Filtered By: Money

DOLE warns Boracay employers to implement wage increase

The Department of Labor and Employment (DOLE) in Western Visayas has warned employers in Boracay Island, Aklan to implement the wage increase among their workers to avoid penalties.

Cyril Ticao, DOLE Region 6 director, said the increase in daily minimum wage of private sector workers in the island took effect on Sunday, January 27.

Ticao, also the chairman of the Regional Tripartite Wages and Productivity Board (RTWPB)-Western Visayas, said notices on the effectivity of wage hike in Boracay were already issued.

“We are reminding employers there to implement additional provisions of the existing Wage Order,” he said, adding that it is the establishments’ obligation to ensure that workers are properly paid as this will contribute to improving their productivity.

Approved in June 2018, Wage Order No. 2 provided that the wage increase in Boracay should take effect three months after the opening of the island last October, taking into consideration the temporary closure of the island-destination that resulted in the non-operation of establishments.

Thus, there was no wage increase and provision of cost of living allowance (COLA) in all three barangays of Malay town for three months.

It can be recalled that most minimum wage earners in Western Visayas are already receiving an additional pay of P13.50 to P41.50 per day since last July 12.

The Wage Order set the new minimum wage rates including the COLA at P295 and P365 per day.

Unlike Wage Order No. 23, the existing one provided only two wage rates depending on various classifications or categories.

Under which, workers in the non-agriculture, industrial and commercial establishments employing more than 10 employees received a minimum wage of P365 per day.

From the previous P323.50, the RTWPB-Western Visayas came up with an increase of P26.50 on basic wage plus a Cola of P15.

All in all, the increase in this classification was P41.50.

Those employing 10 workers and below, the existing wage rate is P295 from only P271.50. It was derived from an increase of P18.50 plus a Cola of P5, or a total of P23.50.

For the agriculture sector, plantation workers received P8.50 increase and Cola of P5, thus, the new wage rate was P295. This is P13.50 higher than the previous rate of P281.50.

Those in non-plantations, the current wage rate is also P295 from the previous P271.50 due to a basic wage increase of P18.50 and P5 worth of Cola, or a total of P23.50.

Also, part of the moratorium is the provision of P5 COLA for workers of sugar industry enterprises under the agricultural, industrial, and commercial sectors in the region starting January 17.

Ticao said workers may report to the DOLE any erring employer. They will then conduct an inspection to validate the complaint.

Ticao said due process will be given to erring establishments, which should pay in retroactive the amount of increase they have not given to their workers.

“If ever they fail, we will issue an order requiring them for double indemnity,” he said, adding that continuous failure to comply merits an issuance of writ of execution. — BAP, GMA News