage Order No. CAR-24, impacts all private sector employees regardless of their role or how they are compensated.
The standard eight-hour workday remains the basis for this minimum wage, ensuring consistent application across the region. This isn’t a random figure; it’s the result of a careful evaluation of the Cordillera’s economic landscape.
A review of key indicators drove this decision, including a 4.8% Gross Regional Domestic Product growth and an average inflation rate of 2.41%. Crucially, the latest poverty threshold – P435 per day – also factored into the board’s deliberations, highlighting a commitment to improving living standards.
The positive impact extends beyond standard employment, reaching those working within households. Domestic workers, often referred to as *kasambahays*, will see their minimum wage increase by P600, bringing it to P6,600.
This increase, detailed in Wage Order No. CAR-DW-07, encompasses all domestic workers, whether they live with their employers or commute daily. This includes a wide range of roles – from general house help and caregivers to cooks, gardeners, and laundry personnel.
The orders acknowledge the potential for individualized agreements, allowing employers and domestic workers to collaboratively establish competency-based pay schemes. This offers a pathway for wages to exceed the minimum, recognizing skill and experience.
As the year draws to a close, the Cordillera Administrative Region joins other areas in the Philippines in implementing wage adjustments for 2025. However, several regions – Mindoro, Marinduque, Romblon, Palawan, Zamboanga Peninsula, Northern Mindanao, and Caraga – are still considering their own adjustments.
