House panel endorses P200 wage hike for private sector workers
MANILA, Philippines — A bill proposing a P200 daily wage increase for private sector employees is scheduled for second reading at the House of Representatives.
The House Committee on Labor and Employment approved on Thursday, January 30, the substitute bill consolidating House Bills 514, 7568, 7871 and 10139 — all of which advocate for across-the-board wage hikes.
The substitute bill is titled “An Act Providing for a P200 Daily Across-the-Board Increase in the Salary Rates of Employees and Workers in the Private Sector.”
Some lawmakers suggested more modest increases, ranging from P100 to P150, while Makabayan lawmakers pushed for a P750 hike, aiming to ensure a wage that allows Filipino families to live decently.
“For our workers, every additional salary is important to meet the needs of every family. Passing a bill for a wage increase at the committee level is an important step forward,” Rep. Arlene Brosas (Gabriela Women’s Party-list) said in Filipino.
She, however, emphasized that a P200 increase falls short of the family living wage required for Filipino workers to meet their basic needs.
Citing data from IBON Foundation, Brosas said a family of five would need at least P1,200 to cover essential food and non-food expenses while also allowing for savings.
“The price of goods in each region is not different. That is why we are still calling for the creation of regional wage boards and a national minimum wage,” she said in Filipino.
The economic think tank’s latest report shows that the average family living wage across regions is at P1,224 as of December 2024. With the average nominal wage at P465 per day, an increase of P759 is needed.
This varies across regions, particularly where daily wages are significantly lower than the National Capital Region's (NCR) rate of P645.
Wage gaps in other regions exceed 50%, with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) experiencing the largest shortfall at 82.4% from the family living wage of P2,053.
Meanwhile, Rep. Raoul Manuel (Kabataan Party-list) said efforts to provide workers with wage subsidies should also be made as part of the discussions on workers.
Rep. Marissa “Del Mar” Magsino (OFW Party-List) also highlighted that rising inflation and low wages have pushed many Filipinos to seek work abroad. She said that the P200 daily wage increase would also support the wage orders of regional wage boards.
“I want to say that the overseas migration of our OFWs should be driven by free choice, not out of desperation or because they have no support in our country. They should have access to decent jobs, especially during their reintegration,” she said in Filipino.
Deputy Speaker Raymond Mendoza, representative of the Trade Union Congress of the Philippines (TUCP), emphasized that if enacted, this bill would mark the first legislative wage hike in decades.
The Regional Tripartite Wage and Productivity Boards are responsible for discussing and approving wage increases.
“The regional wage boards, for 36 long years, have trapped millions of working families in poverty with their children suffering from hunger, stunting and malnutrition,” Mendoza said. “The Philippines demands and deserves a raise.”
He added that the wage hike would be an “investment in the future.”
“When workers thrive, businesses grow. Higher wages boost household spending, pump-prime our economy, and drive sustainable, inclusive and equitable growth,” Mendoza said.
The Senate has already approved its counterpart measure on Feb. 19, 2024. However, the proposed increase is only P100.
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