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Tax Notes

Central Visayas increases minimum wage rates beginning 2020

AFTER several discussions with and petitions from different labor unions in Central Visayas, the Department of Labor and Employment–Regional Tripartite Wages and Productivity Board VII has issued Wage Order ROVII-22 on Nov. 26, 2019 to raise the minimum wage rate across the region.

Significant changes in the newly introduced wage order include the revision of the Geographical Wage Classification from four classes (Class A, B, C and D) to three (Class A, B, and C only). Similarly, sectoral classifications were also changed. Existing employers under the non-agriculture sector employing 10 or more workers were simplified into non-agriculture, while non-agriculture employers with less than 10 workers were expanded to cover all establishments with less than 10 workers. The agriculture classification has been retained, but the rates have been reclassified to the rates of establishments employing less than 10 workers.

The following are the new wage rates in line with this order:

Such wage rates are not applicable to household or domestic workers, persons in the personal service of another and workers of establishments registered under the Barangay Micro Business Enterprise Act with valid Certificates of Authority. Private educational institutions, on the other hand, may implement a wage rate increase beginning School Year 2020 to 2021.

Because the wage order has been published in a newspaper of general circulation in Central Visayas on Dec. 21, 2019, it shall be effective beginning Jan. 5, 2020, which is 15 days after publication.

Please be guided accordingly.


P&A Grant Thornton


As published in SunStar Cebu, dated 14 January 2020