The Senate has approved on third and final reading a bill mandating a P100 daily pay increase for the estimated 4.2 million minimum wage earners nationwide.
However, economists and labor advocates wanted a daily wage hike of P1,200 in the private sector, saying the increase was not inflationary.
“Let it be said that this august chamber is responsive to the needs of our kababayans, especially on the back of rising cost of living and soaring prices of basic commodities. Thus, the Senate has proposed to hike the daily minimum wage rate by P100 for workers in the private sector,” said Senator Jinggoy Estrada, chair of the Senate Committee on Labor.
Under this measure, all minimum wage earners in the private sector across the country, whether agricultural or non-agricultural, are entitled to the P100 pay hike.
The last legislated wage increase implemented in the country was in 1989 with the enactment of Republic Act No. 6727 or the Wage Rationalization Act, which declared that wages would be set on a regional basis by the regional wage boards.
While cynics say that implementing the proposed law could adversely impact businesses and impede economic growth, Estrada defended the measure, saying that a flourishing economy relies on the vitality of its workforce, who are considered the lifeblood of enterprises.
Senate Majority Leader Joel Villanueva, who voted ‘yes’ to the bill, said regional minimum wages have not kept up with rising prices over the years and the real value of the minimum wage has fallen 28 percent on average nationwide.
“In fact, based on the 2023 poverty threshold, all the regional minimum wage rates are lower than the regional poverty thresholds,” Villanueva said in a statement.
Senator Ronald Dela Rosa said approving the bill was a well-deserved victory that they share with employees in the private sector.
Senator Francis Escudero, for his part, said it showed that the intent of the Senate in passing this measure will not in any way affect the Wage Rationalization Law, as well as RA 9178 or the Barangay Micro Business Enterprises Act of 2022. He said it will even clarify things to avoid any confusion.
At the Pandesal Forum at Kamuning Bakery, Quezon City, Luke Espiritu, lawyer-president of Bukluran ng Manggagawang Pilipino, rejected the claim of the Employers Confederation of the Philippines and the other capitalists that the grant of a salary raise could cause a “catastrophic effect on inflation.”
“Again, a wage increase has nothing to do with inflation,” Espiritu argued.
“There are two things why there is inflation. One is because of the weekly increases in the price of fuel products. The other one is the monopoly control over supply and demand,” he emphasized.
Espiritu said, however, they still welcome the P100 increase in the daily minimum wage of workers.
“You (lawmakers) should not only listen to ECOP (Employers Confederation of the Philippines),” Espiritu added.
To be able to live a decent life, a P750 increase is needed for a family with at least five members, he stressed.