CNMI Implements Minimum Wage Increase

July 2007POEA MARKET UPDATE NO. 19-07CNMI IMPLEMENTS MINIMUM WAGE INCREASEThe Philippine Overseas Labor Office (POLO) in Saipan, Commonwealth of Northern Marianas Island has reported that last 25 July 2007, the CNMI minimum wage increased from US$3.05/hour to US$3.55/hour for both resident and nonresident workers. The increase was the first step of a nine-step increment over an eight-year period. The hourly rate wage rate would continue to rise by 50 cents every year after that, until it reaches US$7.05 in seven years. CNMI employers have earlier indicated their readiness to implement the new minimum wage policy, at least for the first two rounds of wage increases although it will be difficult for the employers to implement the next phase of the wage increment. The Hotel Association of the Marianas Islands (HANMI) stated that their member companies would not be affected by the first wave of wage increase since most of their employees are receiving more than US$3.50/hour. However, some non-business employers, such as employers of houseworkers and farmers, have indicated their lack of capability to continue...