Minimum wage earners in the Bicol Region are set to receive a ₱40 daily wage increase in 2025 following the issuance of Wage Order No. RBV-22 by the Regional Tripartite Wages and Productivity Board 5 (RTWPB 5).
The Department of Labor and Employment (DOLE) Bicol confirmed the adjustment, which will bring the daily minimum wage to ₱435 across all sectors in the region.
The wage hike will be implemented in two tranches: an initial ₱20 increase will take effect on April 5, followed by another ₱20 increase on December 1.
DOLE Bicol officials explained that the wage increase was designed to ease the financial strain on workers while ensuring that businesses could gradually adjust to the new rates. They emphasized that the increase applies to all minimum wage earners, regardless of their job position, designation, or mode of payment.
The decision to adjust wages came after extensive public consultations and hearings conducted across the region. Authorities considered various economic indicators, such as the current wage order’s duration, the poverty threshold, labor productivity, and business compliance rates, before finalizing the increase.
Consultations and Wage Fixing Criteria
Public hearings were held in Naga City, Camarines Sur, and Legazpi City, Albay, in early March 2025, where workers and employers voiced their concerns. Additionally, consultations were conducted in Sorsogon, Masbate, Catanduanes, and Camarines Norte in the previous year to gather stakeholder input.
RTWPB 5 reviewed a range of factors before recommending the increase, including real wages, existing wage gaps, and the capacity of businesses to sustain higher labor costs. Officials noted that balancing the needs of both workers and employers was essential to maintaining economic stability.
In its analysis, the Board considered multiple scenarios, weighing the impact of different wage adjustment proposals. Discussions also included the implications of increased wages on mandatory employee benefits and possible exemptions for micro-businesses.
Increase for Domestic Workers
Aside from the minimum wage hike for private sector workers, domestic workers, or kasambahays, in the region will also see an increase in their monthly wages.
Under Wage Order No. RBV-DW-04, household helpers will receive a ₱1,000 increase, raising their minimum salary from ₱5,000 to ₱6,000. The adjustment is expected to benefit more than 94,000 domestic workers across Bicol.
Impact on Businesses and Prices
The wage hike has raised concerns about potential price increases on goods and services, particularly for small businesses. However, the Department of Trade and Industry (DTI) Bicol has reassured the public that the wage increase is not expected to cause significant price surges.
Regional Director Dindo Nabol explained that price controls and the Suggested Retail Price (SRP) system remain in place to help regulate the cost of manufactured goods.
Authorities believe that businesses will be able to absorb the wage adjustment without passing on significant costs to consumers.
Compliance and Exemptions
DOLE Bicol reminded employers of their legal obligation to comply with the new wage order. Companies that fail to implement the mandated increase may face penalties and be required to compensate affected workers with back pay.
However, some establishments may apply for exemptions.
Small retail and service businesses with no more than 10 employees, as well as enterprises impacted by natural or man-made calamities, may seek temporary relief from the wage order. Barangay Micro Business Enterprises (BMBEs) are automatically exempted, provided they possess a Certificate of Authority.
Businesses interested in applying for an exemption must submit their request within 75 days of the wage order’s publication. The deadline for applications is set for June 19, 2025.
Addressing Wage Distortions
With the wage increase taking effect, concerns about wage distortions—where higher entry-level salaries affect existing pay structures—have also emerged. Labor officials urged employers to engage in fair negotiations with employees to adjust wage scales accordingly.
For non-unionized workplaces, management may introduce a revised salary structure or job classification system to address potential disparities.
DOLE encourages open dialogue between employers and workers to ensure smooth implementation of the wage increase.