Wage board approves P22 daily minimum pay hike

MANILA, Philippines - The Regional Tripartite Wages and Productivity Board in Metro Manila has approved the P22 increase in the daily take-home pay of two million minimum wage earners in Metro Manila.                                                                                   

Beginning July 1, the minimum monthly basic pay of Metro Manila workers will go up to P13,042.                                

‘“With the increase, the current floor wage rate in Metro Manila is now pegged at P404, but the minimum wage earners would actually receive P533 a day because of the add-ons such as overtime pay and other financial benefits,” wage board secretary Aida Andres said.

‘The wage hike would cover all minimum wage earners in the private sector regardless of position, employment status, or salary scheme. ‘Of the 4.2 million workers in Metro Manila, 2.18 million receive minimum wage.                                                      

The salary hike does not cover household workers and those engaged in personal service like family drivers, as well as workers of registered Barangay Micro Business Enterprises.                                                                                 

The wage board would grant a one-year exemption to distressed businesses, those with less than P3 million capital, those affected by natural calamities, and retail and service establishments employing not more than 10 workers.

Andres said businesses that would like to be exempted from implementing the wage hike for a year may file a petition before the board within 75 days.

Labor organization Trade Union Congress of the Philippines (TUCP) said the increase is not sufficient to improve the purchasing power of workers.                                            

Andres said the latest wage order was a difficult decision for the board because it considered the capacity of employers to raise the salary of their workers and the projected inflation rate until the end of the year.                                                 

“We have 14 options ranging from granting P18 to P22 increase and it took us a month to come out with a decision. But we believe this is the right amount,” Andres said.

She said there are more than 199,000 commercial establishments in Metro Manila, but 98 percent of these are small and micro enterprises that are not capable of granting big salary adjustments.                                                              

Avito Sto. Tomas, assistant regional director of the labor department in Metro Manila, said the wage hike would restore the purchasing power of workers to the 2008 level. 

“Minimum wage earners in Metro Manila have not received any salary increase since 2008, but with the latest round of salary increase they could now purchase the same things that they used to buy in 2008,” Sto. Tomas said.                           

He said those who are not satisfied with the wage hike may file a motion for reconsideration before the National Wages and Productivity Commission (NWPC).                              

The IBON Foundation said the Arroyo administration, despite earning the distinction of producing the fastest economic growth, also has the highest unemployment rate and the smallest wage adjustments.                                     

“Arroyo has the longest running term since Marcos, but has seen the smallest increase in workers’ real wages over the last nine years,” IBON said in a statement. IBON said real wage only rose by P5 to P242 this year from P237 when Arroyo assumed office in 2001.