President Rodrigo Duterte has ordered the creation of a small task group to study the P500 subsidy proposed by a labor group as the buying power of daily minimum wage workers fell by 30 percent following the implementation of the Tax Reform for Acceleration and Inclusion Act.
The Associated Labor Unions-Trade Union Congress of the Philippines said the P500 monthly cash voucher government subsidy would at least help minimum-wage earners cope with the rising cost of living, particularly for the rising electricity bills.
“During a dialogue with labor groups, the President ordered the creation of a small working group composed of four representatives from his Cabinet and four representatives from the ALU-TUCP to discuss how to operationalize the subsidy and the proposed measures in bringing down the cost of power,” ALU-TUCP spokesperson Alan Tanjusay said.
The government task group is made up of secretaries from the Department of Finance, Department of Energy, Department of Labor and Employment and the Department of Budget and Management. They are slated to meet with ALU-TUCP representatives on March 15, 2018.
The labor group said the workers’ daily minimum wage fell by 30 percent due to the inflation caused by the usual demand and supply hikes and by the implementation of TRAIN excise taxes on fuel and sweetened beverages.
Tanjusay said that as of Feb. 10, 2018, the purchasing power of daily minimum wage of P512 in Metro Manila region fell to P360.31 a day—a remarkable erosion of P151.69 a day.
“In sum, workers lose a total of P3,943.94 a month to inflation. With this amount, a family can buy additional food needed for them to stay healthy in our society and remain productive citizen in nation-building. But it looks like there is no immediate relief in sight coming from the Duterte government to extend government assistance to those who are immersed in poverty and no safety nets for those who are about to fall into poverty,” Tanjusay said.
Labor Secretary Silvestre Bello III said the proposed P500 subsidy would be given to minimum wage earners who are regular employees and are regularly paying their Social Security System dues.
While the DoLE would work to fast-track the process, Bello said the proposal was yet to be approved by the Department of Budget and Management and by President Duterte himself.
He said that the subsidy program could help ease the blow of possible price increases on goods for low-income workers amid the implementation of the TRAIN.