By The Department of Labor and Employment confirmed that the Regional Tripartite Wages and Productivity Board for Western Visayas has approved a ₱40 daily minimum wage increase for private sector workers. DOLE Secretary Francis Tolentino announced the decision on October 24, 2026, according to DZRH.
The wage order covers Aklan, Antique, Capiz, Guimaras, Iloilo, Iloilo City, Negros Occidental, and Bacolod City. Non-agricultural workers will see their daily minimum wage rise from ₱550 to ₱590, while agricultural workers will move from ₱520 to ₱565. Tolentino said the order takes effect 15 days after publication on October 24, placing the likely implementation date in November 2026.
What the ₱40 increase means for payroll teams
Payroll managers in Western Visayas need to prepare for a mid-cycle adjustment. The increase applies to daily minimum wage rates, which means payroll calculations for November must reflect the new figures from the effective date onward. For a standard 26-day work month, the ₱40 increase adds roughly ₱1,040 to monthly base pay for non-agricultural workers at the minimum wage level.
The change affects more than just base pay. Overtime rates, night differentials, holiday pay, and 13th month calculations all derive from the daily rate. A higher minimum wage raises the floor for these computations. Payroll teams should update their systems as soon as the wage order is published and confirm the exact effective date with the DOLE regional office.
Employers should also check whether the ₱40 is a basic pay increase or includes a cost of living allowance component. The distinction matters for statutory benefit calculations. The DZRH report does not specify how the increase is structured, so payroll leads should obtain the full wage order text from RTWPB-6.
Coverage and exemptions under Philippine wage orders
Regional wage orders in the Philippines typically set different rates by sector and establishment size. The DZRH report confirms separate rates for non-agricultural and agricultural workers, but does not detail rates for retail and service establishments employing fewer than 10 workers, or for cottage industries. These categories often receive lower minimum rates under RTWPB orders.
Barangay micro business enterprises, or BMBEs, registered under Republic Act 9178 are generally exempt from minimum wage orders. Distressed establishments may also apply for exemption through the RTWPB, but must submit audited financial statements and other documentation to prove inability to pay. The exemption process has strict deadlines, usually within 30 days of the wage order’s publication.
Domestic workers, or kasambahay, are not covered by regional wage orders for private sector workers. Their minimum wages are set separately under the Domestic Workers Act, or Batas Kasambahay. HR teams managing household staff should check the current kasambahay wage order for Western Visayas rather than applying the ₱40 increase.
How the Western Visayas rate compares
The new ₱590 daily rate for non-agricultural workers in Western Visayas reflects the region’s economic conditions and cost of living. Wage boards consider multiple factors when setting rates, including the consumer price index, poverty threshold, and employer capacity to pay. The 12-month rule under the Wage Rationalization Act generally prevents wage orders from being issued more than once a year unless extraordinary circumstances exist.
The RTWPB process includes public hearings where labor groups, employers, and government agencies present evidence and proposals. Labor organizations often petition for larger increases than what is ultimately approved. The ₱40 figure represents the board’s balancing of worker needs against business sustainability, particularly for small enterprises in the region.
Practical steps for employers and workers
Employers should post the new wage order in a conspicuous workplace location once it takes effect. Non-compliance carries penalties under Philippine labor law, including fines and potential criminal liability for willful violations. Workers who do not receive the increase after the effective date can file a complaint with the DOLE regional office or call the DOLE hotline at 1349.
HR and payroll leads should document the wage adjustment in employment records and issue updated pay slips showing the new daily rate. For companies with workers at or near minimum wage, the increase may require reviewing salary structures to maintain internal equity. Workers earning above the minimum are not legally entitled to an automatic increase, though some employers adjust wages across the board to preserve morale.
The wage order number and full text were not included in the DZRH report. Payroll teams should request the official order from RTWPB-6 or the DOLE Western Visayas regional office to confirm sector-specific rates, exemption procedures, and the precise effective date.
Sources: dzrh
Photo: OFFICERS-UNIFORM-1899-1902 - Copy by Presidential Museum and Library, Public domain
