The Region XII (Davao Region) regional wage board’s ₱29 wage increase on February 19 is a big insult to workers. The wage order is set to take effect starting March 7.

The meager increase will raise the daily minimum from ₱481 for non-agricultural workers to ₱510, and from ₱476 to ₱505 for agricultural workers. This is not even half of the ₱1,200/day living wage.

“This increase in the worker’s wage is equivalent only to a few kilos of rice, and is not enough for the rising costs of transportation, electricity, water, education and health services,” according to the Kilusang Mayo Uno-Southern Mindanao Region (KMU-SMR). It said that the mandated insignificant wage increase is not good news especially amid the inflation that worsens the situation of workers’ families.

In February 2024, the Davao City Water District imposed a 20% increase in water rates, which is part of a 3-stage increase towards a 60% total increase in service rates. Thus, the rate for the first 10 cubic meters increased from ₱178.50 to ₱214.20. The rate was again increased in July 2024 by an additional 10%.

Meanwhile, electricity rates in the city have increased four times citing fluctuations in the generation charge supposedly based on electricity prices in the Wholesale Electricity Spot Market. The rate increased by ₱0.1379/kwh in April 2024; ₱1.6254/kwh in May 2024; ₱0.6626/kwh in November 2024; and ₱0.0957/kwh in December 2024.

Prices of goods in the region continue to rise, as it does nationwide. The inflation rate was highest in Davao provinces in July 2024, reaching 5.9%, which is higher than the national average of 4.4%.

Also in July, news of rice shortages in Davao City markets caused panic due to the disruption of supply from other countries. In December 2024, the price of rice at Bankerohan Public Market, one of the largest markets in Davao City, was at ₱45 to ₱56/kilo.

Inflation in the region remained higher from July to September, and only slightly slowed down from October to December, along with other regions.

The Davao Region is composed of Davao City, Davao del Norte, Davao del Sur, Davao Oriental, Davao de Oro (formerly Compostela Valley) and Davao Occidental