Strategic Insights: Php 35 Minimum Wage Increase in NCR | CloudCFO PH
Strategic Insights: Php 35 Minimum Wage Increase in NCR

Strategic Insights: Php 35 Minimum Wage Increase in NCR

Posted on July 10, 2024

On July 1, 2024, the Department of Labor and Employment (DOLE) approved a Php 35 increase in the daily minimum wage for workers in the National Capital Region.

The Regional Tripartite Wages and Productivity Board in the National Capital Region supported the petitions for the wage increase from various labor groups, including the Unity for Wage Increase Now and hospital employees’ associations. These labor groups argued that the current wages were no longer enough to cover basic living expenses, especially with the 14-year high inflation in January.

The new wage increase covers the following:

Effects on Businesses

The recent increase in minimum wage rates in NCR has several benefits for small businesses. The 5.7% increase also results in a 5% rise in wage-related benefits such as 13th-month pay, service incentive leave, and social security benefits like SSS, PhilHealth, and Pag-IBIG, according to the Department of Labor and Employment (DOLE).

The Benefits of Higher Wages

 1. Motivated and Retained Employees: Higher wages can lead to increased motivation, higher productivity, and lower turnover rates, saving businesses the costs of hiring and training new staff. 

2. Enhanced Company Reputation: Paying above the poverty threshold shows a commitment to fair wages, attracting better talent, and improving customer perceptions. 

3. Boost in the Local Economy: Higher wages mean more money for employees to spend, benefiting small businesses through increased sales and customer loyalty. 

4. Long-Term Efficiency and Growth: Although higher wages can increase immediate costs, they encourage businesses to innovate and improve efficiency, leading to long-term growth and a stronger competitive edge.

Ensuring Compliance with Cloud-Based Payroll Solutions

To smoothly adapt to the wage changes, small businesses can benefit from cloud-based payroll solutions:

 1. Efficiency and Accessibility: Easily access and manage payroll data from anywhere with an internet connection.

2. Cost Savings: Reduce the need for physical IT infrastructure and paper-based processes, leading to significant savings.

3. Enhanced Security: Protect sensitive data with encryption and regular backups. 

4. Compliance and Reporting: Stay compliant with tax and employment regulations through automated updates and reporting.

 5. Employee Self-Service: Empower employees to access their pay slips, tax documents, and update personal information through self-service portals. 

6. Disaster Recovery and Business Continuity: Ensure payroll data is backed up and quickly restorable in case of a disaster, maintaining business continuity.

With these types of wage or salary changes, ensure that your business can comply through advanced payroll solutions. Partner with CloudCFO’s Payroll Services to stay compliant.

DISCLAIMER: This article is strictly for general information purposes only. Nothing in this article constitutes or intends to constitute financial, accounting, regulatory or legal advice and must not be used as a substitute for professional advice. It is still necessary to consult your relevant professional adviser regarding any specific matter referenced above.

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If you want to know more about our tailored services and processes, drop us a line to discuss how we can help you to grow your business. We will respond to you within 24 hours.