New wage scheme nationwide by 2013

Posted on September 21, 2012

A WAGE structure involving two tiers -- a mandatory floor rate and a performance-based pay increase system -- is expected to be fully implemented by next year, a senior Labor official said in a recent interview.

“The two-tiered wage system will be fully implemented in 2013,” said National Wages and Productivity Commission Executive Director Ciriaco A. Lagunzad III in an interview last week.

Mr. Lagunzad noted that seven of the 17 regional boards, so far, have issued this year wage orders granting increases in basic pay or cost of living allowance that incorporated the two-tiered system. These are Ilocos Region, Central Luzon, Calabarzon, Bicol Region, Eastern Visayas, the Cordillera Administrative Region and the National Capital Region, he said.

“Implementation now consists of campaigns, conduct of briefings per industry or per area,” Mr. Lagunzad said.

John D. Forbes, who heads the Legislative Committee of the American Chamber of Commerce of the Philippines, Inc., welcomed the rollout of the new scheme.

“The two-tiered wage system is a step towards the right direction in making not only wages but workers competitive regionally,” Mr. Forbes said in a telephone interview on Monday. -- A. S. O. Alegado