Monday, May 21, 2012

30 Pesos Increase on Metro Manila Minimum Wage

(Photo courtesy of Bukluran ng Manggagawang Pilipino)
The National Wages and Productivity Commission finally reached a decision to increase P30 on the minimum wage in Metro Manila after a hearing on Thursday. This will raise minimum wages in the National Capital Region (NCR) to a range of P419-456.
The wage increase is in the form of cost of living allowance (COLA) will be integrated to an existing P22 stipend into workers' paychecks. It will be given in two stages, a P20 increase will be implemented 15 days after the new wage order is published in a national broadsheet, while the remaining P10 will be paid out six months after the initial increase. This decision of staggered increase will amount up to P1,440 lost for a minimum earner employee.
The TUCP faction headed by Democrito T. Mendoza, in a statement, said the decision to integrate the P22 COLA that was ordered in last year’s wage increase would be “beneficial to workers in the computation of overtime pay, holiday pay, premium pay, night shift pay, 13th month pay, retirement pay, etc.”.

“However, we have mixed feelings with the increase of P30 in two tranches. We will challenge this and file an appeal at the appropriate time,” it added.

The TUCP faction headed by former Senator Ernesto F. Herrera, meanwhile, similarly welcomed the order “if only to provide temporary relief” but described the adjustment as a “pittance”.

The militant Bukluran ng Manggawang Pilipino called the increase an insult and reiterated calls to scrap Republic Act 6727 that mandates wage-setting at the regional level.

Let's Raise the Minimum Wage

In a column from Tempo, a certain businessman support an increase in wages for Filipino workers and his position counters the popular consensus among employers that a wage hike may have an impact on the capital of most businesses. He points out four factors to support his position:

1. Labor is only a small portion of the total operating cost of businesses so the impact of higher wages on operations will not be significant.
2. Many companies are already paying their workers higher than the statutory minimum wage.
3. Labor should not be blamed for rising business costs or for low productivity.
4. Raising wages benefit not only the employees but also businesses and the economy.

I agree to his point of view. The Philippine wage rates is only rank fourth in Asia. How can a family of 4 live decently on a daily wage of $10.50 or equivalent to $254 a month when the cost of living is almost $9 a day?

You might want to read:  
The Colossal Gap Between the Rich and the Poor
The Effect of the Growing Population in the Philippine Economy


  1. They just announced the minimum wage here too. I would think it's about the same US$300 a month.

    The thing is if all the wages are markedly increased, the employees would transfer the extra expenditure to the customers e.g. those working in the supermarkets getting the stipulated minimum wage. No employee would bear the burden, I'm sure. In the end, the prices of things will increase...and everybody will suffer.

    As a pensioner, I do not get a lot more than the minimum wage for my monthly pension. But I can manage to get by by cutting corners and spending wisely. Everyone should plan, budget well...and live within their means. Period.

  2. @suituapui, if ever the increase of employees salary will pass unto the the prices of goods, I believe it would just minimal like 1% to 2% only if not lower.
    You were right by saying that "living within our means" is an intelligent idea, but how could someone live with a minimum salary that is lower than the cost of living? The basis of my computation of $9 a day as a cost of living is only for a family of 4, but as you may know, there are families that has more than 4 family member. How could they stretch their budget then?

  3. i wish they will do the same thing in provincial rates

  4. @bluedreamer27, this wage increase is not across the board, in CAR its only P8 and in Cebu something like P6 only,

    #and oh, I just wanna clarify that my computation on the cost of living is for living in Metro Manila.

  5. it would also help if the people try to increase their financial knowledge. mahirap kasi sa tin, yung mga nabubuhay pa sa mababang sueldo yung masyadong sabik na sabik sa mga bagay na di naman talaga nila kailangan (gadgets, appliances, etc). Minsan, yung mga high earners mas pangit pa ang cellphone dun sa mga low pay laborers. kaya tingin ko, kahit pa dagdagan ang minimum pay kung di rin lang naman magbabago ang mindset ng mga Pilipino pagdating sa pera at paggastos, wala rin mangyayari. sa gastos din mapupunta.

  6. @ignored_genius, tama din naman ang obserbasyon mo bro, pero di lahat ay ganyan ang kaisipan. Mas marami pa rin ang nabubuhay na mas mataas ang nagagastos kaysa sa take-home pay nila. Yung mga gadgets ay parang isang libangan na lang. Sa aking palagay, tayo ay nasa panahon na na ang mg gadgets ay hindi na luho kundi ito ay isa ng necessity. (ito ay ayon lang naman sa aking palagay :)

  7. ang kailangan ng mga manggagawa ay nakabubuhay at makabuluhang sahod sahod! i support KMU's P125 across the board wage increase

    sabi nga ng IBON Foundation:
    "kaya ng mga employer sa Pilipinas ang makabuluhang dagdag-sahod kung tatanggapin lamang nila ang tapyas sa kanilang kasalukuyang masaganang kita. Noong 2009, ang mga kumpanya sa bansa na may iba’t ibang laki ay may pinagsamang kita na Php1,629.5 bilyon at 3.94 milyong empleyado, ayon sa 2009 Annual Survey of Philippine Business and Industry (ASPBI) ng National Statistics Office (NSO).

    Kung igagawad ang across the board na dagdag-sahod na P125, makatatanggap ang mga manggagawa ng dagdag na Php3,802 kada buwan, at ang mga kumpanya ay gagastos nang dagdag na Php49,427 bawat empleyado bawat taon (sa kwentang 13 buwang pagpasahod). Ang kabuuang halaga ng mungkahing dagdag-sahod ay Php194.9 bilyon lamang. Kapag ibinawas sa pangkabuuang kita, may matitira pa ring Php1,434.6 bilyon sa tubo ng mga kumpanya. Katumbas lang ito ng 12% bawas sa kanilang tubo"

  8. @Lawrence, yup. puede namang maging necessity yung mga gadgets pero not all the time. tulad ng iba na 3 pa cellphones tapos maraming sim cards. tapos 2 mp3 players, may tablet pa tapos may laptop. Obviously, meron sanang mas importanteng bagay siyang mapaglalaanan ng pera. investments o kung ano pa sana na kikita yung pera niya mismo para sa kanya.

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