Role and Function of the National Wages Council
- The National Wages Council is tasked with continuously studying prevailing wage rates.
- It recommends wage adjustments when it finds current wages insufficient to meet minimum living standards.
- Recommendations arise from either public hearings or tripartite conferences involving labor, employers, and government representatives.
- The Council must notify interested parties and coordinate with the Ministry of Labor and Employment during these proceedings.
- It has a 30-day period after completing hearings or conferences to forward its wage recommendations to the President/Prime Minister.
Process for Issuance of Wage Orders
- Upon receipt of the National Wages Council’s recommendation, the President/Prime Minister may approve and issue a wage order prescribing new wage rates or benefits immediately.
- If the President/Prime Minister rejects the recommendation, a statement explaining the reasons must be issued.
- The Council is then directed to reconsider the recommendation in light of the President/Prime Minister’s comments.
Effectivity and Publication of Wage Orders
- Wage orders take effect 15 days after their publication in a newspaper of general circulation.
- This ensures public awareness and allows time for stakeholders to prepare for the changes.
Immediate Effectivity of the Decree
- The decree granting these powers and procedures takes effect immediately upon promulgation.
- It was enacted to address the economic instability caused by external factors and to stabilize workers’ real income through timely wage adjustments.