The Senate on third and final reading approved a bill mandating a P100 daily pay increase for the estimated 4.2 million minimum wage earners nationwide.
“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, chairperson of the Senate committee on labor.
Under this measure, all minimum wage earners in the private sector in the entire country, whether agricultural or non-agricultural, are entitled to the increase.
The last legislated wage hike that was implemented in the country dates back to 1989 with the enactment of Republic Act No. 6727 or the Wage Rationalization Act, which effectively 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 across all regions 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.
Sen. Ronald Dela Rosa said approving the P100 wage hike bill is a well-deserved victory that they share with employees in the private sector.
Sen. Chiz 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.