A new round of minimum daily wage increases was announced last week by the Department of Labor and Employment (DOLE). Wage Order No. NCR-24 granted a 7 percent increase, or P40, to workers of private establishments in the National Capital Region (NCR).

The latest increases will take effect beginning July 16. For workers in the non-agricultural sector, their daily pay will go from P570 to P610. It will adjust from P533 to P573 for the agriculture sector, service, and retail establishments employing 15 or less workers, and manufacturing establishments regularly employing less than 10 workers. As is the case with any wage orders, companies that have 10 workers or less and those affected by natural calamities can apply for exemption.

According to DOLE, the wage order is expected to directly benefit 1.1 million minimum wage earners in the region. Then there’s another 1.5 million full-time wage and salary workers who are earning above the minimum wage that may also indirectly benefit as a result of upward adjustments at the enterprise level arising from the correction of wage distortion.

But as with nearly all mandatory wage increases, the reactions were quite predictable. Business groups and employers are always saying increases could hurt their bottom line and lead to lower profits and possible layoffs, even closures. As for labor groups and employees, they contest how the rate is arrived at, especially when it is nowhere near the amounts they asked for.

Let’s turn away from this endless debate and instead focus on what we have and our win for the moment. If you are a minimum wage worker in the NCR, you will get another P40 daily, starting in two weeks. If your pay is above the minimum wage, you could also get an increase as your employer tries to manage pay distortions and that’s a win for your wallet.

Big or small, increases are always welcome and here are 5 simple tips to make them go a long way, even at P40.

#1 Pay off your debts

If you’ve been struggling to make ends meet, likely you currently owe several debts. Getting an increase is the best time to pay off those debts, and you should start with the ones that charge the most interest.

#2 Boost your savings

No debts? Then why not start saving or boost your savings if you already have some. As long as possible, you should “ignore” your increase and put that away. Even if you only manage to do so for a few months or a year, you’ll end up with a nice stash of extra cash.

#3 Don’t go shopping

Maybe you’ve been wanting to get a new phone, or upgrade appliances at home. Or family members are asking for their needs and wants to. Unless it is urgent, put it off for now. Give yourself time to experience that P40 extra, like a boost of financial oxygen that can help you breathe easier, even sleep better.

#4 Set money goals

Yes, P40 extra daily is not much, but if you have money goals and save the P40 towards these goals, you may surprise yourself. I use Maya for electronic payments, and like that I can park my money in their Savings and earn interest. Plus, I can create Personal Goals and they are separate e-wallets so easier to track. It can be a new laptop, or a trip, or even dental or skin care programs.

#5 Enjoy the boost to your 13th month pay and mandatory contributions

One nice thing about any increase is that all your wage-related benefits also adjust, and this time, by 7 percent. Benefits include your 13th-month pay, service incentive leave if you have any, and social security benefits such as SSS, PhilHealth and Pag-lBlG. You may not feel the boost right now, but think of all these as long-time rewards that will cost you little or nothing.

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