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ILOILO CITY — Job order and contract-of-service workers of the local government here will see a significant boost in their daily wages starting August, as incoming mayor Raisa Treñas-Chu announced a P130 pay hike.
From the current P450, the daily wage of these workers will rise to P580, a salary that surpasses the regional minimum rate of P485 for private sector employees.
Treñas-Chu, daughter of outgoing mayor Jerry Treñas, said the salary increase aligns with her administration's commitment to strengthening the welfare and health coverage of city workers.
"With the same advocacy of prioritizing their health, they have an increased salary to pay for their PhilHealth because we have a memorandum of agreement with PhilHealth," she said on Thursday.
The hike comes as the city prepares to enroll casual workers in PhilHealth. Of the wage increase, P30 will be earmarked monthly for their PhilHealth contributions.
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Treñas-Chu said the health insurance contribution aims to ease the financial burden of health care and provide support in times of medical need.
The mayor-elect emphasized that the wage adjustment is backed by the city's income surplus and improved collection of real property taxes (RPT), which is the second largest revenue source of the local government.
Iloilo City recorded a 300-percent increase in its RPT collection in 2024, which drew pushback from property owners and businesses worried about the financial impact of the tax hike.
Treñas-Chu also revealed plans to expand health care support to regular city government employees.
A Health Maintenance Organization or HMO program is expected to roll out in July, in partnership with the Resource Employees Association of City Hall.
"Our story is that when you prioritize health care, we prioritize the health of our city government employees because you take care of your own first," she added.
Regular employees are also set to benefit from the second tranche of the Salary Standardization Law VI beginning in August.
The funding for these initiatives was secured under Supplemental Budget 1, approved by the Sangguniang Panlungsod last April.
