THE Department of Labor and Employment (DOLE) yesterday urged private establishments to ensure that all cases of wage distortion are adequately addressed, with the latest wage order of the Regional Tripartite Wages and Productivity Board (RTWPB) – National Capital Region (NCR) set to take effect on July 18.
In a phone interview, Labor Secretary Bienvenido Laguesma said companies must ensure that cases of wage distortion are resolved.
“If we take the P50 wage increase of RTWPB-NCR, for example, it’s very possible to create wage distortion,” said Laguesma.
“Thus, I urge management to ensure wage distortions are immediately and properly addressed,” he added.
Doing so, he said, is necessary to preserve harmonious labor-management relations within the establishment.
“It is important (to address wage distortion) to prevent demoralization among the workers, whose salaries might be overtaken as a result of the minimum wage adjustment,” stressed Laguesma.
The labor chief said it will even be better if the companies do it on their own initiative.
“It is good management practice to correct possible wage distortion. It will be to the benefit of the company if management voluntarily correct wage distortion,” said Laguesma.
Under NWPC Advisory No. 01 – 2023, wage distortion is defined as a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment.
The NWPC has said all enterprises may seek guidance and technical assistance from regional wage boards in correcting cases of wage distortion.
On July 18, the daily minimum wage increase of P50 granted by the RTWPB-NCR is set to take effect.
This will bring the daily minimum wage rate in the NCR from P645 to P695 for the non-agriculture sector; and from P608 to P658 for the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers.
