As of 2018, the highest daily minimum wage of the Philippines is National Capital Region with Php 512 for non-agriculture and Php 475 for agriculture while the lowest daily minimum wage is Autonomous Region of Muslim Mindanao Php265 for both non-agriculture and agriculture.
In Visayas, Region VII- Central Visayas obtain the highest daily minimum wage which is Php 366 for non-agriculture while Php348 for agriculture. On the other hand, Mindanao, Region XI- Davao Region has the highest minimum daily minimum wage, Php 340 in non-agriculture and Php 335 in agriculture.
The following data are acquired from the Department of Labor and Employment.
How does daily minimum wage determined?
In 2012, the Department of Labor and Employment (DOLE), through the National Wages and Productivity Commission (NWPC), implemented the two-tiered wage system (2TWS). The two-tiered wage, as a policy reform measure, is aimed at minimizing the unintended outcomes of mandated minimum wage, improving the coverage of the vulnerable sectors, and promoting productivity improvement and gain-sharing.
HOW DOES THE 2TWS WORK?
The two-tiered wage system is a reform that maintains the mandatory minimum wage (under R.A. 6727 or the Wage Rationalization Act) as the first tier; complemented by a voluntary productivity-based pay scheme as the second tier.
Minimum wage rates are determined by factors such as poverty threshold, prevailing wage rates as determined by the Labor Force Survey, and socio-economic indicators (i.e. inflation, employment figures, Gross Regional Domestic Product, among others), which insures better workers protection.
Over and above minimum wage is the voluntary productivity-based pay, which encourages workers and enterprises to become more competitive and productive by rewarding employees supplementary pay based on the quality of their performance.
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