Balasan job order workers paid below minimum wage, COA says

ILOILO CITY — Job order (JO) workers hired by the municipal government of Balasan, Iloilo, receive daily pay ranging from PHP 200 to PHP 400, a practice the Commission on Audit (COA) flagged as inequitable, non-uniform, and damaging to worker morale.

In its 2025 annual audit report, COA said a review of JO contracts revealed significant pay disparities among workers performing substantially comparable administrative, clerical, technical, health, maintenance, and support functions across municipal offices.

“Some JO personnel receiving lower rates performed duties comparable to those receiving higher compensation,” it said.

State auditors also noted that the daily rates were substantially below the prevailing regional minimum wages set by the Regional Tripartite Wages and Productivity Board in Western Visayas (RTWPB-6).

Under the wage order that took effect in November 2024, the daily minimum wage in Western Visayas was set at PHP 513 for non-agricultural establishments employing more than 10 workers, PHP 485 for those employing 10 workers or fewer, and PHP 480 for the agricultural sector.

RTWPB-6 raised the rates again under a new wage order that took effect on Nov. 19, 2025. The daily minimum is now PHP 550, PHP 525, and PHP 520 for the same categories, respectively.

Regional wage orders formally cover private-sector workers. For government job order hires, a 2017 joint circular of the Civil Service Commission, COA, and the Department of Budget and Management provides that they be paid the daily wage of comparable government positions, plus a premium of up to 20 percent.

Wage disparities

COA documented varying compensation rates for 103 JO workers across several municipal offices.

In the Municipal Health Office, daily rates ranged from PHP 200 to PHP 400, with the designated pharmacist receiving PHP 400.

Under the Mayor’s Office, personnel assigned to the Population Commission and the General Services Office received PHP 200 daily. Traffic enforcers earned PHP 200 to PHP 250, while Human Resource Management Office and Public Employment Service Office personnel received PHP 225 to PHP 320.

Personnel assigned to the Liga ng mga Barangay and the Accounting Office received PHP 300 to PHP 325 daily.

Workers under the Municipal Social Welfare and Development Office and the Municipal Environment and Natural Resources Office received PHP 200 to PHP 320.

Market sweepers under the local economic enterprises earned PHP 225 to PHP 340 daily, while other economic enterprise personnel received PHP 200 to PHP 250.

Personnel assigned to the Municipal Planning and Development Office earned PHP 225 to PHP 320 daily, while those under the Municipal Agriculture Office received PHP 300.

Meanwhile, two learning facilitators under the Department of Education (DepEd) in Balasan received PHP 460 daily.

Budget constraints

The municipal government said JO compensation rates were based primarily on office requests, the availability of appropriations, and rates mutually agreed upon in contracts between the local government unit (LGU) and the JO personnel.

It also cited budget limitations and insufficient funds as factors that kept it from raising JO pay to levels aligned with prevailing wage benchmarks.

It added that pay differences reflected the length of service of individual JO personnel.

The LGU said it raised JO daily rates by PHP 50 starting in 2026 as an interim adjustment.

COA, however, said budget constraints should not justify compensation arrangements that are inconsistent, inequitable, and substantially below prevailing wage standards.

“Financial limitations do not exempt the Municipality from ensuring that compensation practices remain reasonable, fair, and aligned with applicable laws, regulations, and public policy principles,” it said.

State auditors said the LGU could consider realigning available resources to ensure uniform and reasonable pay for personnel performing similar duties and responsibilities.

COA added that the lack of clear, standardized criteria for setting JO pay could lead to inequitable pay practices, low morale, and inconsistent application of wage regulations.

COA directed the LGU to conduct a comprehensive review of compensation rates for all JO personnel and to adopt uniform, reasonable, and equitable standards for future engagements. The standards should take into account workers’ duties and responsibilities and prevailing regional wage rates.

It also urged the Balasan LGU to review and optimize available appropriations and allowable maintenance and other operating expenses (MOOE) for JO services to ensure adequate and lawful budgetary support for equitable pay.