CV businesses have until Dec. 14 to apply for wage hike exemption

Local

BUSINESSES in Central Visayas seeking exemption from the region’s new minimum wage rates have until Dec. 14, 2026, to complete their applications, with the regional wage board yet to receive a successfully filed application under the new order.

Atty. Evita Mendoza, board secretary of the Regional Tripartite Wages and Productivity Board-Central Visayas (RTWPB-7), said on Tuesday, Oct. 20, some employers have inquired about the exemption process but have not yet complied with all the requirements for a duly filed application.

The new wage order took effect on Oct. 14, raising the daily minimum wage for private-sector workers by P42 to P582 in Class A areas and P542 in Class B areas.

Class A covers expanded Metro Cebu, while Class B includes other areas not covered by Class A, including Bohol, Negros Oriental and Siquijor.

The order also increased the monthly minimum wage for domestic workers, or kasambahays, across the region to P7,500 from P7,000.

Mendoza said businesses may qualify for an exemption under two grounds that include operating as a retail or service establishment regularly employing fewer than 10 workers, or being adversely affected by a natural calamity or human-induced disaster.

For calamity-related applications, the event must have occurred within six months before the wage order took effect, or between April 14 and Oct. 14.

The affected area must also have an official declaration of a state of calamity.

Mendoza cited Alegria town in Cebu's water crisis and agricultural crop infestation in Negros Oriental as situations involving calamity declarations in the region.

For establishments applying based on their workforce size, Mendoza said they must be service businesses whose customers are the end-users of their services.

They must also have employed fewer than 10 workers for at least six months within the January-to-October period this year.

Applicants must submit a verified application, proof of business registration and an affidavit confirming that they complied with the previous wage order and informed their employees about the exemption application.

The affidavit must also contain an undertaking to pay the required back wages plus 1% if the application is denied.

Mendoza said employers should ensure that their applications meet all the requirements before the Dec. 14 deadline.

Under the previous wage order, RTWPB 7 received 10 exemption applications. Mendoza recalled that six applications were granted, withdrawn or denied, but did not specify how many fell under each category.

Meanwhile, Mendoza encouraged employees who believe their employers have failed to implement the new wage rates to seek assistance from the Department of Labor and Employment-Central Visayas (Dole-7).

Workers may request assistance through the Single Entry Approach (Sena), a conciliation and mediation mechanism intended to help resolve labor disputes.

The new wage rates also have implications for workers’ 13th-month pay, as the benefit is computed based on their basic salary and the applicable period of employment.

Mendoza said feedback on the wage increase has been mixed, with employees and employers expressing different views about the adjustment.

She said some employers have raised concerns about the additional cost, particularly businesses with hundreds of employees.

Aside from the minimum wage increase for private-sector workers, Mendoza said the new monthly minimum wage for kasambahays across Central Visayas is P7,500, effective on the same date.

She clarified that the amount excludes mandatory benefits. She also explained that when a kasambahay’s minimum wage exceeds P5,000, the law provides for the sharing of certain benefit costs between the employer and the worker.

Employers may shoulder the full cost if they choose to do so.

Mendoza and Roberto “Bob” M. Cabardo, DOLE 7 regional labor information officer III, also discussed concerns involving final pay, certificates of employment, resignation notice periods and unremitted employee contributions.

Mendoza said the Labor Code generally requires employees to provide 30 days’ notice before their resignation takes effect.

However, the notice period may be waived by the employer, depending on the circumstances.

She said employers may require workers to complete turnover and clearance procedures before their final pay is processed. Concerns involving the withholding of employment documents must be assessed under the applicable labor rules.

On unremitted contributions, Cabardo said workers who suspect that their employers have failed to remit payments may file complaints with the appropriate agencies, including the Social Security System, Pag-IBIG Fund and PhilHealth.

He encouraged employees to coordinate directly with the agencies concerned to help determine whether their employers are complying with contribution requirements.

The new wage order follows the regional wage board’s review of minimum wages and consultations with labor, management and other stakeholders across Central Visayas.(MyTVCebu)