DOLE Caraga Enforces New Wage Hikes; Target Set to Surpass Poverty Threshold

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By Joe-ann Gargar Solis Felisilda

BUTUAN CITY — The Department of Labor and Employment (DOLE) Caraga and the Regional Tripartite Wages and Productivity Board (RTWPB) officially kicked off the year with a high-stakes Press Conference held at the Carmen Hall, Almont Inland Hotel, on January 9, 2026. Commencing at 10:53 AM, this first media briefing of the year served as a platform to clarify the implementation of Wage Order No. RXIII-20, which mandates a new daily minimum wage of P455, and Wage Order RXIII-DW-06, increasing domestic workers’ (Kasambahay) monthly pay to P6,500.

During the open forum, DOLE officials emphasized that the wage increase applies universally across the private sector in the Caraga region. Attorney Jason P. Balais, Regional Director of DOLE Caraga, clarified that the mandate covers all employees regardless of their employment status—be it regular, casual, part-time, or full-time. However, when queried about the burgeoning gig economy, officials noted that the status of freelancers remains a complex legal area and is currently slated for further discussion and policy deliberation to determine how they fit into the regional wage structure.

Director Balais issued a stern reminder to employers regarding overtime pay and general labor standards, actively encouraging Caraganons to act as watchdogs for their own rights. He urged every worker never to hesitate in reporting employers who fail to pay the correct overtime wage or implement the new rates. To protect workers from potential retaliation, DOLE has optimized online anonymous reporting channels, ensuring that every report submitted will trigger a thorough investigation to uphold fair labor practices.

Acknowledging the financial strain on some businesses, the Board clarified that the wage increase is not automatic for distressed establishments. Business entities that truly cannot yet comply with the hike must formally apply for an exemption by the deadline of March 3, 2026. Failure to apply by this date will legally obligate the establishment to pay the mandated rates. Furthermore, the Board clarified a specific legal distinction regarding Kasambahays; under existing law, domestic workers are not included in the provision for overtime pay, unlike workers in the commercial and industrial sectors.

Officials explained that wage increases vary across the Philippines because they are calculated based on the specific cost of living and the unique poverty threshold of each region. However, the overarching goal for DOLE in 2026 is to ensure the minimum wage in Caraga successfully surpasses the regional poverty threshold, providing a living wage rather than just a survival wage. Earl V. Dela Victoria, Board Secretary VI of RTWPB Caraga, highlighted that the new rates were the result of extensive grassroots engagement, including consultations from October 21 to October 28, 2025, and public hearings from November 24 to December 1, 2025. This first tranche of the increase is currently in effect as of January 3, 2026, with a second tranche scheduled for May 1, 2026.

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